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Tesla Inc  (NAS:TSLA) Piotroski F-Score: 3 (As of Today)

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

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

NAS:TSLA' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 7
Current: 3

2
7

During the past 10 years, the highest Piotroski F-Score of Tesla Inc was 7. The lowest was 2. And the median was 3.


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.

Tesla Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 7.00 2.00 2.00 5.00

Tesla Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 6.00 5.00 6.00 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.

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 (Sep17) TTM:Last Year (Sep16) TTM:
Net Income was -121.337 + -330.277 + -336.397 + -619.376 = $-1,407 Mil.
Cash Flow from Operations was -448.209 + -69.811 + -200.172 + -300.562 = $-1,019 Mil.
Revenue was 2284.631 + 2696.27 + 2789.557 + 2984.675 = $10,755 Mil.
Gross Profit was 435.278 + 667.946 + 666.615 + 449.14 = $2,219 Mil.
Average Total Assets from the begining of this year (Sep16)
to the end of this year (Sep17) was
(12592.397 + 22664.076 + 25053.726 + 26043.705 + 28107.074) / 5 = $22892.1956 Mil.
Total Assets at the begining of this year (Sep16) was $12,592 Mil.
Long-Term Debt & Capital Lease Obligation was $9,585 Mil.
Total Current Assets was $7,069 Mil.
Total Current Liabilities was $6,469 Mil.
Net Income was -320.397 + -282.267 + -293.188 + 21.878 = $-874 Mil.

Revenue was 1214.38 + 1147.048 + 1270.017 + 2298.436 = $5,930 Mil.
Gross Profit was 218.564 + 252.468 + 274.776 + 636.735 = $1,383 Mil.
Average Net Income from the begining of last year (Sep15)
to the end of last year (Sep16) was
(7547.497 + 8067.939 + 9191.702 + 11868.952 + 12592.397) / 5 = $9853.6974 Mil.
Total Assets at the begining of last year (Sep15) was $7,547 Mil.
Long-Term Debt & Capital Lease Obligation was $2,443 Mil.
Total Current Assets was $5,172 Mil.
Total Current Liabilities was $4,082 Mil.

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.

Tesla Inc's current Net Income (TTM) was -1,407. ==> 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.

Tesla Inc's current Cash Flow from Operations (TTM) was -1,019. ==> 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(Sep16)
=-1407.387/12592.397
=-0.11176482

ROA (Last Year)=Net Income/Total Assets(Sep15)
=-873.974/7547.497
=-0.11579653

Tesla Inc's return on assets of this year was -0.11176482. Tesla Inc's return on assets of last year was -0.11579653. ==> 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.

Tesla Inc's current Net Income (TTM) was -1,407. Tesla Inc's current Cash Flow from Operations (TTM) was -1,019. ==> -1,019 > -1,407 ==> 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: Sep17)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Sep16 to Sep17
=9584.554/22892.1956
=0.41868216

Gearing (Last Year: Sep16)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Sep15 to Sep16
=2443.42/9853.6974
=0.24796986

Tesla Inc's gearing of this year was 0.41868216. Tesla Inc's gearing of last year was 0.24796986. ==> 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: Sep17)=Total Current Assets/Total Current Liabilities
=7068.733/6468.94
=1.0927189

Current Ratio (Last Year: Sep16)=Total Current Assets/Total Current Liabilities
=5172.412/4082.39
=1.26700585

Tesla Inc's current ratio of this year was 1.0927189. Tesla Inc's current ratio of last year was 1.26700585. ==> 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.

Tesla Inc's number of shares in issue this year was 167.3. Tesla Inc's number of shares in issue last year was 156.9. ==> 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
=2218.979/10755.133
=0.20631814

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1382.543/5929.881
=0.23314852

Tesla Inc's gross margin of this year was 0.20631814. Tesla Inc's gross margin of last year was 0.23314852. ==> 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 (Sep16)
=10755.133/12592.397
=0.85409736

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep15)
=5929.881/7547.497
=0.78567517

Tesla Inc's asset turnover of this year was 0.85409736. Tesla Inc's asset turnover of last year was 0.78567517. ==> 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+0+1+1+0+0+0+0+1
=3

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

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

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.


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