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GuruFocus has detected 3 Warning Signs with JetBlue Airways Corp $JBLU.
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JetBlue Airways Corp (NAS:JBLU)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

JetBlue Airways Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

JBLU' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 6

3
9

During the past 13 years, the highest Piotroski F-Score of JetBlue Airways Corp was 9. The lowest was 3. And the median was 6.


Definition

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 (Mar17) TTM:Last Year (Mar16) TTM:
Net Income was 180 + 199 + 180 + 85 = $644 Mil.
Cash Flow from Operations was 422 + 310 + 315 + 432 = $1,479 Mil.
Revenue was 1643 + 1732 + 1641 + 1604 = $6,620 Mil.
Gross Profit was 1109 + 1160 + 1106 + 1008 = $4,383 Mil.
Average Total Assets from the begining of this year (Mar16)
to the end of this year (Mar17) was
(9062 + 9458 + 9579 + 9487 + 9473) / 5 = $9411.8 Mil.
Total Assets at the begining of this year (Mar16) was $9,062 Mil.
Long-Term Debt was $1,140 Mil.
Total Current Assets was $1,469 Mil.
Total Current Liabilities was $2,422 Mil.
Net Income was 152 + 198 + 190 + 207 = $747 Mil.

Revenue was 1612 + 1687 + 1594 + 1616 = $6,509 Mil.
Gross Profit was 994 + 1092 + 1067 + 1153 = $4,306 Mil.
Average Total Assets from the begining of last year (Mar15)
to the end of last year (Mar16) was
(8304 + 8317 + 8594 + 8644 + 9062) / 5 = $8584.2 Mil.
Total Assets at the begining of last year (Mar15) was $8,304 Mil.
Long-Term Debt was $1,332 Mil.
Total Current Assets was $1,774 Mil.
Total Current Liabilities was $2,474 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.

JetBlue Airways Corp's current net income (TTM) was 644. ==> 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.

JetBlue Airways Corp's current cash flow from operations (TTM) was 1,479. ==> 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.

JetBlue Airways Corp's return on assets of this year was 0.07106599. JetBlue Airways Corp's return on assets of last year was 0.08995665. ==> 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.

JetBlue Airways Corp's current net income (TTM) was 644. JetBlue Airways Corp's current cash flow from operations (TTM) was 1,479. ==> 1,479 > 644 ==> 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: Mar17)=Long-Term Debt/Average Total Assets from Mar16 to Mar17
=1140/9411.8
=0.12112455

Gearing (Last Year: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=1332/8584.2
=0.1551688

JetBlue Airways Corp's gearing of this year was 0.12112455. JetBlue Airways Corp's gearing of last year was 0.1551688. ==> 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: Mar17)=Total Current Assets/Total Current Liabilities
=1469/2422
=0.60652353

Current Ratio (Last Year: Mar16)=Total Current Assets/Total Current Liabilities
=1774/2474
=0.7170574

JetBlue Airways Corp's current ratio of this year was 0.60652353. JetBlue Airways Corp's current ratio of last year was 0.7170574. ==> 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.

JetBlue Airways Corp's number of shares in issue this year was 338.2. JetBlue Airways Corp's number of shares in issue last year was 341.7. ==> 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
=4383/6620
=0.66208459

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4306/6509
=0.66154555

JetBlue Airways Corp's gross margin of this year was 0.66208459. JetBlue Airways Corp's gross margin of last year was 0.66154555. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Mar16)
=6620/9062
=0.73052306

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=6509/8304
=0.78383911

JetBlue Airways Corp's asset turnover of this year was 0.73052306. JetBlue Airways Corp's asset turnover of last year was 0.78383911. ==> 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+1+0
=6

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

JetBlue Airways Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.


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

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

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

JetBlue Airways Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1011111111
Question 2 1011111111
Question 3 1011011111
Question 4 1111111111
Question 5 1111111111
Question 6 0110000101
Question 7 0000100111
Question 8 0010001111
Question 9 0101111110
F-score 5476667988

JetBlue Airways Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Question 1 1111111111
Question 2 1111111111
Question 3 1111111110
Question 4 1111111111
Question 5 1111111111
Question 6 1001011110
Question 7 1000111111
Question 8 1111111111
Question 9 1111110000
F-score 9778898886
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