Piotroski F-Score: formula and how to read it

How many of nine financial-strength tests are passed. Nine pass/fail tests on profitability, leverage, liquidity and efficiency, comparing the last two fiscal years. Not calculated for financial companies.

Stock Meadow groups it under Financial health, and shows it in tables as F-Score.

F-Score = number of nine pass/fail financial tests passed, comparing the last two fiscal years

A company passes seven tests and fails two, so its F-Score is 7 out of 9. The numbers are made up for illustration.

A higher score means more of the nine signals are favourable. A score of 8 or 9 passes almost every test; a score of 0 to 2 passes almost none.

When Stock Meadow ranks stocks, a higher figure scores better.

• Every test has equal weight, whether the improvement is tiny or large.
• It looks backward over annual statements, so it can lag changes in the business.
• Not calculated for financial companies, or when two full years of statements are unavailable.

How Stock Meadow handles gaps. Usually blank when two full years of financial statements aren't available.

Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.

Fixed-recipe models that score it: Piotroski F-Score.

In Weighted ranking, Z-score composite and Balanced (no weak link), you choose the metrics and weights yourself, so you can include it in a custom score.

Read about every scoring model on the scoring models page.

• Altman Z-Score: bankruptcy risk; above 3 is safe, below 1.8 is distressed.
• Beneish M-Score: earnings-quality check; above −1.78 is a warning sign.
• Return on Equity (ROE): profit made on shareholders' money.

What is a good Piotroski F-Score?

Higher is better: 8 or 9 means a company passes nearly all of the nine tests, and low scores pass few. It describes financial health, not whether the shares are cheap.

Is a higher or lower F-Score better?

When Stock Meadow ranks stocks, a higher figure scores better. That is a ranking convention, so read F-Score alongside other measures and compare similar companies.

Why is F-Score blank for some stocks?

It is usually blank when two full years of financial statements aren't available. Stock Meadow leaves the figure blank rather than guessing it.