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Airbus (AIR.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 5/9)

Airbus (AIR.DE) scores 5 out of 9 in its 2023 Piotroski F-Score analysis, assessing profitability, liquidity, and operating efficiency. Learn more here.

Knowledge hint:
The Piotroski F-Score is a number between 0 to 9 which reflects the strength of a company's financial position. It is based on 9 criteria involving profitability, liquidity, and leverage. This model helps investors identify stocks that are strong, undervalued investments.
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Short Analysis - Piotroski Score: 5

We're running Airbus (AIR.DE) against the Piotroski 9-criteria scoring system to assess profitability, liquidity, and operating efficiency:

Criteria
Company has a positive net income?
1
Company has a positive cash flow?
1
Return on Assets (ROA) are growing?
0
Operating Cashflow are higher than Netincome?
1
Leverage is declining?
1
Current Ratio is growing?
0
Number of shares not diluted?
0
Cross Margin is growing?
0
Asset Turnover Ratio is growing?
1

We analyzed Airbus (AIR.DE) using the Piotroski 9-criteria scoring system, which measures profitability, liquidity, and operating efficiency. Airbus scored a 5 out of 9. Here’s a quick look at the main points: 1. Profitability: Airbus showed positive net income and cash flow from operations in 2023, but the Return on Assets (ROA) declined compared to last year. 2. Operating Efficiency: The Gross Margin fell, but the company's Asset Turnover Ratio improved. 3. Liquidity: The leverage decreased, indicating reduced financial risk, but the current ratio and the number of outstanding shares increased slightly. Despite some positive indicators, Airbus has areas of concern like the drop in gross margin and ROA.

Insights for Value Investors Seeking Stable Income

Based on Airbus's Piotroski score of 5, it’s an average investment. The company has strong points like positive net income, cash flow, and reduced leverage, but there are some weaknesses like declining ROA and Gross Margins. If you're an investor who can handle a bit of risk and are optimistic about the aviation sector's recovery post-pandemic, it might be worth a look. However, if you seek more secure and high-performing investments, you might want to consider other options with higher Piotroski scores.

For those who are interested in delving deeper into the specifics, the subsequent section provides a comprehensive exploration of the criteria.

Profitability of Airbus (AIR.DE)

Company has a positive net income?

Net income refers to a company's total earnings or profit. It is a crucial measure of profitability.

Historical Net Income of Airbus (AIR.DE)

For the year 2023, Airbus (AIR.DE) reported a net income of €3,789,000,000. This figure is positive, indicating profitable operations. Historical data over the past 20 years shows that while there were instances of negative net income, particularly during 2007, 2009, 2019, and 2020, the company has mostly demonstrated positive net income trends. The trend in recent years has been strong and sustained, reflecting a robust financial standing. Thus, for the Piotroski analysis criterion, Airbus earns 1 point for having a positive net income in 2023.

Company has a positive cash flow?

Cash Flow from Operations (CFO) reflects the cash generated by a company's core business activities. It is a critical parameter in assessing financial health.

Historical Operating Cash Flow of Airbus (AIR.DE)

For Airbus (AIR.DE) in 2023, the CFO stands at a notable €6,255,000,000. Given that this value is positive, it indicates that Airbus is effectively generating cash from its core operations. Comparing this with historical data reveals a consistent trend of positive cash flows, except for 2020 where it showed a significant negative CFO of €-5,420,000,000 possibly due to pandemic-related disruptions. Overall, the positive CFO for 2023 enhances Airbus's liquidity positioning and earns a point in the Piotroski Analysis.

Return on Assets (ROA) are growing?

The change in Return on Assets (ROA) is crucial as it measures the effectiveness of a company's management in generating earnings from its assets. An increasing ROA indicates improving efficiency in asset utilization to generate profit, which is instrumental for investors when evaluating the company's performance over time.

Historical change in Return on Assets (ROA) of Airbus (AIR.DE)

In 2023, Airbus (AIR.DE) reported an ROA of 0.0323, compared to 0.0381 in 2022. This signifies a decline, resulting in scoring 0 for this Piotroski criterion. Despite the disappointment in the ROA trajectory between 2022 and 2023, Airbus has demonstrated reasonable resilience particularly after a significant operating cash flow drop to -5.42 billion euros in 2020. When compared to the industry median ROA, which has consistently hovered well above 0.22 over the past two decades, Airbus's figures are relatively modest, indicating room for improvement in leveraging its assets efficiently.

Operating Cashflow are higher than Netincome?

criteria for Operating Cash Flow higher than Net Income. The operating cash flow reveals the cash a company generates from its regular operations, while net income is the profit after all expenses have been deducted. A higher operating cash flow than net income suggests that the company's core business operations are generating sufficient cash to cover its expenses and is generally a good sign of financial health.

Historical accruals of Airbus (AIR.DE)

In 2023, Airbus's operating cash flow stood at €6.25 billion compared to a net income of €3.79 billion. The operating cash flow is higher than the net income, earning Airbus 1 point on the Piotroski scale. This considerable difference indicates Airbus is effectively generating cash from its core operations, which bodes well when considering the company's financial health. When examining the last 20 years, Airbus has seen a few ups and downs in both operating cash flow and net income. The year 2020, in particular, saw negative operating cash flow and net income due to the global pandemic's impact on the aviation industry, but the company has rebounded strongly in subsequent years. This resilience enhances confidence in its sustainability and operational strength.

Liquidity of Airbus (AIR.DE)

Leverage is declining?

Change in leverage measures the difference in a company's leverage ratio from one period to another. This criterion is crucial as a reduction in leverage indicates less dependency on borrowed funds, reflecting a stronger balance sheet and lower financial risk. A consistent reduction in leverage over time generally points to the company’s enhanced financial stability.

Historical leverage of Airbus (AIR.DE)

For Airbus (AIR.DE), the leverage ratio has slightly decreased from 0.0917 in 2022 to 0.0858 in 2023. Consequently, this trend merits an addition of 1 point in the Piotroski analysis. This gradual decline is a positive signal, illustrating Airbus' effort to reduce its debt dependency. This trend is also favorable when placed against the backdrop of the historical data from the last 20 years, showing a general tendency of maintaining low leverage, except for occasional spikes during economic downturns. For instance, the leverage ratio rose during the financial crisis in 2008-2009 and the COVID-19 pandemic but consistently dropped back down as Airbus recovered.

Current Ratio is growing?

The current ratio measures a company's ability to pay its short-term obligations with its short-term assets. It is important because it indicates the liquidity and overall financial health of the firm.

Historical Current Ratio of Airbus (AIR.DE)

As of 2023, Airbus has a current ratio of 1.1907, a slight decline from 1.1979 in 2022. This means the current ratio decreased this year, thereby earning a score of 0 for this Piotroski criterion. Analyzing trends over the last two decades, we see that Airbus had a more compromised liquidity position between 2010 and 2017, but has shown improvement since then, maintaining a current ratio closer to 1.2 in recent years. However, compared to the industry median, Airbus has consistently lagged, with the sector index hovering around 2.1 in 2023. Despite a long-term upward correction, Airbus needs to significantly boost its liquidity to match industry standards.

Number of shares not diluted?

Shares Outstanding assesses the total number of shares issued by a company, affecting ownership dilution and market capitalization.

Historical outstanding shares of Airbus (AIR.DE)

The Outstanding Shares for Airbus increased from 787,080,579 in 2022 to 788,720,779 in 2023, resulting in no point being added for this criterion (0 points). Over the last 20 years, Airbus' outstanding shares have generally seen ups and downs without a consistent trend, recently increasing at a slow pace. This trend could be interpreted as potential dilution for investors, although the minor rise may suggest limited immediate impact.

Operating of Airbus (AIR.DE)

Cross Margin is growing?

Criterion related to changes in Gross Margin for a company such as Airbus (AIR.DE), assessing whether it has increased or decreased over a specified time frame is essential. It reflects the company's pricing strategy and cost control measures, both critical for financial health.

Historical gross margin of Airbus (AIR.DE)

The Gross Margin for Airbus in 2023 was 0.1535, a decrease from the 0.1799 reported in 2022. This decline is noteworthy as it represents a reduction in the company's efficiency in managing production costs relative to revenue, contributing to a score of 0 for this criterion. While 2022 showed relatively strong performance compared to its historical average over the last 20 years, the dip in 2023 suggests deteriorating cost management or pricing pressures. Notably, while Airbus's Gross Margin generally lags behind the industry median – a pattern consistent over the last two decades where the median has not dropped below 0.2171 – the 2023 figure places it further behind the 0.2484 industry median.

Asset Turnover Ratio is growing?

Asset Turnover measures the efficiency with which a company uses its assets to generate sales. A higher Asset Turnover ratio indicates better performance in utilizing its assets to produce revenue.

Historical asset turnover ratio of Airbus (AIR.DE)

Comparing the Asset Turnover of 0.5574 in 2023 with 0.527 in 2022, it can be observed that the Asset Turnover has increased slightly. This results in an additional point for Airbus. Historically, the company's asset turnover ratio has varied, peaking at 0.6411 in 2014. The upward trend from 2022 to 2023, though modest, reflects a positive shift in the company's operational efficiency in utilizing its assets to generate revenue.


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