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Patterson Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

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

Patterson has an F-score of 5 indicating the company's financial situation is typical for a stable company.

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

PDCO' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of Patterson was 8. The lowest was 3. And the median was 5.


Patterson Piotroski F-Score Historical Data

The historical data trend for Patterson'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.

Patterson Annual Data
Trend Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 4.00 4.00 5.00 5.00

Patterson Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 5.00 5.00 4.00 4.00 5.00

Competitive Comparison

For the Medical Distribution subindustry, Patterson's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.

   

Patterson Piotroski F-Score Distribution

For the Medical Distribution industry and Healthcare sector, Patterson's Piotroski F-Score distribution charts can be found below:

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


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 (Apr22) TTM:Last Year (Apr21) TTM:
Net Income was 33.996 + 48.33 + 57.006 + 63.878 = $203 Mil.
Cash Flow from Operations was -313.421 + -225.593 + -295.125 + -146.855 = $-981 Mil.
Revenue was 1614.876 + 1649.161 + 1596.596 + 1638.772 = $6,499 Mil.
Gross Profit was 277.802 + 326.435 + 336.611 + 348.239 = $1,289 Mil.
Average Total Assets from the begining of this year (Apr21)
to the end of this year (Apr22) was
(2751.511 + 2750.849 + 2902.725 + 2863.496 + 2741.63) / 5 = $2802.0422 Mil.
Total Assets at the begining of this year (Apr21) was $2,752 Mil.
Long-Term Debt & Capital Lease Obligation was $532 Mil.
Total Current Assets was $1,679 Mil.
Total Current Liabilities was $1,016 Mil.
Net Income was 24.407 + 54.06 + 48.759 + 28.755 = $156 Mil.

Revenue was 1245.837 + 1553.168 + 1551.268 + 1561.793 = $5,912 Mil.
Gross Profit was 253.816 + 320.368 + 324.541 + 304.405 = $1,203 Mil.
Average Total Assets from the begining of last year (Apr20)
to the end of last year (Apr21) was
(2715.35 + 2646.196 + 2789.024 + 2850.965 + 2751.511) / 5 = $2750.6092 Mil.
Total Assets at the begining of last year (Apr20) was $2,715 Mil.
Long-Term Debt & Capital Lease Obligation was $536 Mil.
Total Current Assets was $1,616 Mil.
Total Current Liabilities was $1,090 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.

Patterson's current Net Income (TTM) was 203. ==> 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.

Patterson's current Cash Flow from Operations (TTM) was -981. ==> 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 (Apr21)
=203.21/2751.511
=0.07385397

ROA (Last Year)=Net Income/Total Assets (Apr20)
=155.981/2715.35
=0.05744416

Patterson's return on assets of this year was 0.07385397. Patterson's return on assets of last year was 0.05744416. ==> This year is higher. ==> Score 1.

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.

Patterson's current Net Income (TTM) was 203. Patterson's current Cash Flow from Operations (TTM) was -981. ==> -981 <= 203 ==> 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: Apr22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr21 to Apr22
=531.886/2802.0422
=0.18982084

Gearing (Last Year: Apr21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr20 to Apr21
=535.863/2750.6092
=0.19481612

Patterson's gearing of this year was 0.18982084. Patterson's gearing of last year was 0.19481612. ==> 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: Apr22)=Total Current Assets/Total Current Liabilities
=1679.022/1015.669
=1.65311927

Current Ratio (Last Year: Apr21)=Total Current Assets/Total Current Liabilities
=1615.929/1089.666
=1.48295808

Patterson's current ratio of this year was 1.65311927. Patterson's current ratio of last year was 1.48295808. ==> 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.

Patterson's number of shares in issue this year was 98.706. Patterson's number of shares in issue last year was 97.519. ==> 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
=1289.087/6499.405
=0.19833923

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1203.13/5912.066
=0.20350416

Patterson's gross margin of this year was 0.19833923. Patterson's gross margin of last year was 0.20350416. ==> 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 (Apr21)
=6499.405/2751.511
=2.36212212

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Apr20)
=5912.066/2715.35
=2.17727586

Patterson's asset turnover of this year was 2.36212212. Patterson's asset turnover of last year was 2.17727586. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+0+1+0+1+1+0+0+1
=5

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

Patterson has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Patterson  (NAS:PDCO) 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.


Patterson Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Patterson's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Patterson Business Description

Patterson logo
Traded in Other Exchanges
Address
1031 Mendota Heights Road, Saint Paul, MN, USA, 55120
Patterson is a leading dental distributor and wholesaler of consumable products and equipment operating through two business segments, Patterson Dental and Patterson Animal Health. The firm offers dental and veterinary practice management products, including office software products, technical, financial, and educational services, primarily to two highly fragmented market segments throughout the U.S. and Canada. The company began as a dental distributor in 1877 and expanded to become a major supplier of animal health products to vets and production companies through an acquisition of Animal Health International in 2015. Patterson also has a presence in the U.K. animal health market.
Executives
Mckoy Philip director 120 BROADWAY SUITE 200 SANTA MONICA CA 90401
Rogan Timothy E officer: President - Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Shirley Eric R officer: President-Patterson Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Zurbay Donald officer: Chief Financial Officer C/O ST. JUDE MEDICAL, INC. ONE ST JUDE MEDICAL DRIVE ST. PAUL MN 55117
Malecha Francis Joseph director 9900 WEST 109TH STREET, SUITE 100 OVERLAND PARK KS 66210
Frohning Andrea L. officer: Chief Human Resources Officer 13515 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277
Frenzel Robert director 414 NICOLLET MALL MINNEAPOLIS MN 55401
Goedken Dennis W officer: Interim CFO 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Walchirk Mark S director, officer: President & CEO 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Pohlman Kevin M officer: President - Animal Health 822 7TH STREET, SUITE 740 GREELEY CO 80631
Blanco Alex N director ONE BAXTER PARKWAY DEERFIELD IL 60015
Misiak David G officer: President, Patterson Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Baker Kelly A officer: CHRO 1031 MENDOTA HEIGHTS ST. PAUL MN 55120
Korsh Les B officer: VP, General Counsel 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55110
Adent John Edward officer: CEO - Subsidiary 822 7TH STREET, SUITE 740 GREELEY CO 80631

Patterson Headlines

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