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Vulcan Materials Co (NYSE:VMC)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Vulcan Materials Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

VMC' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 8

3
9

During the past 13 years, the highest Piotroski F-Score of Vulcan Materials Co was 9. The lowest was 3. 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 own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 41.363 + 9.082 + 53.995 + 45.967 = $150 Mil.
Cash Flow from Operations was 305.357 + 96.487 + -4.972 + 27.872 = $425 Mil.
Revenue was 813.568 + 680.246 + 574.42 + 791.143 = $2,859 Mil.
Gross Profit was 158.983 + 117.347 + 34.092 + 174.788 = $485 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(8120.224 + 8310.056 + 8259.143 + 7872.235 + 7933.898) / 5 = $8,099 Mil.
Total Assets as of Jun13 was $8,120 Mil.
Long-Term Debt was $2,006 Mil.
Total Current Assets was $1,102 Mil.
Total Current Liabilities was $349 Mil.
Net Income was 14.26 + 3.483 + -54.836 + 28.772 = $-8 Mil.

Revenue was 728.861 + 608.431 + 538.162 + 738.733 = $2,614 Mil.
Gross Profit was 126.923 + 79.206 + 17.655 + 132.895 = $357 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(8180.075 + 8225.916 + 8126.599 + 8078.475 + 8120.224) / 5 = $8,146 Mil.
Total Assets as of Jun12 was $8,180 Mil.
Long-Term Debt was $2,524 Mil.
Total Current Assets was $912 Mil.
Total Current Liabilities was $392 Mil.

Profitability

Q1. Return on Assets (ROA)

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

Score 1 if positive, 0 if negative.

Vulcan Materials Co's current net income (ttm) was 150. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

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

Score 1 if positive, 0 if negative.

Vulcan Materials Co's current cash flow from operations (ttm) was 425. ==> Positive ==> Score 1.

Q3. 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)/Beginning of This Year Total Assets (Jun13)
=150.407/8120.224
=0.01852252

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Jun12)
=-8.321/8180.075
=-0.00101723

Vulcan Materials Co's return on assets of this year was 0.01852252. Vulcan Materials Co's return on assets of last year was -0.00101723. ==> This year is higher. ==> Score 1.

Q4. 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.

Vulcan Materials Co's current net income (ttm) was 150. Vulcan Materials Co's current cash flow from operations (ttm) was 425. ==> 425 > 150 ==> CFROA > ROA ==> Score 1.

Funding

Q5. 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: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=2006.379/8099.1112
=0.24772829

Gearing (Last Year: Jun13)=Long-Term Debt/Average Total Assets from Jun12 to Jun13
=2524.42/8146.2578
=0.30988707

Vulcan Materials Co's gearing of this year was 0.24772829. Vulcan Materials Co's gearing of last year was 0.30988707. ==> This year is lower or equal to last year. ==> Score 1.

Q6. 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: Jun14)=Total Current Assets/Total Current Liabilities
=1101.984/349.405
=3.15388732

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=911.649/391.769
=2.32700648

Vulcan Materials Co's current ratio of this year was 3.15388732. Vulcan Materials Co's current ratio of last year was 2.32700648. ==> This year's current ratio is higher. ==> Score 1.

Q7. 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.

Vulcan Materials Co's number of shares in issue this year was 132.9. Vulcan Materials Co's number of shares in issue last year was 131.3. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. 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
=485.21/2859.377
=0.16969081

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=356.679/2614.187
=0.13643974

Vulcan Materials Co's gross margin of this year was 0.16969081. Vulcan Materials Co's gross margin of last year was 0.13643974. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by begining of the year total assets) 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)/Beginning of This Year Total Assets (Jun13)
=2859.377/8120.224
=0.35213031

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Jun12)
=2614.187/8180.075
=0.31957983

Vulcan Materials Co's asset turnover of this year was 0.35213031. Vulcan Materials Co's asset turnover of last year was 0.31957983. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Vulcan Materials Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Vulcan Materials Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111010001
Q2 1111111111
Q3 1111010111
Q4 1111111111
Q5 1100100011
Q6 1000111111
Q7 0011000000
Q8 0111000011
Q9 1111000111
F-score 7777453578

Vulcan Materials Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 0000001111
Q2 1111111111
Q3 1111111111
Q4 1111111111
Q5 0111100011
Q6 1001111111
Q7 0000000000
Q8 1111111111
Q9 1111011111
F-score 6667667788
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