ANGO 6 (-2.12%)
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Last update on 2024-06-07

AngioDynamics (ANGO) - Piotroski F-Score Analysis for Year 2023 (Final Score: 4/9)

Explore AngioDynamics' (ANGO) Piotroski F-Score for 2023. A comprehensive analysis reveals financial and operational health with key metrics.

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: 4

We're running AngioDynamics (ANGO) against the Piotroski 9-criteria scoring system to assess profitability, liquidity, and operating efficiency:

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

The Piotroski F-Score analysis uses 9 criteria to evaluate stock investment quality based on profitability, liquidity, and operational efficiency. AngioDynamics (ANGO) scored 4 out of 9. It took points for positive cash flow, operating cash flow being higher than net income, a growing current ratio, and improved asset turnover ratio. However, it missed on profitability metrics like net income and return on assets, experienced increased leverage, share dilution, and reduced gross margin.

Insights for Value Investors Seeking Stable Income

Given its middle-range Piotroski F-Score and mixed financial health, AngioDynamics may not be a prime candidate for investment right now. It shows some good indicators like positive cash generation from operations and asset utilization. However, recurring net losses, inconsistent financial performance, and rising debt pose significant risks. Therefore, potential investors should proceed with caution and consider deeper research or alternative options with stronger financial metrics.

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

Profitability of AngioDynamics (ANGO)

Company has a positive net income?

Net income is a firm's total earnings, showing overall profitability. Positive net income indicates good performance, negative income signals potential issues.

Historical Net Income of AngioDynamics (ANGO)

AngioDynamics' net income for 2023 stands at -$52,442,000, which is a negative result, resulting in 0 points for this criterion. Over the last 20 years, the company has experienced fluctuations in profitability with recurrent negative net incomes, notably -$167 million in 2020 and -$45.59 million in 2016. Such trends reflect operational challenges, underscoring the need for improved financial management and potential restructuring to reverse these negative earnings.

Company has a positive cash flow?

The Cash Flow from Operations (CFO) criterion is one of the nine metrics in the Piotroski F-Score. It assesses a company's ability to generate cash through its core business activities.

Historical Operating Cash Flow of AngioDynamics (ANGO)

For AngioDynamics (ANGO), the CFO for 2023 is $78,000, which is positive. Therefore, this criterion scores 1 point. Historically, AngioDynamics has shown a volatile trend in its operating cash flow. For instance, the company's highest CFO was $55,745,000 in 2017, while it hit a low of -$14,554,000 in 2020. Additionally, there was another negative figure of -$7,194,000 in 2022. The latest positive CFO might indicate a potential turnaround. However, the value of $78,000 is minimal compared to previous years, and such inconsistency may raise concerns for long-term stability.

Return on Assets (ROA) are growing?

This criterion compares the Return on Assets (ROA) year-over-year to determine if there is an improvement in asset utilization by the company. ROA is a key metric of profitability, indicating how efficiently a company uses its assets to generate earnings.

Historical change in Return on Assets (ROA) of AngioDynamics (ANGO)

For AngioDynamics (ANGO), the ROA for 2023 is -0.0966 and for 2022 it was -0.0477, indicating a decline. Given that the trend shows a deterioration in ROA, AngioDynamics receives 0 points for this criterion. An important aspect to consider here is that a negative ROA indicates that the company is not effectively utilizing its assets to generate profit. Over a span of 20 years, AngioDynamics has witnessed fluctuating operating cash flows, contributing to the inconsistency in ROA. Compared to the industry median ROA which has remained consistently positive and above 0.5, AngioDynamics' current position is significantly underperforming, showing inefficiencies in asset management.

Operating Cashflow are higher than Netincome?

Operating cash flow compares the money generated by a company’s regular business operations to its net income. It gives a clear picture of a company's ability to maintain and grow its operations without relying on external financing and indicates profitable operations continuing to generate sufficient cash flows.

Historical accruals of AngioDynamics (ANGO)

Operating cash flow for AngioDynamics (ANGO) in 2023 is reported at $78,000, while the net income for the same year stands at a negative $52,442,000. Given that the operating cash flow is higher than the net income, 1 point is added in this Piotroski analysis criterion. This scenario is generally positive as it indicates that the company is still generating cash from its core operations despite reporting a net loss. This suggests that the losses are likely due to non-cash charges or one-time write-offs, rather than a fundamental issue with the company's cash-generating ability.

Liquidity of AngioDynamics (ANGO)

Leverage is declining?

Change in Leverage examines the ratio of total debt to total assets. A decreasing leverage ratio indicates reduced financial risk.

Historical leverage of AngioDynamics (ANGO)

From 2022 to 2023, AngioDynamics (ANGO) experienced an increase in leverage from 0.0452 to 0.0935, denoted by the historical trend showing fluctuations over the past 20 years. Peaks in leverage seem to coincide with periods of increased operational demands. The sharp rise in 2023 conveys a minor escalation in financial risk. This metric earns a score of 0 for the Piotroski Analysis as leverage has increased, which suggests more debt and less financial sturdiness compared to the prior year.

Current Ratio is growing?

The Current Ratio measures a company's ability to pay off its short-term liabilities with short-term assets. An increasing Current Ratio indicates better liquidity.

Historical Current Ratio of AngioDynamics (ANGO)

For AngioDynamics (ANGO), the Current Ratio has seen a slight increase from 1.9287 in 2022 to 1.951 in 2023. This change, while minor, is a positive trend and suggests that AngioDynamics has improved its liquidity. Historically, the company's Current Ratio has shown much higher figures, such as 6.5172 in 2005 and 11.3034 in 2006, indicating that it was significantly more liquid in the past. However, compared to the Industry Median current ratio of 2.3418 in 2023, AngioDynamics still falls short, implying room for improvement. This marginal increase in Current Ratio from 2022 to 2023 scores 1 point based on the Piotroski criteria.

Number of shares not diluted?

Change in Shares Outstanding examines the variation in the number of shares issued by a company; a decrease is favorable as it indicates share buybacks.

Historical outstanding shares of AngioDynamics (ANGO)

AngioDynamics' outstanding shares increased from 39,009,419 in 2022 to 39,480,367 in 2023. This represents a growth of 471,948 shares. Historically, from 2003 to 2023, AngioDynamics has shown a general upward trend in its shares outstanding, increasing from 9,472,233 to 39,480,367. This 2023 increase is aligned with the long-term pattern. Therefore, no point is awarded for this criterion as the shares outstanding have increased rather than decreased.

Operating of AngioDynamics (ANGO)

Cross Margin is growing?

The criterion assesses if the company's Gross Margin improved over the previous year, indicating better cost control or pricing power, which is crucial for a healthy profit margin.

Historical gross margin of AngioDynamics (ANGO)

Comparing AngioDynamics' gross margins, we see that the company's Gross Margin has decreased from 0.5241 in 2022 to 0.5144 in 2023. This 0.0097 decrease indicates perhaps higher cost pressures or reduced pricing power. Given the company's industry median gross margin of 0.5549 in 2023, AngioDynamics falls behind, suggesting it is underperforming relative to peers. Consequently, the score for this criterion is 0 as we observed a decline rather than an increase in the Gross Margin.

Asset Turnover Ratio is growing?

The Asset Turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue. A higher ratio indicates better performance.

Historical asset turnover ratio of AngioDynamics (ANGO)

Between 2022 and 2023, AngioDynamics saw its Asset Turnover ratio increase from 0.5676 to 0.6242. This increase suggests that the company has improved its efficiency in using its assets to generate sales. From a historical perspective, this 2023 value is the highest in the last two decades since it has been trending upwards consistently since 2018. This positive trend, which reverses a period of lower efficiency earlier in the 20-year history, is favorable and indicates a robust operational performance. Consequently, we award AngioDynamics 1 point for this criterion.


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