Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Square 1 Financial has an F-score of 6 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for Square 1 Financial's Piotroski F-Score or its related term are showing as below:
Square 1 Financial Piotroski F-Score Historical Data
The historical data trend for Square 1 Financial'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.
* 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 (Jun15) TTM:
Last Year (Jun14) TTM:
Net Income was 8.752 + 9.532 + 8.153 + 9.919 = $36.4 Mil. Cash Flow from Operations was 33.899 + 10.256 + 3.536 + 33.676 = $81.4 Mil. Revenue was 32.34 + 35.757 + 35.357 + 39.031 = $142.5 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(2741.524 + 2988.186 + 3094.866 + 3337.024 + 3912.503) / 5 = $3214.8206 Mil. Total Assets at the begining of this year (Jun14) was $2,741.5 Mil. Long-Term Debt & Capital Lease Obligation was $0.0 Mil. Total Assets was $3,912.5 Mil. Total Liabilities was $3,585.9 Mil.
Net Income was 6.968 + 6.94 + 7.848 + 8.051 = $29.8 Mil.
Revenue was 26.403 + 29.209 + 29.646 + 31.248 = $116.5 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(0 + 2163.452 + 2326.427 + 2467.142 + 2741.524) / 5 = $2424.63625 Mil. Total Assets at the begining of last year (Jun13) was $0.0 Mil. Long-Term Debt & Capital Lease Obligation was $0.0 Mil. Total Assets was $2,741.5 Mil. Total Liabilities was $2,457.8 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.
Square 1 Financial's current Net Income (TTM) was 36.4.
==> 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.
Square 1 Financial's return on assets of this year was 0.01326124. Square 1 Financial's return on assets of last year was .
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Square 1 Financial's gearing of this year was 0. Square 1 Financial's gearing of last year was 0.
==> 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.
Square 1 Financial's current ratio of this year was 1.09109287. Square 1 Financial's current ratio of last year was 1.11542549.
==> 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.
Square 1 Financial's number of shares in issue this year was 30.495. Square 1 Financial's number of shares in issue last year was 29.664.
==> 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.
Square 1 Financial's net margin of this year was 0.25515668. Square 1 Financial's net margin of last year was 0.2558409.
==> 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
Square 1 Financial's asset turnover of this year was 0.05197292. Square 1 Financial's asset turnover of last year was .
==> This year's asset turnover is higher. ==> Score 1.
Evaluation
Piotroski F-Score
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6
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Square 1 Financial has an F-score of 6 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.
Square 1 Financial Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Square 1 Financial's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Square 1 Financial (Square 1 Financial) Business Description
Square 1 Financial Inc is incorporated in Delaware on October, 2004. The Company is a financial services company, providing financial services to entrepreneurs and venture capitalists. The Company is bank holding company for Square 1 Bank. Through Square 1 Bank, the Company provides banking activities on venture capital firms and private equity firms and the portfolio companies funded by such firms. It provides various financial services nationwide to these investors and their portfolio companies, including, among others, term commercial loans, revolving lines of credit, asset-based loans, deposit products and fee-based banking services, including credit cards, foreign exchange, cash management and letters of credit. The Company also provides senior debt facilities to its borrowers that are secured by substantially all of the assets of the borrower client. In some instances, it also obtain the guarantee of the venture firm that provided venture capital to its borrower client or, in the case of a borrower that has not received venture capital funding, a guarantee of individuals associated with the borrower. For early stage companies, the primary source of repayment is typically cash collateral held in accounts with the bank.
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