Switch to:
HCP Inc  (NYSE:HCP) Piotroski F-Score: 9 (As of Today)

Good Sign:

Piotroski F-Score of 9 is 9, 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

HCP Inc has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

NYSE:HCP' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 9
Current: 9

2
9

During the past 13 years, the highest Piotroski F-Score of HCP Inc was 9. The lowest was 2. And the median was 5.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

HCP Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 4.00 3.00 5.00

HCP Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 3.00 3.00 5.00 6.00 9.00

Competitive Comparison
* 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.

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 (Jun17) TTM:Last Year (Jun16) TTM:
Net Income was 151.25 + 58.661 + 461.145 + 19.383 = $690 Mil.
Cash Flow from Operations was 331.72 + 215.499 + 193.129 + 238.46 = $979 Mil.
Revenue was 654.27 + 172.238 + 492.168 + 458.928 = $1,778 Mil.
Gross Profit was 465.523 + -20.334 + 333.087 + 305.765 = $1,084 Mil.
Average Total Assets from the begining of this year (Jun16)
to the end of this year (Jun17) was
(21116.457 + 21188.545 + 15759.265 + 14855.868 + 14102.575) / 5 = $17404.542 Mil.
Total Assets at the begining of this year ({FiscalYear0}) was $21,116 Mil.
Long-Term Debt & Capital Lease Obligation was $7,485 Mil.
Total Current Assets was $490 Mil.
Total Current Liabilities was $537 Mil.
Total Assets was 115.362 + -598.868 + 116.119 + 301.717 = $-66 Mil.

Revenue was 657.499 + 65.585 + 520.457 + 538.335 = $1,782 Mil.
Gross Profit was 483.984 + -103.206 + 344.5 + 359.255 = $1,085 Mil.
Average Total Assets from the begining of last year (Jun15)
to the end of last year (Jun16) was
(22348.127 + 22192.973 + 21449.849 + 21199.927 + 21116.457) / 5 = $21661.4666 Mil.
Total Assets at the begining of last year (Jun15) was $22,348 Mil.
Long-Term Debt & Capital Lease Obligation was $10,755 Mil.
Total Current Assets was $349 Mil.
Total Current Liabilities was $618 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.

HCP Inc's current Net Income (TTM) was {NetIncome0_f}. ==> 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.

HCP Inc's current Cash Flow from Operations (TTM) was 979. ==> 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(Jun16)
=690.439/21116.457
=0.03269673

ROA (Last Year)=Net Income/Total Assets(Jun15)
=-65.67/22348.127
=-0.0029385

HCP Inc's return on assets of this year was 0.03269673. HCP Inc's return on assets of last year was -0.0029385. ==> 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.

HCP Inc's current Net Income (TTM) was 690. HCP Inc's current Cash Flow from Operations (TTM) was 979. ==> 979 > 690 ==> 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: Jun17)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jun16 to Jun17
=7485.326/17404.542
=0.43007888

Gearing (Last Year: Jun16)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jun15 to Jun16
=10755.449/21661.4666
=0.49652451

HCP Inc's gearing of this year was 0.43007888. HCP Inc's gearing of last year was 0.49652451. ==> 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: Jun17)=Total Current Assets/Total Current Liabilities
=490.415/536.845
=0.91351321

Current Ratio (Last Year: Jun16)=Total Current Assets/Total Current Liabilities
=348.654/618.171
=0.56400899

HCP Inc's current ratio of this year was 0.91351321. HCP Inc's current ratio of last year was 0.56400899. ==> 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.

HCP Inc's number of shares in issue this year was 468.8. HCP Inc's number of shares in issue last year was 471.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=1084.041/1777.604
=0.60983267

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1084.533/1781.876
=0.60864673

HCP Inc's gross margin of this year was 0.60983267. HCP Inc's gross margin of last year was 0.60864673. ==> 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 (Jun16)
=1777.604/21116.457
=0.08418098

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun15)
=1781.876/22348.127
=0.07973268

HCP Inc's asset turnover of this year was 0.08418098. HCP Inc's asset turnover of last year was 0.07973268. ==> 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+1+1+1
=9

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

HCP Inc has an F-score of 9. 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


Headlines

No Headline

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)

GF Chat

{{numOfNotice}}
FEEDBACK