ELG.DE 81.4 (+4.23%)
DE0005677108SemiconductorsSemiconductor Equipment & Materials

Last update on 2024-06-07

Elmos Semiconductor (ELG.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 6/9)

Elmos Semiconductor's (ELG.DE) Piotroski F-Score for 2023 stands at 6/9, indicating a strong financial position in profitability and operating efficiency.

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: 6

We're running Elmos Semiconductor (ELG.DE) 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?
1
Leverage is declining?
1
Current Ratio is growing?
0
Number of shares not diluted?
1
Cross Margin is growing?
1
Asset Turnover Ratio is growing?
0

Elmos Semiconductor's Piotroski F-Score is 6 out of 9. The score is derived based on profitability, liquidity, and operating efficiency criteria. The company performs well in its net income, cash flow from operations, and gross margin. Specifically, it showed a positive net income of €99,148,000 and the highest ever cash flow from operations at €102.643 million in 2023. This highlights the firm's effective core operations and sound financial health. However, the company's return on assets and asset turnover decreased, implying a need for better utilization of its assets. Additionally, leverage has increased and the current ratio has declined, indicating higher short-term risk and potential liquidity issues.

Insights for Value Investors Seeking Stable Income

Elmos Semiconductor scored 6 out of 9 on the Piotroski F-Score, indicating a relatively strong financial position and efficient operations. This score suggests that the company is profitable and has good cash flow management. However, some risk factors like increased leverage and a reduced current ratio should be considered. If you can tolerate some risk and are looking for a financially stable and operationally efficient company, Elmos Semiconductor might be worth a closer look. Always consider consulting with a financial advisor 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 Elmos Semiconductor (ELG.DE)

Company has a positive net income?

Piotroski Analysis includes the criterion of positive net income, as a positive net income indicates profitability. Profitable companies are likely managing their operations efficiently.

Historical Net Income of Elmos Semiconductor (ELG.DE)

The net income for Elmos Semiconductor in 2023 stands at €99,148,000, which is positive. Over the last 20 years, the company's net income has seen numerous ups and downs, with sporadic years showing €0, indicating periods of no profit. However, there's a notable upward trend in recent years, culminating in the highest net profits in the past two years. Therefore, for this criterion, Elmos Semiconductor qualifies and can be awarded 1 point. This signifies a positive trend and suggests strong recent performance and efficient management.

Company has a positive cash flow?

Cash Flow from Operations (CFO) evaluates whether a firm's operating activities generate positive cash flow, indicating operational efficiency.

Historical Operating Cash Flow of Elmos Semiconductor (ELG.DE)

The CFO for Elmos Semiconductor (ELG.DE) in 2023 stands at €102.643 million, highlighting strong operational efficiency. Compared to its 20-year history, this is the highest CFO recorded, showcasing an ongoing positive trend where only minor fluctuations have been evident. For instance, the company’s CFO in 2022 was €98.641 million, demonstrating consistent operational profitability. This solidifies a 1-point addition on the Piotroski F-Score, underscoring the strength of the company's core business operations and financial health.

Return on Assets (ROA) are growing?

Change in ROA refers to the variation in the Return on Assets from one period to another. It's crucial because it indicates the efficiency of a company in generating profit relative to its assets.

Historical change in Return on Assets (ROA) of Elmos Semiconductor (ELG.DE)

For Elmos Semiconductor, the ROA has decreased from 0.1486 in 2022 to 0.1464 in 2023. Given this decline, we assign a score of 0 for this criterion. This downtrend, though minor, shows a slight drop in efficiency in utilizing its assets to generate profit compared to the previous year. Over a span of the last 20 years, ROA has shown varied performance, and unlike its industry peers with a median ROA of 0.4718 in 2023, Elmos Semiconductor's current ROA remains below industry average, indicating room for improvement.

Operating Cashflow are higher than Netincome?

Operating cash flow is the amount of cash generated by a company’s regular business operations. Comparing it with net income helps determine the quality of earnings.

Historical accruals of Elmos Semiconductor (ELG.DE)

For 2023, Elmos Semiconductor (ELG.DE) shows a strong financial position with an Operating Cash Flow of €102,643,000 and a Net Income of €99,148,000. Since the Operating Cash Flow surpasses Net Income, it reflects positively on the firm's earnings quality and operational efficiency. In cash flow from operations over the past 20 years, the trend is generally upward, reaching its peak in 2023. This rise signals consistent, effective management of operational cash, and strong revenue generation. Hence, Elmos Semiconductor scores a point for this criterion, reaffirming it as a financially robust company.

Liquidity of Elmos Semiconductor (ELG.DE)

Leverage is declining?

Change in Leverage refers to the alteration in a company's debt levels relative to its equity. It is essential as it affects financial risk.

Historical leverage of Elmos Semiconductor (ELG.DE)

Analyzing Elmos Semiconductor's leverage, it is evident that the leverage ratio has indeed increased from 0.1222 in 2023 compared to 0.1393 in 2022. This increase suggests that Elmos has taken on more debt relative to its equity, which might indicate a higher risk level. A look into the historical leverage data over the past 20 years shows fluctuations with a generally low leverage until recent years, implying a strategic change in capital structure. Despite this, the leverage's current increase means that Elmos does not score a point on this criterion for the Piotroski analysis.

Current Ratio is growing?

Change in Current Ratio compares the availability of current assets to meet current liabilities. This ratio is significant as it indicates the company's liquidity health and its ability to remain solvent in the short term.

Historical Current Ratio of Elmos Semiconductor (ELG.DE)

The Current Ratio for Elmos Semiconductor has decreased from 2.5202 in 2022 to 1.7919 in 2023. This trend signifies a deterioration in the company's short-term liquidity position. A lower Current Ratio may indicate potential liquidity issues, where the company might struggle to meet its short-term obligations. Over the past 20 years, Elmos Semiconductor had higher ratios (like 5.2409 in 2020), showcasing better liquidity in earlier years. In comparison, the 2023 industry median is 3.161, demonstrating that Elmos Semiconductor is currently below the industry standard. Therefore, no point should be added for this criterion.

Number of shares not diluted?

Change in Shares Outstanding: This criterion evaluates whether the company has decreased its number of outstanding shares compared to the previous year. It is important because a decrease usually signals share buybacks, a strategy often used by companies to increase shareholder value.

Historical outstanding shares of Elmos Semiconductor (ELG.DE)

Comparing the Outstanding Shares of 17,112,849 in 2022 with the Outstanding Shares of 0 in 2023, it's clear that the Outstanding Shares have decreased in 2023. Thus, according to the given data, we should add 1 point. However, the data also includes the last 20 years of Outstanding Shares, where we've seen fluctuating numbers. A significant drop to 0 Outstanding Shares can signal major restructuring or other significant corporate events. The continuous decrease from 19,312,569 in 2003 to 0 by 2023 could indicate consistent share buybacks or other corporate maneuvers aimed at consolidating shares, which can be perceived positively.

Operating of Elmos Semiconductor (ELG.DE)

Cross Margin is growing?

Gross Margin is a critical profitability metric indicating the percentage of revenue exceeding the cost of goods sold. An increasing Gross Margin implies better cost efficiency and higher profitability.

Historical gross margin of Elmos Semiconductor (ELG.DE)

Elmos Semiconductor's Gross Margin has marginally increased from 0.464 in 2022 to 0.4718 in 2023, a rise of approximately 0.78%. This increase signals a positive trend, reflecting enhanced cost management and possibly higher pricing power or sales volumes. Historically, Elmos Semiconductor's Gross Margin has shown variability, with a notable dip in 2008 (0.4316) and a recovery trend post-2009. Comparing it to the industry median, Elmos Semiconductor consistently outperforms, especially evident in 2009 when the industry's median was at 0.3467 while Elmos Semiconductor stood at 0.2899. For 2023, both Elmos and the industry median converged at 0.4718, suggesting competitive parity in the current market landscape. This historical perspective, combined with the observed increase, warrants a positive outlook and 1 point added to Elmos Semiconductor's Piotroski score for this criterion.

Asset Turnover Ratio is growing?

The Asset Turnover ratio measures a company's efficiency in using its assets to generate sales. It is an important indicator of operational performance.

Historical asset turnover ratio of Elmos Semiconductor (ELG.DE)

Comparing the Asset Turnover of 0.8488 in 2023 to 0.9313 in 2022 for Elmos Semiconductor (ELG.DE), it is evident that the Asset Turnover has decreased. The Asset Turnover ratio measures how efficiently a company uses its assets to generate sales. A higher ratio typically indicates better efficiency and operational performance. Over the last 20 years, Elmos Semiconductor's Asset Turnover has shown variability, with the recent trend in 2023 showing a decline from the previous year. Consequently, this criterion would score 0 points according to the Piotroski Analysis, indicating a potential concern in asset utilization.


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