GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Equatorial Resources Ltd (ASX:EQX) » Definitions » Piotroski F-Score

Equatorial Resources (ASX:EQX) Piotroski F-Score : 4 (As of Jul. 24, 2024)


View and export this data going back to 1987. Start your Free Trial

What is Equatorial Resources Piotroski F-Score?

The zones of discrimination were as such:

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

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

The historical rank and industry rank for Equatorial Resources's Piotroski F-Score or its related term are showing as below:

ASX:EQX' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 4   Max: 6
Current: 4

During the past 13 years, the highest Piotroski F-Score of Equatorial Resources was 6. The lowest was 3. And the median was 4.


Equatorial Resources Piotroski F-Score Historical Data

The historical data trend for Equatorial Resources's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Equatorial Resources Piotroski F-Score Chart

Equatorial Resources Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 4.00 3.00 3.00 4.00

Equatorial Resources Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 3.00 - 4.00 -

Competitive Comparison of Equatorial Resources's Piotroski F-Score

For the Steel subindustry, Equatorial Resources's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Equatorial Resources's Piotroski F-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Equatorial Resources's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Equatorial Resources's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun23) TTM:Last Year (Jun22) TTM:
Net Income was A$-4.19 Mil.
Cash Flow from Operations was A$-1.79 Mil.
Revenue was A$0.00 Mil.
Gross Profit was A$0.00 Mil.
Average Total Assets from the begining of this year (Jun22)
to the end of this year (Jun23) was (18.497 + 16.695) / 2 = A$17.596 Mil.
Total Assets at the begining of this year (Jun22) was A$18.50 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.
Total Current Assets was A$16.70 Mil.
Total Current Liabilities was A$2.49 Mil.
Net Income was A$-17.26 Mil.

Revenue was A$0.00 Mil.
Gross Profit was A$0.00 Mil.
Average Total Assets from the begining of last year (Jun21)
to the end of last year (Jun22) was (35.252 + 18.497) / 2 = A$26.8745 Mil.
Total Assets at the begining of last year (Jun21) was A$35.25 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.00 Mil.
Total Current Assets was A$18.50 Mil.
Total Current Liabilities was A$0.30 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

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.

Equatorial Resources's current Net Income (TTM) was -4.19. ==> 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.

Equatorial Resources's current Cash Flow from Operations (TTM) was -1.79. ==> Negative ==> Score 0.

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/Total Assets (Jun22)
=-4.191/18.497
=-0.22657728

ROA (Last Year)=Net Income/Total Assets (Jun21)
=-17.261/35.252
=-0.48964598

Equatorial Resources's return on assets of this year was -0.22657728. Equatorial Resources's return on assets of last year was -0.48964598. ==> 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.

Equatorial Resources's current Net Income (TTM) was -4.19. Equatorial Resources's current Cash Flow from Operations (TTM) was -1.79. ==> -1.79 > -4.19 ==> 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: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=0/17.596
=0

Gearing (Last Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=0/26.8745
=0

Equatorial Resources's gearing of this year was 0. Equatorial Resources's gearing of last year was 0. ==> This year is lower or equal to last year. ==> Score 1.

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: Jun23)=Total Current Assets/Total Current Liabilities
=16.695/2.488
=6.710209

Current Ratio (Last Year: Jun22)=Total Current Assets/Total Current Liabilities
=18.497/0.297
=62.27946128

Equatorial Resources's current ratio of this year was 6.710209. Equatorial Resources's current ratio of last year was 62.27946128. ==> 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.

Equatorial Resources's number of shares in issue this year was 124.445. Equatorial Resources's number of shares in issue last year was 124.445. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=0/0
=

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=0/0
=

Equatorial Resources's gross margin of this year was . Equatorial Resources's gross margin of last year was . ==> Last year's gross margin is higher ==> Score 0.

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/Total Assets at the Beginning of This Year (Jun22)
=0/18.497
=0

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun21)
=0/35.252
=0

Equatorial Resources's asset turnover of this year was 0. Equatorial Resources's asset turnover of last year was 0. ==> 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
=0+0+1+1+1+0+1+0+0
=4

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

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

Equatorial Resources  (ASX:EQX) Piotroski F-Score 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.


Equatorial Resources Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Equatorial Resources's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Equatorial Resources (ASX:EQX) Business Description

Traded in Other Exchanges
N/A
Address
28 The Esplanade, Level 9, BGC Centre, Perth, WA, AUS, 6000
Equatorial Resources Ltd is an iron ore exploration and development company. The company's iron ore projects are located in the Republic of Congo (ROC). The company focuses on advancing its existing mineral resource assets in Africa, as well as searching for new opportunities in the resources sector. It operates the Badondo Iron Project located in the northwest region of the Republic of Congo. Central & West Africa hosts a regional distribution of undeveloped world-class high-grade iron ore deposits. It is comprised of the same rock type and similar geological formation as the Carajas System in South America.