OSUR 4.3 (+0%)
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Last update on 2024-06-07

OraSure Technologies (OSUR) - Piotroski F-Score Analysis for Year 2023 (Final Score: 8/9)

Piotroski F-Score analysis of OraSure Technologies (OSUR) for 2023 with a high score of 8/9, highlighting strong profitability, liquidity, 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: 8

We're running OraSure Technologies (OSUR) 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?
0
Current Ratio is growing?
1
Number of shares not diluted?
1
Cross Margin is growing?
1
Asset Turnover Ratio is growing?
1

OraSure Technologies (OSUR) was analyzed using the Piotroski F-Score, a model designed to reflect the financial strength of a company. OSUR achieved a high score of 8 out of 9, indicating good financial health. Key observations include a significant positive net income of $53.65 million, an impressive positive Cash Flow from Operations of $141.58 million, and an increasing Return on Assets (ROA) to 11.58%. Additionally, the current ratio nearly doubled, showing improved liquidity, and there was a noteworthy rise in gross margin. However, leverage slightly increased, and there was an unusual drop in shares outstanding, which might need further scrutiny.

Insights for Value Investors Seeking Stable Income

Given the high Piotroski F-Score of 8, OraSure Technologies appears to be a strong candidate for investment. The company has shown tremendous improvement in profitability, operational efficiency, and liquidity. Nevertheless, potential investors should investigate the unusual data point regarding share dilation and consider the slight increase in leverage. Overall, OSUR is worth looking into as it shows good growth potential and effective financial management.

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

Profitability of OraSure Technologies (OSUR)

Company has a positive net income?

Positive net income is a key indicator of a company's profitability and financial health.

Historical Net Income of OraSure Technologies (OSUR)

The net income for OraSure Technologies (OSUR) in 2023 is $53,655,000, which is firmly positive. This is an outstanding development, especially when viewed against the backdrop of the company's historical net incomes over the last 20 years. Looking at the data: - The company has had several years of negative net income, such as -$31,275,302 in 2008 and -$22,998,000 in 2021. - The net income has fluctuated significantly, with periods of profitability interspersed with loss years. - 2023 marks a significant turnaround from the previous years' losses, including a gain of $22,997,000 since the loss in 2021. This positive result for 2023 not only earns the company 1 point in the Piotroski score but also signals potential renewed financial stability and effective management strategies. It also instills confidence among investors and might bode well for the company's future prospects.

Company has a positive cash flow?

Cash Flow from Operations (CFO) is critical because it measures the cash generated or consumed by a company's core business operations, providing key insights into the financial health of the business.

Historical Operating Cash Flow of OraSure Technologies (OSUR)

OraSure Technologies (OSUR) reported a positive Cash Flow from Operations of $141.58 million in 2023, which is a very encouraging sign. This earns the company 1 point according to the Piotroski analysis. Looking at the historical data, this is the highest CFO reported by the company in the last 20 years. Such a significant increase from the previous years, especially the negative CFO in both 2021 (-$35.38 million) and 2022 (-$47.20 million), highlights a major turnaround in the company's operating efficiency and financial health. This trend towards positive and substantial cash flow is a positive indicator for investors.

Return on Assets (ROA) are growing?

Change in ROA refers to the variation in the Return on Assets year-over-year. It is essential as it indicates the company's ability to generate profits from its assets efficiently.

Historical change in Return on Assets (ROA) of OraSure Technologies (OSUR)

The ROA for OraSure Technologies in 2023 stands at 11.58%, a significant improvement from the -3.79% in 2022. This positive shift earns a Piotroski score of 1 point since an increasing ROA often signifies enhanced profitability and improved asset utilization. Over the past 20 years, despite historical fluctuations in operating cash flow, a contemporary rise in ROA contrasts positively with the industry's consistent median values. In 2023, the sector's median ROA was 5.549%, making OraSure’s recent performance notably more impressive.

Operating Cashflow are higher than Netincome?

Comparing Operating Cash Flow and Net Income gives insights into the quality of earnings and cash-generating efficiency of a company.

Historical accruals of OraSure Technologies (OSUR)

For the year 2023, OraSure Technologies' Operating Cash Flow (OCF) was $141.58 million, while its Net Income was $53.65 million. The fact that OCF is significantly higher than Net Income suggests that the company is efficient in turning its earnings into cash, which is a positive sign. Historically, over the last 20 years, OraSure has had fluctuating OCF and Net Income figures, with several years where OCF was negative despite positive Net Income. However, the 2023 figures stand out as notably strong with OCF being more than double the Net Income. Therefore, this trend is good as it indicates robust cash flow management and adds 1 point to the Piotroski score for OraSure Technologies.

Liquidity of OraSure Technologies (OSUR)

Leverage is declining?

Change in leverage reflects the ratio of total liabilities to total assets. It is essential as it indicates how much of the company’s assets are financed by debt, impacting financial stability.

Historical leverage of OraSure Technologies (OSUR)

In 2022, OraSure Technologies had a leverage of 0.0216 compared to 0.0236 in 2023. This represents an increase in leverage, suggesting a higher dependency on debt financing, which could pose higher financial risk. Historically, the company's leverage has fluctuated, with certain periods exhibiting no leverage at all. In light of the 2023 data, we observe a worsening trend. Therefore, in the context of Piotroski's F-Score criteria, no point is awarded as the company's leverage has increased.

Current Ratio is growing?

This criteria assesses the current ratio, which indicates a company's ability to meet its short-term liabilities with its short-term assets. It's a vital measure of liquidity and financial health.

Historical Current Ratio of OraSure Technologies (OSUR)

OraSure Technologies' current ratio has indeed increased from 4.7086 in 2022 to 9.7749 in 2023. This sharp rise of 5.0663 suggests a significant improvement in the company's short-term liquidity position. Over the past 20 years, the company's current ratio has largely fluctuated but had not reached such a high level since 2005. Notably, the increase in 2023 is well above the industry median of 2.3418, indicating superior liquidity management compared to the sector. With this improvement, OraSure Technologies scores a point in the Piotroski Analysis for this criterion.

Number of shares not diluted?

The Change in Shares Outstanding criterion assesses whether a company has reduced its number of outstanding shares.

Historical outstanding shares of OraSure Technologies (OSUR)

In the case of OraSure Technologies (OSUR), the outstanding shares count showed a drastic change. In 2022, the company had 72,505,000 shares outstanding. However, in 2023, this number dropped to 0. This odd figure suggests either a significant share buyback, a change in share registration, or perhaps an accounting or reporting anomaly as outstanding shares cannot realistically drop to zero in standard practice. Therefore, based on the preset condition where a decrease in shares outstanding earns a positive assessment, this criterion receives a score of 1. However, the strange drop to 0 may indicate a need for further investigation into what these numbers truly represent.

Operating of OraSure Technologies (OSUR)

Cross Margin is growing?

Change in Gross Margin compares the company's gross margin from one year to the next. This criterion evaluates whether a company's gross profitability, relative to its revenue, has improved.

Historical gross margin of OraSure Technologies (OSUR)

The Gross Margin for OraSure Technologies (OSUR) increased from 0.3831 in 2022 to 0.4233 in 2023, resulting in a 1-point score for this criterion. An increase in gross margin is generally viewed positively as it indicates that the company is managing its production costs more effectively or increasing its pricing power relative to its costs. Historically, OraSure's gross margin has been highly variable, peaking at 0.6866 in 2016 and plunging to 0.3831 in 2022, the lowest over the 20-year span. This recent rise in 2023 suggests a recovery effort is underway. In comparison to the industry median for 2023, which is 0.5549, OraSure's margin is still below the industry average, highlighting room for further improvement.

Asset Turnover Ratio is growing?

Asset Turnover measures a company's efficiency at using its assets to generate sales. Higher values suggest better utilization, vital for assessing company performance.

Historical asset turnover ratio of OraSure Technologies (OSUR)

The Asset Turnover for OraSure Technologies has improved from 0.8561 in 2022 to 0.8748 in 2023. This increment, though slight, shows a positive trend in the company's efficiency at utilizing its assets to generate sales. Historically, looking at the last 20 years, the company's Asset Turnover has seen fluctuating values. For instance, there was a marked decline in 2010 where it stood at 0.6013, contrasted by a significant uptrend in 2022 and 2023 when it hit 0.8561 and then 0.8748. This recent improvement adds one point in Piotroski Analysis, signaling a positive change towards better asset utilization.


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