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Sankei Real Estate (TSE:2972) Piotroski F-Score : 5 (As of May. 14, 2024)


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What is Sankei Real Estate 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

Sankei Real Estate 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 Sankei Real Estate's Piotroski F-Score or its related term are showing as below:

TSE:2972' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 7
Current: 5

During the past 5 years, the highest Piotroski F-Score of Sankei Real Estate was 7. The lowest was 3. And the median was 5.


Sankei Real Estate Piotroski F-Score Historical Data

The historical data trend for Sankei Real Estate'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.

Sankei Real Estate Piotroski F-Score Chart

Sankei Real Estate Annual Data
Trend Aug19 Aug20 Aug21 Aug22 Aug23
Piotroski F-Score
N/A N/A 3.00 7.00 5.00

Sankei Real Estate Semi-Annual Data
Apr19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only - 7.00 - 5.00 -

Competitive Comparison of Sankei Real Estate's Piotroski F-Score

For the REIT - Office subindustry, Sankei Real Estate'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.


Sankei Real Estate's Piotroski F-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Sankei Real Estate's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Sankei Real Estate'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 (Aug23) TTM:Last Year (Aug22) TTM:
Net Income was 円2,206 Mil.
Cash Flow from Operations was 円2,894 Mil.
Revenue was 円5,643 Mil.
Gross Profit was 円3,194 Mil.
Average Total Assets from the begining of this year (Aug22)
to the end of this year (Aug23) was (106553.676 + 112235.819) / 2 = 円109394.7475 Mil.
Total Assets at the begining of this year (Aug22) was 円106,554 Mil.
Long-Term Debt & Capital Lease Obligation was 円41,000 Mil.
Total Current Assets was 円8,646 Mil.
Total Current Liabilities was 円16,979 Mil.
Net Income was 円2,867 Mil.

Revenue was 円5,806 Mil.
Gross Profit was 円3,757 Mil.
Average Total Assets from the begining of last year (Aug21)
to the end of last year (Aug22) was (79848.468 + 106553.676) / 2 = 円93201.072 Mil.
Total Assets at the begining of last year (Aug21) was 円79,848 Mil.
Long-Term Debt & Capital Lease Obligation was 円40,600 Mil.
Total Current Assets was 円9,013 Mil.
Total Current Liabilities was 円10,825 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.

Sankei Real Estate's current Net Income (TTM) was 2,206. ==> 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.

Sankei Real Estate's current Cash Flow from Operations (TTM) was 2,894. ==> 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 (Aug22)
=2206.238/106553.676
=0.02070541

ROA (Last Year)=Net Income/Total Assets (Aug21)
=2866.557/79848.468
=0.03589996

Sankei Real Estate's return on assets of this year was 0.02070541. Sankei Real Estate's return on assets of last year was 0.03589996. ==> 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.

Sankei Real Estate's current Net Income (TTM) was 2,206. Sankei Real Estate's current Cash Flow from Operations (TTM) was 2,894. ==> 2,894 > 2,206 ==> 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: Aug23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Aug22 to Aug23
=41000/109394.7475
=0.37478948

Gearing (Last Year: Aug22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Aug21 to Aug22
=40600/93201.072
=0.43561731

Sankei Real Estate's gearing of this year was 0.37478948. Sankei Real Estate's gearing of last year was 0.43561731. ==> 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: Aug23)=Total Current Assets/Total Current Liabilities
=8646.106/16978.677
=0.5092332

Current Ratio (Last Year: Aug22)=Total Current Assets/Total Current Liabilities
=9013.302/10825.198
=0.83262237

Sankei Real Estate's current ratio of this year was 0.5092332. Sankei Real Estate's current ratio of last year was 0.83262237. ==> 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.

Sankei Real Estate's number of shares in issue this year was 0.467. Sankei Real Estate's number of shares in issue last year was 0.467. ==> 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
=3193.708/5643.271
=0.56593206

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3756.695/5806.165
=0.6470183

Sankei Real Estate's gross margin of this year was 0.56593206. Sankei Real Estate's gross margin of last year was 0.6470183. ==> 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 (Aug22)
=5643.271/106553.676
=0.05296177

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Aug21)
=5806.165/79848.468
=0.0727148

Sankei Real Estate's asset turnover of this year was 0.05296177. Sankei Real Estate's asset turnover of last year was 0.0727148. ==> 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+0+1+0+0
=5

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

Sankei Real Estate has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Sankei Real Estate  (TSE:2972) 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.


Sankei Real Estate Piotroski F-Score Related Terms

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Sankei Real Estate (TSE:2972) Business Description

Traded in Other Exchanges
N/A
Address
1-7-2 Otemachi, Chiyoda-ku, Tokyo, JPN, 100-0004
Sankei Real Estate Inc is a Japanese based J-REIT. The company is engaged in the leasing of real estate properties, and owns office buildings.

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