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Essence Fastening Systems (Shanghai) Co (SZSE:301005) Piotroski F-Score : 3 (As of Dec. 14, 2024)


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What is Essence Fastening Systems (Shanghai) Co Piotroski F-Score?

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

Essence Fastening Systems (Shanghai) Co has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for Essence Fastening Systems (Shanghai) Co's Piotroski F-Score or its related term are showing as below:

SZSE:301005' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 3   Max: 7
Current: 3

During the past 7 years, the highest Piotroski F-Score of Essence Fastening Systems (Shanghai) Co was 7. The lowest was 2. And the median was 3.


Essence Fastening Systems (Shanghai) Co Piotroski F-Score Historical Data

The historical data trend for Essence Fastening Systems (Shanghai) Co'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.

Essence Fastening Systems (Shanghai) Co Piotroski F-Score Chart

Essence Fastening Systems (Shanghai) Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial N/A N/A 3.00 2.00 4.00

Essence Fastening Systems (Shanghai) Co 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 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 4.00 3.00 3.00 3.00

Competitive Comparison of Essence Fastening Systems (Shanghai) Co's Piotroski F-Score

For the Tools & Accessories subindustry, Essence Fastening Systems (Shanghai) Co'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.


Essence Fastening Systems (Shanghai) Co's Piotroski F-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Essence Fastening Systems (Shanghai) Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Essence Fastening Systems (Shanghai) Co'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 3.466 + 12.57 + 5.258 + 7.664 = ¥29.0 Mil.
Cash Flow from Operations was -21.174 + 3.826 + -12.241 + -5.425 = ¥-35.0 Mil.
Revenue was 156.77 + 136.307 + 149.368 + 162.214 = ¥604.7 Mil.
Gross Profit was 29.627 + 35.486 + 32.152 + 33.829 = ¥131.1 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(1108.317 + 1141.448 + 1134.419 + 1158.961 + 1169.097) / 5 = ¥1142.4484 Mil.
Total Assets at the begining of this year (Sep23) was ¥1,108.3 Mil.
Long-Term Debt & Capital Lease Obligation was ¥21.5 Mil.
Total Current Assets was ¥672.2 Mil.
Total Current Liabilities was ¥371.4 Mil.
Net Income was 19.367 + 7.224 + 3.059 + 9.831 = ¥39.5 Mil.

Revenue was 135.069 + 85.116 + 115.224 + 135.881 = ¥471.3 Mil.
Gross Profit was 43.121 + 25.037 + 26.463 + 31.151 = ¥125.8 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(1078.683 + 1135.118 + 1117.284 + 1060.413 + 1108.317) / 5 = ¥1099.963 Mil.
Total Assets at the begining of last year (Sep22) was ¥1,078.7 Mil.
Long-Term Debt & Capital Lease Obligation was ¥22.5 Mil.
Total Current Assets was ¥597.1 Mil.
Total Current Liabilities was ¥253.4 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.

Essence Fastening Systems (Shanghai) Co's current Net Income (TTM) was 29.0. ==> 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.

Essence Fastening Systems (Shanghai) Co's current Cash Flow from Operations (TTM) was -35.0. ==> Negative ==> Score 0.

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)
=28.958/1108.317
=0.0261279

ROA (Last Year)=Net Income/Total Assets (Sep22)
=39.481/1078.683
=0.03660111

Essence Fastening Systems (Shanghai) Co's return on assets of this year was 0.0261279. Essence Fastening Systems (Shanghai) Co's return on assets of last year was 0.03660111. ==> 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.

Essence Fastening Systems (Shanghai) Co's current Net Income (TTM) was 29.0. Essence Fastening Systems (Shanghai) Co's current Cash Flow from Operations (TTM) was -35.0. ==> -35.0 <= 29.0 ==> CFROA <= ROA ==> Score 0.

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
=21.484/1142.4484
=0.01880523

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=22.459/1099.963
=0.02041796

Essence Fastening Systems (Shanghai) Co's gearing of this year was 0.01880523. Essence Fastening Systems (Shanghai) Co's gearing of last year was 0.02041796. ==> 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: Sep24)=Total Current Assets/Total Current Liabilities
=672.153/371.435
=1.80961137

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=597.101/253.403
=2.35632964

Essence Fastening Systems (Shanghai) Co's current ratio of this year was 1.80961137. Essence Fastening Systems (Shanghai) Co's current ratio of last year was 2.35632964. ==> 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.

Essence Fastening Systems (Shanghai) Co's number of shares in issue this year was 192.764. Essence Fastening Systems (Shanghai) Co's number of shares in issue last year was 96.044. ==> 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
=131.094/604.659
=0.2168065

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=125.772/471.29
=0.26686753

Essence Fastening Systems (Shanghai) Co's gross margin of this year was 0.2168065. Essence Fastening Systems (Shanghai) Co's gross margin of last year was 0.26686753. ==> 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 (Sep23)
=604.659/1108.317
=0.54556503

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=471.29/1078.683
=0.43691242

Essence Fastening Systems (Shanghai) Co's asset turnover of this year was 0.54556503. Essence Fastening Systems (Shanghai) Co's asset turnover of last year was 0.43691242. ==> 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
=1+0+0+0+1+0+0+0+1
=3

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

Essence Fastening Systems (Shanghai) Co has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

Essence Fastening Systems (Shanghai) Co  (SZSE:301005) 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.


Essence Fastening Systems (Shanghai) Co Piotroski F-Score Related Terms

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Essence Fastening Systems (Shanghai) Co Business Description

Traded in Other Exchanges
N/A
Address
No. 39, Lane 100, Fengshuo Road, Jiading District, Shanghai, CHN, 201822
Essence Fastening Systems (Shanghai) Co Ltd is engaged in the research and development, production, and sales of high-strength precision fasteners, special-shaped connectors, and other products.
Executives
Li Xin An Executives
Song Shu Sheng Director
Li Hong Tao Directors, executives
Yi Qin Feng Directors, executives

Essence Fastening Systems (Shanghai) Co Headlines

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