GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Arconic Inc (DELISTED:ARNC) » Definitions » Piotroski F-Score

Arconic (DELISTED:ARNC) Piotroski F-Score : 3 (As of May. 01, 2024)


View and export this data going back to 2000. Start your Free Trial

What is Arconic 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

Arconic 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 Arconic's Piotroski F-Score or its related term are showing as below:

DELISTED:ARNC' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 8
Current: 3

During the past 13 years, the highest Piotroski F-Score of Arconic was 8. The lowest was 2. And the median was 5.


Arconic Piotroski F-Score Historical Data

The historical data trend for Arconic'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.

Arconic Piotroski F-Score Chart

Arconic Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 6.00 5.00 7.00 3.00

Arconic Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 6.00 3.00 3.00 3.00 3.00

Competitive Comparison of Arconic's Piotroski F-Score

For the Aluminum subindustry, Arconic'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.


Arconic's Piotroski F-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Arconic's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Arconic'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 (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was -697.565 + 15.698 + 130.883 + 161.551 = CHF-389 Mil.
Cash Flow from Operations was 860.762 + -421.873 + 321.874 + 297.799 = CHF1,059 Mil.
Revenue was 5219.3 + 4853.502 + 5133.503 + 5073.292 = CHF20,280 Mil.
Gross Profit was 836.879 + 888.877 + 1046.091 + 969.307 = CHF3,741 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(35580.857 + 36349.013 + 35456.954 + 35036.761 + 36444.394) / 5 = CHF35773.5958 Mil.
Total Assets at the begining of this year (Sep15) was CHF35,581 Mil.
Long-Term Debt & Capital Lease Obligation was CHF9,246 Mil.
Total Current Assets was CHF9,117 Mil.
Total Current Liabilities was CHF5,353 Mil.
Net Income was 155.073 + 191.061 + 130.494 + 42.79 = CHF519 Mil.

Revenue was 6219.488 + 5701.456 + 5496.594 + 5419.742 = CHF22,837 Mil.
Gross Profit was 1369.321 + 1348.205 + 1150.211 + 986.115 = CHF4,854 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(34783.314 + 36440.134 + 34972.981 + 34102.743 + 35580.857) / 5 = CHF35176.0058 Mil.
Total Assets at the begining of last year (Sep14) was CHF34,783 Mil.
Long-Term Debt & Capital Lease Obligation was CHF8,841 Mil.
Total Current Assets was CHF8,356 Mil.
Total Current Liabilities was CHF5,005 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.

Arconic's current Net Income (TTM) was -389. ==> 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.

Arconic's current Cash Flow from Operations (TTM) was 1,059. ==> 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 (Sep15)
=-389.433/35580.857
=-0.01094501

ROA (Last Year)=Net Income/Total Assets (Sep14)
=519.418/34783.314
=0.01493296

Arconic's return on assets of this year was -0.01094501. Arconic's return on assets of last year was 0.01493296. ==> 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.

Arconic's current Net Income (TTM) was -389. Arconic's current Cash Flow from Operations (TTM) was 1,059. ==> 1,059 > -389 ==> 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: Sep16)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep15 to Sep16
=9246.373/35773.5958
=0.25846921

Gearing (Last Year: Sep15)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep14 to Sep15
=8840.997/35176.0058
=0.25133601

Arconic's gearing of this year was 0.25846921. Arconic's gearing of last year was 0.25133601. ==> 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: Sep16)=Total Current Assets/Total Current Liabilities
=9116.938/5352.6
=1.7032728

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=8355.72/5005.457
=1.6693221

Arconic's current ratio of this year was 1.7032728. Arconic's current ratio of last year was 1.6693221. ==> 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.

Arconic's number of shares in issue this year was 453. Arconic's number of shares in issue last year was 431. ==> 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
=3741.154/20279.597
=0.18447872

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4853.852/22837.28
=0.21254072

Arconic's gross margin of this year was 0.18447872. Arconic's gross margin of last year was 0.21254072. ==> 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 (Sep15)
=20279.597/35580.857
=0.56995808

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep14)
=22837.28/34783.314
=0.65655849

Arconic's asset turnover of this year was 0.56995808. Arconic's asset turnover of last year was 0.65655849. ==> 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

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

Arconic  (DELISTED:ARNC) 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.


Arconic Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Arconic's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Arconic (DELISTED:ARNC) Business Description

Traded in Other Exchanges
N/A
Address
Arconic Inc, formerly known as Alcoa Inc was first incorporated as the Pittsburgh Reduction Company on October 1, 1888. The Company is engaged in manufacturing and engineering lightweight metals. Its products include aluminum, titanium, and nickel, used in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The Company is also engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its active participation in all aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. It has investments and operating activities in, among others, Australia, Brazil, China, Guinea, Iceland, Russia, and Saudi Arabia. The Company operates in segments including Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company's Global Rolled Products segment represents its midstream operations. The Engineered Products and Solutions segment represents a portion of the Company's downstream operations. Its downstream portfolio includes two segments Engineered Products and Solutions and Transportation and Construction Solutions. The Engineered Products and Solutions consist of Alcoa Titanium & Engineered Products; Alcoa Fastening Systems & Rings; Alcoa Forgings and Extrusions; and Alcoa Power and Propulsion. The Company's Transportation and Construction Solutions segment represents a portion of its downstream operations. The raw materials used includes bauxite, alloying materials, caustic soda, alumina, electricity, aluminum fluoride, fuel oil, calcined petroleum coke, lime (CaO), cathode blocks, natural gas, electricity, liquid pitch, natural gas, titanium alloys, titanium sponge and resin. The Company's trademark products include Howmet metal castings, Huck fasteners, Kawneer building panels and Dura-Bright wheels with easy-clean surface treatments.