Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Credito RealB de CV Sofom ER has an F-score of 3. It is a bad or low score, which usually implies poor business operation.
The historical rank and industry rank for Credito RealB de CV Sofom ER's Piotroski F-Score or its related term are showing as below:
Credito RealB de CV Sofom ER (MEX:CREAL) 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.
Credito RealB de CV Sofom ER Piotroski F-Score Related Terms
Credito RealB de CV Sofom ER Piotroski F-Score Historical Data
* 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.
Credito RealB de CV Sofom ER Piotroski F-Score Chart
* 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 (Sep21) TTM:
Last Year (Sep20) TTM:
Net Income was 120.655 + 89.4 + 193.25 + 203.6 = MXN607 Mil. Cash Flow from Operations was 0 + 0 + 0 + 0 = MXN0 Mil. Revenue was 1532.451 + 1567.5 + 1601.474 + 1948.6 = MXN6,650 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(73946.3 + 70316.87 + 77152.6 + 76232.457 + 77065.6) / 5 = MXN74942.7654 Mil. Total Assets at the begining of this year (Sep20) was MXN73,946 Mil. Long-Term Debt & Capital Lease Obligation was MXN54,842 Mil. Total Assets was MXN77,066 Mil. Total Liabilities was MXN58,578 Mil.
Net Income was 427.209 + 305.5 + 131.287 + 198.9 = MXN1,063 Mil.
Revenue was 1970.67 + 1698.2 + 1548.813 + 1667.3 = MXN6,885 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(57392.4 + 61591.692 + 72970.3 + 74653.641 + 73946.3) / 5 = MXN68110.8666 Mil. Total Assets at the begining of last year (Sep19) was MXN57,392 Mil. Long-Term Debt & Capital Lease Obligation was MXN52,434 Mil. Total Assets was MXN73,946 Mil. Total Liabilities was MXN56,167 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.
Credito RealB de CV Sofom ER's current Net Income (TTM) was 607.
==> 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.
Credito RealB de CV Sofom ER's current Cash Flow from Operations (TTM) was 0.
==> 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.
Credito RealB de CV Sofom ER's return on assets of this year was 0.00820737. Credito RealB de CV Sofom ER's return on assets of last year was 0.0185198.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Credito RealB de CV Sofom ER's gearing of this year was 0.73178111. Credito RealB de CV Sofom ER's gearing of last year was 0.7698287.
==> 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.
Credito RealB de CV Sofom ER's current ratio of this year was 1.31561103. Credito RealB de CV Sofom ER's current ratio of last year was 1.31654821.
==> 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.
Credito RealB de CV Sofom ER's number of shares in issue this year was 369.209. Credito RealB de CV Sofom ER's number of shares in issue last year was 369.209.
==> 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.
* 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.
Credito RealB de CV Sofom ER's net margin of this year was 0.09126357. Credito RealB de CV Sofom ER's net margin of last year was 0.15437889.
==> 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
Credito RealB de CV Sofom ER's asset turnover of this year was 0.08993046. Credito RealB de CV Sofom ER's asset turnover of last year was 0.11996332.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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Que. 1
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3
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Credito RealB de CV Sofom ER has an F-score of 3. It is a bad or low score, which usually implies poor business operation.
Credito Real SAB de CV Sofom ER is a nonbanking financial institution in Mexico that focuses on consumer lending to low-income and middle-income customers. The company mainly makes payroll loans, durable goods loans, small business loans, group loans, and used-car loans.
8GF Score
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