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United States Steel Corp (NYSE:X)
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

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

X' s 10-Year Piotroski F-Score Range
Min: 1   Max: 9
Current: 3

1
9

During the past 13 years, the highest Piotroski F-Score of United States Steel Corp was 9. The lowest was 1. And the median was 4.


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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 270 + -1791 + -78 + -73 = $-1,672 Mil.
Cash Flow from Operations was -7 + 37 + 151 + 233 = $414 Mil.
Revenue was 4269 + 4131 + 4429 + 4595 = $17,424 Mil.
Gross Profit was 358 + 382 + 315 + 353 = $1,408 Mil.
Total Assets at the begining of this year (Dec12) was $15,217 Mil.
Total Assets was $13,143 Mil.
Long-Term Debt was $3,616 Mil.
Total Current Assets was $6,078 Mil.
Total Current Liabilities was $3,245 Mil.
Net Income was -50 + 44 + 101 + -219 = $-124 Mil.

Revenue was 4487 + 4652 + 5017 + 5172 = $19,328 Mil.
Gross Profit was 293 + 334 + 532 + 546 = $1,705 Mil.
Total Assets at the begining of last year (Dec11) was $16,073 Mil.
Total Assets was $15,217 Mil.
Long-Term Debt was $3,936 Mil.
Total Current Assets was $5,496 Mil.
Total Current Liabilities was $2,990 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.

United States Steel Corp's current net income was -1,672. ==> 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.

United States Steel Corp's current cash flow from operations was 414. ==> 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/Total Assets at the beginning of this year (Dec12)
=-1672/15217
=-0.10987711

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=-124/16073
=-0.0077148

United States Steel Corp's return on assets of this year was -0.10987711. United States Steel Corp's return on assets of last year was -0.0077148. ==> 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.

United States Steel Corp's current net income was -1,672. United States Steel Corp's current cash flow from operations was 414. ==> 414 > -1,672 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=3616/13143
=0.27512744

Gearing (Last Year)=Long-Term Debt/Total Assets
=3936/15217
=0.25865808

United States Steel Corp's gearing of this year was 0.27512744. United States Steel Corp's gearing of last year was 0.25865808. ==> Last year is lower ==> 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)=Total Current Assets/Total Current Liabilities
=6078/3245
=1.87303544

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=5496/2990
=1.83812709

United States Steel Corp's current ratio of this year was 1.87303544. United States Steel Corp's current ratio of last year was 1.83812709. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

United States Steel Corp's number of shares in issue this year was 144.7. United States Steel Corp's number of shares in issue last year was 144.4. ==> There is more 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
=1408/17424
=0.08080808

Gross Margin (Last Year)=Gross Profit/Revenue
=1705/19328
=0.08821399

United States Steel Corp's gross margin of this year was 0.08080808. United States Steel Corp's gross margin of last year was 0.08821399. ==> 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 (Dec12)
=17424/15217
=1.14503516

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=19328/16073
=1.20251353

United States Steel Corp's asset turnover of this year was 1.14503516. United States Steel Corp's asset turnover of last year was 1.20251353. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

United States Steel 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.

United States Steel Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111100000
Q2 1111100111
Q3 1010101100
Q4 1111011111
Q5 1010100000
Q6 1110100011
Q7 0011100000
Q8 1010101110
Q9 1010001100
F-score 8494714543

United States Steel Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 0000001000
Q2 1111111111
Q3 1110001100
Q4 1111111111
Q5 1000000100
Q6 0011111001
Q7 0001000110
Q8 1111010000
Q9 1111000000
F-score 6566345533
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