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NBS Bank (MSW:NBS) Piotroski F-Score : 7 (As of May. 24, 2024)


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What is NBS Bank Piotroski F-Score?

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

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

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

During the past 8 years, the highest Piotroski F-Score of NBS Bank was 8. The lowest was 4. And the median was 6.


NBS Bank Piotroski F-Score Historical Data

The historical data trend for NBS Bank'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.

NBS Bank Piotroski F-Score Chart

NBS Bank Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Piotroski F-Score
Get a 7-Day Free Trial 8.00 6.00 4.00 5.00 7.00

NBS Bank Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 5.00 - 7.00 -

Competitive Comparison of NBS Bank's Piotroski F-Score

For the Banks - Regional subindustry, NBS Bank'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.


NBS Bank's Piotroski F-Score Distribution in the Banks Industry

For the Banks industry and Financial Services sector, NBS Bank's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where NBS Bank'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 (Dec22) TTM:Last Year (Dec21) TTM:
Net Income was MWK18,905 Mil.
Cash Flow from Operations was MWK5,757 Mil.
Revenue was MWK64,632 Mil.
Average Total Assets from the begining of this year (Dec21)
to the end of this year (Dec22) was (363331.932 + 462212.74) / 2 = MWK412772.336 Mil.
Total Assets at the begining of this year (Dec21) was MWK363,332 Mil.
Long-Term Debt & Capital Lease Obligation was MWK26,181 Mil.
Total Assets was MWK462,213 Mil.
Total Liabilities was MWK425,091 Mil.
Net Income was MWK7,692 Mil.

Revenue was MWK41,278 Mil.
Average Total Assets from the begining of last year (Dec20)
to the end of last year (Dec21) was (218331.805 + 363331.932) / 2 = MWK290831.8685 Mil.
Total Assets at the begining of last year (Dec20) was MWK218,332 Mil.
Long-Term Debt & Capital Lease Obligation was MWK20,440 Mil.
Total Assets was MWK363,332 Mil.
Total Liabilities was MWK340,180 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.

NBS Bank's current Net Income (TTM) was 18,905. ==> 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.

NBS Bank's current Cash Flow from Operations (TTM) was 5,757. ==> 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 (Dec21)
=18905.229/363331.932
=0.05203294

ROA (Last Year)=Net Income/Total Assets (Dec20)
=7692.373/218331.805
=0.03523249

NBS Bank's return on assets of this year was 0.05203294. NBS Bank's return on assets of last year was 0.03523249. ==> This year is higher. ==> Score 1.

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.

NBS Bank's current Net Income (TTM) was 18,905. NBS Bank's current Cash Flow from Operations (TTM) was 5,757. ==> 5,757 <= 18,905 ==> CFROA <= ROA ==> Score 0.

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: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=26180.62/412772.336
=0.0634263

Gearing (Last Year: Dec21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec20 to Dec21
=20440.089/290831.8685
=0.07028146

NBS Bank's gearing of this year was 0.0634263. NBS Bank's gearing of last year was 0.07028146. ==> 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

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Dec22)=Total Assets/Total Liabilities
=462212.74/425090.7
=1.08732734

Current Ratio (Last Year: Dec21)=Total Assets/Total Liabilities
=363331.932/340179.962
=1.06805801

NBS Bank's current ratio of this year was 1.08732734. NBS Bank's current ratio of last year was 1.06805801. ==> 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.

NBS Bank's number of shares in issue this year was 2910.574. NBS Bank's number of shares in issue last year was 2910.574. ==> 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.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=18905.229/64631.946
=0.29250595

Net Margin (Last Year: TTM)=Net Income/Revenue
=7692.373/41278.401
=0.18635346

NBS Bank's net margin of this year was 0.29250595. NBS Bank's net margin of last year was 0.18635346. ==> This year's net 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 (Dec21)
=64631.946/363331.932
=0.17788678

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec20)
=41278.401/218331.805
=0.1890627

NBS Bank's asset turnover of this year was 0.17788678. NBS Bank's asset turnover of last year was 0.1890627. ==> 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+1+0+1+1+1+1+0
=7

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

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

NBS Bank  (MSW:NBS) 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.


NBS Bank Piotroski F-Score Related Terms

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NBS Bank (MSW:NBS) Business Description

Traded in Other Exchanges
N/A
Address
Corner Chipembere Highway & Johnstone Roads, NBS House, PO Box 32251, Chichiri, Ginnery Corner, Blantyre, MWI
NBS Bank PLC is primarily involved in commercial banking, covering corporate and retail banking and treasury management. Services offered by the bank include current account, saving account, investment, loans, international trades, and internet banking. The company segments are divided into geographical areas including Northern region, Central region and the Southern region. Its branches are spread across Malawi.

NBS Bank (MSW:NBS) Headlines

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