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Nomad Foods Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

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

Nomad Foods has an F-score of 5 indicating the company's financial situation is typical for a stable company.

NYSE:NOMD' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 8
Current: 5

4
8

During the past 4 years, the highest Piotroski F-Score of Nomad Foods was 8. The lowest was 4. And the median was 7.


Nomad Foods Piotroski F-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Nomad Foods Annual Data
Mar15 Dec16 Dec17 Dec18
Piotroski F-Score N/A N/A 5.00 7.00

Nomad Foods Quarterly Data
Dec14 Mar15 Jun15 Sep15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 7.00 7.00 4.00 5.00 5.00

Competitive Comparison
* 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.


Nomad Foods Piotroski F-Score Distribution

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


How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep19) TTM:Last Year (Sep18) TTM:
Net Income was 46.7576791809 + 25.3107344633 + 52.4293785311 + 43.1718061674 = $168 Mil.
Cash Flow from Operations was 239.590443686 + 113.898305085 + 28.3615819209 + 54.6255506608 = $436 Mil.
Revenue was 699.431171786 + 698.079096045 + 607.683615819 + 595.044052863 = $2,600 Mil.
Gross Profit was 208.987485779 + 215.480225989 + 181.129943503 + 175.330396476 = $781 Mil.
Average Total Assets from the begining of this year (Sep18)
to the end of this year (Sep19) was
(6082.9638273 + 6075.99544937 + 6557.85310734 + 6520 + 6418.72246696) / 5 = $6331.1069702 Mil.
Total Assets at the begining of this year (Sep18) was $6,083 Mil.
Long-Term Debt & Capital Lease Obligation was $2,060 Mil.
Total Current Assets was $1,478 Mil.
Total Current Liabilities was $868 Mil.
Net Income was 32.3076923077 + 76.9420468557 + 36.214953271 + 42.8238039673 = $188 Mil.

Revenue was 601.420118343 + 664.858199753 + 570.327102804 + 619.136522754 = $2,456 Mil.
Gross Profit was 189.349112426 + 211.220715166 + 176.985981308 + 171.528588098 = $749 Mil.
Average Net Income from the begining of last year (Sep17)
to the end of last year (Sep18) was
(5460.54827175 + 5445.79881657 + 5895.06781751 + 5976.75233645 + 6082.9638273) / 5 = $5772.22621392 Mil.
Total Assets at the begining of last year (Sep17) was $5,461 Mil.
Long-Term Debt & Capital Lease Obligation was $2,057 Mil.
Total Current Assets was $970 Mil.
Total Current Liabilities was $880 Mil.

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.

Nomad Foods's current Net Income (TTM) was 168. ==> 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.

Nomad Foods's current Cash Flow from Operations (TTM) was 436. ==> 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(Sep18)
=167.669598343/6082.9638273
=0.0275638

ROA (Last Year)=Net Income/Total Assets(Sep17)
=188.288496402/5460.54827175
=0.03448161

Nomad Foods's return on assets of this year was 0.0275638. Nomad Foods's return on assets of last year was 0.03448161. ==> 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.

Nomad Foods's current Net Income (TTM) was 168. Nomad Foods's current Cash Flow from Operations (TTM) was 436. ==> 436 > 168 ==> 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: Sep19)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Sep18 to Sep19
=2059.91189427/6331.1069702
=0.32536362

Gearing (Last Year: Sep18)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Sep17 to Sep18
=2056.9428238/5772.22621392
=0.35635173

Nomad Foods's gearing of this year was 0.32536362. Nomad Foods's gearing of last year was 0.35635173. ==> 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: Sep19)=Total Current Assets/Total Current Liabilities
=1478.30396476/867.621145374
=1.70385885

Current Ratio (Last Year: Sep18)=Total Current Assets/Total Current Liabilities
=970.24504084/879.696616103
=1.10293142

Nomad Foods's current ratio of this year was 1.70385885. Nomad Foods's current ratio of last year was 1.10293142. ==> 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.

Nomad Foods's number of shares in issue this year was 196.4. Nomad Foods's number of shares in issue last year was 175.7. ==> 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
=780.928051747/2600.23793651
=0.30032946

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=749.084396999/2455.74194365
=0.30503384

Nomad Foods's gross margin of this year was 0.30032946. Nomad Foods's gross margin of last year was 0.30503384. ==> Last year's gross margin is higher ==> Score 0.

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 (Sep18)
=2600.23793651/6082.9638273
=0.42746234

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep17)
=2455.74194365/5460.54827175
=0.44972443

Nomad Foods's asset turnover of this year was 0.42746234. Nomad Foods's asset turnover of last year was 0.44972443. ==> 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+0+1+1+1+0+0+0
=5

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

Nomad Foods has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Nomad Foods  (NYSE:NOMD) 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.


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