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Headwaters (Headwaters) Piotroski F-Score : 0 (As of May. 05, 2024)


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What is Headwaters 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

Headwaters has an F-score of 4 indicating the company's financial situation is typical for a stable company.

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


Headwaters Piotroski F-Score Historical Data

The historical data trend for Headwaters'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.

Headwaters Piotroski F-Score Chart

Headwaters Annual Data
Trend Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 7.00 7.00 7.00 3.00

Headwaters Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 7.00 3.00 4.00 4.00

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 (Mar17) TTM:Last Year (Mar16) TTM:
Net Income was 17.516 + 16.054 + 6.667 + 4.541 = $45 Mil.
Cash Flow from Operations was 34.966 + 40.896 + 27.661 + 7.009 = $111 Mil.
Revenue was 262.466 + 291.591 + 255.575 + 259.293 = $1,069 Mil.
Gross Profit was 83.531 + 85.522 + 70.619 + 70.507 = $310 Mil.
Average Total Assets from the begining of this year (Mar16)
to the end of this year (Mar17) was
(970.654 + 1012.816 + 1238.443 + 1220.195 + 1229.637) / 5 = $1134.349 Mil.
Total Assets at the begining of this year (Mar16) was $971 Mil.
Long-Term Debt & Capital Lease Obligation was $741 Mil.
Total Current Assets was $295 Mil.
Total Current Liabilities was $123 Mil.
Net Income was 22.817 + 126.6 + 12.425 + 2.101 = $164 Mil.

Revenue was 243.294 + 272.717 + 218.418 + 202.332 = $937 Mil.
Gross Profit was 76.762 + 90.301 + 64.271 + 54.877 = $286 Mil.
Average Total Assets from the begining of last year (Mar15)
to the end of last year (Mar16) was
(803.236 + 846.46 + 979.019 + 957.688 + 970.654) / 5 = $911.4114 Mil.
Total Assets at the begining of last year (Mar15) was $803 Mil.
Long-Term Debt & Capital Lease Obligation was $553 Mil.
Total Current Assets was $244 Mil.
Total Current Liabilities was $114 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.

Headwaters's current Net Income (TTM) was 45. ==> 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.

Headwaters's current Cash Flow from Operations (TTM) was 111. ==> 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 (Mar16)
=44.778/970.654
=0.04613178

ROA (Last Year)=Net Income/Total Assets (Mar15)
=163.943/803.236
=0.20410315

Headwaters's return on assets of this year was 0.04613178. Headwaters's return on assets of last year was 0.20410315. ==> 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.

Headwaters's current Net Income (TTM) was 45. Headwaters's current Cash Flow from Operations (TTM) was 111. ==> 111 > 45 ==> 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: Mar17)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar16 to Mar17
=741.048/1134.349
=0.65328043

Gearing (Last Year: Mar16)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar15 to Mar16
=553.33/911.4114
=0.60711332

Headwaters's gearing of this year was 0.65328043. Headwaters's gearing of last year was 0.60711332. ==> 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: Mar17)=Total Current Assets/Total Current Liabilities
=294.607/122.629
=2.4024252

Current Ratio (Last Year: Mar16)=Total Current Assets/Total Current Liabilities
=244.315/114.005
=2.14302004

Headwaters's current ratio of this year was 2.4024252. Headwaters's current ratio of last year was 2.14302004. ==> 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.

Headwaters's number of shares in issue this year was 75.982. Headwaters's number of shares in issue last year was 75.341. ==> 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
=310.179/1068.925
=0.29017845

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=286.211/936.761
=0.30553257

Headwaters's gross margin of this year was 0.29017845. Headwaters's gross margin of last year was 0.30553257. ==> 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 (Mar16)
=1068.925/970.654
=1.10124205

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar15)
=936.761/803.236
=1.16623383

Headwaters's asset turnover of this year was 1.10124205. Headwaters's asset turnover of last year was 1.16623383. ==> 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
=1+1+0+1+0+1+0+0+0
=4

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

Headwaters has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Headwaters  (NYSE:HW) 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.


Headwaters Piotroski F-Score Related Terms

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Headwaters (Headwaters) Business Description

Traded in Other Exchanges
N/A
Address
Headwaters is a manufacturer of building products for the residential construction, residential remodelling, commercial, and industrial construction industries. The range of products includes architectural stone, resin-based exterior-siding accessories, roofing, trim board, decking, railing, concrete block and brick, windows, and other building products. Headwaters sells its products to wholesale distributors in the United States or big-box stores, as well as through an in-house direct salesforce.
Executives
Donald P Newman officer: Chief Financial Officer 224 S 108TH AVENUE, OMAHA NE 68154
Sylvia Summers director 200 FLYNN ROAD, CAMARILLO CA 93012
Malyn K Malquist director 10653 S. RIVER FRONT PARKWAY, SUITE 300, SOUTH JORDAN UT 84095
Ej Jake Garn director 10653 SOUTH RIVER FRONT PARKWAY, SUITE 300, SOUTH JORDAN UT 84095
Scott K Sorensen officer: Chief Financial Officer 10653 S. RIVER FRONT PARKWAY, SUITE 300, SOUTH JORDAN UT 84095

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