CRESY 8.05 (+1.39%)
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Last update on 2024-06-07

Cresud SACIF y (CRESY) - Piotroski F-Score Analysis for Year 2023 (Final Score: 4/9)

Comprehensive 2023 Piotroski F-Score Analysis of Cresud SACIF y (CRESY) revealing a final score of 4/9. Learn how profitability, liquidity, and leverage influence the rating.

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 Cresud SACIF y (CRESY) 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?
0
Leverage is declining?
0
Current Ratio is growing?
1
Number of shares not diluted?
1
Cross Margin is growing?
0
Asset Turnover Ratio is growing?
0

The analysis used the Piotroski F-Score, which ranges from 0 to 9, to assess the financial health of Cresud SACIF y (CRESY). The company scored a 4 out of 9. This score was based on nine criteria involving profitability, liquidity, and operating efficiency. The positives included positive net income, cash flow from operations, improved current ratio, and a reduction in outstanding shares. However, the company fell short in areas such as return on assets, operating cash flow relative to net income, leverage, gross margin, and asset turnover. These negative points indicate financial and operational inefficiencies and increased risk.

Insights for Value Investors Seeking Stable Income

Based on the Piotroski F-Score of 4, it suggests that Cresud SACIF y (CRESY) has mixed financial health. Investors may want to approach this stock with caution. While there are some strong positives like positive net income and improved liquidity, the company's inefficiencies in generating returns on assets, high leverage, and declining operational efficiency are significant concerns. It would be advisable for investors to conduct further detailed analysis or consider diversifying into stocks with higher Piotroski scores for more stable returns.

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

Profitability of Cresud SACIF y (CRESY)

Company has a positive net income?

Explain the criterion for Cresud SACIF y (CRESY) and why it is important to consider

Historical Net Income of Cresud SACIF y (CRESY)

A key criterion is to determine whether Cresud SACIF y (CRESY)'s net income for 2023 is positive. Net income provides insights into the company's profitability. Positive net income generally indicates good financial health and effective cost management.

Company has a positive cash flow?

Cash Flow from Operations (CFO) indicates the cash generated by a company's regular business operations.

Historical Operating Cash Flow of Cresud SACIF y (CRESY)

For 2023, the CFO for Cresud SACIF y (CRESY) stands at 35,974,000,000, which is indeed positive. This marks a significant trend in the company’s financial health, as a positive cash flow from operations is essential for sustaining business activities and growth. Over the past two decades, Cresud's CFO variability shows some years with negative cash flows, particularly in the years from 2003 to 2008. However, the trend has largely shifted to positive values from 2009 onwards, reaching a remarkable peak of 88,014,000,000 in 2020 before normalizing to the current level. The positive CFO in 2023 adds one point in the Piotroski Analysis, reflecting positively on the overall financial stability and operational efficiency of the company.

Return on Assets (ROA) are growing?

Change in ROA for Cresud SACIF y (CRESY) and its importance.

Historical change in Return on Assets (ROA) of Cresud SACIF y (CRESY)

The Return on Assets (ROA) for Cresud SACIF y has decreased from 0.0942 in 2022 to 0.0397 in 2023, thus the criterion is not met, resulting in 0 points. This is particularly alarming when observing the historical data over the last 20 years, where ROA values for Cresud SACIF y have shown volatility. For instance, the company had a comparatively favorable ROA of 0.0942 in 2022 and 0.0347 in 2020. Additionally, the company's ROA has generally underperformed when compared to the 20-year industry median, which ranged from 0.2298 to 0.287. A declining ROA indicates that the company is becoming less efficient in generating profit from its assets, which could be a red flag for investors.

Operating Cashflow are higher than Netincome?

This criterion examines if the company's operating cash flow exceeds its net income. It's crucial because it indicates whether the company generates enough cash from its core operations, thereby highlighting the company's quality of earnings.

Historical accruals of Cresud SACIF y (CRESY)

For Cresud SACIF y (CRESY) in 2023, the operating cash flow is 35,974,000,000 while the net income is 43,870,000,000. Since the operating cash flow is lower than the net income, 0 points are added. This trend is concerning because it suggests that the company’s earnings are not fully supported by cash generated from core operations. Consistently strong operating cash flow relative to net income is essential for maintaining liquidity, reducing dependency on external financing, and sustaining growth. Historical data shows fluctuation in operating cash flows, reaching highs in 2019 (38,368,000,000) and 2020 (88,014,000,000), followed by a decrease, reflecting volatility and raising further concerns regarding cash consistency.

Liquidity of Cresud SACIF y (CRESY)

Leverage is declining?

Change in Leverage measures how a company's debt levels have varied within a year. It's crucial as it examines potential shifts in financial risk.

Historical leverage of Cresud SACIF y (CRESY)

Cresud SACIF y (CRESY) saw its leverage increase from 0.1006 in 2022 to 0.1657 in 2023. Rising leverage indicates higher debt relative to equity, which could amplify returns but also augments financial risk. Over the last 20 years, CRESY’s leverage has experienced significant volatility, spiking notably in 2015 and during the 2016-2019 period. The recent upward shift in leverage in 2023, moving up to 0.1657, suggests a renewed dependence on debt, possibly signifying either strategic leverage for growth or increasing financial stress. This rise results in a score of 0 under Piotroski's criterion for this category.

Current Ratio is growing?

Change in Current Ratio measures a company's ability to pay short-term obligations with its short-term assets.

Historical Current Ratio of Cresud SACIF y (CRESY)

The Current Ratio for Cresud SACIF y (CRESY) has increased from 0.7656 in 2022 to 1.1022 in 2023. This improvement provides confidence in Cresud's ability to cover its short-term liabilities with its short-term assets. The rise is noteworthy following the relatively lower ratios observed in previous years. In contrast, the industry median current ratio stands at 1.4575 in 2023, which indicates Cresud still lags behind its peers in terms of liquidity. Historically, Cresud showed much fluctuation in its current ratio, at times notably below the industry median, emphasizing the importance of sustained improvement. Since the Current Ratio improved, this criterion contributes 1 point.

Number of shares not diluted?

Change in Shares Outstanding is important as it affects shareholders' ownership and company's capital.

Historical outstanding shares of Cresud SACIF y (CRESY)

In 2023, Cresud SACIF y's Outstanding Shares decreased to 60,793,264 from 61,500,163 in 2022, a reduction of 706,899 shares, showing a downward trend.

Operating of Cresud SACIF y (CRESY)

Cross Margin is growing?

Gross Margin represents the percentage of revenue that exceeds the cost of goods sold, highlighting operating efficiency.

Historical gross margin of Cresud SACIF y (CRESY)

In 2023, Cresud SACIF y posted a Gross Margin of 0.3743, down from 0.443 in 2022. This decline indicates a deterioration in operational efficiency. When comparing it to the industry median of 0.2782 in 2023, Cresud's margin, although having dropped, still remained above the median, suggesting some relative strength. Over the past 20 years, Cresud exhibited significant volatility in Gross Margin, peaking at 0.5295 in 2021 and hitting lows like 0.1782 in 2006. This year's performance does showcase a struggle to maintain last year's margin levels, resulting in a 0-point contribution under the Piotroski criteria.

Asset Turnover Ratio is growing?

Change in Asset Turnover compares the efficiency of a company in using its assets to generate sales or revenue over time.

Historical asset turnover ratio of Cresud SACIF y (CRESY)

Comparing the Asset Turnover of Cresud SACIF y (CRESY) from 2022 to 2023 reveals a decrease from 0.2435 to 0.1723. This drop indicates reduced efficiency in utilizing its assets to generate revenue, setting the point to 0. The broader 20-year trend of Asset Turnover shows fluctuations, peaking at 0.3904 in 2016 and hitting its lowest point at 0.088 in 2019. The recent decline should concern potential investors as it suggests diminishing operational efficiency.


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