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Nabors Industries Ltd (NYSE:NBR)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

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

Nabors Industries Ltd has an F-score of 4 indicating the company's financial situation is typical for a stable company.

NBR' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Max: 9
Current: 4

1
9

During the past 13 years, the highest Piotroski F-Score of Nabors Industries Ltd was 9. The lowest was 1. And the median was 5.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Net Income was -184.65 + -111.211 + -335.587 + -148.984 = $-780 Mil.
Cash Flow from Operations was 175.166 + 68.096 + 127.137 + -57.991 = $312 Mil.
Revenue was 517.092 + 520.041 + 539.212 + 563.273 = $2,140 Mil.
Gross Profit was 175.813 + 213.605 + 207.652 + 175.629 = $773 Mil.
Average Total Assets from the begining of this year (Mar16)
to the end of this year (Mar17) was
(8950.331 + 8656.305 + 8424.504 + 8187.015 + 8095.312) / 5 = $8462.6934 Mil.
Total Assets at the begining of this year (Mar16) was $8,950 Mil.
Long-Term Debt was $3,662 Mil.
Total Current Assets was $1,123 Mil.
Total Current Liabilities was $772 Mil.
Net Income was -36.821 + -295.834 + -163.654 + -398.294 = $-895 Mil.

Revenue was 863.37 + 812.431 + 693.685 + 430.763 = $2,800 Mil.
Gross Profit was 374.848 + 294.257 + 248.555 + 65.74 = $983 Mil.
Average Total Assets from the begining of last year (Mar15)
to the end of last year (Mar16) was
(10604.598 + 10517.283 + 9929.181 + 9537.84 + 8950.331) / 5 = $9907.8466 Mil.
Total Assets at the begining of last year (Mar15) was $10,605 Mil.
Long-Term Debt was $3,584 Mil.
Total Current Assets was $1,259 Mil.
Total Current Liabilities was $871 Mil.

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.

Nabors Industries Ltd's current net income (TTM) was -780. ==> 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.

Nabors Industries Ltd's current cash flow from operations (TTM) was 312. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Mar16)
=-780.432/8950.331
=-0.08719588

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=-894.603/10604.598
=-0.08435992

Nabors Industries Ltd's return on assets of this year was -0.08719588. Nabors Industries Ltd's return on assets of last year was -0.08435992. ==> 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.

Nabors Industries Ltd's current net income (TTM) was -780. Nabors Industries Ltd's current cash flow from operations (TTM) was 312. ==> 312 > -780 ==> 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: Mar17)=Long-Term Debt/Average Total Assets from Mar16 to Mar17
=3661.665/8462.6934
=0.43268317

Gearing (Last Year: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=3584.402/9907.8466
=0.36177407

Nabors Industries Ltd's gearing of this year was 0.43268317. Nabors Industries Ltd's gearing of last year was 0.36177407. ==> 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: Mar17)=Total Current Assets/Total Current Liabilities
=1122.656/771.649
=1.4548791

Current Ratio (Last Year: Mar16)=Total Current Assets/Total Current Liabilities
=1259.387/871.268
=1.44546454

Nabors Industries Ltd's current ratio of this year was 1.4548791. Nabors Industries Ltd's current ratio of last year was 1.44546454. ==> 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.

Nabors Industries Ltd's number of shares in issue this year was 277.8. Nabors Industries Ltd's number of shares in issue last year was 275.9. ==> 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
=772.699/2139.618
=0.36113876

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=983.4/2800.249
=0.35118306

Nabors Industries Ltd's gross margin of this year was 0.36113876. Nabors Industries Ltd's gross margin of last year was 0.35118306. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Mar16)
=2139.618/8950.331
=0.23905462

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=2800.249/10604.598
=0.26405989

Nabors Industries Ltd's asset turnover of this year was 0.23905462. Nabors Industries Ltd's asset turnover of last year was 0.26405989. ==> 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
=0+1+0+1+0+1+0+1+0
=4

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

Nabors Industries Ltd has an F-score of 4 indicating the company's financial situation is typical for a stable company.


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.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Nabors Industries Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1101111000
Question 2 1111111111
Question 3 0001100010
Question 4 1111111111
Question 5 1101011010
Question 6 0110110000
Question 7 0010000110
Question 8 0010001010
Question 9 0001100100
F-score 4556655462

Nabors Industries Ltd Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Question 1 0000000000
Question 2 1111111111
Question 3 0000100100
Question 4 1111111111
Question 5 0011100000
Question 6 0000000001
Question 7 1111111100
Question 8 0011110001
Question 9 1100000000
F-score 4455643424
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