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United States Steel Corp (NYSE:X)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

United States Steel Corp has an F-score of 5 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: 5

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 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 (Jun15) TTM:Last Year (Jun14) TTM:
Net Income was -207 + 275 + -75 + -261 = $-268 Mil.
Cash Flow from Operations was -106 + 245 + 136 + 79 = $354 Mil.
Revenue was 4587 + 4072 + 3272 + 2900 = $14,831 Mil.
Gross Profit was 739 + 600 + 206 + 108 = $1,653 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(13406 + 12008 + 12314 + 11544 + 11213) / 5 = $12097 Mil.
Total Assets at the begining of this year (Jun14) was $13,406 Mil.
Long-Term Debt was $3,124 Mil.
Total Current Assets was $5,436 Mil.
Total Current Liabilities was $3,242 Mil.
Net Income was -1791 + 270 + 52 + -18 = $-1,487 Mil.

Revenue was 4131 + 4269 + 4448 + 4400 = $17,248 Mil.
Gross Profit was 382 + 358 + 410 + 303 = $1,453 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(14864 + 13006 + 13143 + 13394 + 13406) / 5 = $13562.6 Mil.
Total Assets at the begining of last year (Jun13) was $14,864 Mil.
Long-Term Debt was $3,605 Mil.
Total Current Assets was $6,527 Mil.
Total Current Liabilities was $3,521 Mil.

Profitability

Question 1. 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 (TTM) was -268. ==> Negative ==> Score 0.

Question 2. 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 (TTM) was 354. ==> Positive ==> Score 1.

Question 3. 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 (Jun14)
=-268/13406
=-0.01999105

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=-1487/14864
=-0.10004037

United States Steel Corp's return on assets of this year was -0.01999105. United States Steel Corp's return on assets of last year was -0.10004037. ==> This year is higher. ==> Score 1.

Question 4. 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 (TTM) was -268. United States Steel Corp's current cash flow from operations (TTM) was 354. ==> 354 > -268 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=3124/12097
=0.25824585

Gearing (Last Year: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=3605/13562.6
=0.26580449

United States Steel Corp's gearing of this year was 0.25824585. United States Steel Corp's gearing of last year was 0.26580449. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. 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: Jun15)=Total Current Assets/Total Current Liabilities
=5436/3242
=1.67674275

Current Ratio (Last Year: Jun14)=Total Current Assets/Total Current Liabilities
=6527/3521
=1.85373473

United States Steel Corp's current ratio of this year was 1.67674275. United States Steel Corp's current ratio of last year was 1.85373473. ==> Last year's current ratio is higher ==> Score 0.

Question 7. 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.

United States Steel Corp's number of shares in issue this year was 146. United States Steel Corp's number of shares in issue last year was 144.9. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. 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
=1653/14831
=0.11145573

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1453/17248
=0.08424165

United States Steel Corp's gross margin of this year was 0.11145573. United States Steel Corp's gross margin of last year was 0.08424165. ==> This year's gross margin is higher. ==> Score 1.

Question 9. 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 (Jun14)
=14831/13406
=1.10629569

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=17248/14864
=1.16038751

United States Steel Corp's asset turnover of this year was 1.10629569. United States Steel Corp's asset turnover of last year was 1.16038751. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+1+1+1+0+0+1+0
=5

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

United States Steel Corp 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


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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1111000001
Question 2 1111001111
Question 3 0101011001
Question 4 1110111111
Question 5 1101000001
Question 6 1101000110
Question 7 1011000000
Question 8 0101011101
Question 9 0100011001
F-score 6847145437

United States Steel Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Question 1 1000001100
Question 2 1111111111
Question 3 1100001111
Question 4 1111111111
Question 5 0110001111
Question 6 1001111000
Question 7 0110000010
Question 8 0000111111
Question 9 0000001110
F-score 5543448775
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