>
Switch to:

Ocwen Financial Piotroski F-Score

: 4 (As of Today)
View and export this data going back to 1996. Start your Free Trial

The zones of discrimination were as such:

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

Ocwen Financial has an F-score of 4 indicating the company's financial situation is typical for a stable company.

NYSE:OCN' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 7
Current: 4

2
7

During the past 13 years, the highest Piotroski F-Score of Ocwen Financial was 7. The lowest was 2. And the median was 4.


Ocwen Financial 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.

Ocwen Financial Annual Data
Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 5.00 4.00 4.00 4.00

Ocwen Financial Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
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 4.00 5.00 6.00 5.00 4.00

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.


Ocwen Financial Piotroski F-Score Distribution

* The bar in red indicates where Ocwen Financial'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 (Dec20) TTM:Last Year (Dec19) TTM:
Net Income was -25.489 + 1.954 + -9.42 + -7.223 = $-40.2 Mil.
Cash Flow from Operations was 170.977 + 53.842 + 23.22 + 12.935 = $261.0 Mil.
Revenue was 253.842 + 227.024 + 249.035 + 231.011 = $960.9 Mil.
Gross Profit was -26.899 + 97.394 + 94.282 + 94.782 = $259.6 Mil.
Average Total Assets from the begining of this year (Dec19)
to the end of this year (Dec20) was
(10406.199 + 9986.024 + 10310.438 + 10423.851 + 10651.127) / 5 = $10355.5278 Mil.
Total Assets at the begining of this year (Dec19) was $10,406.2 Mil.
Long-Term Debt & Capital Lease Obligation was $8,293.3 Mil.
Total Current Assets was $1,809.1 Mil.
Total Current Liabilities was $1,221.2 Mil.
Net Income was -44.494 + -89.737 + -42.767 + 34.873 = $-142.1 Mil.

Revenue was 303.888 + 274.338 + 283.515 + 261.634 = $1,123.4 Mil.
Gross Profit was 68.055 + -13.859 + 271.415 + 151.735 = $477.3 Mil.
Average Total Assets from the begining of last year (Dec18)
to the end of last year (Dec19) was
(9394.216 + 9537.21 + 9627.793 + 9956.653 + 10406.199) / 5 = $9784.4142 Mil.
Total Assets at the begining of last year (Dec18) was $9,394.2 Mil.
Long-Term Debt & Capital Lease Obligation was $7,761.6 Mil.
Total Current Assets was $2,073.3 Mil.
Total Current Liabilities was $1,076.6 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.

Ocwen Financial's current Net Income (TTM) was -40.2. ==> 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.

Ocwen Financial's current Cash Flow from Operations (TTM) was 261.0. ==> 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 (Dec19)
=-40.178/10406.199
=-0.00386097

ROA (Last Year)=Net Income/Total Assets (Dec18)
=-142.125/9394.216
=-0.01512899

Ocwen Financial's return on assets of this year was -0.00386097. Ocwen Financial's return on assets of last year was -0.01512899. ==> 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.

Ocwen Financial's current Net Income (TTM) was -40.2. Ocwen Financial's current Cash Flow from Operations (TTM) was 261.0. ==> 261.0 > -40.2 ==> 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: Dec20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec19 to Dec20
=8293.309/10355.5278
=0.80085817

Gearing (Last Year: Dec19)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec18 to Dec19
=7761.627/9784.4142
=0.79326435

Ocwen Financial's gearing of this year was 0.80085817. Ocwen Financial's gearing of last year was 0.79326435. ==> 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

Current Ratio (This Year: Dec20)=Total Current Assets/Total Current Liabilities
=1809.132/1221.223
=1.48141003

Current Ratio (Last Year: Dec19)=Total Current Assets/Total Current Liabilities
=2073.331/1076.606
=1.92580294

Ocwen Financial's current ratio of this year was 1.48141003. Ocwen Financial's current ratio of last year was 1.92580294. ==> 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.

Ocwen Financial's number of shares in issue this year was 8.685. Ocwen Financial's number of shares in issue last year was 8.986. ==> 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
=259.559/960.912
=0.27011735

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=477.346/1123.375
=0.42492133

Ocwen Financial's gross margin of this year was 0.27011735. Ocwen Financial's gross margin of last year was 0.42492133. ==> 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 (Dec19)
=960.912/10406.199
=0.09234034

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec18)
=1123.375/9394.216
=0.11958156

Ocwen Financial's asset turnover of this year was 0.09234034. Ocwen Financial's asset turnover of last year was 0.11958156. ==> 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
=0+1+1+1+0+0+1+0+0
=4

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

Ocwen Financial has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Ocwen Financial  (NYSE:OCN) 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.


Ocwen Financial Piotroski F-Score Related Terms


Ocwen Financial Piotroski F-Score Headlines

No Headline

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)