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Last update on 2024-06-07

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

Detailed Piotroski F-Score analysis for SIGA Technologies in 2023, earning a final score of 8/9. Assessing its financial health via 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 SIGA Technologies (SIGA) 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?
0
Number of shares not diluted?
1
Cross Margin is growing?
1
Asset Turnover Ratio is growing?
1

The Piotroski F-Score measures the financial health of a company out of 9 based on its profitability, liquidity, and operational efficiency. SIGA Technologies scored an 8 out of 9, making it a strong and potentially undervalued stock. They have a positive net income, strong cash flow from operations, increasing return on assets, and generate more cash flow than net income. The company has no leverage and even reduced its outstanding shares. SIGA's gross margin and asset turnover ratio are also on the rise, although there's been a drop in its current ratio, it's still above the industry median.

Insights for Value Investors Seeking Stable Income

Based on SIGA Technologies' Piotroski F-Score of 8, it appears to be a strong investment opportunity. The company shows robust financial health with growing profitability, efficiency, and minimal debt. However, the fluctuating current ratio suggests monitoring liquidity management. Overall, it looks promising for investors to consider adding SIGA to their portfolio.

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

Profitability of SIGA Technologies (SIGA)

Company has a positive net income?

The Piotroski F-Score considers net income to assess profitability and operational efficiency of a company.

Historical Net Income of SIGA Technologies (SIGA)

For the fiscal year 2023, SIGA Technologies reported a net income of $68,068,826, which is positive. According to the Piotroski F-Score methodology, any positive net income warrants an addition of one point. Thus, SIGA earns 1 point for this criterion. Observing the net income data for the last 20 years, SIGA has had fluctuating net income with significant positive results in select years (e.g., 2018 and 2021). This positive trend for 2023 is favorable as it indicates financial health.

Company has a positive cash flow?

Use the Cash Flow from Operations (CFO) criterion to determine if SIGA Technologies (SIGA) had positive or negative cash flow in 2023. This criterion is fundamental because it reflects the firm's ability to generate cash from its regular business operations, which impacts its overall financial health and ability to sustain growth and pay off debt.

Historical Operating Cash Flow of SIGA Technologies (SIGA)

In 2023, SIGA Technologies (SIGA) reported a CFO of 94,799,331 USD. This figure is positive, indicating strong operational efficiency and cash generation capabilities. Comparatively, analyzing the company's cash flow data over the past 20 years, it becomes evident that SIGA has had fluctuations in operational cash flow: highs such as 68,871,323 USD in 2018 and lows such as -115,590,781 USD in 2016. The positive CFO in 2023 signifies a robust year, reinforcing investor confidence and justifying an addition of 1 Piotroski point. Overall, these values reflect a favorable trend when contextualized within the company's history and fundamentals.

Return on Assets (ROA) are growing?

ROA stands for Return on Assets, which measures how efficiently a company uses its assets to generate profit. A higher ROA indicates better asset efficiency and is a crucial indicator of profitability.

Historical change in Return on Assets (ROA) of SIGA Technologies (SIGA)

The ROA for SIGA Technologies in 2023 is 0.3029, up from 0.1655 in 2022. This denotes an increase of approximately 83%. The uptick signifies improved efficiency in using assets to generate earnings, which is a positive trend. However, when compared to the industry median ROA of 0.4518 for 2023, SIGA still falls short. Despite the improvement, the company should strive to match or exceed the industry standard. Hence, for the Piotroski score, SIGA earns 1 point here.

Operating Cashflow are higher than Netincome?

The comparison of Operating Cash Flow to Net Income evaluates a company's financial health, indicating its ability to generate sufficient cash flow to cover net income.

Historical accruals of SIGA Technologies (SIGA)

In 2023, SIGA Technologies (SIGA) reported an Operating Cash Flow of $94,799,331 in contrast to a Net Income of $68,068,826. This implies that the company generated more cash from its operations than its reported net income, a favorable signal for financial health. The trend over the last 20 years shows significant variability, such as the negative operating cash flows in earlier years compared to recent strong figures, indicating improved operational efficiency. Charts show fluctuations in both operating cash flow and net income over the years, with notable peaks and troughs reflective of market conditions and company performance. Given the positive differential in 2023, this criterion scores a 1 point.

Liquidity of SIGA Technologies (SIGA)

Leverage is declining?

Change in Leverage compares a company’s financial debt levels across different periods to determine its financial risk.

Historical leverage of SIGA Technologies (SIGA)

For SIGA Technologies (SIGA), the company's leverage stands at 0 in both 2022 and 2023 with no change observed. However, examining a broader historical context from the past 20 years, leverage has generally retained low or zero levels, apart from a notable spike observed in 2016 and 2017 (0.4134 and 0.4911 respectively). The sustained leverage levels of 0 during recent years suggest financial conservatism. Such stability could be favorable as it indicates lesser dependency on debt financing, hence lower financial risk. Therefore, based on the zero leverage trend, SIGA scores 1 point for this criterion.

Current Ratio is growing?

The Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as current assets divided by current liabilities.

Historical Current Ratio of SIGA Technologies (SIGA)

In 2023, SIGA Technologies (SIGA) had a Current Ratio of 4.4161, compared to 8.6341 in 2022. This represents a decrease, not an increase. Therefore, for Piotroski Analysis, 0 points should be assigned for this criterion. Furthermore, it's worth noting that despite the decrease, SIGA's Current Ratio for 2023 is still above the industry median of 5.7831, indicating relative liquidity health. Over the last 20 years, the company's current ratio has shown substantial volatility, with highs like 17.6541 in 2015 and lows such as 1.2614 in 2005. This volatility should be monitored as it may reflect inconsistencies in managing current assets and liabilities.

Number of shares not diluted?

Evaluating the change in the number of outstanding shares is crucial for investors as it affects ownership percentage and earnings per share.

Historical outstanding shares of SIGA Technologies (SIGA)

In 2022, SIGA Technologies had 72,929,550 outstanding shares, whereas in 2023, the count was 71,362,209. This marks a decrease in outstanding shares. Consequently, this criteria earns a score of 1 point. The trend toward a reduced number of outstanding shares is often viewed positively by investors as it may signal share buybacks or increased earnings per share (EPS). The 20-year historical data shows fluctuations in shares outstanding, with a recent downward trend: for example, from 2021 (75,322,194 shares) to 2023 (71,362,209 shares), reflecting strategic financial management.

Operating of SIGA Technologies (SIGA)

Cross Margin is growing?

Change in Gross Margin evaluates a company's efficiency at converting revenue into actual profit.

Historical gross margin of SIGA Technologies (SIGA)

SIGA Technologies reported a Gross Margin of 0.7552 in 2023, an increase from 0.7025 in 2022. This represents a significant upturn in efficiency, gaining 1 point under Piotroski’s criterion. Historically, SIGA’s Gross Margin has been unstable, occasionally dipping negative, unlike the more consistent industry median. Therefore, this improvement, while noteworthy, requires context-aware optimism.

Asset Turnover Ratio is growing?

The ratio measures the efficiency by which a company uses its assets to generate sales.

Historical asset turnover ratio of SIGA Technologies (SIGA)

Considering SIGA Technologies' Asset Turnover Ratio, which rose from 0.5407 in 2022 to 0.6227 in 2023, it is clear that the company has improved its ability to generate revenue from its asset base. Effectively, SIGA recorded an increase of the ratio by approximately 15%. While a direct year-on-year ratio growth is favorable, a comprehensive analysis reflects historical volatility in this ratio, particularly an outstanding spike in 2018 at 2.7408, which warrants cautious optimism. The improvement in 2023, however, does add 1 point according to the Piotroski score criterion, signaling an incremental enhancement in operational efficiency.


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