Switch to:
GuruFocus has detected 6 Warning Signs with Coca-Cola European Partners PLC $CCE.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Coca-Cola European Partners PLC (NYSE:CCE)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, 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

Coca-Cola European Partners PLC has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

CCE' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 8

2
8

During the past 13 years, the highest Piotroski F-Score of Coca-Cola European Partners PLC was 8. 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 170.647191011 + 367.003367003 + 12.6582278481 + 157.219251337 = $708 Mil.
Cash Flow from Operations was 258.065168539 + 726.150392817 + 273.206751055 + 197.860962567 = $1,455 Mil.
Revenue was 2478.67865169 + 3351.29068462 + 2747.89029536 + 2547.59358289 = $11,125 Mil.
Gross Profit was 905.421348315 + 1303.03030303 + 1148.73417722 + 977.540106952 = $4,335 Mil.
Average Total Assets from the begining of this year (Mar16)
to the end of this year (Mar17) was
(7851.49665924 + 21050.5617978 + 20753.0864198 + 19586.4978903 + 19827.8074866) / 5 = $17813.8900507 Mil.
Total Assets at the begining of this year (Mar16) was $7,851 Mil.
Long-Term Debt was $5,932 Mil.
Total Current Assets was $3,675 Mil.
Total Current Liabilities was $3,917 Mil.
Net Income was 176.114478114 + 163.860830527 + 141.612200436 + 64.7260579065 = $546 Mil.

Revenue was 1929.25476992 + 1838.38383838 + 1625.27233115 + 1487.72383073 = $6,881 Mil.
Gross Profit was 705.459034792 + 701.459034792 + 594.77124183 + 549.192650334 = $2,551 Mil.
Average Total Assets from the begining of last year (Mar15)
to the end of last year (Mar16) was
(8184.94805195 + 8711.66666667 + 8183.66554433 + 7620.91503268 + 7851.49665924) / 5 = $8110.53839097 Mil.
Total Assets at the begining of last year (Mar15) was $8,185 Mil.
Long-Term Debt was $3,450 Mil.
Total Current Assets was $2,250 Mil.
Total Current Liabilities was $2,403 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.

Coca-Cola European Partners PLC's current net income (TTM) was 708. ==> 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.

Coca-Cola European Partners PLC's current cash flow from operations (TTM) was 1,455. ==> 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 (Mar16)
=707.5280372/7851.49665924
=0.09011378

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=546.313566984/8184.94805195
=0.06674613

Coca-Cola European Partners PLC's return on assets of this year was 0.09011378. Coca-Cola European Partners PLC's return on assets of last year was 0.06674613. ==> 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.

Coca-Cola European Partners PLC's current net income (TTM) was 708. Coca-Cola European Partners PLC's current cash flow from operations (TTM) was 1,455. ==> 1,455 > 708 ==> 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: Mar17)=Long-Term Debt/Average Total Assets from Mar16 to Mar17
=5931.55080214/17813.8900507
=0.33297336

Gearing (Last Year: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=3450.10801782/8110.53839097
=0.42538582

Coca-Cola European Partners PLC's gearing of this year was 0.33297336. Coca-Cola European Partners PLC's gearing of last year was 0.42538582. ==> 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
=3674.86631016/3916.57754011
=0.93828509

Current Ratio (Last Year: Mar16)=Total Current Assets/Total Current Liabilities
=2249.72939866/2402.71937639
=0.93632632

Coca-Cola European Partners PLC's current ratio of this year was 0.93828509. Coca-Cola European Partners PLC's current ratio of last year was 0.93632632. ==> 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.

Coca-Cola European Partners PLC's number of shares in issue this year was 490. Coca-Cola European Partners PLC's number of shares in issue last year was 232. ==> 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
=4334.72593551/11125.4532146
=0.38962241

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2550.88196175/6880.63477019
=0.37073352

Coca-Cola European Partners PLC's gross margin of this year was 0.38962241. Coca-Cola European Partners PLC's gross margin of last year was 0.37073352. ==> 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)
=11125.4532146/7851.49665924
=1.41698503

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=6880.63477019/8184.94805195
=0.84064489

Coca-Cola European Partners PLC's asset turnover of this year was 1.41698503. Coca-Cola European Partners PLC's asset turnover of last year was 0.84064489. ==> 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
=1+1+1+1+1+1+0+1+1
=8

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

Coca-Cola European Partners PLC has an F-score of 8. 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.

Coca-Cola European Partners PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1011111111
Question 2 1111111111
Question 3 1011100011
Question 4 1111111111
Question 5 1010010101
Question 6 0111101010
Question 7 0101111110
Question 8 0010000111
Question 9 1110101001
F-score 6586756677

Coca-Cola European Partners PLC Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Question 1 1111111111
Question 2 1111111111
Question 3 0000111111
Question 4 1111111111
Question 5 1110000011
Question 6 0000101101
Question 7 1111110000
Question 8 1111111111
Question 9 0000011111
F-score 6665777778
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK