Switch to:
GuruFocus has detected 4 Warning Signs with Village Super Market Inc $VLGEA.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Village Super Market Inc (NAS:VLGEA)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Village Super Market Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

VLGEA' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Max: 9
Current: 6

1
9

During the past 13 years, the highest Piotroski F-Score of Village Super Market Inc was 9. The lowest was 1. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jan17) TTM:Last Year (Jan16) TTM:
Net Income was 5.882 + 8.448 + 4.109 + 5.992 = $24 Mil.
Cash Flow from Operations was 7.94 + 17.42 + -12.317 + 27.463 = $41 Mil.
Revenue was 387.905 + 437.301 + 389.692 + 412.215 = $1,627 Mil.
Gross Profit was 106.738 + 120.08 + 104.648 + 111.238 = $443 Mil.
Average Total Assets from the begining of this year (Jan16)
to the end of this year (Jan17) was
(443.235 + 435.801 + 450.254 + 443.247 + 449.982) / 5 = $444.5038 Mil.
Total Assets at the begining of this year (Jan16) was $443 Mil.
Long-Term Debt was $43 Mil.
Total Current Assets was $179 Mil.
Total Current Liabilities was $93 Mil.
Net Income was 13.206 + 6.932 + 4.43 + 6.284 = $31 Mil.

Revenue was 387.1 + 405.754 + 389.529 + 420.17 = $1,603 Mil.
Gross Profit was 107.098 + 112.088 + 105.487 + 112.726 = $437 Mil.
Average Total Assets from the begining of last year (Jan15)
to the end of last year (Jan16) was
(467.812 + 427.412 + 431.889 + 434.546 + 443.235) / 5 = $440.9788 Mil.
Total Assets at the begining of last year (Jan15) was $468 Mil.
Long-Term Debt was $44 Mil.
Total Current Assets was $148 Mil.
Total Current Liabilities was $98 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Village Super Market Inc's current net income (TTM) was 24. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Village Super Market Inc's current cash flow from operations (TTM) was 41. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Jan16)
=24.431/443.235
=0.05511974

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jan15)
=30.852/467.812
=0.06594957

Village Super Market Inc's return on assets of this year was 0.05511974. Village Super Market Inc's return on assets of last year was 0.06594957. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Village Super Market Inc's current net income (TTM) was 24. Village Super Market Inc's current cash flow from operations (TTM) was 41. ==> 41 > 24 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jan17)=Long-Term Debt/Average Total Assets from Jan16 to Jan17
=43.14/444.5038
=0.09705204

Gearing (Last Year: Jan16)=Long-Term Debt/Average Total Assets from Jan15 to Jan16
=43.977/440.9788
=0.09972588

Village Super Market Inc's gearing of this year was 0.09705204. Village Super Market Inc's gearing of last year was 0.09972588. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Jan17)=Total Current Assets/Total Current Liabilities
=178.973/93.233
=1.91963146

Current Ratio (Last Year: Jan16)=Total Current Assets/Total Current Liabilities
=147.827/98.324
=1.50346813

Village Super Market Inc's current ratio of this year was 1.91963146. Village Super Market Inc's current ratio of last year was 1.50346813. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Village Super Market Inc's number of shares in issue this year was 14. Village Super Market Inc's number of shares in issue last year was 13.9. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=442.704/1627.113
=0.27207944

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=437.399/1602.553
=0.27293887

Village Super Market Inc's gross margin of this year was 0.27207944. Village Super Market Inc's gross margin of last year was 0.27293887. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Jan16)
=1627.113/443.235
=3.67099394

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jan15)
=1602.553/467.812
=3.42563466

Village Super Market Inc's asset turnover of this year was 3.67099394. Village Super Market Inc's asset turnover of last year was 3.42563466. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+0+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Village Super Market Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Village Super Market Inc Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
Question 1 1111111111
Question 2 1111111111
Question 3 1110010010
Question 4 1111111101
Question 5 1000111011
Question 6 0011011011
Question 7 0000000000
Question 8 1110010010
Question 9 0100010001
F-score 6664485366

Village Super Market Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
Question 1 1111111111
Question 2 1111111111
Question 3 1111110000
Question 4 1100001111
Question 5 0001100111
Question 6 0011111111
Question 7 0000001000
Question 8 1111110000
Question 9 1000001111
F-score 6556656666
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK