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United States Steel Corp (NYSE:X)
Piotroski F-Score
6 (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 6 indicating the company's financial situation is typical for a stable company.

X' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Max: 9
Current: 6

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 local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was -340 + -46 + 51 + -105 = $-440 Mil.
Cash Flow from Operations was 113 + 200 + 264 + 150 = $727 Mil.
Revenue was 2341 + 2584 + 2686 + 2650 = $10,261 Mil.
Gross Profit was -95 + 187 + 326 + 220 = $638 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(9167 + 8936 + 8941 + 9467 + 9160) / 5 = $9134.2 Mil.
Total Assets at the begining of this year (Dec15) was $9,167 Mil.
Long-Term Debt was $2,981 Mil.
Total Current Assets was $4,356 Mil.
Total Current Liabilities was $2,331 Mil.
Net Income was -75 + -261 + -173 + -1133 = $-1,642 Mil.

Revenue was 3272 + 2900 + 2830 + 2572 = $11,574 Mil.
Gross Profit was 206 + 108 + 176 + -57 = $433 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(12013 + 11544 + 11213 + 11191 + 9167) / 5 = $11025.6 Mil.
Total Assets at the begining of last year (Dec14) was $12,013 Mil.
Long-Term Debt was $3,093 Mil.
Total Current Assets was $3,917 Mil.
Total Current Liabilities was $2,148 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 -440. ==> 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 727. ==> 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 (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=-1642/12013
=-0.13668526

United States Steel Corp's return on assets of this year was -0.04799825. United States Steel Corp's return on assets of last year was -0.13668526. ==> 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 -440. United States Steel Corp's current cash flow from operations (TTM) was 727. ==> 727 > -440 ==> 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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=2981/9134.2
=0.32635589

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=3093/11025.6
=0.28052895

United States Steel Corp's gearing of this year was 0.32635589. United States Steel Corp's gearing of last year was 0.28052895. ==> Last year is lower than this year ==> Score 0.

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: Dec16)=Total Current Assets/Total Current Liabilities
=4356/2331
=1.86872587

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=3917/2148
=1.8235568

United States Steel Corp's current ratio of this year was 1.86872587. United States Steel Corp's current ratio of last year was 1.8235568. ==> This year's current ratio is higher. ==> Score 1.

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 156.7. United States Steel Corp's number of shares in issue last year was 146.1. ==> 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
=638/10261
=0.06217718

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=433/11574
=0.03741144

United States Steel Corp's gross margin of this year was 0.06217718. United States Steel Corp's gross margin of last year was 0.03741144. ==> 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 (Dec15)
=10261/9167
=1.11934111

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=11574/12013
=0.96345626

United States Steel Corp's asset turnover of this year was 1.11934111. United States Steel Corp's asset turnover of last year was 0.96345626. ==> This year's asset turnover is higher. ==> Score 1.

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+0+1+0+1+1
=6

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

United States Steel Corp has an F-score of 6 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 local exchange's currency.

United States Steel Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1100000100
Question 2 1100111111
Question 3 0101100101
Question 4 1011111111
Question 5 0100000100
Question 6 0100011011
Question 7 1100000010
Question 8 0101110101
Question 9 0001100101
F-score 4714543746

United States Steel Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 1100000000
Question 2 1111111111
Question 3 1111000001
Question 4 1111111111
Question 5 1111000000
Question 6 1000010011
Question 7 0010010000
Question 8 1111000001
Question 9 1110000001
F-score 8775242236
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