* 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.
Competitive Comparison of ZF Steering Gear (India)'s Piotroski F-Score
For the Auto Parts subindustry, ZF Steering Gear (India)'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.
ZF Steering Gear (India)'s Piotroski F-Score Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, ZF Steering Gear (India)'s Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where ZF Steering Gear (India)'s Piotroski F-Score falls into.
* 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.
*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.
ZF Steering Gear (India)'s current Net Income (TTM) was 437.
==> 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.
ZF Steering Gear (India)'s current Cash Flow from Operations (TTM) was 349.
==> 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.
ZF Steering Gear (India)'s return on assets of this year was 0.08535584. ZF Steering Gear (India)'s return on assets of last year was 0.05197281.
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
ZF Steering Gear (India)'s gearing of this year was 0.07017544. ZF Steering Gear (India)'s gearing of last year was 0.01272474.
==> 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
ZF Steering Gear (India)'s current ratio of this year was 2.03567295. ZF Steering Gear (India)'s current ratio of last year was 2.05435042.
==> 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.
ZF Steering Gear (India)'s number of shares in issue this year was 9.073. ZF Steering Gear (India)'s number of shares in issue last year was 9.073.
==> 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.
ZF Steering Gear (India)'s gross margin of this year was 0.33776462. ZF Steering Gear (India)'s gross margin of last year was 0.33999955.
==> 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
ZF Steering Gear (India)'s asset turnover of this year was 0.93047251. ZF Steering Gear (India)'s asset turnover of last year was 0.94781541.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
=
Que. 1
+
Que. 2
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Que. 3
+
Que. 4
+
Que. 5
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Que. 6
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Que. 7
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Que. 8
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Que. 9
=
1
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1
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1
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0
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0
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0
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1
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=
4
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
ZF Steering Gear (India) has an F-score of 4 indicating the company's financial situation is typical for a stable company.
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.
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.
ZF Steering Gear (India) Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of ZF Steering Gear (India)'s Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
ZF Steering Gear (India) Ltd produces and assembles steering systems for vehicles, buses, and tractors. The segment in which the group operates includes Auto Component and Renewable Energy. The company's product range includes steering systems, vane pumps, pump pulleys, oil reservoirs, steering and pump mounting brackets, steering columns, intermediate shafts, universal joints, bevel gears boxes, and power steering oil dexron II. ZF Steering operates its business activity through the plant located in Vadu Budruk, Pune. The company generates the majority of its revenue from the Auto component, which is engaged in the manufacturing of auto components.
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