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Lendlease Group (ASX:LLC) Piotroski F-Score : 2 (As of May. 01, 2024)


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What is Lendlease Group Piotroski F-Score?

Warning Sign:

Piotroski F-Score of 2 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

Lendlease Group 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 Lendlease Group's Piotroski F-Score or its related term are showing as below:

ASX:LLC' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 6
Current: 2

During the past 13 years, the highest Piotroski F-Score of Lendlease Group was 6. The lowest was 2. And the median was 4.


Lendlease Group Piotroski F-Score Historical Data

The historical data trend for Lendlease 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.

Lendlease Group Piotroski F-Score Chart

Lendlease Group 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 4.00 4.00 6.00 3.00 2.00

Lendlease Group 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 - 2.00 -

Competitive Comparison of Lendlease Group's Piotroski F-Score

For the Real Estate - Diversified subindustry, Lendlease 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.


Lendlease Group's Piotroski F-Score Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Lendlease Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Lendlease 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 (Jun23) TTM:Last Year (Jun22) TTM:
Net Income was A$-232 Mil.
Cash Flow from Operations was A$-486 Mil.
Revenue was A$10,229 Mil.
Gross Profit was A$587 Mil.
Average Total Assets from the begining of this year (Jun22)
to the end of this year (Jun23) was (17101 + 18214) / 2 = A$17657.5 Mil.
Total Assets at the begining of this year (Jun22) was A$17,101 Mil.
Long-Term Debt & Capital Lease Obligation was A$3,262 Mil.
Total Current Assets was A$4,850 Mil.
Total Current Liabilities was A$5,429 Mil.
Net Income was A$-99 Mil.

Revenue was A$8,822 Mil.
Gross Profit was A$687 Mil.
Average Total Assets from the begining of last year (Jun21)
to the end of last year (Jun22) was (17000 + 17101) / 2 = A$17050.5 Mil.
Total Assets at the begining of last year (Jun21) was A$17,000 Mil.
Long-Term Debt & Capital Lease Obligation was A$2,357 Mil.
Total Current Assets was A$4,864 Mil.
Total Current Liabilities was A$5,354 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.

Lendlease Group's current Net Income (TTM) was -232. ==> 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.

Lendlease Group's current Cash Flow from Operations (TTM) was -486. ==> 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)
=-232/17101
=-0.01356646

ROA (Last Year)=Net Income/Total Assets (Jun21)
=-99/17000
=-0.00582353

Lendlease Group's return on assets of this year was -0.01356646. Lendlease Group's return on assets of last year was -0.00582353. ==> 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.

Lendlease Group's current Net Income (TTM) was -232. Lendlease Group's current Cash Flow from Operations (TTM) was -486. ==> -486 <= -232 ==> 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: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=3262/17657.5
=0.18473736

Gearing (Last Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=2357/17050.5
=0.13823642

Lendlease Group's gearing of this year was 0.18473736. Lendlease Group's gearing of last year was 0.13823642. ==> 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: Jun23)=Total Current Assets/Total Current Liabilities
=4850/5429
=0.89335052

Current Ratio (Last Year: Jun22)=Total Current Assets/Total Current Liabilities
=4864/5354
=0.90847964

Lendlease Group's current ratio of this year was 0.89335052. Lendlease Group's current ratio of last year was 0.90847964. ==> 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.

Lendlease Group's number of shares in issue this year was 683. Lendlease Group's number of shares in issue last year was 683. ==> 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
=587/10229
=0.05738586

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=687/8822
=0.0778735

Lendlease Group's gross margin of this year was 0.05738586. Lendlease Group's gross margin of last year was 0.0778735. ==> 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)
=10229/17101
=0.59815215

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun21)
=8822/17000
=0.51894118

Lendlease Group's asset turnover of this year was 0.59815215. Lendlease Group's asset turnover of last year was 0.51894118. ==> 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+1+0+1
=2

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

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

Lendlease Group  (ASX:LLC) 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.


Lendlease Group Piotroski F-Score Related Terms

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Lendlease Group (ASX:LLC) Business Description

Traded in Other Exchanges
Address
Level 14, Tower Three, 300 Barangaroo Avenue, International Towers Sydney, Exchange Place, Barangaroo, Sydney, NSW, AUS, 2000
Lendlease's business comprises three segments: development, investments, and construction. Development accounted for more than half of EBITDA in 2020, and the future pipeline is so large it cannot be funded from its own balance sheet. The group is selling stakes in mature projects to its funds management clients. This sacrifices development profit, in return for management fees, reduced risk, and capital to accelerate new projects in the pipeline. Construction generates large revenues but slim margins. This business is retained to preserve expertise and scale for the development business. Lendlease sold its engineering and services business during the pandemic, but retains some risks, notably the Melbourne Metro project. It is also reducing its exposure to retirement living.

Lendlease Group (ASX:LLC) Headlines

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