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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
Schmitt Industries 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 Schmitt Industries's Piotroski F-Score or its related term are showing as below:
The historical data trend for Schmitt Industries'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.
Schmitt Industries Annual Data | |||||||||||||||||||||
Trend | May13 | May14 | May15 | May16 | May17 | May18 | May19 | May20 | May21 | May22 | |||||||||||
Piotroski F-Score | Get a 7-Day Free Trial | 6.00 | 4.00 | 7.00 | 1.00 | 3.00 |
Schmitt Industries Quarterly Data | ||||||||||||||||||||
Aug17 | Nov17 | Feb18 | May18 | Aug18 | Nov18 | Feb19 | May19 | Aug19 | Nov19 | Feb20 | May20 | Aug20 | Nov20 | Feb21 | May21 | Aug21 | Nov21 | Feb22 | May22 | |
Piotroski F-Score | Get a 7-Day Free Trial | 1.00 | 2.00 | 2.00 | 3.00 | 3.00 |
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 (May22) TTM: | Last Year (May21) TTM: |
Net Income was -1.618 + 2.483 + -1.053 + -3.095 = $-3.28 Mil. Cash Flow from Operations was -1.445 + -2.883 + -2.516 + -1.204 = $-8.05 Mil. Revenue was 3.759 + 2.962 + 1.849 + 1.323 = $9.89 Mil. Gross Profit was 2.29 + 1.621 + 0.82 + 0.338 = $5.07 Mil. Average Total Assets from the begining of this year (May21) to the end of this year (May22) was (21.174 + 19.959 + 23.294 + 20.353 + 22.839) / 5 = $21.5238 Mil. Total Assets at the begining of this year (May21) was $21.17 Mil. Long-Term Debt & Capital Lease Obligation was $16.41 Mil. Total Current Assets was $4.01 Mil. Total Current Liabilities was $5.83 Mil. |
Net Income was 0.151 + -2.366 + -2.42 + -3.454 = $-8.09 Mil. Revenue was 1.507 + 2.03 + 1.668 + 0.395 = $5.60 Mil. Gross Profit was 0.608 + 0.962 + 0.831 + -0.336 = $2.07 Mil. Average Total Assets from the begining of last year (May20) to the end of last year (May21) was (13.201 + 27.276 + 25.176 + 22.433 + 21.174) / 5 = $21.852 Mil. Total Assets at the begining of last year (May20) was $13.20 Mil. Long-Term Debt & Capital Lease Obligation was $13.40 Mil. Total Current Assets was $6.96 Mil. Total Current Liabilities was $4.01 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.
Schmitt Industries's current Net Income (TTM) was -3.28.
==> 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.
Schmitt Industries's current Cash Flow from Operations (TTM) was -8.05.
==> 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 (May21) |
= | -3.283 | / | 21.174 | |
= | -0.15504864 |
ROA (Last Year) | = | Net Income | / | Total Assets (May20) |
= | -8.089 | / | 13.201 | |
= | -0.61275661 |
Schmitt Industries's return on assets of this year was -0.15504864. Schmitt Industries's return on assets of last year was -0.61275661.
==> 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.
Schmitt Industries's current Net Income (TTM) was -3.28. Schmitt Industries's current Cash Flow from Operations (TTM) was -8.05.
==> -8.05 <= -3.28 ==> 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: May22) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from May21 to May22 |
= | 16.406 | / | 21.5238 | |
= | 0.762226 |
Gearing (Last Year: May21) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from May20 to May21 |
= | 13.395 | / | 21.852 | |
= | 0.61298737 |
Schmitt Industries's gearing of this year was 0.762226. Schmitt Industries's gearing of last year was 0.61298737.
==> 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: May22) | = | Total Current Assets | / | Total Current Liabilities |
= | 4.006 | / | 5.828 | |
= | 0.68737131 |
Current Ratio (Last Year: May21) | = | Total Current Assets | / | Total Current Liabilities |
= | 6.957 | / | 4.009 | |
= | 1.73534547 |
Schmitt Industries's current ratio of this year was 0.68737131. Schmitt Industries's current ratio of last year was 1.73534547.
==> 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.
Schmitt Industries's number of shares in issue this year was 3.864. Schmitt Industries's number of shares in issue last year was 3.785.
==> 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 |
= | 5.069 | / | 9.893 | |
= | 0.51238249 |
Gross Margin (Last Year: TTM) | = | Gross Profit | / | Revenue |
= | 2.065 | / | 5.6 | |
= | 0.36875 |
Schmitt Industries's gross margin of this year was 0.51238249. Schmitt Industries's gross margin of last year was 0.36875.
==> This year's gross 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
Asset Turnover (This Year) | = | Revenue | / | Total Assets at the Beginning of This Year (May21) |
= | 9.893 | / | 21.174 | |
= | 0.46722395 |
Asset Turnover (Last Year) | = | Revenue | / | Total Assets at the Beginning of Last Year (May20) |
= | 5.6 | / | 13.201 | |
= | 0.42421029 |
Schmitt Industries's asset turnover of this year was 0.46722395. Schmitt Industries's asset turnover of last year was 0.42421029.
==> 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 |
= | 0 | + | 0 | + | 1 | + | 0 | + | 0 | + | 0 | + | 0 | + | 1 | + | 1 | |
= | 3 |
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Schmitt Industries has an F-score of 3. It is a bad or low score, which usually implies poor business operation.
Schmitt Industries (OTCPK:SMIT) 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.
Thank you for viewing the detailed overview of Schmitt Industries's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Dustin Henderson | other: Shareholder | 11125 N PARK BLVD, STE 106, SEMINOLE FL 33772 |
Kristi Michelle Smaha | director | C/O SCHMITT INDUSTRIES, INC., 2765 N.W. NICOLAI STREET, PORTLAND OR 97210-1818 |
Alexandre Zyngier | director | 5700 W. PLANO PARKWAY, SUITE 3600, PLANO TX 75093 |
Philip Bosco | officer: Chief Financial Officer | 2765 NW NICOLAI STREET, PORTLAND OR 97210 |
Lillian Tung | director | 45 WEST 67TH STREET, 10D, NEW YORK NY 10023 |
Michael R. Zapata | officer: Chief Executive Officer | 2765 NW NICOLAI STREET, PORTLAND OR 97210 |
Andrews P Hines | director | |
Steven Strom | director | 2765 NW NICOLAI STREET, PORTLAND OR 97210 |
Charles Davidson | director | C/O SCHMITT INDUSTRIES, INC., 2765 N.W. NICOLAI STREET, PORTLAND OR 97210 |
Jamie Michael Schmidt | officer: Chief Financial Officer | 2765 NW NICOLAI STREET, PORTLAND OR 97210 |
Walter Brown Pistor | 10 percent owner | 2415 KALAMA RIVER ROAD, KALAMA WA 98625 |
Regina Walker | officer: Chief Financial Officer | 2765 NW NICOLAI STREET, PORTLAND OR 97210 |
Michael Ellsworth | director | SCHMITT INDUSTRIES, INC., 2765 NW NICOLAI, PORTLAND OR 97210 |
David Hudson | director | SCHMITT INDUSTRIES, INC., 2765 NW NICOLAI, PORTLAND OR 97210 |
Maynard E Brown | director | 1595 - 19TH STREET, WEST VANCOUVER A1 V7V 3X5 |
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