RGEN 125.92 (-0.2%)
US7599161095Medical Devices & InstrumentsMedical Instruments & Supplies

Last update on 2024-06-07

Repligen (RGEN) - Piotroski F-Score Analysis for Year 2023 (Final Score: 4/9)

Analyze Repligen (RGEN) with the Piotroski F-Score for 2023. Discover insights into its financial health 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: 4

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

Repligen (RGEN) has a Piotroski F-Score of 4 out of 9, indicating a mixed financial position. While the company demonstrates strengths in areas like positive net income, positive cash flow, a growing current ratio, and high earnings quality, it struggles with declining ROA, increasing leverage, diluted shares, decreasing gross margins, and reduced asset turnover. Specifically, profitability shows positive trends but is counterbalanced by reduced efficiency and increased financial risk. Liquidity position is strong with an elevated current ratio, though the leverage ratio poses concerns. Operational efficiency and shareholder value aspects need improvement.

Insights for Value Investors Seeking Stable Income

Given Repligen's mixed Piotroski F-Score of 4, potential investors should approach with cautious optimism. The company showcases resilience through positive cash flow and strong liquidity but faces challenges in profitability efficiency and financial leverage. Investors might want to further investigate the reasons behind declining ROA, increasing debt, and deteriorating gross margins before making a decision. If Repligen can address these issues and leverage its current strengths, it may present a worthy investment opportunity. Thus, it's worth keeping an eye on their future financial data.

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

Profitability of Repligen (RGEN)

Company has a positive net income?

Net income measures a company's total earnings and is crucial for assessing profitability, impacting stock valuation and investment decisions.

Historical Net Income of Repligen (RGEN)

For 2023, Repligen (RGEN) demonstrated a positive net income of $41,577,000. Analyzing the historical data over 20 years shows significant volatility in their net income, with notable losses such as -$1.6 billion in 2011 and significant gains like $185,959,000 in 2022. The 2023 positive net income aligns positively with the overall upward trend observed in recent years. Therefore, for the Piotroski analysis, this warrants an addition of 1 point, indicating a positive trend in this criterion.

Company has a positive cash flow?

Cash Flows from Operations (CFO) indicates the amount of cash generated by a company from its normal business operations.

Historical Operating Cash Flow of Repligen (RGEN)

The CFO for Repligen (RGEN) in 2023 stands at $113,918,000, which is a positive figure. This indicates that the company is adept at converting its revenue into actual cash flow, a crucial sign of its financial health. Historically, from 2003 to 2022, the company’s CFO has shown some fluctuations but has turned positive and significantly improved over the years, especially post-2010. The positive CFO in 2023 reaffirms the company's capacity to maintain a strong cash flow, adding 1 point to its Piotroski score.

Return on Assets (ROA) are growing?

Return on Assets (ROA) reflects a company's efficiency at generating profits from its assets.

Historical change in Return on Assets (ROA) of Repligen (RGEN)

Comparing Repligen's 2023 ROA of 0.0155 to the 2022 ROA of 0.0762, we see a decrease. Hence, Repligen scores 0 points here. The company's 2023 ROA is significantly below the industry's median ROA of 0.5549. This declining trend raises concerns about Repligen's profitability and asset utilization effectiveness.

Operating Cashflow are higher than Netincome?

The criterion assesses whether a company’s operating cash flow exceeds its net income. This signals earnings quality if operating cash flow is higher.

Historical accruals of Repligen (RGEN)

In 2023, Repligen's operating cash flow was $113,918,000, significantly higher than its net income of $41,577,000. This yields a difference of $72,341,000, which indicates high earnings quality as the company generates more cash than it reports as income. Historically, this signifies sound financial health and operational efficiency, as consistent positive operating cash flow coupled with lower net income reflects prudent accounting practices and efficient core business operations. Therefore, this trend is good for the given criteria, so 1 point is awarded.

Liquidity of Repligen (RGEN)

Leverage is declining?

Change in Leverage measures the company's ability to manage its debt effectively.

Historical leverage of Repligen (RGEN)

Repligen's leverage increased from 0.052 in 2022 to 0.2254 in 2023, marking a significant increase. Historically, Repligen has seen fluctuations in its leverage, notably peaking at 0.3298 in 2017 before dropping to 0.052 in 2022. This recent rise may raise concerns about the company's rising debt levels, suggesting potential risk if this trend continues. Leverage management is paramount since excessively high leverage can imply financial instability.

Current Ratio is growing?

Current Ratio compares a company's current assets to its current liabilities, indicating liquidity.

Historical Current Ratio of Repligen (RGEN)

In 2022, Repligen's Current Ratio stood at 2.4694. By 2023, the Current Ratio elevated to 7.0247, marking a significant increase. This uptick suggests that Repligen is in an enhanced liquidity position, making it more capable of covering its short-term liabilities with its short-term assets, relative to the previous year. Notably, the industry's median current ratio has hovered in the range of approximately 2.34 to 3.14 over the last two decades, signifying that Repligen is significantly outperforming the industry benchmark as of 2023. Consequently, this performance earns Repligen 1 point, showcasing a positive development in its financial health.

Number of shares not diluted?

The change in shares outstanding looks at whether there has been a net issuance or repurchase of shares over the past year, impacting shareholder value.

Historical outstanding shares of Repligen (RGEN)

The outstanding shares for Repligen (RGEN) increased from 55,460,000 in 2022 to 55,720,000 in 2023. Consequently, this indicates a 0 point according to the Piotroski F-Score methodology. This trend suggests that there has been a slight dilution of shares. Over the last 20 years, Repligen has generally increased its number of shares outstanding, most notably from 30.6 million in 2005 to 55.72 million in 2023. This might imply that the company has frequently issued new shares to raise capital or fund acquisitions, which can be concerning if the shares are not deployed effectively for growth but can also be non-problematic if the capital is used prudently.

Operating of Repligen (RGEN)

Cross Margin is growing?

The criterion examines whether the company is improving its profitability through its core operations by comparing year-over-year gross margins.

Historical gross margin of Repligen (RGEN)

The Gross Margin of Repligen (RGEN) decreased from 0.5685 in 2022 to 0.4459 in 2023. This trend is concerning because it reflects a decrease in profitability from core operations. Despite fluctuations over the last 20 years, such a significant drop as evidenced between 2022 and 2023 is worrisome. Additionally, when compared to the industry median gross margin of 0.5549 in 2023, Repligen's current position is notably worse. This decline results in a score of 0 for this criterion, signaling potential operational or cost management challenges for the firm.

Asset Turnover Ratio is growing?

Asset Turnover measures a company's efficiency in using its assets to generate sales and is crucial for understanding operational effectiveness.

Historical asset turnover ratio of Repligen (RGEN)

In 2023, Repligen's Asset Turnover was 0.2388, down from 0.3283 in 2022. This 27.3% decrease indicates a less efficient use of assets in generating sales. Historically, the company's Asset Turnover Ratio has shown volatility, peaking at 316.0539 in 2011 due to what may have been a data anomaly or extraordinary event. This recent decline contributes zero points in the Piotroski Analysis, reflecting negatively on operational efficiency.


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