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Telular Corporation (NAS:WRLS)
Piotroski F-Score
0 (As of Today)

The zones of discrimination were as such:

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

Telular Corporation has an F-score of 5 indicating the company's financial situation is typical for a stable company.

WRLS' s 10-Year Piotroski F-Score Range
Min: 0   Max: 0
Current: 0


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 (Mar13) TTM:Last Year (Mar12) TTM:
Net Income was 1.482 + 1.621 + 2.197 + 1.854 = $7.15 Mil.
Cash Flow from Operations was 3.862 + 4.087 + -1.04 + 2.588 = $9.50 Mil.
Revenue was 22.899 + 23.449 + 24.782 + 24.793 = $95.92 Mil.
Gross Profit was 12.125 + 12.527 + 12.423 + 13.067 = $50.14 Mil.
Average Total Assets from the begining of this year (Mar12)
to the end of this year (Mar13) was
(111.811 + 111.745 + 113.185 + 112.713 + 110.36) / 5 = $111.96 Mil.
Total Assets as of Mar12 was $111.81 Mil.
Long-Term Debt was $20.89 Mil.
Total Current Assets was $32.54 Mil.
Total Current Liabilities was $15.59 Mil.
Net Income was 2.035 + 1.618 + 1.624 + 1.172 = $6.45 Mil.

Revenue was 12.824 + 13.092 + 13.705 + 19.794 = $59.42 Mil.
Gross Profit was 6.969 + 6.594 + 7.514 + 10.426 = $31.50 Mil.
Average Total Assets from the begining of last year (Mar11)
to the end of last year (Mar12) was
(66.312 + 67.737 + 68.233 + 68.209 + 111.811) / 5 = $76.46 Mil.
Total Assets as of Mar11 was $66.31 Mil.
Long-Term Debt was $27.00 Mil.
Total Current Assets was $28.71 Mil.
Total Current Liabilities was $14.46 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.

Telular Corporation's current net income (ttm) was 7.15. ==> 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.

Telular Corporation's current cash flow from operations (ttm) was 9.50. ==> 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 (Mar12)
=7.154/111.811
=0.06398297

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Mar11)
=6.449/66.312
=0.09725238

Telular Corporation's return on assets of this year was 0.06398297. Telular Corporation's return on assets of last year was 0.09725238. ==> Last year is higher ==> Score 0.

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.

Telular Corporation's current net income (ttm) was 7.15. Telular Corporation's current cash flow from operations (ttm) was 9.50. ==> 9.50 > 7.15 ==> 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: Mar13)=Long-Term Debt/Average Total Assets from Mar12 to Mar13
=20.888/111.9628
=0.18656197

Gearing (Last Year: Mar12)=Long-Term Debt/Average Total Assets from Mar11 to Mar12
=27/76.4604
=0.35312397

Telular Corporation's gearing of this year was 0.18656197. Telular Corporation's gearing of last year was 0.35312397. ==> 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: Mar13)=Total Current Assets/Total Current Liabilities
=32.544/15.588
=2.08775982

Current Ratio (Last Year: Mar12)=Total Current Assets/Total Current Liabilities
=28.71/14.46
=1.98547718

Telular Corporation's current ratio of this year was 2.08775982. Telular Corporation's current ratio of last year was 1.98547718. ==> 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.

Telular Corporation's number of shares in issue this year was 18. Telular Corporation's number of shares in issue last year was 17.1. ==> 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
=50.142/95.923
=0.52273177

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=31.503/59.415
=0.53021964

Telular Corporation's gross margin of this year was 0.52273177. Telular Corporation's gross margin of last year was 0.53021964. ==> 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 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 (Mar12)
=95.923/111.811
=0.85790307

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Mar11)
=59.415/66.312
=0.89599168

Telular Corporation's asset turnover of this year was 0.85790307. Telular Corporation's asset turnover of last year was 0.89599168. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+1+0+0+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Telular Corporation has an F-score of 5 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.

Telular Corporation Annual Data

Sep03Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12
Q1 0000001111
Q2 0000111111
Q3 0100111101
Q4 0010111011
Q5 1111111110
Q6 1110111000
Q7 0000001100
Q8 0000111111
Q9 1101000101
F-score 3432668756

Telular Corporation Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
Q1 1111111111
Q2 1111111111
Q3 1110000110
Q4 0001111111
Q5 1111100001
Q6 0000000001
Q7 0000000000
Q8 1111111110
Q9 1100000110
F-score 5544444665
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