>
Switch to:

IHS Markit Piotroski F-Score

: 7 (As of Today)
View and export this data going back to 2005. 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

IHS Markit 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 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: 3   Med: 6   Max: 8
Current: 7

3
8

During the past 13 years, the highest Piotroski F-Score of IHS Markit was 8. The lowest was 3. 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 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 7.00 7.00 5.00 6.00

IHS Markit Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 8.00 6.00 7.00 7.00 7.00

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 (Aug21) TTM:Last Year (Aug20) TTM:
Net Income was 151.1 + 149.3 + 159 + 161.3 = $621 Mil.
Cash Flow from Operations was 338.3 + 244.5 + 372 + 420.7 = $1,376 Mil.
Revenue was 1107.2 + 1119.9 + 1181.4 + 1180.5 = $4,589 Mil.
Gross Profit was 706.9 + 704.7 + 755.6 + 754.8 = $2,922 Mil.
Average Total Assets from the begining of this year (Aug20)
to the end of this year (Aug21) was
(16233.6 + 16135.2 + 16669.6 + 16594.6 + 16496.5) / 5 = $16425.9 Mil.
Total Assets at the begining of this year (Aug20) was $16,234 Mil.
Long-Term Debt & Capital Lease Obligation was $4,913 Mil.
Total Current Assets was $2,659 Mil.
Total Current Liabilities was $2,049 Mil.
Net Income was 203.1 + 485 + 71.7 + 162.9 = $923 Mil.

Revenue was 1120.4 + 1080.8 + 1026.6 + 1073.2 = $4,301 Mil.
Gross Profit was 710.9 + 665 + 638.3 + 687.6 = $2,702 Mil.
Average Total Assets from the begining of last year (Aug19)
to the end of last year (Aug20) was
(15903.6 + 16087.2 + 16380.1 + 16128.9 + 16233.6) / 5 = $16146.68 Mil.
Total Assets at the begining of last year (Aug19) was $15,904 Mil.
Long-Term Debt & Capital Lease Obligation was $5,018 Mil.
Total Current Assets was $1,226 Mil.
Total Current Liabilities was $1,838 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 621. ==> 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 1,376. ==> 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 (Aug20)
=620.7/16233.6
=0.03823551

ROA (Last Year)=Net Income/Total Assets (Aug19)
=922.7/15903.6
=0.05801831

IHS Markit's return on assets of this year was 0.03823551. IHS Markit's return on assets of last year was 0.05801831. ==> Last year is higher ==> Score 0.

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 621. IHS Markit's current Cash Flow from Operations (TTM) was 1,376. ==> 1,376 > 621 ==> 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: Aug21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Aug20 to Aug21
=4912.8/16425.9
=0.29908863

Gearing (Last Year: Aug20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Aug19 to Aug20
=5018.1/16146.68
=0.31078215

IHS Markit's gearing of this year was 0.29908863. IHS Markit's gearing of last year was 0.31078215. ==> 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: Aug21)=Total Current Assets/Total Current Liabilities
=2659/2048.5
=1.29802294

Current Ratio (Last Year: Aug20)=Total Current Assets/Total Current Liabilities
=1226/1838.3
=0.66692052

IHS Markit's current ratio of this year was 1.29802294. IHS Markit's current ratio of last year was 0.66692052. ==> 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 401.3. IHS Markit's number of shares in issue last year was 401.1. ==> 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
=2922/4589
=0.63674003

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2701.8/4301
=0.62817949

IHS Markit's gross margin of this year was 0.63674003. IHS Markit's gross margin of last year was 0.62817949. ==> 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 (Aug20)
=4589/16233.6
=0.28268529

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Aug19)
=4301/15903.6
=0.27044191

IHS Markit's asset turnover of this year was 0.28268529. IHS Markit's asset turnover of last year was 0.27044191. ==> 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+0+1+1+1+0+1+1
=7

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

IHS Markit has an F-score of 7. 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

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


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

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)