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Vishay Precision Group Inc (NYSE:VPG)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

Vishay Precision Group Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

VPG' s 10-Year Piotroski F-Score Range
Min: 3   Max: 6
Current: 6

3
6

During the past 5 years, the highest Piotroski F-Score of Vishay Precision Group Inc was 6. The lowest was 3. And the median was 5.


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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 1.128 + 1.706 + 3.461 + 3.119 = $9.4 Mil.
Cash Flow from Operations was 8.447 + 2.039 + 2.845 + 7.656 = $21.0 Mil.
Revenue was 62.248 + 61.041 + 65.162 + 63.402 = $251.9 Mil.
Gross Profit was 23.083 + 22.047 + 24.697 + 23.777 = $93.6 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(288.842 + 292.104 + 290.915 + 294.979 + 292.648) / 5 = $291.9 Mil.
Total Assets as of Sep13 was $288.8 Mil.
Long-Term Debt was $19.1 Mil.
Total Current Assets was $186.5 Mil.
Total Current Liabilities was $44.7 Mil.
Net Income was 5.165 + 0.387 + 1.31 + 1.466 = $8.3 Mil.

Revenue was 51.01 + 57.461 + 62.837 + 57.729 = $229.0 Mil.
Gross Profit was 17.562 + 19.969 + 21.56 + 19.243 = $78.3 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(262.504 + 263.173 + 294.628 + 287.704 + 288.842) / 5 = $279.4 Mil.
Total Assets as of Sep12 was $262.5 Mil.
Long-Term Debt was $24.0 Mil.
Total Current Assets was $178.1 Mil.
Total Current Liabilities was $41.4 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.

Vishay Precision Group Inc's current net income (ttm) was 9.4. ==> 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.

Vishay Precision Group Inc's current cash flow from operations (ttm) was 21.0. ==> 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 (Sep13)
=9.414/288.842
=0.03259221

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Sep12)
=8.328/262.504
=0.03172523

Vishay Precision Group Inc's return on assets of this year was 0.03259221. Vishay Precision Group Inc's return on assets of last year was 0.03172523. ==> 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.

Vishay Precision Group Inc's current net income (ttm) was 9.4. Vishay Precision Group Inc's current cash flow from operations (ttm) was 21.0. ==> 21.0 > 9.4 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=19.06/291.8976
=0.06529687

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=24.029/279.3702
=0.08601132

Vishay Precision Group Inc's gearing of this year was 0.06529687. Vishay Precision Group Inc's gearing of last year was 0.08601132. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=186.514/44.718
=4.17089315

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=178.056/41.392
=4.30170081

Vishay Precision Group Inc's current ratio of this year was 4.17089315. Vishay Precision Group Inc's current ratio of last year was 4.30170081. ==> Last year's current ratio is higher ==> Score 0.

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.

Vishay Precision Group Inc's number of shares in issue this year was 14. Vishay Precision Group 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

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
=93.604/251.853
=0.37166125

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=78.334/229.037
=0.34201461

Vishay Precision Group Inc's gross margin of this year was 0.37166125. Vishay Precision Group Inc's gross margin of last year was 0.34201461. ==> 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 (Sep13)
=251.853/288.842
=0.87194037

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Sep12)
=229.037/262.504
=0.87250861

Vishay Precision Group Inc's asset turnover of this year was 0.87194037. Vishay Precision Group Inc's asset turnover of last year was 0.87250861. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+0+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Vishay Precision Group 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, 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.

Vishay Precision Group Inc Annual Data

Dec09Dec10Dec11Dec12Dec13
Q1 1
Q2 1
Q3 0
Q4 1
Q5 0
Q6 0
Q7 0
Q8 1
Q9 1
F-score 5

Vishay Precision Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 111111111
Q2 111111111
Q3 011010001
Q4 111111111
Q5 110000111
Q6 110000110
Q7 000000000
Q8 001001111
Q9 000011000
F-score 6565355666
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