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Nintendo Co Ltd (OTCPK:NTDOY)
Piotroski F-Score
6 (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

Nintendo Co Ltd has an F-score of 6 indicating the company's financial situation is typical for a stable company.

NTDOY' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 6

3
8

During the past 13 years, the highest Piotroski F-Score of Nintendo Co Ltd was 8. The lowest was 3. 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 (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was -212.987141786 + -232.878883806 + 617.3152441 + 557.509131615 = $729 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Revenue was 697.722605787 + 588.215193226 + 735.30986606 + 1502.6884061 = $3,524 Mil.
Gross Profit was 333.529026837 + 289.812426852 + 305.037220868 + 676.605909924 = $1,605 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(11589.8795577 + 11483.9500335 + 11529.4885948 + 13065.9050561 + 12614.1635079) / 5 = $12056.67735 Mil.
Total Assets at the begining of this year (Dec15) was $11,590 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $9,757 Mil.
Total Current Liabilities was $1,392 Mil.
Net Income was -146.784113892 + 66.958403991 + 26.4840912344 + 239.174579685 = $186 Mil.

Revenue was 887.582073932 + 729.259787938 + 948.491688556 + 1820.87392609 = $4,386 Mil.
Gross Profit was 345.862975468 + 345.016836595 + 424.494538384 + 736.728737617 = $1,852 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(12411.5407469 + 11237.589757 + 11007.8921035 + 11618.3510948 + 11589.8795577) / 5 = $11573.050652 Mil.
Total Assets at the begining of last year (Dec14) was $12,412 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $8,978 Mil.
Total Current Liabilities was $1,330 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.

Nintendo Co Ltd's current net income (TTM) was 729. ==> 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.

Nintendo Co Ltd's current cash flow from operations (TTM) was 0. ==> Negative ==> Score 0.

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 (Dec15)
=728.958350123/11589.8795577
=0.06289611

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=185.832961018/12411.5407469
=0.01497259

Nintendo Co Ltd's return on assets of this year was 0.06289611. Nintendo Co Ltd's return on assets of last year was 0.01497259. ==> 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.

Nintendo Co Ltd's current net income (TTM) was 729. Nintendo Co Ltd's current cash flow from operations (TTM) was 0. ==> 0 <= 729 ==> CFROA <= ROA ==> Score 0.

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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=0/12056.67735
=0

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=0/11573.050652
=0

Nintendo Co Ltd's gearing of this year was 0. Nintendo Co Ltd'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

Current Ratio (This Year: Dec16)=Total Current Assets/Total Current Liabilities
=9756.92705312/1392.38487527
=7.00734921

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=8978.41904057/1329.97903564
=6.75079742

Nintendo Co Ltd's current ratio of this year was 7.00734921. Nintendo Co Ltd's current ratio of last year was 6.75079742. ==> 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.

Nintendo Co Ltd's number of shares in issue this year was 961. Nintendo Co Ltd's number of shares in issue last year was 961. ==> 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
=1604.98458448/3523.93607118
=0.45545224

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1852.10308806/4386.20747652
=0.42225615

Nintendo Co Ltd's gross margin of this year was 0.45545224. Nintendo Co Ltd's gross margin of last year was 0.42225615. ==> 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 (Dec15)
=3523.93607118/11589.8795577
=0.30405286

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=4386.20747652/12411.5407469
=0.3533975

Nintendo Co Ltd's asset turnover of this year was 0.30405286. Nintendo Co Ltd's asset turnover of last year was 0.3533975. ==> 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+0+1+0+1+1+1+1+0
=6

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

Nintendo Co Ltd has an F-score of 6 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.

Nintendo Co Ltd Annual Data

Mar11Mar12Mar13Mar14Mar15Mar16
Question 1 101011
Question 2 100000
Question 3 001010
Question 4 100100
Question 5 111111
Question 6 110111
Question 7 111110
Question 8 000111
Question 9 001010
F-score 635574

Nintendo Co Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 0111111011
Question 2 0000000000
Question 3 0111110011
Question 4 1000000100
Question 5 1111111111
Question 6 1110011111
Question 7 1110000011
Question 8 1111111111
Question 9 0011110000
F-score 5675564466
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