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FedNat Holding Co (FedNat Holding Co) Piotroski F-Score : 0 (As of Apr. 26, 2024)


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What is FedNat Holding Co 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

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

The historical rank and industry rank for FedNat Holding Co's Piotroski F-Score or its related term are showing as below:


FedNat Holding Co Piotroski F-Score Historical Data

The historical data trend for FedNat Holding Co'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.

FedNat Holding Co Piotroski F-Score Chart

FedNat Holding Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 7.00 4.00 1.00 -

FedNat Holding Co Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 1.00 - 2.00 - 1.00

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 (Mar22) TTM:Last Year (Mar21) TTM:
Net Income was -50.369 + -24.781 + -8.569 + -43.914 = $-127.6 Mil.
Cash Flow from Operations was 27.48 + -8.037 + -100.469 + -37.024 = $-118.1 Mil.
Revenue was 59.038 + 66.724 + 67.039 + 42.235 = $235.0 Mil.
Average Total Assets from the begining of this year (Mar21)
to the end of this year (Mar22) was
(1285.725 + 1355.97 + 1938.773 + 1412.67 + 1201.961) / 5 = $1439.0198 Mil.
Total Assets at the begining of this year (Mar21) was $1,285.7 Mil.
Long-Term Debt & Capital Lease Obligation was $118.9 Mil.
Total Assets was $1,202.0 Mil.
Total Liabilities was $1,187.8 Mil.
Net Income was -21.479 + -20.745 + -38.067 + -19.381 = $-99.7 Mil.

Revenue was 134.019 + 97.316 + 84.829 + 52.748 = $368.9 Mil.
Average Total Assets from the begining of last year (Mar20)
to the end of last year (Mar21) was
(1177.098 + 1214.786 + 1514.808 + 1428.537 + 1285.725) / 5 = $1324.1908 Mil.
Total Assets at the begining of last year (Mar20) was $1,177.1 Mil.
Long-Term Debt & Capital Lease Obligation was $98.7 Mil.
Total Assets was $1,285.7 Mil.
Total Liabilities was $1,138.6 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.

FedNat Holding Co's current Net Income (TTM) was -127.6. ==> 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.

FedNat Holding Co's current Cash Flow from Operations (TTM) was -118.1. ==> 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 (Mar21)
=-127.633/1285.725
=-0.09926928

ROA (Last Year)=Net Income/Total Assets (Mar20)
=-99.672/1177.098
=-0.08467604

FedNat Holding Co's return on assets of this year was -0.09926928. FedNat Holding Co's return on assets of last year was -0.08467604. ==> 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.

FedNat Holding Co's current Net Income (TTM) was -127.6. FedNat Holding Co's current Cash Flow from Operations (TTM) was -118.1. ==> -118.1 > -127.6 ==> 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: Mar22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar21 to Mar22
=118.906/1439.0198
=0.08262986

Gearing (Last Year: Mar21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar20 to Mar21
=98.724/1324.1908
=0.07455421

FedNat Holding Co's gearing of this year was 0.08262986. FedNat Holding Co's gearing of last year was 0.07455421. ==> 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

* 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.

Current Ratio (This Year: Mar22)=Total Assets/Total Liabilities
=1201.961/1187.822
=1.0119033

Current Ratio (Last Year: Mar21)=Total Assets/Total Liabilities
=1285.725/1138.616
=1.12919984

FedNat Holding Co's current ratio of this year was 1.0119033. FedNat Holding Co's current ratio of last year was 1.12919984. ==> 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.

FedNat Holding Co's number of shares in issue this year was 17.462. FedNat Holding Co's number of shares in issue last year was 14.395. ==> 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.

Net Margin (This Year: TTM)=Net Income/Revenue
=-127.633/235.036
=-0.54303596

Net Margin (Last Year: TTM)=Net Income/Revenue
=-99.672/368.912
=-0.27017825

FedNat Holding Co's net margin of this year was -0.54303596. FedNat Holding Co's net margin of last year was -0.27017825. ==> 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

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar21)
=235.036/1285.725
=0.18280425

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar20)
=368.912/1177.098
=0.31340806

FedNat Holding Co's asset turnover of this year was 0.18280425. FedNat Holding Co's asset turnover of last year was 0.31340806. ==> 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+1+0+0+0+0+0
=1

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

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

FedNat Holding Co  (OTCPK:FNHCQ) 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.


FedNat Holding Co Piotroski F-Score Related Terms

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FedNat Holding Co (FedNat Holding Co) Business Description

Traded in Other Exchanges
N/A
Address
14050 N.W. 14th Street, Suite 180, Sunrise, FL, USA, 33323
FedNat Holding Co is a provider of property and liability insurance products in the United States. It offers underwriting services to homeowner's multi-peril, personal automobile, commercial general liability, federal flood, and other lines of insurance. The company markets and distributes its own and third-party insurers' products, and other services through a network of independent and general agents. The segments of the company are Homeowners, Automobile and Other, of which a majority of the revenue is derived from the Homeowners segment. The Homeowners line of business consists of the homeowners and fire property and casualty insurance business.
Executives
David K. Patterson director 14050 N.W. 14TH STREET, SUITE 180, SUNRISE FL 33323
Roberta Nell Young director 23043 SUNFIELD DRIVE, BOCA RATON FL 33433
David W Michelson director 111 CONGRESSIONAL BLVD., SUITE 500, CARMEL IN 46032
Ronald Arthur Jordan officer: Chief Financial Officer 5817 CRUTCHFIELD FARM RD, OAK RIDGE NC 27310
Erick Anthony Fernandez officer: CAO 1537 MANTUA AVENUE, CORAL GABLES FL 33146
Thomas Alexander Rogers director 466 ROLLING ROAD, ROSEMONT PA 19010
Patrick Mccahill officer: Chief Operating Officer 14050 NW 14TH STREET, SUITE 180, SUNRISE FL 33323
Michael H Braun director, officer: Chief Executive Officer & Pres 14050 NW 14 STREET, SUITE 180, SUNRISE FL 33323
Bruce Simberg director, other: Chairman of the Board 3440 HOLLYWOOD BLVD 2ND FL, HOLLYWOOD FL 33021
Wilcox Richard W Jr director 7220 SW 6 STREET, PLANTATION FL 33317
Jenifer G Kimbrough director 14050 NW 14 STREET, SUITE 180, SUNRISE FL 33323
William Gorman Stewart director 4024 STEWART ROAD, BOX 159, STEVENSON MD 21153
Hale Partnership Fund, L.p. 10 percent owner 3335 PARK SOUTH STATION BLVD., CHARLOTTE NC 28210
Hale Steven A Ii 10 percent owner 5960 FAIRVIEW ROAD, SUITE 432, CHARLOTTE NC 28210
Hale Partnership Capital Management, Llc 10 percent owner 5960 FAIRVIEW ROAD, SUITE 432, CHARLOTTE NC 28210