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Zoltek Companies, Inc. (NAS:ZOLT)
Piotroski F-Score
0 (As of Today)

The zones of discrimination were as such:

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

Zoltek Companies, Inc. has an F-score of 5 indicating the company's financial situation is typical for a stable company.

ZOLT' s 10-Year Piotroski F-Score Range
Min: 0   Max: 0
Current: 0


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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 3.306 + -0.897 + -0.15 + -2.264 = $-0.0 Mil.
Cash Flow from Operations was 7.209 + 4.577 + 12.041 + 13.222 = $37.0 Mil.
Revenue was 33.306 + 30.31 + 40.958 + 35.123 = $139.7 Mil.
Gross Profit was 7.032 + 6.202 + 7.519 + 5.281 = $26.0 Mil.
Average Total Assets from the begining of this year (Dec12)
to the end of this year (Dec13) was
(358.449 + 344.897 + 347.598 + 352.865 + 356.051) / 5 = $352.0 Mil.
Total Assets as of Dec12 was $358.4 Mil.
Long-Term Debt was $17.6 Mil.
Total Current Assets was $146.9 Mil.
Total Current Liabilities was $22.4 Mil.
Net Income was 3.338 + 5.566 + 4.245 + 2.977 = $16.1 Mil.

Revenue was 47.014 + 48.078 + 44.199 + 35.877 = $175.2 Mil.
Gross Profit was 10.968 + 11.278 + 10.22 + 9.077 = $41.5 Mil.
Average Total Assets from the begining of last year (Dec11)
to the end of last year (Dec12) was
(312.475 + 334.044 + 350.01 + 358.688 + 358.449) / 5 = $342.7 Mil.
Total Assets as of Dec11 was $312.5 Mil.
Long-Term Debt was $28.2 Mil.
Total Current Assets was $143.4 Mil.
Total Current Liabilities was $24.1 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.

Zoltek Companies, Inc.'s current net income (ttm) was -0.0. ==> 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.

Zoltek Companies, Inc.'s current cash flow from operations (ttm) was 37.0. ==> Positive ==> Score 1.

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 (Dec12)
=-0.005/358.449
=-1.395E-5

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Dec11)
=16.126/312.475
=0.05160733

Zoltek Companies, Inc.'s return on assets of this year was -1.395E-5. Zoltek Companies, Inc.'s return on assets of last year was 0.05160733. ==> 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.

Zoltek Companies, Inc.'s current net income (ttm) was -0.0. Zoltek Companies, Inc.'s current cash flow from operations (ttm) was 37.0. ==> 37.0 > -0.0 ==> 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: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=17.597/351.972
=0.04999545

Gearing (Last Year: Dec12)=Long-Term Debt/Average Total Assets from Dec11 to Dec12
=28.173/342.7332
=0.08220097

Zoltek Companies, Inc.'s gearing of this year was 0.04999545. Zoltek Companies, Inc.'s gearing of last year was 0.08220097. ==> 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: Dec13)=Total Current Assets/Total Current Liabilities
=146.929/22.374
=6.56695271

Current Ratio (Last Year: Dec12)=Total Current Assets/Total Current Liabilities
=143.356/24.146
=5.93704961

Zoltek Companies, Inc.'s current ratio of this year was 6.56695271. Zoltek Companies, Inc.'s current ratio of last year was 5.93704961. ==> 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.

Zoltek Companies, Inc.'s number of shares in issue this year was 34.4. Zoltek Companies, Inc.'s number of shares in issue last year was 34.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=26.034/139.697
=0.18636048

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=41.543/175.168
=0.2371609

Zoltek Companies, Inc.'s gross margin of this year was 0.18636048. Zoltek Companies, Inc.'s gross margin of last year was 0.2371609. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec12)
=139.697/358.449
=0.38972629

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Dec11)
=175.168/312.475
=0.56058245

Zoltek Companies, Inc.'s asset turnover of this year was 0.38972629. Zoltek Companies, Inc.'s asset turnover of last year was 0.56058245. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Zoltek Companies, Inc. 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.

Zoltek Companies, Inc. Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Q1 0000100011
Q2 0011111011
Q3 0001100110
Q4 1111111101
Q5 0111011101
Q6 0101011011
Q7 0000000100
Q8 1011000110
Q9 1111001110
F-score 3457445665

Zoltek Companies, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 0111111110
Q2 0001111111
Q3 1111110000
Q4 1000001111
Q5 1100000111
Q6 0001111111
Q7 1000000001
Q8 1111111000
Q9 1111110000
F-score 6546655555
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