* 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.
* 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 (Mar16) TTM:
Last Year (Mar15) TTM:
Net Income was 3.424 + 3.128 + 3.202 + 4.057 = $13.8 Mil. Cash Flow from Operations was -28.812 + 47.883 + -15.286 + -16.99 = $-13.2 Mil. Revenue was 34.84 + 31.865 + 29.742 + 31.835 = $128.3 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(1178.38 + 1170.675 + 1121.59 + 1161.448 + 1212.507) / 5 = $1168.92 Mil. Total Assets at the begining of this year (Mar15) was $1,178.4 Mil. Long-Term Debt & Capital Lease Obligation was $10.0 Mil. Total Assets was $1,212.5 Mil. Total Liabilities was $1,091.5 Mil.
Net Income was 3.184 + 2.808 + 2.683 + 3.461 = $12.1 Mil.
Revenue was 28.079 + 27.61 + 27.948 + 32.915 = $116.6 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(1022.719 + 1023.899 + 1019.242 + 1066.737 + 1178.38) / 5 = $1062.1954 Mil. Total Assets at the begining of last year (Mar14) was $1,022.7 Mil. Long-Term Debt & Capital Lease Obligation was $11.1 Mil. Total Assets was $1,178.4 Mil. Total Liabilities was $1,067.8 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.
Monarch Financial Holdings's current Net Income (TTM) was 13.8.
==> 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.
Monarch Financial Holdings's current Cash Flow from Operations (TTM) was -13.2.
==> 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.
Monarch Financial Holdings's return on assets of this year was 0.01172033. Monarch Financial Holdings's return on assets of last year was 0.01186641.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Monarch Financial Holdings's gearing of this year was 0.00855491. Monarch Financial Holdings's gearing of last year was 0.01040298.
==> 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.
Monarch Financial Holdings's current ratio of this year was 1.11089662. Monarch Financial Holdings's current ratio of last year was 1.10351428.
==> 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.
Monarch Financial Holdings's number of shares in issue this year was 11.881. Monarch Financial Holdings's number of shares in issue last year was 11.838.
==> 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.
* 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.
Monarch Financial Holdings's net margin of this year was 0.10766125. Monarch Financial Holdings's net margin of last year was 0.1041252.
==> This year's net 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
Monarch Financial Holdings's asset turnover of this year was 0.10886302. Monarch Financial Holdings's asset turnover of last year was 0.11396288.
==> 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
+
0
+
0
+
0
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1
+
1
+
0
+
1
+
0
=
4
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Monarch Financial Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.
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.
Monarch Financial Holdings Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Monarch Financial Holdings's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Monarch Financial Holdings (Monarch Financial Holdings) Business Description
Monarch Financial Holdings Inc was created on June 1, 2006 through a reorganization plan, under the laws of the Commonwealth of Virginia, in which Monarch Bank became its wholly-owned subsidiary. Monarch Bank was incorporated on May 1, 1998 and opened for business on April 14, 1999 as a Virginia-chartered bank and a member of the Federal Reserve banking system. The Company is engaged in business and consumer banking, investment and insurance sales, and mortgage origination and brokerage. It conducts its operations through its wholly-owned subsidiary, Monarch Bank, and its two wholly-owned subsidiaries, Monarch Investment, LLC and Monarch Capital, LLC. It also does business in some markets as OBX Bank, Monarch Bank Private Wealth, Monarch Mortgage and under various names via joint ventures with other partners. The Company operates through two segments that offer different products and services; community banking ("banking") and retail mortgage banking services ("mortgage banking"). Banking involves making loans to and generating deposits from individuals and businesses. Mortgage banking originates residential mortgage loans and subsequently sells them to investors. It serves the needs of local businesses, professionals, corporate executives and individuals in the Hampton Roads South Hampton Roads area of Southeastern Virginia and the Outer Banks region of Northeastern North Carolina. It operate ten banking offices, four commercial lending office and eleven residential mortgage offices in the cities of Chesapeake, Norfolk, Newport News, Richmond, Williamsburg and Virginia Beach, Virginia. It has two full-service banking offices operating under the name 'OBX Bank' and a residential mortgage office operating under the name of 'OBX Bank Mortgage' in the Outer Banks region of Northeastern North Carolina in the towns of Kitty Hawk and Nags Head. It also operates twenty-nine additional residential mortgage offices outside of its main market areas. The Company's business banking group supports its business and commercial clients and offers both secured and unsecured commercial loans for working capital (including inventory and receivables), business expansion (including acquisition of real estate and improvements) and the purchase of equipment and machinery, as well as loans secured by commercial real estate. This Company also originates business deposits and related services. The Company's Real Estate Finance Group supports the delivery of residential and commercial real estate construction, acquisition and development loans, with the majority of its focus in the 1-4 family residential development markets of Hampton Roads and Northeastern North Carolina. This group supports this type of banking in all of its markets. The Commercial Real Estate Finance Group specializing in underwriting commercial real estate loans, which are either financed for its balance sheet or brokered to other investors. Non-owner occupied income producing real est
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