Last update on 2024-06-07

Aixtron (AIXA.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 7/9)

Aixtron (AIXA.DE) analysis for 2023 using Piotroski F-Score, final score: 7/9. Detailed evaluation of profitability, liquidity, and leverage.

Short Analysis - Piotroski Score: 7

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

Aixtron (AIXA.DE) has a Piotroski F-Score of 7 out of 9, indicating a strong financial position. The detailed analysis shows positive signs including a significant net income of €145 million in 2023, growing Return on Assets (ROA) from 0.1222 to 0.1503, and an improving Current Ratio from 3.0223 to 3.1218, which suggests strong liquidity. There are also positive trends in Gross Margin and Asset Turnover Ratio. However, there are concerns about the negative Cash Flow from Operations and increased leverage in 2023, as well as issues regarding the increase in outstanding shares. While the long-term trends show overall improvements in certain areas, these issues raise some flags regarding consistency and financial risk.

Insights for Value Investors Seeking Stable Income

Based on Aixtron's Piotroski F-Score of 7, the company appears financially strong, with promising indicators of profitability and efficiency. However, the negative Cash Flow from Operations and increased leverage suggest potential risks. For investors, it would be worth looking into Aixtron, especially considering the improving profitability measures. Nevertheless, it is essential to be cautious about the stability of cash flows and the rise in financial risk. Further detailed analysis or consulting with a financial advisor may provide better clarity on whether to invest now or monitor for further improvements in these areas.

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

Profitability of Aixtron (AIXA.DE)

Company has a positive net income?

Net income is the profit of a company after all expenses and taxes have been deducted from total revenue. A positive net income indicates profitability, which is crucial for the financial health of the company.

For 2023, Aixtron (AIXA.DE) reported a net income of €145,185,000. This shows a notable profit, adding 1 point for being positive. Over the past 20 years, the company has had fluctuations, including negative net incomes for some years. However, there is an evident positive trend from 2016, with net income growing consistently. This uptrend substantiates a strong, overall positive performance recently, highlighting Aixtron's growing profitability and better cost management.

Company has a positive cash flow?

Cash Flow from Operations (CFO) is a key indicator of a company's ability to generate cash through its regular business activities, signifying its overall financial health.

In 2023, Aixtron's CFO stands at -47,289,000, which is negative, thus it scores 0 points on this criterion. Over the past 20 years, Aixtron's CFO has been highly variable, fluctuating from positive highs like 147,697,000 in 2010 to dismal lows like -47,289,000 in 2023. This inconsistency raises red flags about Aixtron's cash-generating stability, especially when forecasting future operational viability. Such volatility might also concern investors focusing on consistent cash flows.

Return on Assets (ROA) are growing?

Return on Assets (ROA) measures how efficiently a company's management is using its assets to generate earnings. An increasing ROA signifies improving profitability.

Aixtron’s ROA has improved from 0.1222 in 2022 to 0.1503 in 2023, indicating that the company is more efficient in using its assets to generate profit. This trend is favorable as it suggests an enhancement in management efficiency and operational performance. Given this progress, one point is added for this criterion in the Piotroski score analysis. When comparing historical data, we observe a fluctuating trend in ROA over the last 20 years, with recent figures showing significant improvement. Although Aixtron's ROA is still below the industry median of 0.4718 in 2023, the upward trend is a positive signal for investors.

Operating Cashflow are higher than Netincome?

Operating Cash Flow higher than Net Income indicates a company's ability to generate sufficient cash to cover its net income, showcasing strong liquidity.

For 2023, Aixtron (AIXA.DE) reported an operating cash flow of -47,289,000 EUR, which is significantly lower than its net income of 145,185,000 EUR. This discrepancy results in a score of 0 for this criterion. Analyzing historical data, we observe fluctuating trends. For instance, in 2010, operating cash flow (147,697,000 EUR) was substantially higher than net income (192,496,000 EUR), unlike years such as 2011 and 2012, when both figures turned negative.The current trend indicates challenges in converting revenue to cash flow which could raise concerns especially when juxtaposed with the strong net income.

Liquidity of Aixtron (AIXA.DE)

Leverage is declining?

Change in leverage assesses the shift in the company's leverage ratio between two periods.

The leverage for Aixtron (AIXA.DE) increased from 0.0037 in 2023 to 0.0065 in 2022, indicating a rise in leverage. A higher leverage ratio implies greater financial risk, as it shows the company is using more debt relative to its assets. Over the past 20 years, Aixtron has generally maintained very low leverage, but the recent increase is a negative signal. Seeing as the trend is negative, no point is awarded in this Piotroski criterion.

Current Ratio is growing?

Current Ratio represents the company's ability to pay short-term obligations with short-term assets. A higher ratio indicates a stronger liquidity position, typically above 1 is preferable.

In 2023, Aixtron's Current Ratio increased slightly to 3.1218 from 3.0223 in 2022, adding 1 point to its financial score. This increase, albeit small, reflects an improvement in the company's short-term liquidity. Considering the industry median for the Current Ratio is 3.161 in 2023, Aixtron's ratio is in line with the industry standard, suggesting it maintains a comparable level of liquidity to its peers. Over the last 20 years, Aixtron has been consistent in maintaining ratios well above the 2 mark, indicating strong liquidity management.

Number of shares not diluted?

Change in Shares Outstanding is an important criterion because it indicates whether the company is diluting shareholders' equity or consolidating it. An increasing number of shares can signify potential dilution, impacting the existing shareholders' value.

In the case of Aixtron (AIXA.DE), the Outstanding Shares increased significantly from 112297083 in 2022 to 0 in 2023. This trend is problematic because it points to a drastic restructuring or possibly data recording changes that might not capture the accurate financial standing. Over the last 20 years, the trend has been fluctuating but relatively stable, with a notable drop in 2023. This suggests there could be more underlying issues that need addressing, leading to a negative score (0) for this criterion.

Operating of Aixtron (AIXA.DE)

Cross Margin is growing?

Gross Margin is calculated as the difference between revenue and cost of goods sold (COGS), divided by revenue. It is important because it measures the core profitability and efficiency in production.

The Gross Margin for Aixtron (AIXA.DE) has increased from 0.4216 in 2022 to 0.443 in 2023. This represents an increase in margin by 0.0214 points. Comparing this to the last 20 years of gross margins, this is not the highest growth rate, but it is a stable and positive indicator of operational efficiency over recent years. Additionally, the industry median for 2023 stood at 0.4718, indicating that while Aixtron's Gross Margin is below the industry median, it is moving in the right direction. Hence, for this criterion, Aixtron scores 1 point due to the increase in gross margin from the previous year.

Asset Turnover Ratio is growing?

Understand the criterion and the need to compare changes in Asset Turnover for assessing operational efficiency.

In the year 2023, Aixtron (AIXA.DE) reported an Asset Turnover of 0.6519 compared to 0.5637 in 2022, marking an increase. This rise suggests a better utilization of assets to generate sales, a positive trend. Historically, such variations reflect on their efficiency. Therefore, in the Piotroski Score framework, this scenario earns Aixtron an additional point, reinforcing analyst confidence.