Zoetis Inc. (0M3Q.L) Piotroski F-Score
The Piotroski F-Score is a 9-point scoring system that evaluates a company's financial strength across profitability, leverage, and operating efficiency.
Average (6/9)
Zoetis Inc. shows average financial health. The company passes some criteria but has room for improvement in others.
Score Interpretation
7-9
Strong
5-6
Average
3-4
Weak
0-2
Very Weak
The 9 Criteria
Profitability
Positive Net Income
Net income is positive in the current year
Positive Operating Cash Flow
Cash flow from operations is positive in the current year
Return on Assets Improving
ROA has increased compared to the prior year
Cash Flow > Net Income
Operating cash flow exceeds net income (quality of earnings)
Leverage / Liquidity
Decreasing Long-Term Debt
Long-term debt ratio has decreased compared to the prior year
Improving Current Ratio
Current ratio has improved compared to the prior year
No Share Dilution
The company did not issue new shares in the past year
Operating Efficiency
Improving Gross Margin
Gross margin has improved compared to the prior year
Improving Asset Turnover
Asset turnover ratio has improved compared to the prior year
What the Piotroski F-Score Means for Investors
Developed by accounting professor Joseph Piotroski in 2000, the F-Score was designed to identify strong performers among high book-to-market (value) stocks. His research showed that buying high F-Score value stocks and shorting low F-Score value stocks generated significant excess returns.
The score ranges from 0 to 9, with each point earned for passing one of nine binary financial tests. A score of 8-9 is considered excellent, while 0-2 signals potential financial distress. The test covers three fundamental areas:
- Profitability (4 points) - Is the company generating positive returns?
- Leverage / Liquidity (3 points) - Is the balance sheet improving?
- Operating Efficiency (2 points) - Are operations becoming more efficient?
ValueMarkers includes the Piotroski F-Score as one of 120 indicators in the VMCI scoring system, within the Integrity pillar that measures financial soundness.
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