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Xcel Energy Inc (NYSE:XEL)
Piotroski F-Score
4 (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

Xcel Energy Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

XEL' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 7
Current: 4

4
7

During the past 13 years, the highest Piotroski F-Score of Xcel Energy Inc was 7. The lowest was 4. 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 (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was 152.066 + 196.931 + 426.463 + 209.025 = $984 Mil.
Cash Flow from Operations was 985.394 + 523.651 + 980.877 + 535.917 = $3,026 Mil.
Revenue was 2962.219 + 2515.134 + 2901.312 + 2645.821 = $11,024 Mil.
Gross Profit was 1529.667 + 1475.598 + 1812.312 + 1502.946 = $6,321 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(36957.884 + 36878.651 + 37268.809 + 38029.696 + 39053.535) / 5 = $37637.715 Mil.
Total Assets at the begining of this year (Dec14) was $36,958 Mil.
Long-Term Debt was $12,491 Mil.
Total Current Assets was $2,910 Mil.
Total Current Liabilities was $4,058 Mil.
Net Income was 261.221 + 195.164 + 368.582 + 196.339 = $1,021 Mil.

Revenue was 3202.604 + 2685.096 + 2869.807 + 2928.628 = $11,686 Mil.
Gross Profit was 1502.326 + 1425.231 + 1682.596 + 1459.009 = $6,069 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(33907.49 + 34198.752 + 34717.644 + 35363.441 + 36957.884) / 5 = $35029.0422 Mil.
Total Assets at the begining of last year (Dec13) was $33,907 Mil.
Long-Term Debt was $11,500 Mil.
Total Current Assets was $3,364 Mil.
Total Current Liabilities was $4,065 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.

Xcel Energy Inc's current net income (TTM) was 984. ==> Positive ==> Score 1.

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.

Xcel Energy Inc's current cash flow from operations (TTM) was 3,026. ==> 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 (Dec14)
=984.485/36957.884
=0.02663802

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=1021.306/33907.49
=0.03012037

Xcel Energy Inc's return on assets of this year was 0.02663802. Xcel Energy Inc's return on assets of last year was 0.03012037. ==> Last year is higher ==> Score 0.

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.

Xcel Energy Inc's current net income (TTM) was 984. Xcel Energy Inc's current cash flow from operations (TTM) was 3,026. ==> 3,026 > 984 ==> 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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=12490.719/37637.715
=0.33186709

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=11499.634/35029.0422
=0.32828857

Xcel Energy Inc's gearing of this year was 0.33186709. Xcel Energy Inc's gearing of last year was 0.32828857. ==> 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: Dec15)=Total Current Assets/Total Current Liabilities
=2910.445/4058.297
=0.71715919

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=3364.38/4064.583
=0.82773067

Xcel Energy Inc's current ratio of this year was 0.71715919. Xcel Energy Inc's current ratio of last year was 0.82773067. ==> 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.

Xcel Energy Inc's number of shares in issue this year was 508.2. Xcel Energy Inc's number of shares in issue last year was 504.1. ==> 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
=6320.523/11024.486
=0.5733168

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=6069.162/11686.135
=0.51934724

Xcel Energy Inc's gross margin of this year was 0.5733168. Xcel Energy Inc's gross margin of last year was 0.51934724. ==> 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 (Dec14)
=11024.486/36957.884
=0.29829863

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=11686.135/33907.49
=0.3446476

Xcel Energy Inc's asset turnover of this year was 0.29829863. Xcel Energy Inc's asset turnover of last year was 0.3446476. ==> 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
=1+1+0+1+0+0+0+1+0
=4

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

Xcel Energy Inc has an F-score of 4 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.

Xcel Energy Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1010110000
Question 4 1111111111
Question 5 0101010010
Question 6 1010101000
Question 7 0000000000
Question 8 1001111001
Question 9 0010100100
F-score 6465765444

Xcel Energy Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 0000000000
Question 4 1111111111
Question 5 0010111100
Question 6 1000000010
Question 7 0000000000
Question 8 0000001111
Question 9 0110100000
F-score 4453545554
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