Last update on 2024-06-04

Ackermans & Van Haaren (B3K.F) - Piotroski F-Score Analysis for Year 2023 (Final Score: 7/9)

Piotroski F-Score Analysis of Ackermans & Van Haaren (B3K.F) for 2023, scoring 7/9, reflecting solid profitability, cash flow, and asset turnover.

Short Analysis - Piotroski Score: 7

We're running Ackermans & Van Haaren (B3K.F) against the Piotroski 9-criteria scoring system to assess profitability, liquidity, and operating efficiency:

The Piotroski F-Score measures a company’s financial strength using 9 criteria: profitability (positive net income, positive cash flow, higher cash flow than net income, ROA growth), liquidity (declining leverage, growing current ratio, no share dilution), and operating efficiency (growing gross margin, growing asset turnover). Ackermans & Van Haaren (B3K.F) scores 7 out of 9 overall. It has positive net income, positive cash flow, higher CFO than net income, declining leverage, a growing current ratio, no share dilution, and growing asset turnover. The company, however, did not show growth in ROA and gross margin.

Insights for Value Investors Seeking Stable Income

Ackermans & Van Haaren (B3K.F) has a strong overall financial position with a Piotroski score of 7 out of 9, indicating it's likely a strong and undervalued investment. The company’s positive net income, cash flow, liquidity, and asset efficiency make it an attractive option. However, some caution is advised due to the decline in ROA and gross margin, implying potential profitability and efficiency challenges. Investors should consider these aspects and possibly review industry conditions and future prospects before making a firm decision.

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

Profitability of Ackermans & Van Haaren (B3K.F)

Company has a positive net income?

Net income measures a company's total profit or loss over a specific period.

Ackermans & Van Haaren (B3K.F) reported a net income of €399,194,000 in 2023. This is a positive net income, which adds 1 point in the Piotroski Score. Historically, the company has shown a strong trajectory with consistent net income growth. For example, from 2019 to 2023, net income figures are €394,900,000, €229,791,000, €406,814,000,and €708,655,000, suggesting that 2022 was an outlier and that the company quickly recovered. This is an encouraging sign of good profitability and positive financial performance.

Company has a positive cash flow?

Cash Flow from Operations (CFO) measures the amount of cash generated by a company's regular business operations. Positive CFO indicates that the company is able to generate sufficient cash to maintain and grow its operations.

For the year 2023, Ackermans & Van Haaren (B3K.F) reported a CFO of €651,189,000, which is a positive figure. This represents a continuation of a positive trend seen over the past 20 years, with only a few exceptions (notably in 2003, 2005, 2010, 2012). The ability to consistently generate positive cash flow is a strong sign for investors, indicating the firm’s operations are profitable and liquid. Given the CFO is positive, we would add 1 point to its Piotroski score for this criterion.

Return on Assets (ROA) are growing?

The change in Return on Assets (ROA) is evaluated by comparing the current year's ROA with that of the previous year. An increase signals improved profitability and efficiency in asset usage.

For Ackermans & Van Haaren (B3K.F), the ROA in 2023 stands at 0.0218, down from 0.0406 in 2022. This decline indicates reduced profitability and efficiency in generating earnings from assets. Despite fluctuations in operating cash flows, the downward ROA trend, especially against a steadily increasing industry median (which was at 0.2411 in 2023), portrays a less favorable position for Ackermans & Van Haaren. Thus, 0 points are awarded.

Operating Cashflow are higher than Netincome?

Operating cash flow higher than net income indicates better cash management

In 2023, Ackermans & Van Haaren reports an operating cash flow of €651,189,000 and a net income of €399,194,000. The operating cash flow is indeed higher than the net income, which adds a point to this criterion. This situation generally reflects a strong ability to generate cash from operations, suggesting efficient cash management. Additionally, historical data show operating cash flow has consistently been strong compared to net income in most years, indicating that this is not an anomaly but rather a pattern of solid operational performance.

Liquidity of Ackermans & Van Haaren (B3K.F)

Leverage is declining?

Change in Leverage ratio refers to the difference between a company's previous leverage ratio and its current leverage ratio.

Ackermans & Van Haaren (B3K.F) observed an increase in leverage from 0.1413 in 2022 to 0.1257 in 2023. Ideally, a decrease signifies a lower risk profile and better control over debt, as seen for majority of the last two decades. Therefore, it adds stability to the company's long term financial health.

Current Ratio is growing?

The current ratio measures a company's ability to pay short-term obligations with short-term assets. An increasing current ratio is generally seen as a sign of financial health.

Ackermans & Van Haaren (B3K.F) saw its current ratio increase slightly from 0.6518 in 2022 to 0.6786 in 2023, indicating a marginal improvement in liquidity. This trend is positive as it shows enhanced short-term financial stability. However, it is still significantly below the industry median, which has historically hovered above 1.25. In conclusion, while there is slight improvement, the low current ratio compared to industry standards suggests the company still needs to strengthen its liquidity position. This criterion gets a positive point for the increase, but the overall liquidity remains a concern.

Number of shares not diluted?

The Change in Shares Outstanding is important to assess as it can dilute or concentrate equity ownership, affecting per-share metrics and investor value.

Comparing the Outstanding Shares of 33,127,739 in 2022 to 32,905,602 in 2023, there is a decrease in the Outstanding Shares. This reduction is marked by the notable trend of the last 20 years, where shares have oscillated around the 33 million mark with some fluctuations. In this context, the decrease in 2023 contributes positively by concentrating equity, potentially increasing value per share if the company performs well. Therefore, we add 1 point for this metric based on the Piotroski criteria, exemplifying prudent share management. Rating: Good.

Operating of Ackermans & Van Haaren (B3K.F)

Cross Margin is growing?

Explain the criterion for Ackermans & Van Haaren (B3K.F) and why it is important to consider

Change in Gross Margin measures the company's profitability by examining revenues relative to the cost of goods sold. It's a critical metric because an increase signifies improved efficiency or pricing power, which enhances overall profitability. Conversely, a decline could signal rising costs or competitive pressures. For Ackermans & Van Haaren, the Gross Margin decreased from 0.3481 in 2022 to 0.343 in 2023. Hence, it scores 0 points for this criterion. Historically, its Gross Margin fluctuated significantly over the last two decades, peaking at 0.916 in 2004 and hitting a low of 0 in 2003. When compared to the industry median, Ackermans & Van Haaren has persistently stayed above the median, showcasing stronger profitability metrics. For instance, the industry's Gross Margin was 0.2411 in 2022, considerably lower than the company's. However, the downward trend in recent years might be concerning, indicating potential inefficiencies or market challenges. Though scoring zero points here, the long-term perspective still paints a positive picture, albeit with caution.

Asset Turnover Ratio is growing?

Asset Turnover represents how efficiently a company uses its assets to generate sales. It's crucial for assessing operational efficiency and capital utilization.

The Asset Turnover for Ackermans & Van Haaren (B3K.F) increased from 0.2522 in 2022 to 0.2846 in 2023. This reflects a positive trend as the company appears to be using its assets more efficiently to generate revenue. Historically, the Asset Turnover has had significant fluctuations over the past 20 years, with a noteworthy increase in 2014 and a low in 2003. The recent increase of 0.0324 points in 2023 improves operational efficiency, which is a beneficial sign for stakeholders. Hence, 1 point should be added in this criteria.