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| Piotroski Criteria | Previous FY | Last Qtr or TTM | Score |
|---|---|---|---|
| (1) Increasing Return on Assets | 18.0 | -21.5 | 0 |
| (2) Positive Return on Assets | -21.5 | 0 | |
| (3) Increasing Asset Turnover | 0.5 | 0.6 | 1 |
| (4) Increasing Current Ratio | 3.6 | 0 | 0 |
| (5) Shares Out Not Increasing | 10 | 10 | 1 |
| (6) Positive Cash Flow | 14 | -19 | 0 |
| (7) (Cash Flow - Net Income) is Positive | -19- -22 | 1 | |
| (8) Increasing Gross Margins | 63.4/69.2 | 53.7/59.1 | 0 |
| (9) LTD/Assets Declining or Assets Increasing | 0/117.6 | 0/85.8 | 0 |
The charts you see here are representations of the Compounded Annual Growth Rate of VALU's Stock Price (one price chart for the very long-term, and one for a more recent period of approximately ten years). The aim is to provide a picture of how the stock price is growing relative to the Earnings Per Share, the Gross Profit, the Total Revenue, and the Total Stockholder Equity of VALU. The second price CAGR chart covers approximately the same period of the EPS CAGR chart. So if we see that the price CAGR (percentage value is shown in the legend for each chart) for that period is, say, 12% but the EPS CAGR is, say, 17% we might conclude that the stock is undervalued. We should compare CAGRS for Revenue, Gross Profit, and Equity to the Stock price CAGR in the same fashion.
Note: For some tickers not all the necessary data to calculate these charts is available, as a result you may not get a particular chart or the page won't display.
Fiscal year end is determined where possible, otherwise will default to "Fye", and the second price CAGR graph will assume December to December for the EPS period.
Additionally, if any of the fundamental values is negative (e.g. EPS shows a loss) in the first year of the chart, the chart will not show a proper CAGR curve from that start year, although to all intents and purposes the CAGR should still be usable.
The Piotroski Score is based on a paper by Joseph D Piotroski, available at Chicago Graduate School of Business [PDF] :- the higher a company ranks in Piotroski score, the better its stock performs over one- and two-year periods. According to a study, one-year returns on companies with top Piotroski scores beat the market by better than 13 percentage points, while companies with the lowest Piotroski scores trailed the market by nearly 10 points. Read our article on the Piotroski Score for more information.
At the top of the page, the Piotroski score is shown along with the number of valid criteria that could be calculated. The reason for this is sometimes no data is available for a particular criteria. Hence the second number (after the slash) should give some idea of the "relative purity" of the returned Piotroski score. This score works best for companies with Market Cap up to $700m, it is not as effective for Large Caps. However it might tell you at a glance which Large Caps to AVOID, e.g. score 4/9 or lower.
These charts are inspired by The BMW Method, which is well documented on The Motley Fool, and also
on Mike Klein's BMW Method Charts. A useful BMW screener can be found
on Denny Schlesinger's BMW Method Website.
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Back to Information About These Stock Charts
Back to Price CAGR Curve For Earnings Per Share Period of Interest
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Back to Revenue & Total Shareholder Equity CAGR Curve
Back to Free Cash Flow & Operating Margin CAGR Curve
Back to Piotroski Score Data
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