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
Nickel Asia 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 Nickel Asia's Piotroski F-Score or its related term are showing as below:
NCKAF'
s Piotroski F-Score Range Over the Past 10 Years
Min: 3 Med: 6 Max: 9
Current: 3
During the past 13 years, the highest Piotroski F-Score of Nickel Asia was 9. The lowest was 3. And the median was 6.
Nickel Asia Piotroski F-Score Historical Data
The historical data trend for Nickel Asia'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.
Competitive Comparison of Nickel Asia's Piotroski F-Score
For the Other Industrial Metals & Mining subindustry, Nickel Asia'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.
Nickel Asia's Piotroski F-Score Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Nickel Asia's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Nickel Asia'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.
*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.
Nickel Asia's current Net Income (TTM) was 51.7.
==> 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.
Nickel Asia's return on assets of this year was 0.05666299. Nickel Asia's return on assets of last year was 0.15118394.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Nickel Asia's gearing of this year was 0.05504084. Nickel Asia's gearing of last year was 0.04846977.
==> 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
Nickel Asia's current ratio of this year was 2.3544798. Nickel Asia's current ratio of last year was 3.29760749.
==> Last year's current ratio is higher ==> Score 0.
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.
Nickel Asia's number of shares in issue this year was 13931.125. Nickel Asia's number of shares in issue last year was 13630.85.
==> 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.
Nickel Asia's gross margin of this year was 0.42090139. Nickel Asia's gross margin of last year was 0.5335194.
==> 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
Nickel Asia's asset turnover of this year was 0.41393059. Nickel Asia's asset turnover of last year was 0.50505703.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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3
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Nickel Asia has an F-score of 3. It is a bad or low score, which usually implies poor business operation.
Nickel Asia (OTCPK:NCKAF) 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.
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.
Nickel Asia Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Nickel Asia's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Nickel Asia Corp is a nickel ore mining company engaged in operating five mines; the Rio Tuba mine, the Taganito mine, the Tagana-an mine, the Cagdianao mine, and the Dinapigue mine. It produces saprolite (nickel ore with an iron content of less than 20%) and limonite (nickel ore with an iron content greater than 20%) ore. The company has three operating segments; The mining segment which accounts for a majority of the company's revenue includes the mining and exploration of nickel saprolite and limonite ore, limestone, and quarry materials, The services segment includes chartering out of LCT, construction and rendering of services to CBNC, THNC, and other parties and leasing of aircraft to WAISC, and The power segment is into power generation and exploration for geothermal resources.
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