Last update on 2024-06-07

Duerr (DUE.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 4/9)

Discover Duerr's (DUE.DE) Piotroski F-Score analysis for 2023 and learn about its financial health. Final Score: 4/9. Read more details on profitability and liquidity.

Short Analysis - Piotroski Score: 4

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

The Piotroski F-Score is a way to measure how strong a company's financial position is on a scale from 0 to 9. This analysis looks at Duerr (DUE.DE) using the Piotroski criteria to evaluate profitability, liquidity, and operating efficiency, and it scored a 4. The details show some good points, like positive net income and cash flow, but also some concerning areas such as ROA decline, increasing leverage, and reduced asset turnover ratio.

Insights for Value Investors Seeking Stable Income

Given Duerr's Piotroski score of 4 out of 9, this suggests there is a mix of both strengths and weaknesses. As an investor, it might be worth examining further details and specific financial statements to understand the areas of concern better. While there are positive indicators like stable net income and cash flows, the issues such as declining ROA, increasing leverage, and asset efficiency need to be addressed before making an investment decision.

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

Profitability of Duerr (DUE.DE)

Company has a positive net income?

The net income criterion assesses whether the company has achieved a positive net income for the current year.

Duerr's net income for 2023 stands at €111,981,000, which is indeed positive. Therefore, according to the Piotroski Analyses criteria, Duerr secures 1 point for this metric. This is a positive indicator as it confirms profitability for the year. Analyzing the historical net income data, it's noteworthy that Duerr has had a majority of profitable years over the past two decades, with clear challenges only in 2020, when the company registered a net loss of €15,809,000. This suggestion implies that the organization has a robust structure to generate profits consistently, making the 2023 performance commendable and supportive of a positive financial trajectory.

Company has a positive cash flow?

Cash Flow from Operations (CFO) measures the cash generated or consumed by a company's core operating activities. Positive CFO is crucial as it indicates that the company is generating enough cash to maintain and expand its operations without needing external financing.

Duerr's CFO for 2023 is €287,494,000, which is positive. This suggests that Duerr is generating sufficient cash from its core operations, a positive sign for its financial health. Examining the trend, from 2003 to 2023, the CFO has remained largely positive with a few exceptions. Particularly, the significant increase in CFO from €56,415,000 in 2003 to the current €287,494,000 in 2023 highlights a strong upward trend in Duerr's operational cash flow. This consistency in positive CFO is a sign of efficient operational management and strong business fundamentals. Therefore, Duerr earns 1 point for this criterion.

Return on Assets (ROA) are growing?

Change in ROA: Compare the ROA of 0.0231 in 2023 with the ROA of 0.0302 in 2022. If the ROA increased in 2023 add 1 point if not set it to 0. Result: The ROA increased in 2023

Duerr's ROA in 2023 was 0.0231, which represents a decrease from its ROA of 0.0302 in 2022. As a consequence, the score for this Piotroski criterion is 0. Analyzing the historical data, over the past 20 years, Duerr's ROA seems to have experienced fluctuations and demonstrates a volatility that can be attributed to varying levels of operating cash flow and other financial metrics. When compared to the industry median figures, Duerr consistently underperforms, suggesting potential operational inefficiencies or structural challenges within the company. This continuous underperformance relative to its peers can be alarming for potential investors focusing on profitability and asset efficiency. The drop in ROA from 2022 to 2023 continues this trend and is concerning, as it indicates shorter falls in asset profitability, which can be a deterrent for returns-focused investors.

Operating Cashflow are higher than Netincome?

This criterion compares Operating Cash Flow (OCF) with Net Income to measure the quality of earnings. A higher OCF than Net Income signals good earnings quality, since cash flows are less subject to accounting manipulations.

For Duerr (DUE.DE) in 2023, the Operating Cash Flow (OCF) is €287,494,000 while the Net Income is €111,981,000. The OCF is significantly higher than Net Income, adding 1 point to the Piotroski Score. This trend reflects a healthier and more sustainable financial position. Historical data shows consistent improvement in OCF over the last 20 years, demonstrating robust operational efficiency.

Liquidity of Duerr (DUE.DE)

Leverage is declining?

Change in leverage measures the company's financial risk. Lower leverage indicates reduced risk and better solvency.

The leverage ratio for Duerr (DUE.DE) has increased from 0.1817 in 2022 to 0.2066 in 2023. This indicates that the company has taken on more debt relative to its equity, implying a higher financial risk. Given the historical leverage data over the past 20 years, Duerr's leverage has fluctuated, notably increasing at certain points, such as in 2013 when it reached 0.1331 and in 2019 when it peaked at 0.2261. The recent increase in 2023 to 0.2066 suggests a reversal from the previous year's decrease and may raise concerns over the company's debt management strategy. As a result, 0 points are awarded for this criterion.

Current Ratio is growing?

The Current Ratio measures a company's ability to cover its short-term liabilities with its short-term assets. An increasing Current Ratio is considered favorable as it indicates improved liquidity.

In 2023, Duerr's Current Ratio was 1.1765, a slight decrease from 1.2449 in 2022. This trend is considered negative for liquidity and has not earned a point according to Piotroski's criteria. Historically, Duerr has also experienced fluctuations, such as peaking at 1.4361 in 2019, before declining. Comparatively, the industry median Current Ratio for 2023 was 1.7757, illustrating that Duerr is significantly below its industry peers, whose liquidity has remained more stable. Overall, this indicates potential concerns regarding Duerr's ability to meet short-term obligations compared to its competitors.

Number of shares not diluted?

Outstanding Shares indicates the number of shares that are currently held by all shareholders. It is important because changes in this number can affect ownership control, dividend payout, and share dilution.

The Outstanding Shares of Duerr (DUE.DE) showed an unusual report of reducing to 0 in 2023 from 69,202,080 in 2022. A consistent value of 69,202,000 to 69,202,080 from 2009 to 2022 exhibited stability. This reduction to 0 might be due to a company reporting error or a significant corporate event like a buyback program, stock consolidation, or restructuring, which needs further inspection. Given this data, we categorize this decrease by adding 0 points. It's critical to verify the cause with deeper analysis or corporate announcements.

Operating of Duerr (DUE.DE)

Cross Margin is growing?

Change in gross margin is a critical metric that evaluates the core profitability of a company's operations before accounting for indirect expenses.

The gross margin for Duerr (DUE.DE) shows a slight decline from 0.2176 in 2022 to 0.2172 in 2023. Based on Piotroski's criteria, this decline would warrant a score of 0. When analyzing the additional data, we see that in the last 20 years, Duerr's gross margin has been quite volatile, peaking significantly in 2006 at 1.8383 and generally falling below the industry's median gross margin rates. For instance, the industry median gross margin in 2023 is at 0.3492, which is considerably higher than Duerr's 0.2172. Therefore, the decrease in gross margin not only reflects a negative trend on the criteria score but also suggests potential weaknesses when compared to industry standards. The data indicates a need for Duerr to improve its gross margin performance to stay competitive within the industry.

Asset Turnover Ratio is growing?

Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue, important for evaluating operational efficiency.

Comparing Duerr's Asset Turnover of 0.9554 in 2023 with 0.9935 in 2022, we observe a decrease. Consequently, as per Piotroski's F-score methodology, Duerr does not gain a point for Asset Turnover this year. This decline indicates a reduction in the efficiency with which Duerr uses its assets to generate sales. Over the past 20 years, the Asset Turnover ratio has had notable fluctuations, with the lowest point at 0 in 2005 and the highest at 1.4821 in 2008, reflecting varying levels of operational efficiency over time.