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CTS Eventim AG & Co. (EVD.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 9/9)

Exceptional 2023 Piotroski F-Score Analysis for CTS Eventim AG & Co. (EVD.DE) achieving a perfect score of 9/9. Discover financial strengths and investment potential.

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: 9

We're running CTS Eventim AG & Co. (EVD.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?
1
Operating Cashflow are higher than Netincome?
1
Leverage is declining?
1
Current Ratio is growing?
1
Number of shares not diluted?
1
Cross Margin is growing?
1
Asset Turnover Ratio is growing?
1

The Piotroski F-Score is a measure used to evaluate a company's financial strength on a scale of 0 to 9, based on nine criteria related to profitability, liquidity, and leverage. CTS Eventim AG & Co. (EVD.DE) scored a near-perfect 9 out of 9, reflecting its strong financial standing. Key highlights include positive net income, robust cash flow from operations, increasing return on assets, and a higher current ratio, all of which indicate strong profitability and liquidity. The company also benefits from declining leverage and improving gross margin and asset turnover ratios.

Insights for Value Investors Seeking Stable Income

CTS Eventim AG & Co. (EVD.DE) appears to be a strong and potentially undervalued investment based on its high Piotroski F-Score of 9. The company's financial health is robust, with positive indicators across all assessed categories. For investors looking for stable and potentially profitable opportunities, EVD.DE merits further consideration due to its consistent financial performance and efficient management.

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

Profitability of CTS Eventim AG & Co. (EVD.DE)

Company has a positive net income?

Net income is a core indicator of a company's profitability and sustainability.

Historical Net Income of CTS Eventim AG & Co. (EVD.DE)

The net income for CTS Eventim AG & Co. in 2023 is €274,641,000, which is positive. According to the Piotroski F-Score, this adds 1 point to the score. The trend over the past 20 years shows a consistent rise in net income, except for a dip in 2020 when the company reported a loss of €82,259,000. This rebound in 2023 is significant, reflecting strong recovery and operational proficiency, marking this as a good trend for the company's fiscal health.

Company has a positive cash flow?

Cash Flow from Operations (CFO) assesses the cash a company generates from its regular business operations, offering insights into its financial health.

Historical Operating Cash Flow of CTS Eventim AG & Co. (EVD.DE)

CTS Eventim AG & Co. (EVD.DE) has a positive cash flow from operations of €630,119,000 in 2023. This is a good indicator of the company's financial health, as it reflects the ability to generate sufficient revenue from its core operations. Historically, CTS Eventim has shown variability in its CFO, with notable negatives in 2020. However, the growth to €630,119,000 in 2023 represents a strong recovery and consistent upward trend since 2021, highlighting operational improvement and effective cash management.

Return on Assets (ROA) are growing?

Return on Assets (ROA) measures a company's profitability relative to its total assets, indicating how efficiently management is using assets to generate earnings.

Historical change in Return on Assets (ROA) of CTS Eventim AG & Co. (EVD.DE)

CTS Eventim AG & Co.'s ROA increased from 0.0832 in 2022 to 0.0946 in 2023. This upward trend is favorable and earns the company 1 point in the Piotroski Analysis. Historically, the company's ROA has fluctuated but demonstrates significant improvement, indicating improved management efficacy. Comparing the ROA over the past years reveals a resilience and growth capacity, despite the median industry ROA being significantly higher (0.3886 to 0.4033).

Operating Cashflow are higher than Netincome?

Operating Cash Flow higher than Net Income is a sign that a company's business is generating ample cash, which is crucial for its core operations. Cash flow from operations eliminates the effects of non-cash items and provides a clearer picture of financial health.

Historical accruals of CTS Eventim AG & Co. (EVD.DE)

In 2023, CTS Eventim AG & Co. had an Operating Cash Flow of €630.12 million, significantly higher than its Net Income of €274.64 million. This trend is beneficial as it indicates the company's ability to generate cash from its regular business operations, reaffirming the robust quality of its earnings. Over the past 20 years, the Operating Cash Flow has shown a positive trajectory overall, despite fluctuations, reaching a new high in 2023, clearly indicating business growth and efficient cash management.  Net income, while also growing over two decades, exhibits more significant variability. The trend of consistently higher operating cash flows compared to net income enhances the reliability of the financials, hence, this merits a score of 1.

Liquidity of CTS Eventim AG & Co. (EVD.DE)

Leverage is declining?

Change in leverage can indicate how well the company is managing its debt relative to its equity. A decrease suggests better debt management.

Historical leverage of CTS Eventim AG & Co. (EVD.DE)

Comparing the leverage in 2022 (0.0395) to the leverage in 2023 (0.0318), it is evident that the leverage has actually decreased. This indicates a positive trend in terms of how CTS Eventim AG & Co. is managing its debt. Historically, the leverage has fluctuated but generally shows a declining trend, especially from 2018 onwards. This suggests improved financial health and less reliance on debt. Therefore, according to the Piotroski criterion, 1 point should be added for this decrease in leverage.

Current Ratio is growing?

The Current Ratio is a key financial metric that measures a company’s ability to cover its short-term obligations with its short-term assets. Evaluating this ratio helps gauge liquidity and indicates financial health.

Historical Current Ratio of CTS Eventim AG & Co. (EVD.DE)

For CTS Eventim AG & Co. (EVD.DE), the Current Ratio has slightly increased from 1.0896 in 2022 to 1.1048 in 2023. This increase indicates a marginal improvement in the company's short-term liquidity. This is important because a higher Current Ratio suggests better capacity to handle short-term liabilities, which can be crucial during economic uncertainties. Over the last 20 years, the company's Current Ratio has oscillated but remains generally stable. The industry's median Current Ratio for 2023 stands at 1.0522, slightly lower than CTS Eventim’s, demonstrating that the company is slightly above the industry standard in terms of liquidity. Given the increase in Current Ratio from 2022 to 2023, 1 point is added.

Number of shares not diluted?

Change in shares outstanding reveals how a company’s structure is evolving. A reduction often indicates management’s confidence in underlying business fundamentals.

Historical outstanding shares of CTS Eventim AG & Co. (EVD.DE)

For CTS Eventim AG & Co. (EVD.DE), the number of outstanding shares remained constant at 95,991,300 for both 2022 and 2023. This lack of change means that no points are awarded for this criterion. Interestingly, the company has maintained the same share structure since 2015. Prior to that, it doubled the shares from 2004 to 2005, reflecting a period of significant expansion. This consistency in the past few years could suggest a stabilizing phase post growth and maturity.

Operating of CTS Eventim AG & Co. (EVD.DE)

Cross Margin is growing?

Gross Margin measures the proportion of revenue that exceeds the cost of goods sold (COGS). A higher gross margin indicates better efficiency and profitability. Monitoring changes in gross margin is crucial for assessing the company's operational performance.

Historical gross margin of CTS Eventim AG & Co. (EVD.DE)

The Gross Margin for CTS Eventim AG & Co. increased from 0.2328 in 2022 to 0.2557 in 2023, which points to an improvement in efficiency and profitability. This increase in Gross Margin earns a point in the Piotroski analysis. Historically, the Gross Margin of the company has seen significant fluctuations, particularly during the COVID-19 pandemic in 2020, when it dropped to 0.0382, a stark deviation from its usual range. Although the 2023 Gross Margin of 0.2557 still lags behind the industry median of 0.4033, the upward trend is a positive sign for CTS Eventim AG & Co. Additionally, this increase reflects a resilience and potential return to pre-pandemic operational efficiency.

Asset Turnover Ratio is growing?

Comparing Asset Turnover ratios over consecutive years helps in understanding how efficiently a company is utilizing its assets to generate revenue.

Historical asset turnover ratio of CTS Eventim AG & Co. (EVD.DE)

The Asset Turnover ratio increased from 0.7865 in 2022 to 0.8127 in 2023, adding 1 point in the Piotroski score. This uptick suggests enhanced operational efficiency and better asset utilization. Reviewing the historical trend, the ratio has fluctuated but generally dropped since the early 2000s, reaching a low during 2020 at 0.1382 before recovering. The current positive change is crucial against this backdrop of long-term variation.


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