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Envestnet (Envestnet) Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

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

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

ENV' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 4

During the past 13 years, the highest Piotroski F-Score of Envestnet was 7. The lowest was 2. And the median was 5.


Envestnet Piotroski F-Score Historical Data

The historical data trend for Envestnet'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.

Envestnet 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 3.00 5.00 5.00 2.00 4.00

Envestnet 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 2.00 3.00 4.00 5.00 4.00

Competitive Comparison

For the Software - Application subindustry, Envestnet'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.


Envestnet Piotroski F-Score Distribution

For the Software industry and Technology sector, Envestnet's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Envestnet'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 -41.228 + -21.416 + 7.091 + -183.171 = $-239 Mil.
Cash Flow from Operations was -33.521 + 72.789 + 40.009 + 75.591 = $155 Mil.
Revenue was 298.707 + 312.434 + 316.847 + 317.632 = $1,246 Mil.
Gross Profit was 189.718 + 188.937 + 197.309 + 196.618 = $773 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(2112.165 + 2056.457 + 2053.905 + 2030.889 + 1877.252) / 5 = $2026.1336 Mil.
Total Assets at the begining of this year (Dec22) was $2,112 Mil.
Long-Term Debt & Capital Lease Obligation was $977 Mil.
Total Current Assets was $264 Mil.
Total Current Liabilities was $293 Mil.
Net Income was -13.859 + -23.285 + -7.29 + -36.505 = $-81 Mil.

Revenue was 321.363 + 318.852 + 306.695 + 292.874 = $1,240 Mil.
Gross Profit was 196.081 + 192.37 + 196.587 + 184.322 = $769 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(2241.182 + 2199.77 + 2187.4 + 2203.221 + 2112.165) / 5 = $2188.7476 Mil.
Total Assets at the begining of last year (Dec21) was $2,241 Mil.
Long-Term Debt & Capital Lease Obligation was $982 Mil.
Total Current Assets was $311 Mil.
Total Current Liabilities was $327 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.

Envestnet's current Net Income (TTM) was -239. ==> 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.

Envestnet's current Cash Flow from Operations (TTM) was 155. ==> 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)
=-238.724/2112.165
=-0.11302337

ROA (Last Year)=Net Income/Total Assets (Dec21)
=-80.939/2241.182
=-0.03611443

Envestnet's return on assets of this year was -0.11302337. Envestnet's return on assets of last year was -0.03611443. ==> 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.

Envestnet's current Net Income (TTM) was -239. Envestnet's current Cash Flow from Operations (TTM) was 155. ==> 155 > -239 ==> 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
=977.442/2026.1336
=0.48241735

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=982.421/2188.7476
=0.44885075

Envestnet's gearing of this year was 0.48241735. Envestnet's gearing of last year was 0.44885075. ==> 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: Dec23)=Total Current Assets/Total Current Liabilities
=263.808/292.534
=0.90180287

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=311.291/327.064
=0.95177396

Envestnet's current ratio of this year was 0.90180287. Envestnet's current ratio of last year was 0.95177396. ==> 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.

Envestnet's number of shares in issue this year was 54.689. Envestnet's number of shares in issue last year was 62.04. ==> 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
=772.582/1245.62
=0.62023892

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=769.36/1239.784
=0.62055971

Envestnet's gross margin of this year was 0.62023892. Envestnet's gross margin of last year was 0.62055971. ==> 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 (Dec22)
=1245.62/2112.165
=0.58973612

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=1239.784/2241.182
=0.5531831

Envestnet's asset turnover of this year was 0.58973612. Envestnet's asset turnover of last year was 0.5531831. ==> 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
=0+1+0+1+0+0+1+0+1
=4

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

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

Envestnet  (NYSE:ENV) 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.


Envestnet Piotroski F-Score Related Terms

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Envestnet (Envestnet) Business Description

Traded in Other Exchanges
Address
1000 Chesterbrook Boulevard, Suite 250, Berwyn, Pennsylvania, IL, USA, 60601
Envestnet provides wealth-management technology and solutions to registered investment advisors, banks, broker/dealers, and other firms. Its Tamarac platform provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software to high-end RIAs. Envestnet's portfolio management consultants provide research services and consulting services to assist advisors, including vetted third-party managed account products. In November 2015, Envestnet acquired Yodlee, a provider of data aggregation, which is reported in the firm's data and analytics segment. In 2019, Envestnet acquired MoneyGuidePro to bolster its financial planning tools.
Executives
Barry D. Cooper officer: SVP, Head of Accounting Mgmt. 35 E. WACKER DRIVE, STE 2400, CHICAGO IL 60601
Barbara Turner director 5320 STONY RUN COURT, LIBERTY TOWNSHIP OH 45011
William Crager officer: President 489 FIFTH AVENUE, 26TH FLOOR, NEW YORK NY 10017
Matthew Majoros officer: Principal Accounting Officer 35 E. WACKER DRIVE, SUITE 2400, CHICAGO IL 60601
Shelly O'brien officer: General Counsel 35 E. WACKER DRIVE, SUITE 2400, CHICAGO IL 60601
Wendy E Lane director
Lauren Taylor Wolfe director 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
Impactive Capital Llc director 152 WEST 57TH, 17TH FLOOR, NEW YORK CITY NY 10019
Impactive Capital Lp director 450 WEST 14 STREET, 12TH FLOOR, NEW YORK CITY NY 10014
Christian Asmar director 152 WEST 57TH STREET, 17TH FLOOR, NEW YORK CITY NY 10019
Stuart Depina officer: President* 11755 WILSHIRE BLVD., 20TH FLOOR, LOS ANGELES CA 90025
Anil Arora director C/O YODLEE, INC., 3600 BRIDGE PARKWAY, 2ND FLOOR, REDWOOD CITY CA 94065
Brandon Thomas officer: Chief Investment Officer 35 E. WACKER DRIVE, SUITE 2400, CHICAGO IL 60601
Joshua Mayer officer: Chief Operating Officer 35 EAST WACKER DRIVE, SUITE 2400, CHICAGO IL 60601
Scott D Grinis officer: Chief Technology Officer 150 MATHILDA PLACE, SUITE 306, SUNNYVALE CA 94086