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Wisconsin Energy Corp (NYSE:WEC)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

Wisconsin Energy Corp has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

WEC' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 7

3
9

During the past 13 years, the highest Piotroski F-Score of Wisconsin Energy Corp 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 144.3 + 207.6 + 133 + 126.3 = $611 Mil.
Cash Flow from Operations was 180.7 + 385.1 + 336.2 + 313.3 = $1,215 Mil.
Revenue was 1178.3 + 1695 + 1043.7 + 1033.3 = $4,950 Mil.
Gross Profit was 684.3 + 784.9 + 625.3 + 625.9 = $2,720 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(14372.8 + 14769.4 + 14800.8 + 14619.8 + 14724.9) / 5 = $14657.54 Mil.
Total Assets at the begining of this year (Sep13) was $14,373 Mil.
Long-Term Debt was $4,570 Mil.
Total Current Assets was $1,275 Mil.
Total Current Liabilities was $1,066 Mil.
Net Income was 98.8 + 176.6 + 119 + 137.5 = $532 Mil.

Revenue was 1071.2 + 1275.2 + 1012.3 + 1053.2 = $4,412 Mil.
Gross Profit was 643.7 + 734.1 + 621 + 652.5 = $2,651 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(13834.7 + 14285 + 14295.3 + 14317 + 14372.8) / 5 = $14220.96 Mil.
Total Assets at the begining of last year (Sep12) was $13,835 Mil.
Long-Term Debt was $4,371 Mil.
Total Current Assets was $1,238 Mil.
Total Current Liabilities was $1,291 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.

Wisconsin Energy Corp's current net income (TTM) was 611. ==> Positive ==> Score 1.

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.

Wisconsin Energy Corp's current cash flow from operations (TTM) was 1,215. ==> 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)/Total Assets at the Beginning of This Year (Sep13)
=611.2/14372.8
=0.04252477

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=531.9/13834.7
=0.0384468

Wisconsin Energy Corp's return on assets of this year was 0.04252477. Wisconsin Energy Corp's return on assets of last year was 0.0384468. ==> 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.

Wisconsin Energy Corp's current net income (TTM) was 611. Wisconsin Energy Corp's current cash flow from operations (TTM) was 1,215. ==> 1,215 > 611 ==> 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
=4569.6/14657.54
=0.31175763

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=4370.9/14220.96
=0.30735618

Wisconsin Energy Corp's gearing of this year was 0.31175763. Wisconsin Energy Corp's gearing of last year was 0.30735618. ==> Last year is lower than this year ==> Score 0.

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
=1274.5/1065.6
=1.19603979

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=1238.2/1291.2
=0.95895291

Wisconsin Energy Corp's current ratio of this year was 1.19603979. Wisconsin Energy Corp's current ratio of last year was 0.95895291. ==> 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.

Wisconsin Energy Corp's number of shares in issue this year was 227.4. Wisconsin Energy Corp's number of shares in issue last year was 228.8. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=2720.4/4950.3
=0.54954245

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2651.3/4411.9
=0.6009429

Wisconsin Energy Corp's gross margin of this year was 0.54954245. Wisconsin Energy Corp's gross margin of last year was 0.6009429. ==> Last year's gross margin is higher ==> Score 0.

Q9. 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 (Sep13)
=4950.3/14372.8
=0.34442141

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=4411.9/13834.7
=0.31890102

Wisconsin Energy Corp's asset turnover of this year was 0.34442141. Wisconsin Energy Corp's asset turnover of last year was 0.31890102. ==> 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+0+1+1+0+1
=7

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

Wisconsin Energy Corp has an F-score of 7. 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


Historical Data

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

Wisconsin Energy Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1100101101
Q4 1111111111
Q5 1111011011
Q6 0001100101
Q7 0110110111
Q8 0010011110
Q9 0100001101
F-score 5765667868

Wisconsin Energy Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 1100001111
Q4 1111111111
Q5 1111111100
Q6 0000111111
Q7 1111111111
Q8 1111000000
Q9 0000001111
F-score 7766668877
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