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ZBB Energy Corp (AMEX:ZBB)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

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

ZBB' s 10-Year Piotroski F-Score Range
Min: 2   Max: 5
Current: 5

2
5

During the past 10 years, the highest Piotroski F-Score of ZBB Energy Corp was 5. The lowest was 2. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was -2.597 + -2.159 + 0.009 + -4.109 = $-8.86 Mil.
Cash Flow from Operations was -0.811 + -2.422 + 0.438 + -2.892 = $-5.69 Mil.
Revenue was 1.069 + 0.961 + 4.572 + 1.249 = $7.85 Mil.
Gross Profit was 0.472 + 0.363 + 3.96 + -0.045 = $4.75 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(13.123 + 14.323 + 10.872 + 23.48 + 20.053) / 5 = $16.37 Mil.
Total Assets as of Jun13 was $13.12 Mil.
Long-Term Debt was $2.05 Mil.
Total Current Assets was $13.22 Mil.
Total Current Liabilities was $4.50 Mil.
Net Income was -2.883 + -3.083 + -2.824 + -3.088 = $-11.88 Mil.

Revenue was 1.823 + 2.748 + 2.119 + 1.033 = $7.72 Mil.
Gross Profit was 0.286 + 0.483 + 0.295 + 0.231 = $1.30 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(22.104 + 20.38 + 17 + 16.047 + 13.123) / 5 = $17.73 Mil.
Total Assets as of Jun12 was $22.10 Mil.
Long-Term Debt was $2.40 Mil.
Total Current Assets was $4.43 Mil.
Total Current Liabilities was $4.60 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.

ZBB Energy Corp's current net income (ttm) was -8.86. ==> Negative ==> Score 0.

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.

ZBB Energy Corp's current cash flow from operations (ttm) was -5.69. ==> Negative ==> Score 0.

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 (Jun13)
=-8.856/13.123
=-0.67484569

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Jun12)
=-11.878/22.104
=-0.5373688

ZBB Energy Corp's return on assets of this year was -0.67484569. ZBB Energy Corp's return on assets of last year was -0.5373688. ==> 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.

ZBB Energy Corp's current net income (ttm) was -8.86. ZBB Energy Corp's current cash flow from operations (ttm) was -5.69. ==> -5.69 > -8.86 ==> 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: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=2.045/16.3702
=0.12492211

Gearing (Last Year: Jun13)=Long-Term Debt/Average Total Assets from Jun12 to Jun13
=2.396/17.7308
=0.13513209

ZBB Energy Corp's gearing of this year was 0.12492211. ZBB Energy Corp's gearing of last year was 0.13513209. ==> 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: Jun14)=Total Current Assets/Total Current Liabilities
=13.222/4.499
=2.93887531

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=4.425/4.601
=0.96174745

ZBB Energy Corp's current ratio of this year was 2.93887531. ZBB Energy Corp's current ratio of last year was 0.96174745. ==> 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.

ZBB Energy Corp's number of shares in issue this year was 25.3. ZBB Energy Corp's number of shares in issue last year was 17.7. ==> 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
=4.75/7.851
=0.60501847

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1.295/7.723
=0.16768095

ZBB Energy Corp's gross margin of this year was 0.60501847. ZBB Energy Corp's gross margin of last year was 0.16768095. ==> This year's gross margin is higher. ==> Score 1.

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 (Jun13)
=7.851/13.123
=0.59826259

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Jun12)
=7.723/22.104
=0.34939377

ZBB Energy Corp's asset turnover of this year was 0.59826259. ZBB Energy Corp's asset turnover of last year was 0.34939377. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

ZBB Energy 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, 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.

ZBB Energy Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
Q1 000000
Q2 000000
Q3 000110
Q4 111111
Q5 000111
Q6 001101
Q7 000000
Q8 011001
Q9 111101
F-score 234535

ZBB Energy Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 0000000000
Q2 0000000000
Q3 1111011110
Q4 1111111111
Q5 1111111011
Q6 0111100011
Q7 0000000000
Q8 1000001111
Q9 1100100001
F-score 5544434355
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