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Gartner Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicates a 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

Gartner 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 Gartner's Piotroski F-Score or its related term are showing as below:

IT' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Gartner was 9. The lowest was 3. And the median was 6.


Gartner Piotroski F-Score Historical Data

The historical data trend for Gartner'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.

Gartner Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 7.00 8.00 7.00 7.00

Gartner Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 7.00 7.00 7.00 8.00

Competitive Comparison

For the Information Technology Services subindustry, Gartner'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.

   

Gartner Piotroski F-Score Distribution

For the Software industry and Technology sector, Gartner's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Gartner'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 (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 148.865 + 209.359 + 172.515 + 204.925 = $736 Mil.
Cash Flow from Operations was 345.039 + 234.786 + 167.785 + 415.607 = $1,163 Mil.
Revenue was 1156.282 + 1306.323 + 1262.74 + 1376.521 = $5,102 Mil.
Gross Profit was 797.045 + 906.736 + 885.707 + 951.986 = $3,541 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(7188.34 + 6994.639 + 7416.324 + 6985.453 + 6590.594) / 5 = $7035.07 Mil.
Total Assets at the begining of this year (Jun21) was $7,188 Mil.
Long-Term Debt & Capital Lease Obligation was $3,102 Mil.
Total Current Assets was $1,981 Mil.
Total Current Liabilities was $3,178 Mil.
Net Income was 16.964 + 119.607 + 164.1 + 271.236 = $572 Mil.

Revenue was 994.618 + 1112.759 + 1104.038 + 1167.319 = $4,379 Mil.
Gross Profit was 664.851 + 761.331 + 769.571 + 816.517 = $3,012 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(6810.294 + 6840.602 + 7315.967 + 6937.858 + 7188.34) / 5 = $7018.6122 Mil.
Total Assets at the begining of last year (Jun20) was $6,810 Mil.
Long-Term Debt & Capital Lease Obligation was $3,203 Mil.
Total Current Assets was $2,257 Mil.
Total Current Liabilities was $2,910 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.

Gartner's current Net Income (TTM) was 736. ==> 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.

Gartner's current Cash Flow from Operations (TTM) was 1,163. ==> 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 (Jun21)
=735.664/7188.34
=0.10234129

ROA (Last Year)=Net Income/Total Assets (Jun20)
=571.907/6810.294
=0.08397684

Gartner's return on assets of this year was 0.10234129. Gartner's return on assets of last year was 0.08397684. ==> 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.

Gartner's current Net Income (TTM) was 736. Gartner's current Cash Flow from Operations (TTM) was 1,163. ==> 1,163 > 736 ==> 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: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=3102.183/7035.07
=0.44095979

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=3202.962/7018.6122
=0.45635261

Gartner's gearing of this year was 0.44095979. Gartner's gearing of last year was 0.45635261. ==> 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: Jun22)=Total Current Assets/Total Current Liabilities
=1981.282/3178.382
=0.62336182

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=2257.166/2909.606
=0.77576345

Gartner's current ratio of this year was 0.62336182. Gartner's current ratio of last year was 0.77576345. ==> 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.

Gartner's number of shares in issue this year was 80.974. Gartner's number of shares in issue last year was 86.589. ==> 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.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3541.474/5101.866
=0.69415269

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3012.27/4378.734
=0.68793172

Gartner's gross margin of this year was 0.69415269. Gartner's gross margin of last year was 0.68793172. ==> 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 (Jun21)
=5101.866/7188.34
=0.70974189

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=4378.734/6810.294
=0.64295815

Gartner's asset turnover of this year was 0.70974189. Gartner's asset turnover of last year was 0.64295815. ==> 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+0+1+1+1
=8

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

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

Gartner  (NYSE:IT) 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.


Gartner Piotroski F-Score Related Terms

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


Gartner Business Description

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Based in Stamford, Conn., Gartner provides independent research and analysis on information technology and other related technology industries. Its research is delivered to clients' desktops in the form of reports, briefings, and updates. Typical clients are chief information officers and other business executives who help plan companies' IT budgets. Gartner also provides consulting services and hosted nearly 80 IT conferences across the globe in 2007.
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