Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
NEW GERMANY FUND has an F-score of 4 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for NEW GERMANY FUND's Piotroski F-Score or its related term are showing as below:
GF'
s Piotroski F-Score Range Over the Past 10 Years
Min: 2 Med: 4 Max: 6
Current: 4
During the past 7 years, the highest Piotroski F-Score of NEW GERMANY FUND was 6. The lowest was 2. And the median was 4.
NEW GERMANY FUND Piotroski F-Score Historical Data
The historical data trend for NEW GERMANY FUND'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.
Competitive Comparison of NEW GERMANY FUND's Piotroski F-Score
For the Asset Management subindustry, NEW GERMANY FUND'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.
NEW GERMANY FUND's Piotroski F-Score Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, NEW GERMANY FUND's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where NEW GERMANY FUND'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.
*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.
NEW GERMANY FUND's current Net Income (TTM) was 24.03.
==> 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.
NEW GERMANY FUND's return on assets of this year was 0.14788784. NEW GERMANY FUND's return on assets of last year was -0.31472626.
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
NEW GERMANY FUND's gearing of this year was 0. NEW GERMANY FUND'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
* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.
NEW GERMANY FUND's current ratio of this year was 28.11770059. NEW GERMANY FUND's current ratio of last year was 143.41394528.
==> 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.
NEW GERMANY FUND's number of shares in issue this year was 17.288. NEW GERMANY FUND's number of shares in issue last year was 16.619.
==> 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.
* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.
NEW GERMANY FUND's net margin of this year was 0.95168317. NEW GERMANY FUND's net margin of last year was 1.01266269.
==> Last year's net 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
NEW GERMANY FUND's asset turnover of this year was 0.15539609. NEW GERMANY FUND's asset turnover of last year was -0.31079082.
==> This year's asset turnover is higher. ==> Score 1.
Evaluation
Piotroski F-Score
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4
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
NEW GERMANY FUND has an F-score of 4 indicating the company's financial situation is typical for a stable company.
NEW GERMANY FUND (NYSE:GF) 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.
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.
NEW GERMANY FUND Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of NEW GERMANY FUND's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
NEW GERMANY FUND (NEW GERMANY FUND) Business Description
NEW GERMANY FUND INC is the United States based non-diversified, closed-end management investment company. As the investment objective, the fund seeks long-term capital appreciation through investment in middle market German equities. The fund's portfolio of investment includes investment in different sectors such as the industrials, information technology, material, consumer discretionary, Communication Services, Financials, Consumer Staples, Real Estate, Utilities, healthcare, Energy and others. Its portfolio is geographically diversified across the Netherlands, Germany, and Italy.
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