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Arrowhead Pharmaceuticals Piotroski F-Score

: 1 (As of Today)
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Warning Sign:

Piotroski F-Score of 1 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Arrowhead Pharmaceuticals has an F-score of 1. It is a bad or low score, which usually implies poor business operation.

NAS:ARWR' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 3   Max: 6
Current: 1
1
6

During the past 13 years, the highest Piotroski F-Score of Arrowhead Pharmaceuticals was 6. The lowest was 1. And the median was 3.

Arrowhead Pharmaceuticals Piotroski F-Score 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.

Arrowhead Pharmaceuticals Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 1.00 5.00 2.00 6.00

Arrowhead Pharmaceuticals Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
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 6.00 6.00 3.00 2.00 1.00
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.

Arrowhead Pharmaceuticals Piotroski F-Score Distribution

* The bar in red indicates where Arrowhead Pharmaceuticals's Piotroski F-Score falls into.


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 (Jun20) TTM:Last Year (Jun19) TTM:
Net Income was 11.705 + -2.674 + -19.836 + -13.611 = USD-24.4 Mil.
Cash Flow from Operations was 13.81 + -23.53 + -27.584 + -33.427 = USD-70.7 Mil.
Revenue was 43.293 + 29.455 + 23.529 + 27.376 = USD123.7 Mil.
Gross Profit was 43.293 + 29.455 + 23.529 + 27.376 = USD123.7 Mil.
Average Total Assets from the begining of this year (Jun19)
to the end of this year (Jun20) was
(336.828 + 349.845 + 587.602 + 561.076 + 555.728) / 5 = USD478.2158 Mil.
Total Assets at the begining of this year (Jun19) was USD336.8 Mil.
Long-Term Debt & Capital Lease Obligation was USD20.4 Mil.
Total Current Assets was USD315.2 Mil.
Total Current Liabilities was USD42.8 Mil.		 Net Income was -10.761 + 12.037 + 23.897 + 20.336 = USD45.5 Mil.

Revenue was 11.255 + 34.658 + 48.148 + 42.697 = USD136.8 Mil.
Gross Profit was 11.255 + 34.658 + 48.148 + 42.697 = USD136.8 Mil.
Average Total Assets from the begining of last year (Jun18)
to the end of last year (Jun19) was
(112.903 + 111.61 + 340.947 + 333.94 + 336.828) / 5 = USD247.2456 Mil.
Total Assets at the begining of last year (Jun18) was USD112.9 Mil.
Long-Term Debt & Capital Lease Obligation was USD0.0 Mil.
Total Current Assets was USD244.5 Mil.
Total Current Liabilities was USD87.1 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.

Arrowhead Pharmaceuticals's current Net Income (TTM) was -24.4. ==> Negative ==> Score 0.

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.

Arrowhead Pharmaceuticals's current Cash Flow from Operations (TTM) was -70.7. ==> 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.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun19)
=-24.416/336.828
=-0.07248804

ROA (Last Year)=Net Income/Total Assets (Jun18)
=45.509/112.903
=0.40308052

Arrowhead Pharmaceuticals's return on assets of this year was -0.07248804. Arrowhead Pharmaceuticals's return on assets of last year was 0.40308052. ==> 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.

Arrowhead Pharmaceuticals's current Net Income (TTM) was -24.4. Arrowhead Pharmaceuticals's current Cash Flow from Operations (TTM) was -70.7. ==> -70.7 <= -24.4 ==> CFROA <= ROA ==> Score 0.

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: Jun20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun19 to Jun20
=20.36/478.2158
=0.04257492

Gearing (Last Year: Jun19)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun18 to Jun19
=0/247.2456
=0

Arrowhead Pharmaceuticals's gearing of this year was 0.04257492. Arrowhead Pharmaceuticals's gearing of last year was 0. ==> Last year is lower than this year ==> Score 0.

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: Jun20)=Total Current Assets/Total Current Liabilities
=315.233/42.783
=7.36818362

Current Ratio (Last Year: Jun19)=Total Current Assets/Total Current Liabilities
=244.539/87.087
=2.80798512

Arrowhead Pharmaceuticals's current ratio of this year was 7.36818362. Arrowhead Pharmaceuticals's current ratio of last year was 2.80798512. ==> 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.

Arrowhead Pharmaceuticals's number of shares in issue this year was 101.843. Arrowhead Pharmaceuticals's number of shares in issue last year was 98.885. ==> 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.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=123.653/123.653
=1

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=136.758/136.758
=1

Arrowhead Pharmaceuticals's gross margin of this year was 1. Arrowhead Pharmaceuticals's gross margin of last year was 1. ==> 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 (Jun19)
=123.653/336.828
=0.36711022

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun18)
=136.758/112.903
=1.21128757

Arrowhead Pharmaceuticals's asset turnover of this year was 0.36711022. Arrowhead Pharmaceuticals's asset turnover of last year was 1.21128757. ==> 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
=0+0+0+0+0+1+0+0+0
=1

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

Arrowhead Pharmaceuticals has an F-score of 1. It is a bad or low score, which usually implies poor business operation.

Arrowhead Pharmaceuticals  (NAS:ARWR) 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.

Arrowhead Pharmaceuticals Piotroski F-Score Related Terms

Arrowhead Pharmaceuticals Piotroski F-Score Headlines

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