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ZBB Energy Corp (AMEX:ZBB)
Piotroski F-Score
6 (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 6 indicating the company's financial situation is typical for a stable company.

ZBB' s 10-Year Piotroski F-Score Range
Min: 1   Max: 6
Current: 6

1
6

During the past 9 years, the highest Piotroski F-Score of ZBB Energy Corp was 6. The lowest was 1. And the median was 3.


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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was -3.088 + -2.597 + -2.159 + 0.009 = $-7.84 Mil.
Cash Flow from Operations was -1.915 + -0.811 + -2.422 + 0.438 = $-4.71 Mil.
Revenue was 1.033 + 1.069 + 0.961 + 4.572 = $7.64 Mil.
Gross Profit was 0.231 + 0.472 + 0.363 + 3.96 = $5.03 Mil.
Average Total Assets from the begining of this year (Mar13)
to the end of this year (Mar14) was
(16.047 + 13.123 + 14.323 + 10.872 + 23.48) / 5 = $15.57 Mil.
Total Assets was $23.48 Mil.
Long-Term Debt was $2.13 Mil.
Total Current Assets was $16.15 Mil.
Total Current Liabilities was $3.84 Mil.
Net Income was -5.832 + -2.883 + -3.083 + -2.824 = $-14.62 Mil.

Revenue was 1.081 + 1.823 + 2.748 + 2.119 = $7.77 Mil.
Gross Profit was 0.058 + 0.286 + 0.483 + 0.295 = $1.12 Mil.
Average Total Assets from the begining of last year (Mar12)
to the end of last year (Mar13) was
(13.596 + 22.104 + 20.38 + 17 + 16.047) / 5 = $17.83 Mil.
Total Assets was $16.05 Mil.
Long-Term Debt was $2.46 Mil.
Total Current Assets was $6.82 Mil.
Total Current Liabilities was $4.85 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

ZBB Energy Corp's current net income (ttm) was -7.84. ==> Negative ==> Score 0.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

ZBB Energy Corp's current cash flow from operations (ttm) was -4.71. ==> 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)/Average Total Assets from Mar13 to Mar14
=-7.835/15.569
=-0.50324363

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Mar12 to Mar13
=-14.622/17.8254
=-0.82029015

ZBB Energy Corp's return on assets of this year was -0.50324363. ZBB Energy Corp's return on assets of last year was -0.82029015. ==> This year is higher. ==> Score 1.

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 -7.84. ZBB Energy Corp's current cash flow from operations (ttm) was -4.71. ==> -4.71 > -7.84 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar14)=Long-Term Debt/Total Assets
=2.134/23.48
=0.09088586

Gearing (Last Year: Mar13)=Long-Term Debt/Total Assets
=2.461/16.047
=0.153362

ZBB Energy Corp's gearing of this year was 0.09088586. ZBB Energy Corp's gearing of last year was 0.153362. ==> 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: Mar14)=Total Current Assets/Total Current Liabilities
=16.15/3.84
=4.20572917

Current Ratio (Last Year: Mar13)=Total Current Assets/Total Current Liabilities
=6.823/4.852
=1.40622424

ZBB Energy Corp's current ratio of this year was 4.20572917. ZBB Energy Corp's current ratio of last year was 1.40622424. ==> 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 18.7. ZBB Energy Corp's number of shares in issue last year was 15.7. ==> 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
=5.026/7.635
=0.65828422

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1.122/7.771
=0.14438296

ZBB Energy Corp's gross margin of this year was 0.65828422. ZBB Energy Corp's gross margin of last year was 0.14438296. ==> 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 average total assets throughout 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)/Average Total Assets from Mar13 to Mar14
=7.635/15.569
=0.49039758

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Mar12 to Mar13
=7.771/17.8254
=0.43595095

ZBB Energy Corp's asset turnover of this year was 0.49039758. ZBB Energy Corp's asset turnover of last year was 0.43595095. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+0+1+1+1+1+0+1+1
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

ZBB Energy 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, 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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
Q1 00000
Q2 00000
Q3 00111
Q4 11111
Q5 00110
Q6 00110
Q7 00000
Q8 01100
Q9 01011
F-score 13553

ZBB Energy Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 0000000000
Q2 0000000000
Q3 1110001111
Q4 1111111111
Q5 1111110001
Q6 1011110001
Q7 0000000000
Q8 1100000111
Q9 1110111101
F-score 6553443436
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