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Orion Office REIT (Orion Office REIT) Piotroski F-Score : 6 (As of May. 12, 2024)


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What is Orion Office REIT Piotroski F-Score?

The zones of discrimination were as such:

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

Orion Office REIT has an F-score of 6 indicating the company's financial situation is typical for a stable company.

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

ONL' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 5   Max: 6
Current: 6

During the past 6 years, the highest Piotroski F-Score of Orion Office REIT was 6. The lowest was 4. And the median was 5.


Orion Office REIT Piotroski F-Score Historical Data

The historical data trend for Orion Office REIT'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.

Orion Office REIT Piotroski F-Score Chart

Orion Office REIT Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial N/A N/A N/A 4.00 6.00

Orion Office REIT Quarterly Data
Dec18 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Get a 7-Day Free Trial 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 N/A 5.00 6.00 6.00

Competitive Comparison of Orion Office REIT's Piotroski F-Score

For the REIT - Office subindustry, Orion Office REIT'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.


Orion Office REIT's Piotroski F-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Orion Office REIT's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Orion Office REIT'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 (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was -8.885 + -15.73 + -16.519 + -16.168 = $-57.3 Mil.
Cash Flow from Operations was 11.441 + 32.477 + 25.67 + 19.5 = $89.1 Mil.
Revenue was 50.19 + 52.024 + 49.076 + 43.751 = $195.0 Mil.
Gross Profit was 34.846 + 36.537 + 33.57 + 29.305 = $134.3 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(1571.073 + 1546.872 + 1527.907 + 1504.391 + 1423.933) / 5 = $1514.8352 Mil.
Total Assets at the begining of this year (Dec22) was $1,571.1 Mil.
Long-Term Debt & Capital Lease Obligation was $360.9 Mil.
Total Current Assets was $83.2 Mil.
Total Current Liabilities was $152.1 Mil.
Net Income was -9.906 + -15.571 + -53.047 + -18.97 = $-97.5 Mil.

Revenue was 53.206 + 52.849 + 51.769 + 50.294 = $208.1 Mil.
Gross Profit was 37.892 + 37.693 + 36.466 + 34.548 = $146.6 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(1759.478 + 1754.949 + 1713.92 + 1621.554 + 1571.073) / 5 = $1684.1948 Mil.
Total Assets at the begining of last year (Dec21) was $1,759.5 Mil.
Long-Term Debt & Capital Lease Obligation was $366.2 Mil.
Total Current Assets was $80.8 Mil.
Total Current Liabilities was $205.6 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.

Orion Office REIT's current Net Income (TTM) was -57.3. ==> 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.

Orion Office REIT's current Cash Flow from Operations (TTM) was 89.1. ==> 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 (Dec22)
=-57.302/1571.073
=-0.03647316

ROA (Last Year)=Net Income/Total Assets (Dec21)
=-97.494/1759.478
=-0.05541075

Orion Office REIT's return on assets of this year was -0.03647316. Orion Office REIT's return on assets of last year was -0.05541075. ==> 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.

Orion Office REIT's current Net Income (TTM) was -57.3. Orion Office REIT's current Cash Flow from Operations (TTM) was 89.1. ==> 89.1 > -57.3 ==> 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: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=360.93/1514.8352
=0.23826354

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=366.235/1684.1948
=0.21745406

Orion Office REIT's gearing of this year was 0.23826354. Orion Office REIT's gearing of last year was 0.21745406. ==> 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: Dec23)=Total Current Assets/Total Current Liabilities
=83.179/152.057
=0.54702513

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=80.759/205.64
=0.39272029

Orion Office REIT's current ratio of this year was 0.54702513. Orion Office REIT's current ratio of last year was 0.39272029. ==> 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.

Orion Office REIT's number of shares in issue this year was 55.776. Orion Office REIT's number of shares in issue last year was 56.638. ==> 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
=134.258/195.041
=0.68835783

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=146.599/208.118
=0.70440327

Orion Office REIT's gross margin of this year was 0.68835783. Orion Office REIT's gross margin of last year was 0.70440327. ==> 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 (Dec22)
=195.041/1571.073
=0.12414509

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=208.118/1759.478
=0.11828395

Orion Office REIT's asset turnover of this year was 0.12414509. Orion Office REIT's asset turnover of last year was 0.11828395. ==> 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
=0+1+1+1+0+1+1+0+1
=6

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

Orion Office REIT has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Orion Office REIT  (NYSE:ONL) 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.


Orion Office REIT Piotroski F-Score Related Terms

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Orion Office REIT (Orion Office REIT) Business Description

Traded in Other Exchanges
Address
2398 East Camelback Road, Suite 1060, Phoenix, AZ, USA, 85016
Orion Office REIT Inc is a internally-managed REIT engaged in the ownership, acquisition, and management of a diversified portfolio of mission-critical and headquarters office buildings located in high quality suburban markets across the U.S. and leased on a single-tenant net lease basis to creditworthy clients. The Company operates in one business segment: direct ownership and operation of commercial real estate.
Executives
Christopher Haviland Day officer: SEE REMARKS C/O REALTY INCOME CORPORATION, 11995 EL CAMINO REAL, SAN DIEGO CA 92130
Revea Lynn Schmidt officer: See Remarks. C/O ORION OFFICE REIT, INC., 2325 E. CAMELBACK ROAD, SUITE 850, PHOENIX AZ 58016
Paul C Hughes officer: General Counsel & Secretary C/O HOSPITALITY INVESTORS TRUST, INC., 3950 UNIVERSITY DRIVE, FAIRFAX VA 22030
Richard J Lieb director C/O GREENHILL & CO., INC.,, 300 PARK AVENUE, NEW YORK NY 10022
Reginald Harold Gilyard director 1 FIRST AMERICAN WAY, SANTA ANA CA 92707
Kathleen Allen director
Gavin Brandon officer: SEE REMARKS 2325 E CAMELBACK RD, 9TH FLOOR, PHOENIX AZ 85016
Paul H Mcdowell director, officer: SEE REMARKS 110 MAIDEN LANE, NEW YORK NY 10005
Gregory J. Whyte director C/O TIER REIT, INC., 5950 SHERRY LANE, SUITE 700, DALLAS TX 75225
Gary E Landriau officer: SEE REMARKS C/O REALTY INCOME CORPORATION, 11995 EL CAMINO REAL, SAN DIEGO CA 92130
Christie B. Kelly director, officer: EVP, CFO & TREASURER 600 E. 96TH ST., #100, INDIANAPOLIS IN 46240
Sumit Roy director, officer: PRESIDENT AND CEO 600 LA TERRAZA BOULEVARD, ESCONDIDO CA 92025
Michelle Bushore director, officer: EVP, CLO & SECRETARY 11995 EL CAMINO REAL, SAN DIEGO CA 92130
Realty Income Corp 10 percent owner 11995 EL CAMINO REAL, SAN DIEGO CA 92130