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Ball Corp (NYSE:BLL)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

Ball Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

BLL' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 9
Current: 6

2
9

During the past 13 years, the highest Piotroski F-Score of Ball Corp was 9. The lowest was 2. And the median was 6.


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 local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Net Income was 338 + 0 + 53 + 68 = $459 Mil.
Cash Flow from Operations was 422 + -469 + 627 + -398 = $182 Mil.
Revenue was 2030 + 2815 + 2461 + 2473 = $9,779 Mil.
Gross Profit was 434 + 477 + 516 + 498 = $1,925 Mil.
Average Total Assets from the begining of this year (Mar16)
to the end of this year (Mar17) was
(10059 + 25077 + 17060 + 16173 + 16644) / 5 = $17002.6 Mil.
Total Assets at the begining of this year (Mar16) was $10,059 Mil.
Long-Term Debt was $7,476 Mil.
Total Current Assets was $3,907 Mil.
Total Current Liabilities was $3,018 Mil.
Net Income was 160 + 45 + 55 + -127 = $133 Mil.

Revenue was 2172 + 2097 + 1805 + 1756 = $7,830 Mil.
Gross Profit was 397 + 407 + 371 + 340 = $1,515 Mil.
Average Total Assets from the begining of last year (Mar15)
to the end of last year (Mar16) was
(7660.5 + 7852.9 + 7727 + 9697 + 10059) / 5 = $8599.28 Mil.
Total Assets at the begining of last year (Mar15) was $7,661 Mil.
Long-Term Debt was $5,408 Mil.
Total Current Assets was $2,323 Mil.
Total Current Liabilities was $2,232 Mil.

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.

Ball Corp's current net income (TTM) was 459. ==> 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.

Ball Corp's current cash flow from operations (TTM) was 182. ==> 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.

Ball Corp's return on assets of this year was 0.04563078. Ball Corp's return on assets of last year was 0.01736179. ==> 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.

Ball Corp's current net income (TTM) was 459. Ball Corp's current cash flow from operations (TTM) was 182. ==> 182 <= 459 ==> 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: Mar17)=Long-Term Debt/Average Total Assets from Mar16 to Mar17
=7476/17002.6
=0.43969746

Gearing (Last Year: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=5408/8599.28
=0.62888986

Ball Corp's gearing of this year was 0.43969746. Ball Corp's gearing of last year was 0.62888986. ==> 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: Mar17)=Total Current Assets/Total Current Liabilities
=3907/3018
=1.29456594

Current Ratio (Last Year: Mar16)=Total Current Assets/Total Current Liabilities
=2323/2232
=1.04077061

Ball Corp's current ratio of this year was 1.29456594. Ball Corp's current ratio of last year was 1.04077061. ==> This year's current ratio is higher. ==> Score 1.

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.

Ball Corp's number of shares in issue this year was 357.9. Ball Corp's number of shares in issue last year was 283.6. ==> 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
=1925/9779
=0.19685039

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1515/7830
=0.19348659

Ball Corp's gross margin of this year was 0.19685039. Ball Corp's gross margin of last year was 0.19348659. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Mar16)
=9779/10059
=0.97216423

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=7830/7660.5
=1.02212649

Ball Corp's asset turnover of this year was 0.97216423. Ball Corp's asset turnover of last year was 1.02212649. ==> 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
=1+1+1+0+1+1+0+1+0
=6

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

Ball Corp has an F-score of 6 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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Ball Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1111111111
Question 2 1111111111
Question 3 0111000100
Question 4 1111111110
Question 5 1100101101
Question 6 1011010001
Question 7 1101111110
Question 8 0111001101
Question 9 0001100000
F-score 6768656745

Ball Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Question 1 1111111111
Question 2 1111111011
Question 3 1000000001
Question 4 1111111000
Question 5 1111000011
Question 6 0000000111
Question 7 1111100000
Question 8 1000011111
Question 9 0100000100
F-score 7655444456
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