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China Water Affairs Group (HKSE:00855) Piotroski F-Score : 5 (As of Jun. 08, 2024)


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What is China Water Affairs Group 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

China Water Affairs Group 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 China Water Affairs Group's Piotroski F-Score or its related term are showing as below:

HKSE:00855' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 6
Current: 5

During the past 13 years, the highest Piotroski F-Score of China Water Affairs Group was 6. The lowest was 4. And the median was 6.


China Water Affairs Group Piotroski F-Score Historical Data

The historical data trend for China Water Affairs Group'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.

China Water Affairs Group Piotroski F-Score Chart

China Water Affairs Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 6.00 5.00 5.00 5.00

China Water Affairs Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 - 5.00 - 5.00 -

Competitive Comparison of China Water Affairs Group's Piotroski F-Score

For the Utilities - Regulated Water subindustry, China Water Affairs Group'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.


China Water Affairs Group's Piotroski F-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, China Water Affairs Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where China Water Affairs Group'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 (Mar23) TTM:Last Year (Mar22) TTM:
Net Income was HK$1,857 Mil.
Cash Flow from Operations was HK$3,466 Mil.
Revenue was HK$14,195 Mil.
Gross Profit was HK$5,346 Mil.
Average Total Assets from the begining of this year (Mar22)
to the end of this year (Mar23) was (57064.442 + 61164.288) / 2 = HK$59114.365 Mil.
Total Assets at the begining of this year (Mar22) was HK$57,064 Mil.
Long-Term Debt & Capital Lease Obligation was HK$15,950 Mil.
Total Current Assets was HK$17,886 Mil.
Total Current Liabilities was HK$21,178 Mil.
Net Income was HK$1,894 Mil.

Revenue was HK$12,950 Mil.
Gross Profit was HK$4,962 Mil.
Average Total Assets from the begining of last year (Mar21)
to the end of last year (Mar22) was (47038.047 + 57064.442) / 2 = HK$52051.2445 Mil.
Total Assets at the begining of last year (Mar21) was HK$47,038 Mil.
Long-Term Debt & Capital Lease Obligation was HK$14,510 Mil.
Total Current Assets was HK$16,499 Mil.
Total Current Liabilities was HK$19,248 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.

China Water Affairs Group's current Net Income (TTM) was 1,857. ==> 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.

China Water Affairs Group's current Cash Flow from Operations (TTM) was 3,466. ==> 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 (Mar22)
=1856.786/57064.442
=0.03253841

ROA (Last Year)=Net Income/Total Assets (Mar21)
=1893.573/47038.047
=0.0402562

China Water Affairs Group's return on assets of this year was 0.03253841. China Water Affairs Group's return on assets of last year was 0.0402562. ==> 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.

China Water Affairs Group's current Net Income (TTM) was 1,857. China Water Affairs Group's current Cash Flow from Operations (TTM) was 3,466. ==> 3,466 > 1,857 ==> 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: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=15950.413/59114.365
=0.26982296

Gearing (Last Year: Mar22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar21 to Mar22
=14509.511/52051.2445
=0.27875435

China Water Affairs Group's gearing of this year was 0.26982296. China Water Affairs Group's gearing of last year was 0.27875435. ==> 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: Mar23)=Total Current Assets/Total Current Liabilities
=17886.27/21178.405
=0.84455227

Current Ratio (Last Year: Mar22)=Total Current Assets/Total Current Liabilities
=16498.915/19248.385
=0.85715841

China Water Affairs Group's current ratio of this year was 0.84455227. China Water Affairs Group's current ratio of last year was 0.85715841. ==> 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.

China Water Affairs Group's number of shares in issue this year was 1632.322. China Water Affairs Group's number of shares in issue last year was 1632.322. ==> 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
=5346.297/14194.953
=0.37663365

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4962.2/12949.828
=0.38318656

China Water Affairs Group's gross margin of this year was 0.37663365. China Water Affairs Group's gross margin of last year was 0.38318656. ==> 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 (Mar22)
=14194.953/57064.442
=0.24875303

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar21)
=12949.828/47038.047
=0.27530539

China Water Affairs Group's asset turnover of this year was 0.24875303. China Water Affairs Group's asset turnover of last year was 0.27530539. ==> 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+0+1+0+0
=5

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

China Water Affairs Group has an F-score of 5 indicating the company's financial situation is typical for a stable company.

China Water Affairs Group  (HKSE:00855) 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.


China Water Affairs Group Piotroski F-Score Related Terms

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China Water Affairs Group (HKSE:00855) Business Description

Traded in Other Exchanges
Address
18 Harbour Road, Central Plaza, Suite 6408, 64th Floor, Wanchai, Hong Kong, HKG
China Water Affairs Group Ltd is a Chinese water utility company that builds, operates, and invests in water affairs projects in China. The firm's primary segments include City water supply operation, main contractor construction, Environmental protection, and Property development and investment, Pipeline direct drinking water supply. It generates a majority of its revenue from the City water supply operation segment. Geographically, the company generates a major share of its revenue from the People's Republic of China.
Executives
Orix Corporation 2201 Interest of corporation controlled by you
Duan Chuan Liang 2101 Beneficial owner

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