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Novogen Ltd  (NAS:NVGN) Piotroski F-Score: 3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Novogen Ltd has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

NAS:NVGN' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Max: 5
Current: 3

1
5

During the past 13 years, the highest Piotroski F-Score of Novogen Ltd was 5. The lowest was 1. And the median was 3.


Historical Data

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

* Premium members only.

Novogen Ltd Annual Data

Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 2.00 2.00 4.00 3.00

Novogen Ltd Semi-Annual Data

Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
Piotroski F-Score 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 Premium Member Only Premium Member Only Premium Member Only 2.00 4.00 2.00 3.00 2.00

Competitive Comparison
* 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.

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 (Jun16) TTM:Last Year (Jun15) TTM:
Net Income was $-8.93 Mil.
Cash Flow from Operations was $-8.87 Mil.
Revenue was $0.30 Mil.
Gross Profit was $0.00 Mil.
Average Total Assets from the begining of this year (Jun15)
to the end of this year (Jun16) was (35.6018518519 + 26.289415248) / 2 = $30.9456335499 Mil.
Total Assets at the begining of this year ({FiscalYear0}) was $35.60 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Total Current Assets was $25.23 Mil.
Total Current Liabilities was $1.06 Mil.
Net Income was $-5.51 Mil.

Revenue was $0.07 Mil.
Gross Profit was $0.07 Mil.
Average Total Assets from the begining of last year (Jun14)
to the end of last year (Jun15) was (4.36329588015 + 35.6018518519) / 2 = $19.982573866 Mil.
Total Assets at the begining of last year (Jun14) was $4.36 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Total Current Assets was $34.45 Mil.
Total Current Liabilities was $1.37 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.

Novogen Ltd's current Net Income (TTM) was {NetIncome0_f}. ==> 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.

Novogen Ltd's current Cash Flow from Operations (TTM) was -8.87. ==> 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/Total Assets(Jun15)
=-8.92820133235/35.6018518519
=-0.25077913

ROA (Last Year)=Net Income/Total Assets(Jun14)
=-5.50848765432/4.36329588015
=-1.26246026

Novogen Ltd's return on assets of this year was -0.25077913. Novogen Ltd's return on assets of last year was -1.26246026. ==> 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.

Novogen Ltd's current Net Income (TTM) was -8.93. Novogen Ltd's current Cash Flow from Operations (TTM) was -8.87. ==> -8.87 > -8.93 ==> 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: Jun16)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jun15 to Jun16
=0/30.9456335499
=0

Gearing (Last Year: Jun15)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jun14 to Jun15
=0/19.982573866
=0

Novogen Ltd's gearing of this year was 0. Novogen 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: Jun16)=Total Current Assets/Total Current Liabilities
=25.2331606218/1.05995558845
=23.80586592

Current Ratio (Last Year: Jun15)=Total Current Assets/Total Current Liabilities
=34.4513888889/1.37191358025
=25.11192351

Novogen Ltd's current ratio of this year was 23.80586592. Novogen Ltd's current ratio of last year was 25.11192351. ==> 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.

Novogen Ltd's number of shares in issue this year was 4.3. Novogen Ltd's number of shares in issue last year was 2.4. ==> 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
=0/0.300518134715
=0

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=0.0686728395062/0.0686728395062
=1

Novogen Ltd's gross margin of this year was 0. Novogen Ltd's gross margin of last year was 1. ==> 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 (Jun15)
=0.300518134715/35.6018518519
=0.00844108

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun14)
=0.0686728395062/4.36329588015
=0.01573875

Novogen Ltd's asset turnover of this year was 0.00844108. Novogen Ltd's asset turnover of last year was 0.01573875. ==> 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+0+1+1+1+0+0+0+0
=3

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

Novogen Ltd has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

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.


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