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Forrester Research (Forrester Research) Piotroski F-Score : 5 (As of May. 21, 2024)


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What is Forrester Research 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

Forrester Research 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 Forrester Research's Piotroski F-Score or its related term are showing as below:

FORR' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 7   Max: 9
Current: 5

During the past 13 years, the highest Piotroski F-Score of Forrester Research was 9. The lowest was 3. And the median was 7.


Forrester Research Piotroski F-Score Historical Data

The historical data trend for Forrester Research'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.

Forrester Research Piotroski F-Score Chart

Forrester Research 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 7.00 7.00 7.00 5.00

Forrester Research Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 Premium Member Only Premium Member Only 7.00 6.00 6.00 5.00 5.00

Competitive Comparison of Forrester Research's Piotroski F-Score

For the Consulting Services subindustry, Forrester Research'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.


Forrester Research's Piotroski F-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Forrester Research's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Forrester Research'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 (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 5.304 + 2.484 + -0.663 + -6.673 = $0.5 Mil.
Cash Flow from Operations was 3.506 + -5.997 + 11.882 + 0.611 = $10.0 Mil.
Revenue was 135.589 + 113.431 + 118.089 + 100.077 = $467.2 Mil.
Gross Profit was 80.975 + 65.453 + 65.489 + 55.387 = $267.3 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(593.888 + 570.674 + 536.056 + 564.174 + 555.67) / 5 = $564.0924 Mil.
Total Assets at the begining of this year (Mar23) was $593.9 Mil.
Long-Term Debt & Capital Lease Obligation was $69.5 Mil.
Total Current Assets was $218.6 Mil.
Total Current Liabilities was $241.1 Mil.
Net Income was 13.874 + 5.414 + -1.63 + -4.075 = $13.6 Mil.

Revenue was 148.246 + 127.679 + 136.891 + 113.67 = $526.5 Mil.
Gross Profit was 87.255 + 74.962 + 80.077 + 64.378 = $306.7 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(651.902 + 614.93 + 585.24 + 608.438 + 593.888) / 5 = $610.8796 Mil.
Total Assets at the begining of last year (Mar22) was $651.9 Mil.
Long-Term Debt & Capital Lease Obligation was $83.5 Mil.
Total Current Assets was $225.8 Mil.
Total Current Liabilities was $269.3 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.

Forrester Research's current Net Income (TTM) was 0.5. ==> 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.

Forrester Research's current Cash Flow from Operations (TTM) was 10.0. ==> 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/Total Assets (Mar23)
=0.452/593.888
=0.00076109

ROA (Last Year)=Net Income/Total Assets (Mar22)
=13.583/651.902
=0.02083595

Forrester Research's return on assets of this year was 0.00076109. Forrester Research's return on assets of last year was 0.02083595. ==> 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.

Forrester Research's current Net Income (TTM) was 0.5. Forrester Research's current Cash Flow from Operations (TTM) was 10.0. ==> 10.0 > 0.5 ==> 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: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=69.472/564.0924
=0.12315713

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=83.521/610.8796
=0.13672252

Forrester Research's gearing of this year was 0.12315713. Forrester Research's gearing of last year was 0.13672252. ==> 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: Mar24)=Total Current Assets/Total Current Liabilities
=218.581/241.111
=0.90655756

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=225.844/269.305
=0.83861792

Forrester Research's current ratio of this year was 0.90655756. Forrester Research's current ratio of last year was 0.83861792. ==> 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.

Forrester Research's number of shares in issue this year was 19.285. Forrester Research's number of shares in issue last year was 19.108. ==> 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
=267.304/467.186
=0.57215756

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=306.672/526.486
=0.58248842

Forrester Research's gross margin of this year was 0.57215756. Forrester Research's gross margin of last year was 0.58248842. ==> 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

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=467.186/593.888
=0.78665674

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=526.486/651.902
=0.80761526

Forrester Research's asset turnover of this year was 0.78665674. Forrester Research's asset turnover of last year was 0.80761526. ==> 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+0+1+1+1+0+0+0
=5

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

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

Forrester Research  (NAS:FORR) 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.


Forrester Research Piotroski F-Score Related Terms

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Forrester Research (Forrester Research) Business Description

Traded in Other Exchanges
Address
60 Acorn Park Drive, Cambridge, MA, USA, 02140
Forrester Research Inc is a United States-based company that provides independent research, data, and advisory services. It operates through the following segments: The Research segment develops and delivers research, connect, and analytics products; The consulting segment includes the revenues and the related costs of the company's consulting organization, and the Events segment is engaged in developing and hosting in-person and virtual events.
Executives
Steven P. Peltzman officer: CBTO C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Scott Chouinard officer: Chief Accounting Officer C/O FORRESTER RESEARCH, INC., 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Carrie Johnson officer: Chief Research Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Ryan Darrah officer: Chief Legal Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Anthony J Friscia director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Robert Galford director C/O FORRESTER RESEARCH, 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Alicia Lee officer: Chief Consulting Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Kelley Hippler officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DR., CAMBRIDGE MA 02140
David Boyce director C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Roy Sarah Le officer: Chief People Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Warren N Romine director 7325 16TH STREET NW, WASHINGTON DC 20012
Sharyn Leaver officer: Chief Research Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
Nathaniel Swan officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC., 60 ACORN PARK DRIVE, CAMBRIDGE MA 02140
George F Colony director, 10 percent owner, officer: Chairman & CEO C/O FORRESTER RESEARCH INC, 1033 MASSACHUSETTS AVE, CAMBRIDGE MA 02138
Gretchen Teichgraeber director C/O FORRESTER RESEARCH, 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139