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Ermenegildo Zegna NV (Ermenegildo Zegna NV) Piotroski F-Score : 6 (As of May. 05, 2024)


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What is Ermenegildo Zegna NV 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

Ermenegildo Zegna NV 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 Ermenegildo Zegna NV's Piotroski F-Score or its related term are showing as below:

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

During the past 6 years, the highest Piotroski F-Score of Ermenegildo Zegna NV was 7. The lowest was 4. And the median was 6.


Ermenegildo Zegna NV Piotroski F-Score Historical Data

The historical data trend for Ermenegildo Zegna NV'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.

Ermenegildo Zegna NV Piotroski F-Score Chart

Ermenegildo Zegna NV Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial N/A 4.00 6.00 7.00 6.00

Ermenegildo Zegna NV Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 - 7.00 - 6.00

Competitive Comparison of Ermenegildo Zegna NV's Piotroski F-Score

For the Apparel Manufacturing subindustry, Ermenegildo Zegna NV'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.


Ermenegildo Zegna NV's Piotroski F-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ermenegildo Zegna NV's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Ermenegildo Zegna NV'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 $133 Mil.
Cash Flow from Operations was $300 Mil.
Revenue was $2,077 Mil.
Gross Profit was $1,335 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was (2570.685 + 3017.46) / 2 = $2794.0725 Mil.
Total Assets at the begining of this year (Dec22) was $2,571 Mil.
Long-Term Debt & Capital Lease Obligation was $637 Mil.
Total Current Assets was $1,404 Mil.
Total Current Liabilities was $1,104 Mil.
Net Income was $55 Mil.

Revenue was $1,581 Mil.
Gross Profit was $983 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was (2777.089 + 2570.685) / 2 = $2673.887 Mil.
Total Assets at the begining of last year (Dec21) was $2,777 Mil.
Long-Term Debt & Capital Lease Obligation was $548 Mil.
Total Current Assets was $1,362 Mil.
Total Current Liabilities was $918 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.

Ermenegildo Zegna NV's current Net Income (TTM) was 133. ==> 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.

Ermenegildo Zegna NV's current Cash Flow from Operations (TTM) was 300. ==> 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)
=132.529/2570.685
=0.05155396

ROA (Last Year)=Net Income/Total Assets (Dec21)
=54.536/2777.089
=0.01963783

Ermenegildo Zegna NV's return on assets of this year was 0.05155396. Ermenegildo Zegna NV's return on assets of last year was 0.01963783. ==> 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.

Ermenegildo Zegna NV's current Net Income (TTM) was 133. Ermenegildo Zegna NV's current Cash Flow from Operations (TTM) was 300. ==> 300 > 133 ==> 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: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=637.261/2794.0725
=0.22807604

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=547.595/2673.887
=0.20479362

Ermenegildo Zegna NV's gearing of this year was 0.22807604. Ermenegildo Zegna NV's gearing of last year was 0.20479362. ==> 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
=1404.183/1103.733
=1.27221257

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=1361.925/918.415
=1.48290805

Ermenegildo Zegna NV's current ratio of this year was 1.27221257. Ermenegildo Zegna NV's current ratio of last year was 1.48290805. ==> 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.

Ermenegildo Zegna NV's number of shares in issue this year was 252.364. Ermenegildo Zegna NV's number of shares in issue last year was 240.648. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=1335.13/2076.935
=0.64283668

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=983.059/1581.398
=0.62163921

Ermenegildo Zegna NV's gross margin of this year was 0.64283668. Ermenegildo Zegna NV's gross margin of last year was 0.62163921. ==> 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 (Dec22)
=2076.935/2570.685
=0.80793057

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=1581.398/2777.089
=0.56944448

Ermenegildo Zegna NV's asset turnover of this year was 0.80793057. Ermenegildo Zegna NV's asset turnover of last year was 0.56944448. ==> 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+1+0+0+0+1+1
=6

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

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

Ermenegildo Zegna NV  (NYSE:ZGN) 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.


Ermenegildo Zegna NV Piotroski F-Score Related Terms

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Ermenegildo Zegna NV (Ermenegildo Zegna NV) Business Description

Traded in Other Exchanges
Address
99/100 Viale Roma, Valdilana location, Trivero, ITA, 13835
Ermenegildo Zegna NV designs, creates and distributes luxury menswear and accessories under the Zegna brand, as well as womenswear, menswear and accessories under the Thom Browne brand. It operates in two segments: the Zegna segment (comprising three product lines: Zegna Branded Products, Textile and Third Party Brands) and the Thom Browne segment.