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GuruFocus has detected 2 Warning Signs with Bridgepoint Education Inc $BPI.
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Bridgepoint Education Inc (NYSE:BPI)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating 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

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

BPI' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 7

3
8

During the past 11 years, the highest Piotroski F-Score of Bridgepoint Education Inc was 8. The lowest was 3. 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 (Jun17) TTM:Last Year (Jun16) TTM:
Net Income was -9.477 + -13.789 + 9.869 + 6.314 = $-7.1 Mil.
Cash Flow from Operations was -5.089 + 19.949 + -11.519 + 0.002 = $3.3 Mil.
Revenue was 136.583 + 119.535 + 129.49 + 124.581 = $510.2 Mil.
Gross Profit was 72.488 + 55.766 + 66.451 + 63.433 = $258.1 Mil.
Average Total Assets from the begining of this year (Jun16)
to the end of this year (Jun17) was
(486.343 + 464.193 + 463.376 + 305.07 + 303.936) / 5 = $404.5836 Mil.
Total Assets at the begining of this year (Jun16) was $486.3 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $274.7 Mil.
Total Current Liabilities was $131.3 Mil.
Net Income was -62.746 + -6.687 + -10.112 + 3.338 = $-76.2 Mil.

Revenue was 140.762 + 131.392 + 133.002 + 137.97 = $543.1 Mil.
Gross Profit was 71.565 + 65.552 + 63.416 + 71.522 = $272.1 Mil.
Average Total Assets from the begining of last year (Jun15)
to the end of last year (Jun16) was
(562.548 + 505.3 + 506.766 + 480.877 + 486.343) / 5 = $508.3668 Mil.
Total Assets at the begining of last year (Jun15) was $562.5 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $394.5 Mil.
Total Current Liabilities was $155.9 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.

Bridgepoint Education Inc's current net income (TTM) was -7.1. ==> 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.

Bridgepoint Education Inc's current cash flow from operations (TTM) was 3.3. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Jun16)
=-7.083/486.343
=-0.0145638

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun15)
=-76.207/562.548
=-0.13546755

Bridgepoint Education Inc's return on assets of this year was -0.0145638. Bridgepoint Education Inc's return on assets of last year was -0.13546755. ==> 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.

Bridgepoint Education Inc's current net income (TTM) was -7.1. Bridgepoint Education Inc's current cash flow from operations (TTM) was 3.3. ==> 3.3 > -7.1 ==> 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: Jun17)=Long-Term Debt/Average Total Assets from Jun16 to Jun17
=0/404.5836
=0

Gearing (Last Year: Jun16)=Long-Term Debt/Average Total Assets from Jun15 to Jun16
=0/508.3668
=0

Bridgepoint Education Inc's gearing of this year was 0. Bridgepoint Education Inc's gearing of last year was 0. ==> 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: Jun17)=Total Current Assets/Total Current Liabilities
=274.727/131.305
=2.09228133

Current Ratio (Last Year: Jun16)=Total Current Assets/Total Current Liabilities
=394.503/155.859
=2.53115316

Bridgepoint Education Inc's current ratio of this year was 2.09228133. Bridgepoint Education Inc's current ratio of last year was 2.53115316. ==> 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.

Bridgepoint Education Inc's number of shares in issue this year was 29.9. Bridgepoint Education Inc's number of shares in issue last year was 47. ==> 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
=258.138/510.189
=0.50596544

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=272.055/543.126
=0.50090587

Bridgepoint Education Inc's gross margin of this year was 0.50596544. Bridgepoint Education Inc's gross margin of last year was 0.50090587. ==> 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 (Jun16)
=510.189/486.343
=1.04903124

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun15)
=543.126/562.548
=0.96547495

Bridgepoint Education Inc's asset turnover of this year was 1.04903124. Bridgepoint Education Inc's asset turnover of last year was 0.96547495. ==> 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+1+1+1+1+0+1+1+1
=7

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

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


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.

Bridgepoint Education Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 11111100
Question 2 11111111
Question 3 01000001
Question 4 11111111
Question 5 11111111
Question 6 11010011
Question 7 01111110
Question 8 00000001
Question 9 00000101
F-score 57565657

Bridgepoint Education Inc Quarterly Data

Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17Jun17
Question 1 1100000000
Question 2 1111010111
Question 3 1000001111
Question 4 1111111111
Question 5 1111111111
Question 6 1111111100
Question 7 0111000011
Question 8 1000011111
Question 9 1110001111
F-score 8765356777
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