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Inghams Group (ASX:ING) Piotroski F-Score : 7 (As of Dec. 14, 2024)


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What is Inghams Group Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

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

Inghams Group has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

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

ASX:ING' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 5   Max: 9
Current: 7

During the past 8 years, the highest Piotroski F-Score of Inghams Group was 9. The lowest was 5. And the median was 5.


Inghams Group Piotroski F-Score Historical Data

The historical data trend for Inghams Group'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.

Inghams Group Piotroski F-Score Chart

Inghams Group Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Piotroski F-Score
Get a 7-Day Free Trial 5.00 5.00 5.00 9.00 7.00

Inghams Group Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 5.00 - 9.00 - 7.00

Competitive Comparison of Inghams Group's Piotroski F-Score

For the Farm Products subindustry, Inghams Group'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.


Inghams Group's Piotroski F-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Inghams Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Inghams Group'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 (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was A$102 Mil.
Cash Flow from Operations was A$419 Mil.
Revenue was A$3,262 Mil.
Gross Profit was A$621 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was (2574.3 + 2400) / 2 = A$2487.15 Mil.
Total Assets at the begining of this year (Jun23) was A$2,574 Mil.
Long-Term Debt & Capital Lease Obligation was A$1,450 Mil.
Total Current Assets was A$748 Mil.
Total Current Liabilities was A$693 Mil.
Net Income was A$60 Mil.

Revenue was A$3,044 Mil.
Gross Profit was A$511 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was (2542.9 + 2574.3) / 2 = A$2558.6 Mil.
Total Assets at the begining of last year (Jun22) was A$2,543 Mil.
Long-Term Debt & Capital Lease Obligation was A$1,613 Mil.
Total Current Assets was A$787 Mil.
Total Current Liabilities was A$718 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.

Inghams Group's current Net Income (TTM) was 102. ==> 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.

Inghams Group's current Cash Flow from Operations (TTM) was 419. ==> 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/Total Assets (Jun23)
=101.5/2574.3
=0.03942819

ROA (Last Year)=Net Income/Total Assets (Jun22)
=60.4/2542.9
=0.02375241

Inghams Group's return on assets of this year was 0.03942819. Inghams Group's return on assets of last year was 0.02375241. ==> 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.

Inghams Group's current Net Income (TTM) was 102. Inghams Group's current Cash Flow from Operations (TTM) was 419. ==> 419 > 102 ==> 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: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=1449.7/2487.15
=0.58287598

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=1612.7/2558.6
=0.63030564

Inghams Group's gearing of this year was 0.58287598. Inghams Group's gearing of last year was 0.63030564. ==> 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: Jun24)=Total Current Assets/Total Current Liabilities
=747.5/693.3
=1.07817684

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=787.1/718
=1.09623955

Inghams Group's current ratio of this year was 1.07817684. Inghams Group's current ratio of last year was 1.09623955. ==> 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.

Inghams Group's number of shares in issue this year was 373.162. Inghams Group's number of shares in issue last year was 372.84. ==> 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
=620.9/3262
=0.19034335

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=511.3/3044
=0.16796978

Inghams Group's gross margin of this year was 0.19034335. Inghams Group's gross margin of last year was 0.16796978. ==> 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/Total Assets at the Beginning of This Year (Jun23)
=3262/2574.3
=1.26714058

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=3044/2542.9
=1.19705848

Inghams Group's asset turnover of this year was 1.26714058. Inghams Group's asset turnover of last year was 1.19705848. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+0+1+1
=7

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

Inghams Group has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Inghams Group  (ASX:ING) 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.


Inghams Group Piotroski F-Score Related Terms

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Inghams Group Business Description

Traded in Other Exchanges
Address
1 Julius Avenue, Level 4, North Ryde, Sydney, NSW, AUS, 2113
Inghams is the largest vertically integrated poultry producer in Australia and New Zealand. The firm enjoys a number-one position in Australia with approximately 40% market share and a number-two position in New Zealand with around 35% share. Inghams supplies poultry products, notably to major Australian supermarkets Woolworths and Coles, and quick-service restaurants McDonalds and KFC. Sales are heavily skewed toward poultry, which includes the production and sale of chicken and turkey products.