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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
Whole Foods Market 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 Whole Foods Market's Piotroski F-Score or its related term are showing as below:
The historical data trend for Whole Foods Market'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.
Whole Foods Market Annual Data | |||||||||||||||||||||
Trend | Sep07 | Sep08 | Sep09 | Sep10 | Sep11 | Sep12 | Sep13 | Sep14 | Sep15 | Sep16 | |||||||||||
Piotroski F-Score | Get a 7-Day Free Trial | 7.00 | 6.00 | 6.00 | 5.00 | 6.00 |
Whole Foods Market Quarterly Data | ||||||||||||||||||||
Sep12 | Dec12 | Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | |
Piotroski F-Score | Get a 7-Day Free Trial | 5.00 | 6.00 | 5.00 | 6.00 | 6.00 |
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 (Jun17) TTM: | Last Year (Jun16) TTM: |
Net Income was 88 + 95 + 99 + 106 = $388 Mil. Cash Flow from Operations was 352 + 284 + 340 + 277 = $1,253 Mil. Revenue was 3497 + 4918 + 3737 + 3725 = $15,877 Mil. Gross Profit was 1194 + 1650 + 1274 + 1268 = $5,386 Mil. Average Total Assets from the begining of this year (Jun16) to the end of this year (Jun17) was (6275 + 6341 + 6382 + 6513 + 6610) / 5 = $6424.2 Mil. Total Assets at the begining of this year (Jun16) was $6,275 Mil. Long-Term Debt & Capital Lease Obligation was $1,046 Mil. Total Current Assets was $2,191 Mil. Total Current Liabilities was $1,324 Mil. |
Net Income was 57 + 157 + 142 + 120 = $476 Mil. Revenue was 3438 + 4829 + 3696 + 3703 = $15,666 Mil. Gross Profit was 1186 + 1641 + 1290 + 1286 = $5,403 Mil. Average Total Assets from the begining of last year (Jun15) to the end of last year (Jun16) was (6036 + 5741 + 6236 + 6362 + 6275) / 5 = $6130 Mil. Total Assets at the begining of last year (Jun15) was $6,036 Mil. Long-Term Debt & Capital Lease Obligation was $1,049 Mil. Total Current Assets was $1,925 Mil. Total Current Liabilities was $1,324 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.
Whole Foods Market's current Net Income (TTM) was 388.
==> 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.
Whole Foods Market's current Cash Flow from Operations (TTM) was 1,253.
==> 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 (Jun16) |
= | 388 | / | 6275 | |
= | 0.06183267 |
ROA (Last Year) | = | Net Income | / | Total Assets (Jun15) |
= | 476 | / | 6036 | |
= | 0.07886017 |
Whole Foods Market's return on assets of this year was 0.06183267. Whole Foods Market's return on assets of last year was 0.07886017.
==> 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.
Whole Foods Market's current Net Income (TTM) was 388. Whole Foods Market's current Cash Flow from Operations (TTM) was 1,253.
==> 1,253 > 388 ==> 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: Jun17) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Jun16 to Jun17 |
= | 1046 | / | 6424.2 | |
= | 0.16282183 |
Gearing (Last Year: Jun16) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Jun15 to Jun16 |
= | 1049 | / | 6130 | |
= | 0.17112561 |
Whole Foods Market's gearing of this year was 0.16282183. Whole Foods Market's gearing of last year was 0.17112561.
==> 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: Jun17) | = | Total Current Assets | / | Total Current Liabilities |
= | 2191 | / | 1324 | |
= | 1.65483384 |
Current Ratio (Last Year: Jun16) | = | Total Current Assets | / | Total Current Liabilities |
= | 1925 | / | 1324 | |
= | 1.45392749 |
Whole Foods Market's current ratio of this year was 1.65483384. Whole Foods Market's current ratio of last year was 1.45392749.
==> 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.
Whole Foods Market's number of shares in issue this year was 320.3. Whole Foods Market's number of shares in issue last year was 321.2.
==> There is smaller number of shares in issue this year, or the same. ==> Score 1.
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 |
= | 5386 | / | 15877 | |
= | 0.33923285 |
Gross Margin (Last Year: TTM) | = | Gross Profit | / | Revenue |
= | 5403 | / | 15666 | |
= | 0.34488702 |
Whole Foods Market's gross margin of this year was 0.33923285. Whole Foods Market's gross margin of last year was 0.34488702.
==> 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 (Jun16) |
= | 15877 | / | 6275 | |
= | 2.5301992 |
Asset Turnover (Last Year) | = | Revenue | / | Total Assets at the Beginning of Last Year (Jun15) |
= | 15666 | / | 6036 | |
= | 2.59542744 |
Whole Foods Market's asset turnover of this year was 2.5301992. Whole Foods Market's asset turnover of last year was 2.59542744.
==> 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 | + | 0 | + | 1 | + | 1 | + | 1 | + | 1 | + | 0 | + | 0 | |
= | 6 |
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Whole Foods Market has an F-score of 6 indicating the company's financial situation is typical for a stable company.
Whole Foods Market (NAS:WFM) 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 Whole Foods Market's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Scott F Powers | director | STATE STREET CORPORATION, ONE LINCOLN STREET, BOSTON MA 02111 |
Sharon Mccollam | director | C/O OFFICEMAX INCORPORATED, 263 SHUMAN BLVD., NAPERVILLE IL 60563 |
Ken C Hicks | director | 150 N. ORANGE GROVE BLVD, PASADENA CA 91103 |
Mary Ellen Coe | director | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Gabrielle Sulzberger | director | 450 LEXINGTON AVENUE, FLOOR 13, NEW YORK NY 10017 |
Glenda J Flanagan | officer: Executive Vice President | 550 BOWIE STREET, AUSTIN TX 78703 |
Joseph D Mansueto | director | C/O MORNINGSTAR, INC., 225 WEST WACKER DRIVE, CHICAGO IL 60606 |
Robb Walter E Iv | director | 550 BOWIE STREET, AUSTIN TX 78703 |
Ralph Z Sorenson | director | WHOLE FOODS MARKET, INC. 550 BOWIE STREET AUSTIN TX 78703 |
William A Tindell | director | 500 FREEPORT PARKWAY, COPPELL TX 75019 |
Green Equity Investors V, L.p. | other: See General Remarks. | 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025 |
Gei Capital V, Llc | other: See General Remarks. | 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025 |
Green Equity Investors Side V, L.p. | other: See General Remarks. | 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025 |
Green V Holdings, Llc | other: See General Remarks. | 11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025 |
Lgp Management Inc | other: See General Remarks. | 11111 SANTA MONICA BLVD, STE 2000, LOS ANGELES CA 90025 |
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