Switch to:

Parsley Energy Piotroski F-Score

: 3 (As of Today)
View and export this data going back to 2014. Start your Free Trial

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Parsley Energy has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

NYSE:PE' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 8
Current: 3

3
8

During the past 9 years, the highest Piotroski F-Score of Parsley Energy was 8. The lowest was 3. And the median was 5.


Parsley Energy 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.

Parsley Energy Annual Data
Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 4.00 8.00 7.00 5.00

Parsley Energy Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
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 5.00 4.00 5.00 4.00 3.00

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.


Parsley Energy Piotroski F-Score Distribution

* The bar in red indicates where Parsley Energy'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 (Jun20) TTM:Last Year (Jun19) TTM:
Net Income was 119.71 + -36.369 + -3366.4 + -356.416 = $-3,639 Mil.
Cash Flow from Operations was 325.418 + 344.979 + 385.943 + 147.737 = $1,204 Mil.
Revenue was 510.151 + 522.451 + 564.803 + 220.21 = $1,818 Mil.
Gross Profit was 202.408 + 221.317 + 165.137 + -6.731 = $582 Mil.
Average Total Assets from the begining of this year (Jun19)
to the end of this year (Jun20) was
(9838.066 + 9995.696 + 9856.214 + 8607.114 + 7956.338) / 5 = $9250.6856 Mil.
Total Assets at the begining of this year (Jun19) was $9,838 Mil.
Long-Term Debt & Capital Lease Obligation was $3,181 Mil.
Total Current Assets was $334 Mil.
Total Current Liabilities was $613 Mil.
Net Income was 113.309 + 53.773 + -24.064 + 115.935 = $259 Mil.

Revenue was 511.022 + 454.88 + 427.671 + 498.541 = $1,892 Mil.
Gross Profit was 274.794 + 216.786 + 177.112 + 219.93 = $889 Mil.
Average Total Assets from the begining of last year (Jun18)
to the end of last year (Jun19) was
(9139.443 + 9256.911 + 9391.363 + 9554.147 + 9838.066) / 5 = $9435.986 Mil.
Total Assets at the begining of last year (Jun18) was $9,139 Mil.
Long-Term Debt & Capital Lease Obligation was $2,326 Mil.
Total Current Assets was $396 Mil.
Total Current Liabilities was $789 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.

Parsley Energy's current Net Income (TTM) was -3,639. ==> 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.

Parsley Energy's current Cash Flow from Operations (TTM) was 1,204. ==> 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 (Jun19)
=-3639.475/9838.066
=-0.36993805

ROA (Last Year)=Net Income/Total Assets (Jun18)
=258.953/9139.443
=0.02833356

Parsley Energy's return on assets of this year was -0.36993805. Parsley Energy's return on assets of last year was 0.02833356. ==> 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.

Parsley Energy's current Net Income (TTM) was -3,639. Parsley Energy's current Cash Flow from Operations (TTM) was 1,204. ==> 1,204 > -3,639 ==> 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: Jun20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun19 to Jun20
=3181.215/9250.6856
=0.34388965

Gearing (Last Year: Jun19)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun18 to Jun19
=2326.128/9435.986
=0.24651669

Parsley Energy's gearing of this year was 0.34388965. Parsley Energy's gearing of last year was 0.24651669. ==> 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: Jun20)=Total Current Assets/Total Current Liabilities
=333.526/613.222
=0.54389112

Current Ratio (Last Year: Jun19)=Total Current Assets/Total Current Liabilities
=395.704/789.268
=0.50135569

Parsley Energy's current ratio of this year was 0.54389112. Parsley Energy's current ratio of last year was 0.50135569. ==> 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.

Parsley Energy's number of shares in issue this year was 376.95. Parsley Energy's number of shares in issue last year was 279.768. ==> 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
=582.131/1817.615
=0.32027189

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=888.622/1892.114
=0.46964506

Parsley Energy's gross margin of this year was 0.32027189. Parsley Energy's gross margin of last year was 0.46964506. ==> 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 (Jun19)
=1817.615/9838.066
=0.18475328

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun18)
=1892.114/9139.443
=0.20702728

Parsley Energy's asset turnover of this year was 0.18475328. Parsley Energy's asset turnover of last year was 0.20702728. ==> 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+0+1+0+1+0+0+0
=3

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

Parsley Energy has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

Parsley Energy  (NYSE:PE) 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.


Parsley Energy Piotroski F-Score Related Terms


Parsley Energy 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)