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ENETF (Ethernity Networks) Piotroski F-Score : 5 (As of Mar. 04, 2025)


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What is Ethernity Networks Piotroski F-Score?

The zones of discrimination were as such:

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

Ethernity Networks has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Ethernity Networks's Piotroski F-Score or its related term are showing as below:

ENETF' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 3   Max: 5
Current: 5

During the past 10 years, the highest Piotroski F-Score of Ethernity Networks was 5. The lowest was 2. And the median was 3.


Ethernity Networks Piotroski F-Score Historical Data

The historical data trend for Ethernity Networks'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.

Ethernity Networks Piotroski F-Score Chart

Ethernity Networks Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 3.00 3.00 3.00 5.00

Ethernity Networks Semi-Annual Data
Dec14 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 3.00 - 3.00 - 5.00

Competitive Comparison of Ethernity Networks's Piotroski F-Score

For the Software - Application subindustry, Ethernity Networks'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.


Ethernity Networks's Piotroski F-Score Distribution in the Software Industry

For the Software industry and Technology sector, Ethernity Networks's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Ethernity Networks'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 (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was $-6.37 Mil.
Cash Flow from Operations was $-1.50 Mil.
Revenue was $3.78 Mil.
Gross Profit was $2.34 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was (12.257 + 9.676) / 2 = $10.9665 Mil.
Total Assets at the begining of this year (Dec22) was $12.26 Mil.
Long-Term Debt & Capital Lease Obligation was $0.76 Mil.
Total Current Assets was $3.14 Mil.
Total Current Liabilities was $2.94 Mil.
Net Income was $-8.00 Mil.

Revenue was $2.94 Mil.
Gross Profit was $1.60 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was (19.412 + 12.257) / 2 = $15.8345 Mil.
Total Assets at the begining of last year (Dec21) was $19.41 Mil.
Long-Term Debt & Capital Lease Obligation was $2.51 Mil.
Total Current Assets was $3.13 Mil.
Total Current Liabilities was $4.17 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.

Ethernity Networks's current Net Income (TTM) was -6.37. ==> 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.

Ethernity Networks's current Cash Flow from Operations (TTM) was -1.50. ==> 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 (Dec22)
=-6.365/12.257
=-0.5192951

ROA (Last Year)=Net Income/Total Assets (Dec21)
=-8.003/19.412
=-0.41227076

Ethernity Networks's return on assets of this year was -0.5192951. Ethernity Networks's return on assets of last year was -0.41227076. ==> 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.

Ethernity Networks's current Net Income (TTM) was -6.37. Ethernity Networks's current Cash Flow from Operations (TTM) was -1.50. ==> -1.50 > -6.37 ==> 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: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=0.764/10.9665
=0.06966671

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=2.506/15.8345
=0.15826202

Ethernity Networks's gearing of this year was 0.06966671. Ethernity Networks's gearing of last year was 0.15826202. ==> 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: Dec23)=Total Current Assets/Total Current Liabilities
=3.144/2.944
=1.06793478

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=3.132/4.173
=0.75053918

Ethernity Networks's current ratio of this year was 1.06793478. Ethernity Networks's current ratio of last year was 0.75053918. ==> 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.

Ethernity Networks's number of shares in issue this year was 143.877. Ethernity Networks's number of shares in issue last year was 76.013. ==> 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
=2.34/3.778
=0.61937533

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1.598/2.937
=0.54409261

Ethernity Networks's gross margin of this year was 0.61937533. Ethernity Networks's gross margin of last year was 0.54409261. ==> 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/Total Assets at the Beginning of This Year (Dec22)
=3.778/12.257
=0.30823203

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=2.937/19.412
=0.15129817

Ethernity Networks's asset turnover of this year was 0.30823203. Ethernity Networks's asset turnover of last year was 0.15129817. ==> 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+1+1+1+0+1+1
=5

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

Ethernity Networks has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Ethernity Networks  (OTCPK:ENETF) 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.


Ethernity Networks Piotroski F-Score Related Terms

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Ethernity Networks Business Description

Traded in Other Exchanges
Address
1 Golan Street, Corner HaNegev, Beit Golan, 3rd Floor, Airport City, ISR, 7019900
Ethernity Networks Ltd technology solutions provider that develops and delivers data processing technology and solutions used in high-end Carrier Ethernet applications across the telecom, mobile, security, and data center markets. The company's only operating segment is the development and delivery of high-end network processing technology. Geographically, it derives a majority of its revenue from the United States and also has a presence in Asia, Europe, Israel, and the United States. Its product categories include ENET Network Appliances, PON Devices ACE-NIC SmartNICs, ENET Flow Processors, and FPGA Boards.