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The Middleby (The Middleby) Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

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

The Middleby has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

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

MIDD' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 7
Current: 7

During the past 13 years, the highest Piotroski F-Score of The Middleby was 7. The lowest was 3. And the median was 6.


The Middleby Piotroski F-Score Historical Data

The historical data trend for The Middleby'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.

The Middleby Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 6.00 6.00 7.00

The Middleby Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 6.00 6.00 7.00 7.00

Competitive Comparison

For the Specialty Industrial Machinery subindustry, The Middleby'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.


The Middleby Piotroski F-Score Distribution

For the Industrial Products industry and Industrials sector, The Middleby's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where The Middleby'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 (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 99.089 + 116.85 + 108.65 + 76.293 = $401 Mil.
Cash Flow from Operations was 92.002 + 61.948 + 219.153 + 255.687 = $629 Mil.
Revenue was 1007.396 + 1039.982 + 980.651 + 1008.576 = $4,037 Mil.
Gross Profit was 378.735 + 393.236 + 375.322 + 386.769 = $1,534 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(6874.866 + 6956.137 + 6984.758 + 6922.608 + 6906.692) / 5 = $6929.0122 Mil.
Total Assets at the begining of this year (Dec22) was $6,875 Mil.
Long-Term Debt & Capital Lease Obligation was $2,380 Mil.
Total Current Assets was $1,966 Mil.
Total Current Liabilities was $851 Mil.
Net Income was 85.755 + 113.248 + 104.369 + 133.197 = $437 Mil.

Revenue was 994.676 + 1013.601 + 992.871 + 1031.705 = $4,033 Mil.
Gross Profit was 330.51 + 360.742 + 365.232 + 390.07 = $1,447 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(6383.598 + 6474.165 + 6579.373 + 6671.861 + 6874.866) / 5 = $6596.7726 Mil.
Total Assets at the begining of last year (Dec21) was $6,384 Mil.
Long-Term Debt & Capital Lease Obligation was $2,677 Mil.
Total Current Assets was $2,006 Mil.
Total Current Liabilities was $988 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.

The Middleby's current Net Income (TTM) was 401. ==> 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.

The Middleby's current Cash Flow from Operations (TTM) was 629. ==> 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 (Dec22)
=400.882/6874.866
=0.05831125

ROA (Last Year)=Net Income/Total Assets (Dec21)
=436.569/6383.598
=0.06838917

The Middleby's return on assets of this year was 0.05831125. The Middleby's return on assets of last year was 0.06838917. ==> 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.

The Middleby's current Net Income (TTM) was 401. The Middleby's current Cash Flow from Operations (TTM) was 629. ==> 629 > 401 ==> 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: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=2380.373/6929.0122
=0.34353714

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=2676.741/6596.7726
=0.40576524

The Middleby's gearing of this year was 0.34353714. The Middleby's gearing of last year was 0.40576524. ==> This year is lower or equal to last year. ==> Score 1.

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: Dec23)=Total Current Assets/Total Current Liabilities
=1965.859/851.094
=2.30980244

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=2005.996/988.284
=2.02977687

The Middleby's current ratio of this year was 2.30980244. The Middleby's current ratio of last year was 2.02977687. ==> 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.

The Middleby's number of shares in issue this year was 53.768. The Middleby's number of shares in issue last year was 54.386. ==> 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.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1534.062/4036.605
=0.38003768

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1446.554/4032.853
=0.35869247

The Middleby's gross margin of this year was 0.38003768. The Middleby's gross margin of last year was 0.35869247. ==> This year's gross margin is higher. ==> Score 1.

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 (Dec22)
=4036.605/6874.866
=0.58715399

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=4032.853/6383.598
=0.63175234

The Middleby's asset turnover of this year was 0.58715399. The Middleby's asset turnover of last year was 0.63175234. ==> 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+1+1+1+1+0
=7

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

The Middleby has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The Middleby  (NAS:MIDD) 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.


The Middleby Piotroski F-Score Related Terms

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The Middleby (The Middleby) Business Description

Traded in Other Exchanges
Address
1400 Toastmaster Drive, Elgin, IL, USA, 60120
The Middleby Corp is engaged in designing, manufacturing, marketing, distribution and service of a broad line of foodservice equipment used in all types of commercial restaurants and institutional kitchens, food preparation, cooking, baking, chilling and packaging equipment for food processing operations, and premium kitchen equipment including ranges, ovens, refrigerators, ventilation, dishwashers and outdoor cooking equipment primarily used in the residential market. The company conducts its business through three principal business segments namely the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group. The firm derives majority revenue from Commercial Foodservice Equipment Group segment.
Executives
Chapin Sarah Palisi director 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Pool Iii James K officer: Chief Technology and* 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Robert A Nerbonne director 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Miller John R Iii director C/O THE MIDDLEBY CORPORATION, 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Matthew R Fuchsen officer: Chief Development Officer 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Brittany C Cerwin officer: Chief Accounting Officer 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Cathy L Mccarthy director 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Nassem Ziyad director C/O MIDDLEBY CORPORATION, 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Timothy John Fitzgerald officer: Chief Financial Officer C/O MIDDLEBY CORPORATON, 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Steve Spittle officer: Chief Commercial Officer 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Bryan E. Mittelman officer: Chief Accounting Officer THE MIDDLEBY CORPORATION, 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Martin M Lindsay officer: Treasurer C/O THE MIDDLEBY CORPORATION, 1400 TOASTMASTER DR, ELGIN IL 60120
Gordon Obrien director 1400 TOASTMASTER DRIVE, ELGIN IL 60120
Robert B Lamb director C/O THE MIDDLEBY CORPORATION, 1400 TOASTMASTER DR, ELGIN IL 60120
Selim A Bassoul director, officer: Chief Executive Officer C/O MIDDLEBY CORP, 1400 TOASTMASTER DRIVE, ELGIN IL 8477413300

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