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Last update on 2024-06-07

Jenoptik (JEN.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 8/9)

Jenoptik (JEN.DE) achieves a high Piotroski F-Score of 8 out of 9 in 2023, showcasing strong financial health across various metrics.

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: 8

We're running Jenoptik (JEN.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?
0
Asset Turnover Ratio is growing?
1

Short Analysis - Piotroski Score: 8 for Jenoptik (JEN.DE). The company's profitability, liquidity, and operating efficiency were evaluated based on nine criteria. Positive net income, rising cash flow, improving ROA, higher operating cash flow than net income, decreasing leverage, growing current ratio, and stable share count contributed positively. However, there were setbacks in gross margin performance.

Insights for Value Investors Seeking Stable Income

Given Jenoptik's high Piotroski Score of 8, it demonstrates strong financial health and management effectiveness, making it an attractive investment prospect. Despite minor setbacks in gross margin, the overall positive trends suggest it is worth considering for investment, especially in comparison to industry benchmarks.

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

Profitability of Jenoptik (JEN.DE)

Company has a positive net income?

Evaluating net income is crucial as it indicates a company's profitability over a specific period. A positive net income reflects operational success and financial health.

Historical Net Income of Jenoptik (JEN.DE)

For Jenoptik (JEN.DE), the net income of €72,466,000 in 2023 is positive. According to Piotroski's criteria, this earns the company one point. Analyzing the historical data over the past 20 years reveals cyclicality with fluctuations ranging from negative €25,789,000 in 2003 to peaks like €87,575,000 in 2018. This consistency in maintaining positive net income in recent years, aside from minor setbacks, demonstrates resilience and prudent financial management. Thus, this trend is favorable as it highlights Jenoptik's ability to generate consistent profits, contributing to investor confidence.

Company has a positive cash flow?

Cash Flow from Operations (CFO) indicates the cash a company generates from its regular business activities. Positive CFO is crucial as it reflects a company's ability to produce sufficient cash from its core activities to maintain and grow its operations.

Historical Operating Cash Flow of Jenoptik (JEN.DE)

The CFO for Jenoptik in 2023 is EUR 166,991,000, which is positive. This is a favorable trend as it marks continuous improvement over the years. For instance, from just EUR 85,124,000 in 2015, the CFO has nearly doubled by 2023. Such a trend reflects a strengthening core business operation. This awarding it 1 point in the Piotroski analysis.

Return on Assets (ROA) are growing?

The Change in Return on Assets (ROA) assesses a company's ability to generates profit against its assets over two periods.

Historical change in Return on Assets (ROA) of Jenoptik (JEN.DE)

Jenoptik's ROA increased from 0.0321 in 2022 to 0.0434 in 2023. This positive change of 0.0113 indicates improved efficiency in generating profit from assets, regardless of industry norms, where median ROA has fluctuated from 0.2127 to 0.2104 in the same periods. Therefore, 1 point is added for this criterion.

Operating Cashflow are higher than Netincome?

The Operating Cash Flow criterion checks if a company's operating cash flow is higher than its net income. This indicates strong earnings quality and effective cash management.

Historical accruals of Jenoptik (JEN.DE)

For Jenoptik (JEN.DE), the operating cash flow in 2023 was €166,991,000, while the net income was significantly lower at €72,466,000. This places the company's operating cash flow well above its net income. Historically, Jenoptik's operating cash flow has demonstrated an upward trajectory over the past two decades, peaking in 2023. Similarly, net income, which has fluctuated more variably, reflects a notable increase. The divergence suggests that the company has managed to generate substantial cash from its core operations despite the potential accrual adjustments or non-cash revenues that affect reported net income. This trend is favorable for the criterion, earning a point under the Piotroski Analysis system. Notably, such a trend indicates robust cash-generating capability and enhances the possibility of sustained operational efficiency in future financial periods. Additionally, compared to companies of similar market capitalization in the electronic equipment sector, this kind of cash flow profile is exceptional, pointing to effective working capital management and lean operational processes.

Liquidity of Jenoptik (JEN.DE)

Leverage is declining?

The change in leverage criterion examines whether a company's debt-to-equity ratio has decreased. Lower leverage often indicates reduced risk.

Historical leverage of Jenoptik (JEN.DE)

Comparing the leverage ratios of 0.2858 in 2022 and 0.2799 in 2023, we find that the leverage has indeed decreased, albeit slightly. Over the span of 20 years, Jenoptik's leverage has seen fluctuations but has generally hovered around lower figures in the most recent years, indicating careful debt management. Historically, the leverage peaked at 0.2858 in 2022. This reduction in leverage results in an addition of 1 point for our Piotroski score, suggesting a potentially positive shift in financial stability.

Current Ratio is growing?

The Current Ratio measures a company's ability to pay short-term liabilities with short-term assets. A higher ratio suggests stronger liquidity.

Historical Current Ratio of Jenoptik (JEN.DE)

The Current Ratio for Jenoptik (JEN.DE) has increased from 1.7554 in 2022 to 2.0742 in 2023. This increase indicates an improvement in the company's liquidity position, providing stronger coverage of its short-term liabilities by its short-term assets. Additionally, when comparing Jenoptik's Current Ratio to the industry median over the same 20-year span, several insights can be garnered: Jenoptik's Current Ratio of 2.0742 in 2023 aligns exactly with the industry median for 2023, signifying that the firm's liquidity is consistent with industry standards. Historically, Jenoptik's Current Ratio vs. the industry median has mostly remained within a comparable range, showcasing robust financial health over the long term. The trend suggests that Jenoptik has maintained, if not sometimes exceeded, industry-average liquidity—balancing its ability to cover liabilities and strategic cash utilization. For this increase in Current Ratio from 2022 to 2023, it earns 1 point under the Piotroski F-Score framework.

Number of shares not diluted?

This criterion assesses the change in shares outstanding over the year. It is important as an increase in shares may dilute the earnings per share (EPS) while a decrease often indicates share buybacks.

Historical outstanding shares of Jenoptik (JEN.DE)

Based on the data provided, the number of shares outstanding for Jenoptik (JEN.DE) remained constant at 57,238,115 shares from 2022 to 2023. Since the outstanding shares did not increase, the score for this criterion is set to 1 point. Historically, the trend shows a significant increase from 48,840,000 shares in 2003 to the current count in 2023, with notable jumps around 2010 (56,254,446 shares) and steady numbers since 2011. This long-term increase may imply periodic dilution, but the stability in recent years is a positive sign.

Operating of Jenoptik (JEN.DE)

Cross Margin is growing?

Change in Gross Margin is a measure of a company's operational efficiency. It reflects how well the company manages its production costs relative to its revenue. An increasing Gross Margin typically indicates better cost management, which can lead to higher profitability.

Historical gross margin of Jenoptik (JEN.DE)

The Gross Margin for Jenoptik (JEN.DE) decreased slightly from 0.3525 in 2022 to 0.3476 in 2023. This decrease indicates a minor setback in the company’s operational efficiency and cost management. Given the company's historical performance, where gross margins have fluctuated around the mid-30s range, this dip can be seen as a slight inconsistency rather than a significant concern. However, compared to the industry median Gross Margin of 0.2104 in 2023, Jenoptik’s margin remains significantly higher, showcasing its robustness in managing production costs. Therefore, while the point for this criterion is set to 0, the overall performance still remains relatively strong and competitive within the industry. This trend is neither particularly good nor particularly troubling but indicates room for future improvement in cost management.

Asset Turnover Ratio is growing?

The change in asset turnover measures the efficiency with which a company uses its assets to generate sales. Higher asset turnover indicates better performance.

Historical asset turnover ratio of Jenoptik (JEN.DE)

Jenoptik's asset turnover increased from 0.572 in 2022 to 0.6386 in 2023. This increment signals improved operational efficiency, with more revenue generated per unit of assets. Over the last two decades, the ratio peaked at 1.4674 in 2003 and hit a low of 0.485 in 2021, demonstrating phases of varied operational efficiency. Adding 1 point signifies enhanced asset utilization.


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