>
Switch to:

CIT Group Piotroski F-Score

: 7 (As of Today)
View and export this data going back to 1997. Start your Free Trial

Good Sign:

Piotroski F-Score is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

CIT Group has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for CIT Group's Piotroski F-Score or its related term are showing as below:

NYSE:CIT' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 7

2
9

During the past 13 years, the highest Piotroski F-Score of CIT Group was 9. The lowest was 2. And the median was 6.


CIT Group Piotroski F-Score Historical Data

The historical data trend for CIT Group'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.

* Premium members only.

CIT Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 8.00 6.00 8.00 3.00

CIT Group Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 3.00 7.00 7.00 7.00

Competitive Comparison

For the Banks - Regional subindustry, CIT Group'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.

   

CIT Group Piotroski F-Score Distribution

For the Banks industry and Financial Services sector, CIT Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where CIT Group's Piotroski F-Score falls into.


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 (Sep21) TTM:Last Year (Sep20) TTM:
Net Income was 8.6 + 303.8 + 226.9 + 175.5 = $715 Mil.
Cash Flow from Operations was 275.9 + 274.1 + 184.4 + 188.8 = $923 Mil.
Revenue was 611.4 + 665.1 + 586.1 + 547 = $2,410 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(60865 + 58106.6 + 56049.1 + 54703.7 + 54420) / 5 = $56828.88 Mil.
Total Assets at the begining of this year (Sep20) was $60,865 Mil.
Long-Term Debt & Capital Lease Obligation was $4,536 Mil.
Total Assets was $54,420 Mil.
Total Liabilities was $48,245 Mil.
Net Income was 130.6 + -624.3 + -85.3 + 85.7 = $-493 Mil.

Revenue was 558.6 + 605 + 527.4 + 580.8 = $2,272 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(51403.1 + 50832.8 + 58936.7 + 61702.4 + 60865) / 5 = $56748 Mil.
Total Assets at the begining of last year (Sep19) was $51,403 Mil.
Long-Term Debt & Capital Lease Obligation was $7,552 Mil.
Total Assets was $60,865 Mil.
Total Liabilities was $55,101 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.

CIT Group's current Net Income (TTM) was 715. ==> 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.

CIT Group's current Cash Flow from Operations (TTM) was 923. ==> 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 (Sep20)
=714.8/60865
=0.01174402

ROA (Last Year)=Net Income/Total Assets (Sep19)
=-493.3/51403.1
=-0.0095967

CIT Group's return on assets of this year was 0.01174402. CIT Group's return on assets of last year was -0.0095967. ==> 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.

CIT Group's current Net Income (TTM) was 715. CIT Group's current Cash Flow from Operations (TTM) was 923. ==> 923 > 715 ==> 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: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=4536/56828.88
=0.07981857

Gearing (Last Year: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=7552.2/56748
=0.1330831

CIT Group's gearing of this year was 0.07981857. CIT Group's gearing of last year was 0.1330831. ==> 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

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Sep21)=Total Assets/Total Liabilities
=54420/48245.4
=1.12798319

Current Ratio (Last Year: Sep20)=Total Assets/Total Liabilities
=60865/55101
=1.1046079

CIT Group's current ratio of this year was 1.12798319. CIT Group's current ratio of last year was 1.1046079. ==> 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.

CIT Group's number of shares in issue this year was 100.432. CIT Group's number of shares in issue last year was 98.556. ==> 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.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=714.8/2409.6
=0.29664675

Net Margin (Last Year: TTM)=Net Income/Revenue
=-493.3/2271.8
=-0.21714059

CIT Group's net margin of this year was 0.29664675. CIT Group's net margin of last year was -0.21714059. ==> This year's net 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/Total Assets at the Beginning of This Year (Sep20)
=2409.6/60865
=0.03958925

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep19)
=2271.8/51403.1
=0.04419578

CIT Group's asset turnover of this year was 0.03958925. CIT Group's asset turnover of last year was 0.04419578. ==> 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+1+1+1+1+0+1+0
=7

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

CIT Group has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

CIT Group  (NYSE:CIT) 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.


CIT Group Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of CIT Group's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


CIT Group Business Description

CIT Group logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6022
Traded in Other Exchanges
Address
11 West 42nd Street, New York, NY, USA, 10036
CIT Group Inc is a banking holding company and a financial holding company operating primarily in North America. It provides financing, leasing, and advisory services primarily to middle-market companies in a diverse group of industries. The company's banking subsidiary mostly operates in Southern California and offers both commercial and retail banking services. The company sources its commercial lending business through direct marketing to customers, vendors, and distributors, among other parties. The company generates revenue by earning interest on loans and investments, as well as commission, fees, and rental income on leased equipment and other financial services. The company also syndicates and sells finance receivables.
Executives
Alemany Ellen R director, officer: Chair & CEO ONE ADP BOULEVARD ROSELAND NJ 07068
Rosenfeld Gerald director C/O CIT GROUP INC. 1 CIT DRIVE, #3251-9 LIVINGSTON NJ 07039
Duffy James J officer: EVP & Chief HR Officer C/O CIT GROUP, 11 WEST 42ND ST. NEW YORK NY 10036
Solk Steve officer: President, Consumer Banking C/O CIT GROUP INC., ATTN GENERAL COUNSEL 1 CIT DRIVE LIVINGSTON NJ 07039
Fawcett John J. officer: EVP and Chief Financial Office C/O CIT GROUP INC. 1 CIT DRIVE LIVINGSTON NJ 07039
Sperling Edward K officer: EVP & Controller C/O CIT GROUP, 1 CIT DRIVE, #3251-9 LIVINGSTON NJ 07039
Menelly Denise M. officer: EVP, Head of Technology & Ops C/O CIT GROUP INC., 1 CIT DRIVE LIVINGSTON NJ 07039
Proia Gina M. officer: EVP & Head of Marketing C/O CIT GROUP INC., ATTN GENERAL COUNSEL 1 CIT DRIVE LIVINGSTON NJ 07039
Plummer Wahida officer: EVP & Chief Risk Officer C/O CIT GROUP INC. 1 CIT DRIVE, #3251-9 LIVINGSTON NJ 07039
Harney Marisa officer: EVP & Chief Credit Officer C/O CIT GROUP INC. 1 CIT DRIVE, #3251-9 LIVINGSTON NJ 07039
Harnisch David officer: Pres., Commercial Finance C/O CIT GROUP, 1 CIT DRIVE LIVINGSTON NJ 07039
Tran Khanh T director C/O CIT GROUP INC., 1 CIT DRIVE, #3521-9 LIVINGSTON NJ 07039
Freeman William M director C/O CIT GROUP INC. 1 CIT DRIVE, #3251-9 LIVINGSTON NJ 07039
Oates R. Brad director C/O CIT GROUP, 1 CIT DRIVE, #3251-9 LIVINGSTON NJ 07039
Frank Alan L director C/O CIT GROUP, 1 CIT DRIVE, #3251-9 LIVINGSTON NJ 07039

CIT Group Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)