Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
John Hancock Preferredome Fund III has an F-score of 6 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for John Hancock Preferredome Fund III's Piotroski F-Score or its related term are showing as below:
HPS'
s Piotroski F-Score Range Over the Past 10 Years
Min: 3 Med: 5 Max: 6
Current: 6
During the past 7 years, the highest Piotroski F-Score of John Hancock Preferredome Fund III was 6. The lowest was 3. And the median was 5.
John Hancock Preferredome Fund III Piotroski F-Score Historical Data
The historical data trend for John Hancock Preferredome Fund III'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.
For the Asset Management subindustry, John Hancock Preferredome Fund III'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.
John Hancock Preferredome Fund III Piotroski F-Score Distribution
For the Asset Management industry and Financial Services sector, John Hancock Preferredome Fund III's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where John Hancock Preferredome Fund III'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.
*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.
John Hancock Preferredome Fund III's current Net Income (TTM) was -30.75.
==> 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.
John Hancock Preferredome Fund III's current Cash Flow from Operations (TTM) was 36.89.
==> 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.
John Hancock Preferredome Fund III's return on assets of this year was -0.0389573. John Hancock Preferredome Fund III's return on assets of last year was -0.03983865.
==> 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.
John Hancock Preferredome Fund III's current Net Income (TTM) was -30.75. John Hancock Preferredome Fund III's current Cash Flow from Operations (TTM) was 36.89.
==> 36.89 > -30.75 ==> 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.
John Hancock Preferredome Fund III's gearing of this year was 0.36470026. John Hancock Preferredome Fund III's gearing of last year was 0.33415318.
==> 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
* 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.
John Hancock Preferredome Fund III's current ratio of this year was 2.56031195. John Hancock Preferredome Fund III's current ratio of last year was 2.79716535.
==> 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.
John Hancock Preferredome Fund III's number of shares in issue this year was 31.697. John Hancock Preferredome Fund III's number of shares in issue last year was 32.042.
==> 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.
* 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.
John Hancock Preferredome Fund III's net margin of this year was 1.01784355. John Hancock Preferredome Fund III's net margin of last year was 1.01336675.
==> 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
John Hancock Preferredome Fund III's asset turnover of this year was -0.03827435. John Hancock Preferredome Fund III's asset turnover of last year was -0.03931316.
==> This year's asset turnover is higher. ==> Score 1.
Evaluation
Piotroski F-Score
=
Que. 1
+
Que. 2
+
Que. 3
+
Que. 4
+
Que. 5
+
Que. 6
+
Que. 7
+
Que. 8
+
Que. 9
=
0
+
1
+
1
+
1
+
0
+
0
+
1
+
1
+
1
=
6
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
John Hancock Preferredome Fund III has an F-score of 6 indicating the company's financial situation is typical for a stable company.
John Hancock Preferredome Fund III (NYSE:HPS) 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.
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.
John Hancock Preferredome Fund III Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of John Hancock Preferredome Fund III's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
John Hancock Preferredome Fund III (John Hancock Preferredome Fund III) Business Description
John Hancock Preferred Income Fund III is a closed-end, diversified management investment company. Its investment objective is to provide a high level of current income consistent with preservation of capital. The fund's secondary investment objective is to provide growth of capital to the extent consistent with its primary investment objective. It seeks to achieve the objectives by investing a majority of its assets in preferred stocks and other preferred securities, including convertible preferred securities. The portfolio composition of the company consists of the U.S. preferred securities, foreign preferred securities, common stocks, corporate bonds, and the short-term investments.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HPS has been successfully added to your 