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RECOMM Co (TSE:3323) Piotroski F-Score : 5 (As of May. 11, 2024)


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What is RECOMM 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

RECOMM 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 RECOMM Co's Piotroski F-Score or its related term are showing as below:

TSE:3323' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 4   Max: 7
Current: 5

During the past 13 years, the highest Piotroski F-Score of RECOMM Co was 7. The lowest was 1. And the median was 4.


RECOMM Co Piotroski F-Score Historical Data

The historical data trend for RECOMM 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.

RECOMM Co Piotroski F-Score Chart

RECOMM Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.00 3.00 6.00 6.00 1.00

RECOMM Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 7.00 5.00 6.00 1.00 5.00

Competitive Comparison of RECOMM Co's Piotroski F-Score

For the Telecom Services subindustry, RECOMM 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.


RECOMM Co's Piotroski F-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, RECOMM Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where RECOMM 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 (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 99.72 + 125.365 + 113.451 + 45.105 = 円384 Mil.
Cash Flow from Operations was 53.047 + 145.939 + -115.554 + 105.003 = 円188 Mil.
Revenue was 2420.529 + 2295.688 + 2640.431 + 2858.77 = 円10,215 Mil.
Gross Profit was 672.846 + 544.002 + 665.712 + 685.676 = 円2,568 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(8768.278 + 8919.912 + 9150.575 + 10843.846 + 10435.817) / 5 = 円9623.6856 Mil.
Total Assets at the begining of this year (Dec22) was 円8,768 Mil.
Long-Term Debt & Capital Lease Obligation was 円1,189 Mil.
Total Current Assets was 円7,464 Mil.
Total Current Liabilities was 円4,065 Mil.
Net Income was 120.363 + 35.735 + 113.494 + -23.688 = 円246 Mil.

Revenue was 2149.16 + 2249.246 + 2489.468 + 2153.748 = 円9,042 Mil.
Gross Profit was 708.583 + 591.294 + 718.787 + 549.429 = 円2,568 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(9036.541 + 9251.51 + 8946.135 + 9239.668 + 8768.278) / 5 = 円9048.4264 Mil.
Total Assets at the begining of last year (Dec21) was 円9,037 Mil.
Long-Term Debt & Capital Lease Obligation was 円805 Mil.
Total Current Assets was 円6,301 Mil.
Total Current Liabilities was 円3,219 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.

RECOMM Co's current Net Income (TTM) was 384. ==> 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.

RECOMM Co's current Cash Flow from Operations (TTM) was 188. ==> 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 (Dec22)
=383.641/8768.278
=0.04375329

ROA (Last Year)=Net Income/Total Assets (Dec21)
=245.904/9036.541
=0.02721218

RECOMM Co's return on assets of this year was 0.04375329. RECOMM Co's return on assets of last year was 0.02721218. ==> 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.

RECOMM Co's current Net Income (TTM) was 384. RECOMM Co's current Cash Flow from Operations (TTM) was 188. ==> 188 <= 384 ==> 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: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=1189.263/9623.6856
=0.12357667

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=804.647/9048.4264
=0.08892673

RECOMM Co's gearing of this year was 0.12357667. RECOMM Co's gearing of last year was 0.08892673. ==> 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: Dec23)=Total Current Assets/Total Current Liabilities
=7464.468/4064.831
=1.83635384

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=6301.098/3219.035
=1.95744936

RECOMM Co's current ratio of this year was 1.83635384. RECOMM Co's current ratio of last year was 1.95744936. ==> 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.

RECOMM Co's number of shares in issue this year was 81.22. RECOMM Co's number of shares in issue last year was 81.22. ==> 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
=2568.236/10215.418
=0.25140782

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2568.093/9041.622
=0.28403012

RECOMM Co's gross margin of this year was 0.25140782. RECOMM Co's gross margin of last year was 0.28403012. ==> 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 (Dec22)
=10215.418/8768.278
=1.16504267

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=9041.622/9036.541
=1.00056227

RECOMM Co's asset turnover of this year was 1.16504267. RECOMM Co's asset turnover of last year was 1.00056227. ==> This year's asset turnover is higher. ==> Score 1.

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+0+0+1+0+1
=5

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

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

RECOMM Co  (TSE:3323) 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.


RECOMM Co Piotroski F-Score Related Terms

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RECOMM Co (TSE:3323) Business Description

Traded in Other Exchanges
N/A
Address
Ichigaya Building No. 6, 7th floor Kudankita four-chome, Chiyoda-ku, Tokyo, JPN
RECOMM Co Ltd is engaged in the sale of business phones, digital multifunction machines, network products, LED lighting, and other eco products. The company is also involved in the sales of mobile terminals and maintenance services.

RECOMM Co (TSE:3323) Headlines

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