* 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.
* 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 (Dec14) TTM:
Last Year (Dec13) TTM:
Net Income was 46.08 + 26.628 + 22.601 + 28.975 = €124.3 Mil. Cash Flow from Operations was 4.53 + -3.567 + -12.298 + 24.051 = €12.7 Mil. Revenue was 104.748 + 105.198 + 116.54 + 116.108 = €442.6 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(2864.436 + 2809.109 + 2814.991 + 2860.459 + 2990.229) / 5 = €2867.8448 Mil. Total Assets at the begining of this year (Dec13) was €2,864.4 Mil. Long-Term Debt & Capital Lease Obligation was €202.8 Mil. Total Assets was €2,990.2 Mil. Total Liabilities was €1,580.7 Mil.
Net Income was 66.79 + 37.789 + 28.637 + 35.495 = €168.7 Mil.
Revenue was 123.278 + 129.312 + 115.321 + 121.449 = €489.4 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(3301.977 + 3295.906 + 3068.31 + 2998.926 + 2864.436) / 5 = €3105.911 Mil. Total Assets at the begining of last year (Dec12) was €3,302.0 Mil. Long-Term Debt & Capital Lease Obligation was €182.5 Mil. Total Assets was €2,864.4 Mil. Total Liabilities was €1,589.3 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.
Platinum Underwriters Holdings's current Net Income (TTM) was 124.3.
==> 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.
Platinum Underwriters Holdings's current Cash Flow from Operations (TTM) was 12.7.
==> 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.
Platinum Underwriters Holdings's return on assets of this year was 0.04338865. Platinum Underwriters Holdings's return on assets of last year was 0.05109394.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Platinum Underwriters Holdings's gearing of this year was 0.07069769. Platinum Underwriters Holdings's gearing of last year was 0.05875893.
==> 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
* 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.
Platinum Underwriters Holdings's current ratio of this year was 1.89172267. Platinum Underwriters Holdings's current ratio of last year was 1.80228019.
==> 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.
Platinum Underwriters Holdings's number of shares in issue this year was 25.093. Platinum Underwriters Holdings's number of shares in issue last year was 28.489.
==> 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.
Platinum Underwriters Holdings's net margin of this year was 0.28080814. Platinum Underwriters Holdings's net margin of last year was 0.34475846.
==> 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
Platinum Underwriters Holdings's asset turnover of this year was 0.15451349. Platinum Underwriters Holdings's asset turnover of last year was 0.14820212.
==> 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
+
0
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0
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1
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1
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0
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1
=
5
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Platinum Underwriters Holdings has an F-score of 5 indicating the company's financial situation is typical for a stable company.
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.
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.
Platinum Underwriters Holdings Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Platinum Underwriters Holdings's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Platinum Underwriters Holdings (FRA:PMU) Business Description
Platinum Underwriters Holdings, Ltd. was incorporated on April 19, 2002. It operates as a holding company domiciled in Bermuda. Through its operating subsidiaries, it provides property and marine, casualty and finite risk reinsurance coverages, through reinsurance intermediaries, to a diverse clientele of commercial and personal lines insurers and select reinsurers on a basis. The Company operates through two licensed reinsurance subsidiaries, Platinum Underwriters Bermuda, Ltd., a Bermuda reinsurance company and wholly owned subsidiary of Platinum Holdings, and Platinum Underwriters Reinsurance, Inc., a U.S. reinsurance company and a wholly owned subsidiary of Platinum Underwriters Finance, Inc. The Company operates in Property and Marine, Casualty and Finite Risk segments. It provides reinsurance coverage for damage to property and crops. It provides reinsurance coverage for marine and offshore energy insurance programs. Coverages reinsured include hull damage, protection and indemnity, cargo damage, satellite damage and general marine liability. Within Marine, it also writes commercial and general aviation reinsurance. Casualty reinsurance protects a ceding company against financial loss arising out of the obligation to others for loss or damage to persons or property. The Company's Casualty operating segment mainly includes reinsurance contracts that cover umbrella liability, general and product liability, professional liability, workers' compensation, casualty clash, automobile liability, surety, trade credit, political risk and accident and health. Finite reinsurance includes mainly structured reinsurance contracts with ceding companies whose needs might not be met efficiently through traditional reinsurance products. Reinsurance contracts classified as finite are typically structured to include loss limitation or loss mitigation features. It markets its reinsurance products mainly through non-exclusive relationships with reinsurance brokers. The property and casualty reinsurance industry is competitive. It competes with Arch Capital Group Ltd., Axis Capital Holdings Limited, Endurance Specialty Holdings Ltd., Everest Re Group, Ltd., Montpelier Re Holdings Ltd., PartnerRe Ltd., RenaissanceRe Holdings Ltd. and Transatlantic Holdings, Inc. The business of reinsurance is regulated in several countries, although the degree and type of regulation. Reinsurers are generally subject to less direct regulation than main insurers.
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