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IHS Markit Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, 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

IHS Markit has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

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

NYSE:INFO' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 8

4
8

During the past 13 years, the highest Piotroski F-Score of IHS Markit was 8. The lowest was 4. And the median was 6.


IHS Markit Piotroski F-Score Historical Data

The historical data trend for IHS Markit'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.

IHS Markit Annual Data
Trend Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 5.00 6.00 8.00

IHS Markit Quarterly Data
Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21
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 6.00 7.00 7.00 7.00 8.00

Competitive Comparison

For the Consulting Services subindustry, IHS Markit'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.

   

IHS Markit Piotroski F-Score Distribution

For the Business Services industry and Industrials sector, IHS Markit's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where IHS Markit'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 (Nov21) TTM:Last Year (Nov20) TTM:
Net Income was 149.3 + 159 + 161.3 + 737.2 = $1,207 Mil.
Cash Flow from Operations was 244.5 + 372 + 420.7 + 449 = $1,486 Mil.
Revenue was 1119.9 + 1181.4 + 1180.5 + 1176.3 = $4,658 Mil.
Gross Profit was 704.7 + 755.6 + 754.8 + 734.7 = $2,950 Mil.
Average Total Assets from the begining of this year (Nov20)
to the end of this year (Nov21) was
(16135.2 + 16669.6 + 16594.6 + 16496.5 + 16913.9) / 5 = $16561.96 Mil.
Total Assets at the begining of this year (Nov20) was $16,135 Mil.
Long-Term Debt & Capital Lease Obligation was $4,155 Mil.
Total Current Assets was $1,835 Mil.
Total Current Liabilities was $2,712 Mil.
Net Income was 485 + 71.7 + 162.9 + 151.1 = $871 Mil.

Revenue was 1080.8 + 1026.6 + 1073.2 + 1107.2 = $4,288 Mil.
Gross Profit was 665 + 638.3 + 687.6 + 706.9 = $2,698 Mil.
Average Total Assets from the begining of last year (Nov19)
to the end of last year (Nov20) was
(16087.2 + 16380.1 + 16128.9 + 16233.6 + 16135.2) / 5 = $16193 Mil.
Total Assets at the begining of last year (Nov19) was $16,087 Mil.
Long-Term Debt & Capital Lease Obligation was $4,939 Mil.
Total Current Assets was $1,233 Mil.
Total Current Liabilities was $1,979 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.

IHS Markit's current Net Income (TTM) was 1,207. ==> 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.

IHS Markit's current Cash Flow from Operations (TTM) was 1,486. ==> 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 (Nov20)
=1206.8/16135.2
=0.074793

ROA (Last Year)=Net Income/Total Assets (Nov19)
=870.7/16087.2
=0.05412378

IHS Markit's return on assets of this year was 0.074793. IHS Markit's return on assets of last year was 0.05412378. ==> 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.

IHS Markit's current Net Income (TTM) was 1,207. IHS Markit's current Cash Flow from Operations (TTM) was 1,486. ==> 1,486 > 1,207 ==> 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: Nov21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Nov20 to Nov21
=4154.6/16561.96
=0.25085195

Gearing (Last Year: Nov20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Nov19 to Nov20
=4939.4/16193
=0.30503304

IHS Markit's gearing of this year was 0.25085195. IHS Markit's gearing of last year was 0.30503304. ==> 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: Nov21)=Total Current Assets/Total Current Liabilities
=1834.9/2712.3
=0.67651071

Current Ratio (Last Year: Nov20)=Total Current Assets/Total Current Liabilities
=1233.3/1978.8
=0.62325652

IHS Markit's current ratio of this year was 0.67651071. IHS Markit's current ratio of last year was 0.62325652. ==> 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.

IHS Markit's number of shares in issue this year was 402.5. IHS Markit's number of shares in issue last year was 400.6. ==> 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
=2949.8/4658.1
=0.63326249

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2697.8/4287.8
=0.62918047

IHS Markit's gross margin of this year was 0.63326249. IHS Markit's gross margin of last year was 0.62918047. ==> 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/Total Assets at the Beginning of This Year (Nov20)
=4658.1/16135.2
=0.2886918

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Nov19)
=4287.8/16087.2
=0.26653488

IHS Markit's asset turnover of this year was 0.2886918. IHS Markit's asset turnover of last year was 0.26653488. ==> 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
=1+1+1+1+1+1+0+1+1
=8

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

IHS Markit has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

IHS Markit  (NYSE:INFO) 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.


IHS Markit Piotroski F-Score Related Terms

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IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

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