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Japan Tobacco (WBO:JAT) Piotroski F-Score : 6 (As of Dec. 13, 2024)


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What is Japan Tobacco 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

Japan Tobacco has an F-score of 5 indicating the company's financial situation is typical for a stable company.

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

WBO:JAT' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Japan Tobacco was 8. The lowest was 3. And the median was 6.


Japan Tobacco Piotroski F-Score Historical Data

The historical data trend for Japan Tobacco'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.

Japan Tobacco Piotroski F-Score Chart

Japan Tobacco Annual Data
Trend Mar14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 5.00 8.00 8.00 3.00

Japan Tobacco 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 3.00 4.00 6.00 -

Competitive Comparison of Japan Tobacco's Piotroski F-Score

For the Tobacco subindustry, Japan Tobacco'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.


Japan Tobacco's Piotroski F-Score Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Japan Tobacco'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 (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was 982.353 + 256.525 + 965.727 + 870.427 = €3,075 Mil.
Cash Flow from Operations was 1797.212 + 487.728 + 379.702 + 1167.417 = €3,832 Mil.
Revenue was 4843.323 + 4356.685 + 4546.207 + 4881.923 = €18,628 Mil.
Gross Profit was 2843.367 + 2149.24 + 2580.544 + 2750.525 = €10,324 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(45539.164 + 45007.378 + 46378.757 + 43961.716 + 46306.807) / 5 = €45438.7644 Mil.
Total Assets at the begining of this year (Jun23) was €45,539 Mil.
Long-Term Debt & Capital Lease Obligation was €6,332 Mil.
Total Current Assets was €20,370 Mil.
Total Current Liabilities was €10,206 Mil.
Net Income was 985.038 + 272.247 + 1011.002 + 929.32 = €3,198 Mil.

Revenue was 5228.327 + 4543.046 + 4648.733 + 4750.445 = €19,171 Mil.
Gross Profit was 3123.427 + 2552.348 + 2815.648 + 2781.933 = €11,273 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(46952.345 + 47426.437 + 45816.957 + 44348.046 + 45539.164) / 5 = €46016.5898 Mil.
Total Assets at the begining of last year (Jun22) was €46,952 Mil.
Long-Term Debt & Capital Lease Obligation was €6,182 Mil.
Total Current Assets was €18,959 Mil.
Total Current Liabilities was €9,983 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.

Japan Tobacco's current Net Income (TTM) was 3,075. ==> 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.

Japan Tobacco's current Cash Flow from Operations (TTM) was 3,832. ==> 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 (Jun23)
=3075.032/45539.164
=0.067525

ROA (Last Year)=Net Income/Total Assets (Jun22)
=3197.607/46952.345
=0.06810324

Japan Tobacco's return on assets of this year was 0.067525. Japan Tobacco's return on assets of last year was 0.06810324. ==> 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.

Japan Tobacco's current Net Income (TTM) was 3,075. Japan Tobacco's current Cash Flow from Operations (TTM) was 3,832. ==> 3,832 > 3,075 ==> 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: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=6331.812/45438.7644
=0.13934824

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=6181.839/46016.5898
=0.13433936

Japan Tobacco's gearing of this year was 0.13934824. Japan Tobacco's gearing of last year was 0.13433936. ==> 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: Jun24)=Total Current Assets/Total Current Liabilities
=20370.223/10206.006
=1.99590545

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=18958.64/9982.945
=1.89910292

Japan Tobacco's current ratio of this year was 1.99590545. Japan Tobacco's current ratio of last year was 1.89910292. ==> 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.

Japan Tobacco's number of shares in issue this year was 1775.789. Japan Tobacco's number of shares in issue last year was 1775.465. ==> 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
=10323.676/18628.138
=0.55419796

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=11273.356/19170.551
=0.58805592

Japan Tobacco's gross margin of this year was 0.55419796. Japan Tobacco's gross margin of last year was 0.58805592. ==> 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 (Jun23)
=18628.138/45539.164
=0.40905753

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=19170.551/46952.345
=0.40829805

Japan Tobacco's asset turnover of this year was 0.40905753. Japan Tobacco's asset turnover of last year was 0.40829805. ==> 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+1+0+1+0+1+0+0+1
=5

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

Japan Tobacco has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Japan Tobacco  (WBO:JAT) 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.


Japan Tobacco Piotroski F-Score Related Terms

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Japan Tobacco Business Description

Traded in Other Exchanges
Address
2-1, Toranomon 2-chome, Minato-ku, Tokyo, JPN, 105-8422
Japan Tobacco primarily sells cigarettes and reduced-risk products, organized in three clusters consisting of Asia (which includes its home market and countries in Asia Pacific), Western Europe, and EMA (which includes Eastern Europe, the Middle East North Africa, Turkey, Americas, and duty-free). Its leading cigarette brands include Winston (non-US), Camel (non-US), Mevius, and LD. Its reduced-risk brands include Logic in vaping and Ploom in heated tobacco, though this category generates less than 5% of tobacco sales.

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