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Incitec Pivot (ASX:IPL) Piotroski F-Score

: 6 (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

Incitec Pivot has an F-score of 6 indicating the company's financial situation is typical for a stable company.

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

ASX:IPL' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 7   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Incitec Pivot was 8. The lowest was 4. And the median was 7.


Incitec Pivot Piotroski F-Score Historical Data

The historical data trend for Incitec Pivot'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.

Incitec Pivot Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 7.00 8.00 6.00

Incitec Pivot Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 7.00 - 8.00 - 6.00

Competitive Comparison

For the Specialty Chemicals subindustry, Incitec Pivot'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.


Incitec Pivot Piotroski F-Score Distribution

For the Chemicals industry and Basic Materials sector, Incitec Pivot's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Incitec Pivot'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 (Sep23) TTM:Last Year (Sep22) TTM:
Net Income was A$560 Mil.
Cash Flow from Operations was A$701 Mil.
Revenue was A$5,411 Mil.
Gross Profit was A$2,482 Mil.
Average Total Assets from the begining of this year (Sep22)
to the end of this year (Sep23) was (10863.7 + 10545.3) / 2 = A$10704.5 Mil.
Total Assets at the begining of this year (Sep22) was A$10,864 Mil.
Long-Term Debt & Capital Lease Obligation was A$1,904 Mil.
Total Current Assets was A$4,253 Mil.
Total Current Liabilities was A$1,307 Mil.
Net Income was A$1,014 Mil.

Revenue was A$6,315 Mil.
Gross Profit was A$3,337 Mil.
Average Total Assets from the begining of last year (Sep21)
to the end of last year (Sep22) was (9390.6 + 10863.7) / 2 = A$10127.15 Mil.
Total Assets at the begining of last year (Sep21) was A$9,391 Mil.
Long-Term Debt & Capital Lease Obligation was A$1,895 Mil.
Total Current Assets was A$2,654 Mil.
Total Current Liabilities was A$1,825 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.

Incitec Pivot's current Net Income (TTM) was 560. ==> 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.

Incitec Pivot's current Cash Flow from Operations (TTM) was 701. ==> 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 (Sep22)
=560/10863.7
=0.05154782

ROA (Last Year)=Net Income/Total Assets (Sep21)
=1013.7/9390.6
=0.10794837

Incitec Pivot's return on assets of this year was 0.05154782. Incitec Pivot's return on assets of last year was 0.10794837. ==> 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.

Incitec Pivot's current Net Income (TTM) was 560. Incitec Pivot's current Cash Flow from Operations (TTM) was 701. ==> 701 > 560 ==> 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: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=1904/10704.5
=0.17786912

Gearing (Last Year: Sep22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep21 to Sep22
=1894.7/10127.15
=0.18709114

Incitec Pivot's gearing of this year was 0.17786912. Incitec Pivot's gearing of last year was 0.18709114. ==> 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: Sep23)=Total Current Assets/Total Current Liabilities
=4253.2/1307.4
=3.25317424

Current Ratio (Last Year: Sep22)=Total Current Assets/Total Current Liabilities
=2654.3/1825.3
=1.45417192

Incitec Pivot's current ratio of this year was 3.25317424. Incitec Pivot's current ratio of last year was 1.45417192. ==> 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.

Incitec Pivot's number of shares in issue this year was 1942.225. Incitec Pivot's number of shares in issue last year was 1945.681. ==> 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
=2481.9/5410.9
=0.45868525

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3337.2/6315.3
=0.52843095

Incitec Pivot's gross margin of this year was 0.45868525. Incitec Pivot's gross margin of last year was 0.52843095. ==> 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 (Sep22)
=5410.9/10863.7
=0.49807156

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep21)
=6315.3/9390.6
=0.67251294

Incitec Pivot's asset turnover of this year was 0.49807156. Incitec Pivot's asset turnover of last year was 0.67251294. ==> 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+0+0
=6

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

Incitec Pivot has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Incitec Pivot  (ASX:IPL) 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.


Incitec Pivot Piotroski F-Score Related Terms

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Incitec Pivot (ASX:IPL) Business Description

Traded in Other Exchanges
Address
28 Freshwater Place, Level 8, Southbank, Melbourne, VIC, AUS, 3006
Incitec Pivot is a leading global explosives company with operations in Australia, Asia, and the Americas. We estimate its share of the global commercial explosives market at about 15%. Explosives contributes around 80% of EBIT. Incitec Pivot is also a major Australian fertilizer producer and distributor and is the only Australian manufacturer of ammonium phosphates and urea. Ammonium phosphates are sold in the domestic market and exported.

Incitec Pivot (ASX:IPL) Headlines

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