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Real Goods Solar Piotroski F-Score

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The zones of discrimination were as such:

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

Real Goods Solar has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

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


Real Goods Solar Piotroski F-Score Historical Data

The historical data trend for Real Goods Solar'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.

Real Goods Solar Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 2.00 3.00 4.00 4.00

Real Goods Solar Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
Piotroski F-Score 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 Premium Member Only Premium Member Only Premium Member Only 4.00 4.00 4.00 3.00 2.00

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 (Sep19) TTM:Last Year (Sep18) TTM:
Net Income was -11.692 + -4.49 + -5.076 + -1.811 = $-23.07 Mil.
Cash Flow from Operations was -3.405 + -3.719 + -3.914 + -0.906 = $-11.94 Mil.
Revenue was 2.423 + 2.162 + 2.294 + 2.225 = $9.10 Mil.
Gross Profit was -1.029 + -1.436 + -0.563 + -0.336 = $-3.36 Mil.
Average Total Assets from the begining of this year (Sep18)
to the end of this year (Sep19) was
(16.985 + 16.26 + 15.951 + 15.485 + 13.903) / 5 = $15.7168 Mil.
Total Assets at the begining of this year (Sep18) was $16.99 Mil.
Long-Term Debt & Capital Lease Obligation was $0.79 Mil.
Total Current Assets was $7.37 Mil.
Total Current Liabilities was $6.96 Mil.
Net Income was -5.212 + -4.338 + -7.762 + -18.296 = $-35.61 Mil.

Revenue was 4.91 + 2.822 + 3.568 + 3.915 = $15.22 Mil.
Gross Profit was -1.296 + -1.601 + -0.577 + -0.496 = $-3.97 Mil.
Average Total Assets from the begining of last year (Sep17)
to the end of last year (Sep18) was
(18.075 + 14.258 + 12.186 + 11.32 + 16.985) / 5 = $14.5648 Mil.
Total Assets at the begining of last year (Sep17) was $18.08 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Total Current Assets was $13.13 Mil.
Total Current Liabilities was $7.95 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.

Real Goods Solar's current Net Income (TTM) was -23.07. ==> 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.

Real Goods Solar's current Cash Flow from Operations (TTM) was -11.94. ==> 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 (Sep18)
=-23.069/16.985
=-1.35819841

ROA (Last Year)=Net Income/Total Assets (Sep17)
=-35.608/18.075
=-1.97001383

Real Goods Solar's return on assets of this year was -1.35819841. Real Goods Solar's return on assets of last year was -1.97001383. ==> 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.

Real Goods Solar's current Net Income (TTM) was -23.07. Real Goods Solar's current Cash Flow from Operations (TTM) was -11.94. ==> -11.94 > -23.07 ==> 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: Sep19)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep18 to Sep19
=0.787/15.7168
=0.05007381

Gearing (Last Year: Sep18)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep17 to Sep18
=0/14.5648
=0

Real Goods Solar's gearing of this year was 0.05007381. Real Goods Solar's gearing of last year was 0. ==> Last year is lower than this year ==> Score 0.

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: Sep19)=Total Current Assets/Total Current Liabilities
=7.37/6.96
=1.05890805

Current Ratio (Last Year: Sep18)=Total Current Assets/Total Current Liabilities
=13.134/7.953
=1.65145228

Real Goods Solar's current ratio of this year was 1.05890805. Real Goods Solar's current ratio of last year was 1.65145228. ==> 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.

Real Goods Solar's number of shares in issue this year was 116.276. Real Goods Solar's number of shares in issue last year was 36.959. ==> 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
=-3.364/9.104
=-0.36950791

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=-3.97/15.215
=-0.26092672

Real Goods Solar's gross margin of this year was -0.36950791. Real Goods Solar's gross margin of last year was -0.26092672. ==> 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 (Sep18)
=9.104/16.985
=0.53600236

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep17)
=15.215/18.075
=0.8417704

Real Goods Solar's asset turnover of this year was 0.53600236. Real Goods Solar's asset turnover of last year was 0.8417704. ==> 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
=0+0+1+1+0+0+0+0+0
=2

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

Real Goods Solar has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

Real Goods Solar  (GREY:RGSEQ) 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.


Real Goods Solar Piotroski F-Score Related Terms

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Real Goods Solar Business Description

Real Goods Solar logo
Traded in Other Exchanges
N/A
Address
110 16th Street, Suite 300, Denver, CO, USA, 80202
Real Goods Solar Inc provides residential and commercial solar energy construction, installation and design. The company offers turnkey solar energy services including design, procurement, permitting and build-out activities.
Executives
Lacey Dennis J director, officer: CEO
Neble George R director 210 BROADWAY CAMBRIDGE MA 02139
White Richard director C/O ESCALADE INCORPORATED 817 MAXWELL AVE EVANSVILLE IN 47711
Argyropoulos James P director 833 WEST SOUTH BOULDER ROAD LOUISVILLE CO 80027-2452
Jackson John R director 833 WEST SOUTH BOULDER ROAD LOUISVILLE CO 80027-2452
Mowry Barbara director P.O. BOX 103115 DENVER CO 80250
Yearsley William S. director, officer: CEO 833 WEST SOUTH BOULDER ROAD LOUISVILLE CO 80027
Powers Lynn director 833 WEST SOUTH BOULDER ROAD LOUISVILLE CO 80027-2452
Nark Ted C director 25 BLACK HAWK IRVINE CA 92603
Rysavy Jirka director, 10 percent owner, other: Chairman 833 WEST SOUTH BOULDER ROAD LOUISVILLE CO 80027-2452
Valentine Vilia officer: Chief Financial Officer 4350 SOUTH MONACO STREET, SUITE 500 DENVER CO 80237
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