QGEN 41.8 (-0.9%)
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Last update on 2024-06-04

Qiagen (QGEN) - Piotroski F-Score Analysis for Year 2023 (Final Score: 4/9)

Qiagen (QGEN) Piotroski F-Score Analysis for 2023: Understand profitability, liquidity, and financial efficiency with detailed criteria achieved and historical comparisons.

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: 4

We're running Qiagen (QGEN) 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?
0
Cross Margin is growing?
0
Asset Turnover Ratio is growing?
0

The Piotroski F-Score for Qiagen (QGEN) is determined based on their financial health in profitability, liquidity, and operating efficiency in 2023: 1. Profitability: Qiagen shows positive net income ($341,303,000) who contributes 1 point to the score, good cash flow from operations ($459,455,000) which adds another point, but their Return on Assets (ROA) dropped from 0.0681 in 2022 to 0.055 in 202. Even if operating cash flow exceeds net income, which adds another point. 2. Liquidity: Qiagen has reduced leverage from 0.2341 to 0.1507, earning a point. However, the current ratio decreased from 2.4565 to 1.9898 and experienced a slight increase in shares count, failing to earn additional points in these aspects. 3. Operating Efficiency: Gross margin decreased, and the asset turnover ratio decreased, failing to gain points in these criteria. The summary shows a mixed financial picture, with strengths in profitability and leverage, but weak performance in asset utilization and marginal efficiency.

Insights for Value Investors Seeking Stable Income

Based on the Piotroski F-Score of 4, Qiagen (QGEN) presents an average investment opportunity. The F-Score indicates some strengths in areas like profitability and leverage but also reveals weaknesses in their return on assets, current ratio, and efficiency metrics. For investors looking at the longer-term growth and operational efficiency, it might need more scrutiny given the declining metrics. Investors should proceed cautiously and consider further analysis or diversifying their investments.

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

Profitability of Qiagen (QGEN)

Company has a positive net income?

Net income should be positive to indicate profitability and positive earnings, contributing crucially to the financial health of a company.

Historical Net Income of Qiagen (QGEN)

The net income for Qiagen (QGEN) in 2023 is $341,303,000, which is positive. This is a good sign, as a positive net income implies that the company is profitable. Comparing this figure to the company's historical net income over the last 20 years, there is a significant increase from previous years, showing strong growth despite a slight decline compared to 2022's $423,211,000. The positive net income in 2023 earns Qiagen 1 point for this Piotroski criterion.

Company has a positive cash flow?

Cash flow from operations (CFO) indicates the amount of cash generated by a company's normal business operations. A positive CFO is critical as it shows the company can generate sufficient cash to maintain and grow its operations without relying on external financing.

Historical Operating Cash Flow of Qiagen (QGEN)

The CFO of Qiagen (QGEN) in 2023 is $459,455,000, which is significantly positive. This follows a trend of largely positive cash flows over the past 20 years, with 2023 figures slightly down from the peak years of 2019-2020 but still robust. Over 20 years, Qiagen has consistently maintained positive CFOs, indicating strong operational efficiency. The slight dip in 2023 compared to previous years warrants monitoring but does not undermine the fundamental financial health. Therefore, this metric adds 1 point to the Piotroski Score.

Return on Assets (ROA) are growing?

ROA, or Return on Assets, measures a company's efficiency in generating profit from its assets; a higher ROA indicates better performance.

Historical change in Return on Assets (ROA) of Qiagen (QGEN)

In 2023, Qiagen's ROA was 0.055, a decline from 0.0681 in 2022. This is not favorable as it shows decreasing efficiency in utilizing assets. Qiagen thus scores 0 points for this criterion. Contrasted with the industry median ROA, which has generally been much higher (averaging around 0.48-0.50), Qiagen's lower ROA signals a potential area of concern regarding asset efficiency and competitiveness.

Operating Cashflow are higher than Netincome?

Operating Cash Flow higher than Net Income is a key financial metric that indicates a company's core business is generating more cash than its reported earnings, a sign of good financial health.

Historical accruals of Qiagen (QGEN)

In 2023, Qiagen's operating cash flow stood at $459,455,000 compared to a net income of $341,303,000. This is a good sign, as operating cash flow is significantly higher than net income, highlighting the company's efficient cash generation from its core operations. Over the last 20 years, Qiagen's operating cash flow has generally shown an upward trend, particularly notable in recent years with numbers such as $457,806,000 in 2020 and $639,001,000 in 2021, peaking in 2022 at $715,264,000. This upward trend enhances confidence in Qiagen's ability to sustain its operations and growth.

Liquidity of Qiagen (QGEN)

Leverage is declining?

Change in leverage assesses how a company manages its debt levels, which impacts financial stability and risk.

Historical leverage of Qiagen (QGEN)

In 2022, Qiagen had a leverage of 0.2341, which fell to 0.1507 in 2023. This decrease implies the company reduced its reliance on debt. Historically, fluctuations can be observed, with leverage hitting highs like 0.4139 in 2006. The 2023 reduction is positive, suggesting improved financial health and risk management for Qiagen. Hence, 1 point is awarded.

Current Ratio is growing?

The Current Ratio, a liquidity ratio, is critical as it indicates the company's ability to cover short-term liabilities with short-term assets.

Historical Current Ratio of Qiagen (QGEN)

For Qiagen (QGEN), the Current Ratio decreased from 2.4565 in 2022 to 1.9898 in 2023. Thus, it fails to earn the additional point, as it did not increase. Over the past 20 years, Qiagen has experienced fluctuations in its Current Ratio, achieving a peak of 5.8627 in 2006 and reaching a low of 1.3902 in 2021. Comparatively, the industry's median current ratio has hovered around 1.9045 to 2.8276, with Qiagen generally performing better than the median, except in recent years. A decreasing trend may indicate potential liquidity challenges that Qiagen might face, but it's still relatively close to the 2023 industry median of 2.3682.

Number of shares not diluted?

Analyzing changes in share count is crucial as it affects earnings per share and reflects corporate actions like buybacks or stock issuance.

Historical outstanding shares of Qiagen (QGEN)

Between 2022 and 2023, Qiagen's outstanding shares increased from 220,749,690 to 221,301,620, indicating a slight increase. This results in a score of 0 for this criterion according to the Piotroski Analysis. Over a 20-year period, Qiagen has seen fluctuations in share count with notable increases during certain years such as 2008 and 2010, possibly due to corporate activities like mergers or equity raisings. Conversely, from 2019 to 2022, the share count exhibited a general downward trend, aligning with potential share buyback programs aimed at returning capital to shareholders. The recent uptick might indicate new shares issued or options exercised.

Operating of Qiagen (QGEN)

Cross Margin is growing?

The gross margin measures the portion of revenue that exceeds the cost of goods sold (COGS). It is a critical measure of profitability and operational efficiency.

Historical gross margin of Qiagen (QGEN)

The gross margin for Qiagen in 2023 stands at 0.6277 compared to 0.6465 in 2022. This represents a decrease rather than an increase in gross margin. A lower gross margin can indicate either increased costs of goods sold or reduced pricing power, both of which can raise concerns about profitability. Considering the industry median, which generally hovers around 0.5, QGEN's margins are still significantly higher than the sector. However, this downward trend may raise red flags if it continues. Therefore, no point is added.

Asset Turnover Ratio is growing?

Asset turnover measures a company's efficiency at using its assets to generate revenue. A higher ratio indicates better performance.

Historical asset turnover ratio of Qiagen (QGEN)

Given the asset turnover of 0.3169 in 2023 compared to 0.3444 in 2022, there's a decrease in efficiency, earning QGEN 0 points. Historically, Qiagen's asset turnover has seen fluctuations, peaking in 2003 at 0.6983 and steadily decreasing over the years, with minor bumps in 2019 and 2020.


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