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.
Sambhv Steel Tubes Piotroski F-Score Related Terms
Sambhv Steel Tubes Piotroski F-Score Historical Data
* Premium members only.
The historical data trend for Sambhv Steel Tubes'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.
NSE:SAMBHV vs NUE, STLD, RS: Piotroski F-Score Comparison
For the Steel subindustry, Sambhv Steel Tubes'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.
Sambhv Steel Tubes Piotroski F-Score vs Steel Industry
For the Steel industry and Basic Materials sector, Sambhv Steel Tubes's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Sambhv Steel Tubes's Piotroski F-Score falls into.
* 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.
*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.
Sambhv Steel Tubes's current Net Income (TTM) was 1,422.
==> 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.
Sambhv Steel Tubes's return on assets of this year was . Sambhv Steel Tubes's return on assets of last year was 0.06091153.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Sambhv Steel Tubes's gearing of this year was 0.11020499. Sambhv Steel Tubes's gearing of last year was 0.
==> 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
Sambhv Steel Tubes's current ratio of this year was 1.29945181. Sambhv Steel Tubes's current ratio of last year was .
==> 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.
Sambhv Steel Tubes's number of shares in issue this year was 281.487. Sambhv Steel Tubes's number of shares in issue last year was 294.671.
==> 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.
Sambhv Steel Tubes's gross margin of this year was 0.2864726. Sambhv Steel Tubes's gross margin of last year was 0.29568566.
==> 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
Sambhv Steel Tubes's asset turnover of this year was . Sambhv Steel Tubes's asset turnover of last year was 1.6075953.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
=
Que. 1
+
Que. 2
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Que. 3
+
Que. 4
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Que. 5
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Que. 6
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Que. 7
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Que. 9
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1
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1
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0
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1
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0
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1
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5
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Sambhv Steel Tubes has an F-score of 5 indicating the company's financial situation is typical for a stable company.
Sambhv Steel Tubes Ltd manufactures electric resistance welded steel pipes and structural tubes (hollow section) in India. The company's backward integration processes allow it to manufacture a range of finished products including ERW black pipes and tubes (hollow section), pre-galvanized pipes, Cold Rolled Full Hard Pipes, and galvanized iron pipes and steel door frames, using intermediate products such as sponge iron, blooms/slabs and hot rolled coil, cold rolled coil (mild steel) and GP coils. Its products are used in wide applications across multiple sectors, including housing and infrastructure, water transportation, agriculture, automobile, telecommunications, oil and gas, engineering, solar energy, fire-fighting systems, and for support structures of conveyors.
17GF Score
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