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Vitesse Semiconductor Corp (NAS:VTSS)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Vitesse Semiconductor Corp has an F-score of 3 indicating the company's financial situation is typical for a stable company.

VTSS' s 10-Year Piotroski F-Score Range
Min: 1   Max: 8
Current: 3

1
8

During the past 13 years, the highest Piotroski F-Score of Vitesse Semiconductor Corp was 8. The lowest was 1. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was -4.388 + -5.831 + -5.371 + -5.765 = $-21.4 Mil.
Cash Flow from Operations was -3.039 + -0.04 + -4.523 + -2.416 = $-10.0 Mil.
Revenue was 27.151 + 25.592 + 27.083 + 26.875 = $106.7 Mil.
Gross Profit was 14.897 + 14.613 + 16.407 + 14.122 = $60.0 Mil.
Total Assets at the begining of this year (Jun13) was $104.6 Mil.
Total Assets was $103.2 Mil.
Long-Term Debt was $16.3 Mil.
Total Current Assets was $95.1 Mil.
Total Current Liabilities was $55.2 Mil.
Net Income was -6.434 + -4.847 + -5.032 + 1.218 = $-15.1 Mil.

Revenue was 26.418 + 24.753 + 25.727 + 29.468 = $106.4 Mil.
Gross Profit was 14.752 + 13.384 + 14.752 + 17.089 = $60.0 Mil.
Total Assets at the begining of last year (Jun12) was $57.1 Mil.
Total Assets was $104.6 Mil.
Long-Term Debt was $52.2 Mil.
Total Current Assets was $96.8 Mil.
Total Current Liabilities was $32.2 Mil.

Profitability

Q1. 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.

Vitesse Semiconductor Corp's current net income was -21.4. ==> Negative ==> Score 0.

Q2. 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.

Vitesse Semiconductor Corp's current cash flow from operations was -10.0. ==> Negative ==> Score 0.

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/Total Assets at the beginning of this year (Jun13)
=-21.355/104.557
=-0.20424266

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=-15.095/57.143
=-0.26416184

Vitesse Semiconductor Corp's return on assets of this year was -0.20424266. Vitesse Semiconductor Corp's return on assets of last year was -0.26416184. ==> 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.

Vitesse Semiconductor Corp's current net income was -21.4. Vitesse Semiconductor Corp's current cash flow from operations was -10.0. ==> -10.0 > -21.4 ==> 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)=Long-Term Debt/Total Assets
=16.328/103.179
=0.15824926

Gearing (Last Year)=Long-Term Debt/Total Assets
=52.166/104.557
=0.49892403

Vitesse Semiconductor Corp's gearing of this year was 0.15824926. Vitesse Semiconductor Corp's gearing of last year was 0.49892403. ==> 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)=Total Current Assets/Total Current Liabilities
=95.118/55.158
=1.72446427

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=96.813/32.201
=3.00652154

Vitesse Semiconductor Corp's current ratio of this year was 1.72446427. Vitesse Semiconductor Corp's current ratio of last year was 3.00652154. ==> 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.

Vitesse Semiconductor Corp's number of shares in issue this year was 60. Vitesse Semiconductor Corp's number of shares in issue last year was 38.6. ==> 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)=Gross Profit/Revenue
=60.039/106.701
=0.56268451

Gross Margin (Last Year)=Gross Profit/Revenue
=59.977/106.366
=0.56387379

Vitesse Semiconductor Corp's gross margin of this year was 0.56268451. Vitesse Semiconductor Corp's gross margin of last year was 0.56387379. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (Jun13)
=106.701/104.557
=1.02050556

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=106.366/57.143
=1.86140035

Vitesse Semiconductor Corp's asset turnover of this year was 1.02050556. Vitesse Semiconductor Corp's asset turnover of last year was 1.86140035. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+0+1+1+1+0+0+0+0
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

Vitesse Semiconductor Corp has an F-score of 3 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 own currency.

Vitesse Semiconductor Corp Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Q1 0000100000
Q2 1101011010
Q3 1011101110
Q4 1111011111
Q5 1000101001
Q6 0101101011
Q7 0000000000
Q8 1001101100
Q9 1011101010
F-score 6336627353

Vitesse Semiconductor Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 0000000000
Q2 1111100000
Q3 0011100001
Q4 1111111111
Q5 0001111111
Q6 0111011000
Q7 0000000000
Q8 1000000000
Q9 1111110000
F-score 4456543223
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