Last update on 2024-06-07

ATOSS Software (AOF.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 9/9)

ATOSS Software (AOF.DE) achieves a top Piotroski F-Score of 9/9 for 2023, showing strong financial health with positive net income, growing ROA, and improving cash flows.

Short Analysis - Piotroski Score: 9

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

The Piotroski F-Score assesses a company's financial health on a scale from 0 to 9 based on profitability, liquidity, and operating efficiency. A company with a score of 9, such as ATOSS Software (AOF.DE), is considered strong financially. ATOSS Software has a positive net income, strong cash flow from operations, and increasing return on assets. Furthermore, its leverage is declining, indicating reduced reliance on debt. The current ratio is slightly improving, and the company is efficiently using its assets to generate sales. Despite not increasing the number of outstanding shares, the company's gross margin and asset turnover are both growing, representing operational effectiveness and management efficiency.

Insights for Value Investors Seeking Stable Income

Given its perfect score of 9 on the Piotroski F-Score, ATOSS Software demonstrates strong profitability, liquidity, and operational efficiency. This suggests that ATOSS Software is a stable and potentially lucrative investment. Investors looking for strong, financially sound companies may find ATOSS Software worth considering. However, it's always crucial to conduct further research beyond the Piotroski F-Score and consider market conditions, industry trends, and individual investment goals before making any investment decisions.

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

Profitability of ATOSS Software (AOF.DE)

Company has a positive net income?

The criterion examines whether ATOSS Software's net income is positive. A positive net income indicates profitability, which is fundamental for assessing a company's financial health.

As of 2023, ATOSS Software's net income stands at €35,772,676, which is a positive figure. This indicates that the company is profitable. Moreover, examining the last 20 years of net income data reveals a consistent upward trajectory in profitability, with only a few years recording zero profits ('2006' and '2007'). For instance, net income has grown from €1,887,866 in 2003 to €35,772,676 in 2023, suggesting a strong financial performance over the long term. Thus, the criterion scores 1 point.

Company has a positive cash flow?

Cash Flow from Operations (CFO) measures the cash generated by a company’s normal business operations and is a critical gauge of its financial health.

For 2023, ATOSS Software (AOF.DE) reported a CFO of €52,653,659. This is markedly positive, representing a substantial increase compared to prior years. Historically, the company's CFO has grown steadily over the past two decades, from just €3,503,989 in 2003 to their recent peak. This positive and accelerating cash flow trajectory signals strong operational efficiency and robust revenue generation capabilities, reinforcing investor confidence and suggesting sustainable business practices. Therefore, ATOSS Software earns 1 point for this criterion.

Return on Assets (ROA) are growing?

Change in Return on Assets (ROA) measures a company's ability to improve its profitability by comparing the net income produced with total assets. ROA indicates how efficiently a company's management is using its assets to generate earnings.

For ATOSS Software, the ROA increased from 0.2256 in 2022 to 0.3494 in 2023. This positive trend results in adding 1 point. An increase in ROA signifies that the company effectively used its assets to generate higher earnings. The company's ROA is converging towards higher performance, aligning closely with the industry's upward movement in median ROA over the years, peaking at 0.6741 in 2023. This consistency suggests robust operational and financial health for ATOSS Software.

Operating Cashflow are higher than Netincome?

Comparing Operating Cash Flow with Net Income helps assess a company’s quality of earnings. Healthy operations often yield higher cash flow than net income, signaling good liquidity.

In 2023, ATOSS Software (AOF.DE) reported an Operating Cash Flow of €52,653,659 compared to a Net Income of €35,772,676. Extraordinarily, Operating Cash Flow exceeds Net Income, resulting in a score of 1 point for this criterion. This pattern, backed up by 20 years of historical data, suggests a strong operational cash generation capability. As evidenced from 2003 to 2023, Operating Cash Flow has generally remained higher than Net Income. Notable examples include 2011 (€5,317,535 vs. €5,675,315) and 2022 (€26,269,022 vs. €19,377,447), reinforcing this trend. Displaying such consistency indicates efficient cash cycle management and quality earnings, making it a good trend for ATOSS Software.

Liquidity of ATOSS Software (AOF.DE)

Leverage is declining?

Leverage measures a company's level of debt relative to its equity capital. It is important as it indicates financial stability.

In 2023, ATOSS Software's leverage decreased to 0.0708 from 0.1067 in 2022. Historically, leverage has been very low, typically at zero. The decrease indicates stronger financial stability and reduced reliance on debt, which is positive. The leverage reduction has resulted in 2023 earning an additional point. Over the past 20 years, leverage peaked at 0.188 in 2019 but showed a consistent downward trend thereafter, signaling a robust financial position by 2023.

Current Ratio is growing?

The Current Ratio compares a company's current assets to its current liabilities. It is crucial for assessing liquidity.

ATOSS Software's Current Ratio has slightly increased from 2.4795 in 2022 to 2.4864 in 2023. This indicates a marginal improvement in the company's ability to cover its short-term obligations with its short-term assets. Over the past 20 years, ATOSS has generally maintained a Current Ratio above the industry median, which shows strong liquidity when compared to industry peers. Given the increase, albeit slight, ATOSS Software earns 1 point for this criterion. It's worth noting that despite fluctuations, the Current Ratio's trend is relatively stable around the 2.5 mark in recent years, which is favorable for financial health.

Number of shares not diluted?

Change in Shares Outstanding is a measure used to determine if the company is diluting shareholders' value or not.

From 2022 to 2023, the number of Outstanding Shares has remained constant at 7,953,136. Since the Outstanding Shares have neither increased nor decreased, the result is set to 0 points. Over the last 20 years, the Outstanding Shares have generally remained stable, providing a consistent base for shareholder value and signaling good capital management by ATOSS Software.

Operating of ATOSS Software (AOF.DE)

Cross Margin is growing?

Gross margin represents the percentage of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services it sells. It is crucial for assessing a company's efficiency in managing its production costs and generating profits.

In 2023, ATOSS Software's gross margin increased to 0.7711 from 0.7261 in 2022, marking a significant improvement. This favorable trend assigns a point under the Piotroski score criteria. Historically, ATOSS has managed to maintain a positive trend in gross margins over the past 20 years, consistently outperforming the industry median. This increase reflects the company's continuing efficiency and competitive advantage in managing production costs.

Asset Turnover Ratio is growing?

Asset turnover measures a firm's efficiency in using its assets to generate sales revenue. It's pivotal for assessing operational efficiency.

Between 2022 and 2023, ATOSS Software's asset turnover increased from 1.3262 to 1.477. This increment signifies improved efficiency in using its assets to generate revenue. Historically, the company's asset turnover peaked at 1.5313 in 2014 and saw fluctuations over the last two decades, demonstrating resilience and capability to rebound. The marked increase in 2023 warrants a score of 1 in the Piotroski F-Score framework, showcasing a positive trend towards operational efficiency, a vital factor for long-term growth.