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The Stars Group (The Stars Group) Piotroski F-Score : 5 (As of May. 12, 2024)


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What is The Stars Group 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

The Stars Group 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 The Stars Group's Piotroski F-Score or its related term are showing as below:

TSG' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 6
Current: 5

During the past 13 years, the highest Piotroski F-Score of The Stars Group was 6. The lowest was 2. And the median was 5.


The Stars Group Piotroski F-Score Historical Data

The historical data trend for The Stars Group'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.

The Stars Group Piotroski F-Score Chart

The Stars Group Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 5.00 6.00 3.00 5.00

The Stars Group Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
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 3.00 3.00 4.00 3.00 5.00

Competitive Comparison of The Stars Group's Piotroski F-Score

For the Gambling subindustry, The Stars Group'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.


The Stars Group's Piotroski F-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, The Stars Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where The Stars Group'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 (Dec19) TTM:Last Year (Dec18) TTM:
Net Income was 27.913 + 4.757 + -51.299 + 81.451 = $63 Mil.
Cash Flow from Operations was 110.385 + 173.208 + 196.892 + 190.149 = $671 Mil.
Revenue was 580.384 + 637.618 + 622.484 + 687.962 = $2,528 Mil.
Gross Profit was 417.748 + 463.708 + 456.459 + 497.471 = $1,835 Mil.
Average Total Assets from the begining of this year (Dec18)
to the end of this year (Dec19) was
(11265.538 + 11295.228 + 11112.28 + 10992.815 + 11275.782) / 5 = $11188.3286 Mil.
Total Assets at the begining of this year (Dec18) was $11,266 Mil.
Long-Term Debt & Capital Lease Obligation was $4,931 Mil.
Total Current Assets was $978 Mil.
Total Current Liabilities was $1,151 Mil.
Net Income was 75.451 + -153.645 + 15.127 + -39.385 = $-102 Mil.

Revenue was 392.891 + 411.512 + 571.983 + 652.852 = $2,029 Mil.
Gross Profit was 312.627 + 327.875 + 442.757 + 486.815 = $1,570 Mil.
Average Total Assets from the begining of last year (Dec17)
to the end of last year (Dec18) was
(5415.126 + 5563.806 + 6707.735 + 11480.606 + 11265.538) / 5 = $8086.5622 Mil.
Total Assets at the begining of last year (Dec17) was $5,415 Mil.
Long-Term Debt & Capital Lease Obligation was $5,411 Mil.
Total Current Assets was $1,041 Mil.
Total Current Liabilities was $1,012 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.

The Stars Group's current Net Income (TTM) was 63. ==> 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.

The Stars Group's current Cash Flow from Operations (TTM) was 671. ==> Positive ==> Score 1.

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 (Dec18)
=62.822/11265.538
=0.00557648

ROA (Last Year)=Net Income/Total Assets (Dec17)
=-102.452/5415.126
=-0.0189196

The Stars Group's return on assets of this year was 0.00557648. The Stars Group's return on assets of last year was -0.0189196. ==> 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.

The Stars Group's current Net Income (TTM) was 63. The Stars Group's current Cash Flow from Operations (TTM) was 671. ==> 671 > 63 ==> 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: Dec19)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec18 to Dec19
=4931.116/11188.3286
=0.4407375

Gearing (Last Year: Dec18)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec17 to Dec18
=5411.208/8086.5622
=0.6691605

The Stars Group's gearing of this year was 0.4407375. The Stars Group's gearing of last year was 0.6691605. ==> 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: Dec19)=Total Current Assets/Total Current Liabilities
=977.639/1150.894
=0.84946051

Current Ratio (Last Year: Dec18)=Total Current Assets/Total Current Liabilities
=1041.425/1011.974
=1.02910253

The Stars Group's current ratio of this year was 0.84946051. The Stars Group's current ratio of last year was 1.02910253. ==> 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.

The Stars Group's number of shares in issue this year was 294.731. The Stars Group's number of shares in issue last year was 273.528. ==> 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
=1835.386/2528.448
=0.7258943

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1570.074/2029.238
=0.7737259

The Stars Group's gross margin of this year was 0.7258943. The Stars Group's gross margin of last year was 0.7737259. ==> 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 (Dec18)
=2528.448/11265.538
=0.22444095

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec17)
=2029.238/5415.126
=0.37473514

The Stars Group's asset turnover of this year was 0.22444095. The Stars Group's asset turnover of last year was 0.37473514. ==> 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
=1+1+1+1+1+0+0+0+0
=5

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

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

The Stars Group  (NAS:TSG) 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.


The Stars Group Piotroski F-Score Related Terms

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The Stars Group (The Stars Group) Business Description

Traded in Other Exchanges
N/A
Address
200 Bay Street, Royal Bank Plaza, South Tower, Suite 3205, Toronto, ON, CAN, M5J 2J3
The Stars Group Inc is an online and mobile gaming company with poker, gaming, and betting product offerings. These products are offered both, directly and indirectly, under-owned or licensed gaming brands, and the company also owns several live poker tour and events brands. The firm's primary sources of revenue are its online gaming businesses. The company has three segments based on geography: International, United Kingdom, and Australia. Stars Group generates the majority of its revenue from the International segment.