The Piotroski F-Score calculation for CAA / CalAtlantic Group, Inc. is shown here. In 2000, Joseph Piotroski published a paper titled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers." This paper described a method of using data from a company's financial reports to help predict future performance.
The Piotroski F-Score, as it is known, is a 9-point discrete score, where 9 is the best, that ranks companies based on a number of financial factors. To calculate the score, we compare nine factors from the two most recent annual reports. If the change in the factor is "good", then we add one to the score. If the change in the factor is "not good", then we add zero. The following explanations are quoted from the paper.
CAA / CalAtlantic Group, Inc. Piotroski F-Score
ROA : Net Income before Extraordinary Items, scaled by Total Assets at beginning of year
CFO: Cash Flow from Operations, scaled by Total Assets at beginning of year
ΔROA: Current Year's ROA less Prior Year's ROA. If this negative, ROA (and therefore profitability) has decreased.
ACCRUAL: Current Year's Net Income before Extraordinary Items less Cash Flow from Operations, scaled by Total Assets at beginning of year. In short, one if CFO > ROA. The relationship between earnings and cash flow levels is also considered. Earnings driven by positive accrual adjustments (i.e., profits are greater than cash flow from operations) is a bad signal about future profitability and returns. This relationship may be particularly important among value firms, where the incentive to manage earnings through positive accruals (e.g., to prevent covenant violations) is strong.
Financial Leverage, Liquidity, and Source of Funds
ΔLEVER: The historical change in the ratio of long-term debt to average total assets. By raising external capital, a financially distressed firm is signaling its inability to generate sufficient internal funds. In addition, an increase in long-term debt is likely to place additional constraints on the firm’s financial flexibility. An increase in financial leverage is a negative.
ΔLIQUID: The historical change in the firm’s current ratio between the current and prior year, where we define the current ratio as the ratio of current assets to current liabilities at fiscal year-end. An improvement in liquidity is a good signal.
EQ_OFFER: One if the firm did not issue common equity in the year, zero otherwise. Similar to an increase in long-term debt, financially distressed firms that raise external capital could be signaling their inability to generate sufficient internal funds to service future obligations. Moreover, the fact that these firms are willing to issue equity when their stock prices are likely to be depressed (i.e., high cost of capital) highlights the poor financial condition facing these firms.
ΔMARGIN: The firm’s current gross margin ratio (gross margin scaled by total sales) less the prior year’s gross margin ratio. An improvement in margins signifies a potential improvement in factor costs, a reduction in inventory costs, or a rise in the price of the firm’s product.
ΔTURN: The firm’s current year asset turnover ratio (total sales scaled by beginning of the year total assets) less the prior year’s asset turnover ratio. An improvement in asset turnover signifies greater productivity from the asset base. Such an improvement can arise from more efficient operations (fewer assets generating the same levels of sales) or an increase in sales (which could also signify improved market conditions for the firm’s products).
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2018-05-25 - Asif
Overview Heron is a commercial-stage biotechnology company focused on improving the lives of patients by developing best-in-class treatments that address some of the most important unmet patient needs. Heron Therapeutics is developing novel, patient-focused solutions that apply its innovative science and technologies to already approved pharmacological agents for patients suffering from cancer or pain. On August 9, 2016, its first commercial product, SUSTOL, was approved by the FDA. The company developed SUSTOL for the prevention of chemotherapy-induced nausea and vomiting (“CINV”). SUSTOL is indicated, in combination with other antiemetics, in adults for the prevention of acute and delayed nausea and vomiting associated with initial and repeat courses of moderately emetogenic chemotherapy (“MEC”) or anthracycline and cyclophosphamide (“AC”) combination chemotherapy regimens. The company commenced commercial sales of SUSTOL in the U.S. in October 2016. On November 9, 2017...
2018-05-25 - Asif
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2018-05-21 - Asif
Overview Anthera Pharmaceuticals, Inc. is a biopharmaceutical company focused on advancing the development and commercialization of innovative medicines that benefit patients with unmet medical needs. The company currently have two compounds in development, Sollpura and blisibimod. The company licensed Sollpura from Eli Lilly & Co (“Eli Lilly”) in July 2014. Sollpura is a novel non-porcine investigational Pancreatic Enzyme Replacement Therapy (“PERT”) intended for the treatment of patients with Exocrine Pancreatic Insufficiency (“EPI”), often seen in patients with cystic fibrosis and other conditions. The company licensed blisibimod from Amgen, Inc. (“Amgen”) in December 2007. Blisibimod targets B-cell activating factor, or BAFF, which has been shown to be elevated in a variety of B-cell mediated autoimmune diseases, including Immunoglobulin A nephropathy, or IgA nephropathy. Sollpura The exocrine pancreas is responsible for synthesis and secretion of digestive en...
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