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Tata Power Co (NSE:TATAPOWER) Piotroski F-Score : 5 (As of May. 12, 2024)


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What is Tata Power Co Piotroski F-Score?

The zones of discrimination were as such:

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

Tata Power Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

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

NSE:TATAPOWER' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 6   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of Tata Power Co was 8. The lowest was 5. And the median was 6.


Tata Power Co Piotroski F-Score Historical Data

The historical data trend for Tata Power Co'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.

Tata Power Co Piotroski F-Score Chart

Tata Power Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 6.00 7.00 8.00 5.00

Tata Power Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 - - - 5.00

Competitive Comparison of Tata Power Co's Piotroski F-Score

For the Utilities - Independent Power Producers subindustry, Tata Power Co'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.


Tata Power Co's Piotroski F-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Tata Power Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Tata Power Co'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 (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was ₹36,963 Mil.
Cash Flow from Operations was ₹125,961 Mil.
Revenue was ₹614,489 Mil.
Gross Profit was ₹207,073 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was (1283488.9 + 1395534.9) / 2 = ₹1339511.9 Mil.
Total Assets at the begining of this year (Mar23) was ₹1,283,489 Mil.
Long-Term Debt & Capital Lease Obligation was ₹411,347 Mil.
Total Current Assets was ₹284,654 Mil.
Total Current Liabilities was ₹412,515 Mil.
Net Income was ₹33,364 Mil.

Revenue was ₹551,091 Mil.
Gross Profit was ₹171,059 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was (1128846 + 1283488.9) / 2 = ₹1206167.45 Mil.
Total Assets at the begining of last year (Mar22) was ₹1,128,846 Mil.
Long-Term Debt & Capital Lease Obligation was ₹342,192 Mil.
Total Current Assets was ₹310,914 Mil.
Total Current Liabilities was ₹440,928 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.

Tata Power Co's current Net Income (TTM) was 36,963. ==> 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.

Tata Power Co's current Cash Flow from Operations (TTM) was 125,961. ==> 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 (Mar23)
=36962.5/1283488.9
=0.02879846

ROA (Last Year)=Net Income/Total Assets (Mar22)
=33364.4/1128846
=0.0295562

Tata Power Co's return on assets of this year was 0.02879846. Tata Power Co's return on assets of last year was 0.0295562. ==> 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.

Tata Power Co's current Net Income (TTM) was 36,963. Tata Power Co's current Cash Flow from Operations (TTM) was 125,961. ==> 125,961 > 36,963 ==> 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: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=411347.3/1339511.9
=0.30708745

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=342191.9/1206167.45
=0.28370182

Tata Power Co's gearing of this year was 0.30708745. Tata Power Co's gearing of last year was 0.28370182. ==> 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: Mar24)=Total Current Assets/Total Current Liabilities
=284653.8/412515.3
=0.69004422

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=310914.2/440927.8
=0.70513631

Tata Power Co's current ratio of this year was 0.69004422. Tata Power Co's current ratio of last year was 0.70513631. ==> 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.

Tata Power Co's number of shares in issue this year was 3197.448. Tata Power Co's number of shares in issue last year was 3198.888. ==> 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
=207072.9/614489
=0.3369839

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=171058.9/551090.8
=0.31040057

Tata Power Co's gross margin of this year was 0.3369839. Tata Power Co's gross margin of last year was 0.31040057. ==> This year's gross 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 (Mar23)
=614489/1283488.9
=0.47876456

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=551090.8/1128846
=0.48818953

Tata Power Co's asset turnover of this year was 0.47876456. Tata Power Co's asset turnover of last year was 0.48818953. ==> 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+0+0+1+1+0
=5

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

Tata Power Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Tata Power Co  (NSE:TATAPOWER) 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.


Tata Power Co Piotroski F-Score Related Terms

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Tata Power Co (NSE:TATAPOWER) Business Description

Traded in Other Exchanges
Address
34 Sant Tukaram Road, Corporate Center B, Carnac Bunder, Mumbai, MH, IND, 400 009
Tata Power Co Ltd is an Indian electric utility company within the Tata Group multinational conglomerate that builds, operates, and maintains power generation and distribution facilities. With the help of its seven key subsidiaries and numerous joint-venture companies, Tata Power generates Most of its revenue through the generation, transmission, distribution, and trading of electricity throughout India. Most of this energy is produced from thermal fuel sources, such as coal, oil, and gas. Additionally, Tata Power engages in the production of energy from hydroelectric and renewable sources, including multiple hydroelectric and wind power projects located throughout Africa. Its segment comprises Generation; Renewables; Transmission and Distribution; and Others.

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