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Legacy Iron Ore (ASX:LCY) Piotroski F-Score : 1 (As of Dec. 14, 2024)


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What is Legacy Iron Ore Piotroski F-Score?

Warning Sign:

Piotroski F-Score of 1 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Legacy Iron Ore has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

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

ASX:LCY' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 3   Max: 5
Current: 1

During the past 13 years, the highest Piotroski F-Score of Legacy Iron Ore was 5. The lowest was 1. And the median was 3.


Legacy Iron Ore Piotroski F-Score Historical Data

The historical data trend for Legacy Iron Ore'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.

Legacy Iron Ore Piotroski F-Score Chart

Legacy Iron Ore Annual Data
Trend Jun14 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.00 4.00 2.00 3.00 1.00

Legacy Iron Ore Semi-Annual Data
Jun14 Dec14 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 - 1.00 -

Competitive Comparison of Legacy Iron Ore's Piotroski F-Score

For the Other Industrial Metals & Mining subindustry, Legacy Iron Ore'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.


Legacy Iron Ore's Piotroski F-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Legacy Iron Ore's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Legacy Iron Ore'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 (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was A$-9.59 Mil.
Cash Flow from Operations was A$-9.96 Mil.
Revenue was A$2.08 Mil.
Gross Profit was A$1.88 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was (25.612 + 47.215) / 2 = A$36.4135 Mil.
Total Assets at the begining of this year (Mar23) was A$25.61 Mil.
Long-Term Debt & Capital Lease Obligation was A$3.85 Mil.
Total Current Assets was A$23.61 Mil.
Total Current Liabilities was A$8.41 Mil.
Net Income was A$2.01 Mil.

Revenue was A$0.00 Mil.
Gross Profit was A$0.00 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was (23.607 + 25.612) / 2 = A$24.6095 Mil.
Total Assets at the begining of last year (Mar22) was A$23.61 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.05 Mil.
Total Current Assets was A$9.94 Mil.
Total Current Liabilities was A$0.19 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.

Legacy Iron Ore's current Net Income (TTM) was -9.59. ==> 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.

Legacy Iron Ore's current Cash Flow from Operations (TTM) was -9.96. ==> 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 (Mar23)
=-9.592/25.612
=-0.37451195

ROA (Last Year)=Net Income/Total Assets (Mar22)
=2.007/23.607
=0.08501716

Legacy Iron Ore's return on assets of this year was -0.37451195. Legacy Iron Ore's return on assets of last year was 0.08501716. ==> Last year is higher ==> Score 0.

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.

Legacy Iron Ore's current Net Income (TTM) was -9.59. Legacy Iron Ore's current Cash Flow from Operations (TTM) was -9.96. ==> -9.96 <= -9.59 ==> CFROA <= ROA ==> Score 0.

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: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=3.852/36.4135
=0.10578494

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=0.049/24.6095
=0.0019911

Legacy Iron Ore's gearing of this year was 0.10578494. Legacy Iron Ore's gearing of last year was 0.0019911. ==> Last year is lower than this year ==> Score 0.

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: Mar24)=Total Current Assets/Total Current Liabilities
=23.614/8.405
=2.80951814

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=9.939/0.192
=51.765625

Legacy Iron Ore's current ratio of this year was 2.80951814. Legacy Iron Ore's current ratio of last year was 51.765625. ==> 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.

Legacy Iron Ore's number of shares in issue this year was 6733.426. Legacy Iron Ore's number of shares in issue last year was 6633.617. ==> 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
=1.883/2.083
=0.90398464

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

Legacy Iron Ore's gross margin of this year was 0.90398464. Legacy Iron Ore's gross margin of last year was . ==> 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 (Mar23)
=2.083/25.612
=0.08132906

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=0/23.607
=0

Legacy Iron Ore's asset turnover of this year was 0.08132906. Legacy Iron Ore's asset turnover of last year was 0. ==> 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
=0+0+0+0+0+0+0+1+1
=2

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

Legacy Iron Ore has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

Legacy Iron Ore  (ASX:LCY) 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.


Legacy Iron Ore Piotroski F-Score Related Terms

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Legacy Iron Ore Business Description

Traded in Other Exchanges
N/A
Address
200 Adelaide Terrace, Level 6, West Perth, Perth, WA, AUS, 6004
Legacy Iron Ore Ltd is engaged in the exploration and development of mineral properties. It holds a diverse portfolio of assets spanning iron ore, gold, and base metals, Tungsten, Rare earth elements. Its projects include the Mt Bevan Project, South Laverton Gold Project, Mt. Celia Project, and many more. The Company operates with three reportable segments: iron ore exploration and development in Australia, gold exploration and development in Australia, and base metals and other critical minerals (OCM) exploration and development in Australia. Each segment focuses on the respective mineral's exploration and development within Australia's resource-rich landscape.