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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
Principal Financial Group has an F-score of 4 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for Principal Financial Group's Piotroski F-Score or its related term are showing as below:
During the past 13 years, the highest Piotroski F-Score of Principal Financial Group was 9. The lowest was 4. And the median was 6.
The historical data trend for Principal Financial Group'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.
Principal Financial Group Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Piotroski F-Score | Get a 7-Day Free Trial | 6.00 | 6.00 | 7.00 | 7.00 | 4.00 |
Principal Financial Group Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
Piotroski F-Score | Get a 7-Day Free Trial | 6.00 | 4.00 | 6.00 | 7.00 | 4.00 |
For the Asset Management subindustry, Principal Financial Group'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.
For the Asset Management industry and Financial Services sector, Principal Financial Group's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Principal Financial Group'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 (Sep24) TTM: | Last Year (Sep23) TTM: |
Net Income was -871.7 + 532.5 + 353.1 + -220 = $-206 Mil. Cash Flow from Operations was 944 + 584.2 + 1431.7 + 1128 = $4,088 Mil. Revenue was 2690.8 + 4053.3 + 4310.8 + 3011.6 = $14,067 Mil. Average Total Assets from the begining of this year (Sep23) to the end of this year (Sep24) was (287900 + 305000 + 308683.5 + 308777.3 + 322857.7) / 5 = $306643.7 Mil. Total Assets at the begining of this year (Sep23) was $287,900 Mil. Long-Term Debt & Capital Lease Obligation was $3,933 Mil. Total Assets was $322,858 Mil. Total Liabilities was $311,265 Mil. |
Net Income was -16.2 + -140.1 + 388.8 + 1246.2 = $1,479 Mil. Revenue was 3150.8 + 2819 + 3557.3 + 4598.7 = $14,126 Mil. Average Total Assets from the begining of last year (Sep22) to the end of last year (Sep23) was (282580.6 + 290867 + 299400 + 299200 + 287900) / 5 = $291989.52 Mil. Total Assets at the begining of last year (Sep22) was $282,581 Mil. Long-Term Debt & Capital Lease Obligation was $3,930 Mil. Total Assets was $287,900 Mil. Total Liabilities was $277,228 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.
Principal Financial Group's current Net Income (TTM) was -206.
==> 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.
Principal Financial Group's current Cash Flow from Operations (TTM) was 4,088.
==> 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 (Sep23) |
= | -206.1 | / | 287900 | |
= | -0.00071587 |
ROA (Last Year) | = | Net Income | / | Total Assets (Sep22) |
= | 1478.7 | / | 282580.6 | |
= | 0.00523284 |
Principal Financial Group's return on assets of this year was -0.00071587. Principal Financial Group's return on assets of last year was 0.00523284.
==> 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.
Principal Financial Group's current Net Income (TTM) was -206. Principal Financial Group's current Cash Flow from Operations (TTM) was 4,088.
==> 4,088 > -206 ==> 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: Sep24) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Sep23 to Sep24 |
= | 3932.9 | / | 306643.7 | |
= | 0.01282563 |
Gearing (Last Year: Sep23) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Sep22 to Sep23 |
= | 3930.2 | / | 291989.52 | |
= | 0.01346007 |
Principal Financial Group's gearing of this year was 0.01282563. Principal Financial Group's gearing of last year was 0.01346007.
==> 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
* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.
Current Ratio (This Year: Sep24) | = | Total Assets | / | Total Liabilities |
= | 322857.7 | / | 311264.5 | |
= | 1.03724549 |
Current Ratio (Last Year: Sep23) | = | Total Assets | / | Total Liabilities |
= | 287900 | / | 277228.4 | |
= | 1.03849389 |
Principal Financial Group's current ratio of this year was 1.03724549. Principal Financial Group's current ratio of last year was 1.03849389.
==> 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.
Principal Financial Group's number of shares in issue this year was 230.7. Principal Financial Group's number of shares in issue last year was 244.3.
==> 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.
* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.
Net Margin (This Year: TTM) | = | Net Income | / | Revenue |
= | -206.1 | / | 14066.5 | |
= | -0.01465183 |
Net Margin (Last Year: TTM) | = | Net Income | / | Revenue |
= | 1478.7 | / | 14125.8 | |
= | 0.1046808 |
Principal Financial Group's net margin of this year was -0.01465183. Principal Financial Group's net margin of last year was 0.1046808.
==> Last year's net 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 (Sep23) |
= | 14066.5 | / | 287900 | |
= | 0.04885898 |
Asset Turnover (Last Year) | = | Revenue | / | Total Assets at the Beginning of Last Year (Sep22) |
= | 14125.8 | / | 282580.6 | |
= | 0.04998857 |
Principal Financial Group's asset turnover of this year was 0.04885898. Principal Financial Group's asset turnover of last year was 0.04998857.
==> 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 | + | 1 | + | 0 | + | 1 | + | 0 | + | 0 | |
= | 4 |
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Principal Financial Group has an F-score of 4 indicating the company's financial situation is typical for a stable company.
Principal Financial Group (NAS:PFG) 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.
Thank you for viewing the detailed overview of Principal Financial Group's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Luis E. Valdes | officer: Executive Chairman, Latam | 711 HIGH STREET, DES MOINES IA 50392-0300 |
Sandra L Helton | director | 711 HIGH STREET, DES MOINES IA 50392-0300 |
Wee Yee Cheong | officer: EVP, Principal Asia | 711 HIGH STREET, DES MOINES IA 50392 |
Roberto Walker | officer: EVP, Principal Latin American | 711 HIGH ST., DES MOINES IA 50392 |
Renee V. Schaaf | officer: President - RIS | 711 HIGH STREET, DES MOINES IA 50392 |
Natalie Lamarque | officer: EVP, General Counsel, and Secr | 711 HIGH STREET, DES MOINES IA 50392 |
H Elizabeth Mitchell | director | PLATINUM UNDERWRITERS REINSURANCE, INC., 2 WORLD FINANCIAL CENTER, SUITE 2300, NEW YORK NY 10281 |
Jonathan Auerbach | director | C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131 |
Claudio Muruzabal | director | 711 HIGH STREET, DES MOINES IA 50392 |
Maliz E Beams | director | C/O PORT FINANCIAL CORP, 1380 SOLDIERS FIELD RD, BRIGHTON MA 02135 |
Alfredo Rivera | director | THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313 |
Scott Mills | director | 1515 BROADWAY, NEW YORK NY 10036 |
Clare Stack Richer | director | BAIN CAPITAL, LP, 200 CLARENDON STREET, BOSTON MA 02116 |
Diane C Nordin | director | 711 HIGH ST., DES MOINES IA 50392 |
Roger C Hochschild | director | 2500 LAKE COOK ROAD, RIVERWOODS IL 60015 |
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