STM.DE 44.85 (+0.9%)
DE000STAB1L8Industrial ProductsSpecialty Industrial Machinery

Last update on 2024-06-07

Stabilus (STM.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 7/9)

Analyze Stabilus (STM.DE) with the Piotroski F-Score model in 2023. Discover their profitability, liquidity, and leverage results with a final score of 7/9.

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: 7

We're running Stabilus (STM.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?
0
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

The Piotroski F-Score is a system for assessing a company's financial strength, scored from 0-9. It's based on criteria relating to profitability, liquidity, and efficiency, helping to identify possibly strong and undervalued stocks. Stabilus (STM.DE) has a score of 7, indicating a financially healthy position. The company's profitability is strong with positive net income and operating cash flow. Despite a slight decline in return on assets and gross margin, its cash flow and reduction in leverage signal good stability. Furthermore, an improving current ratio signifies strong liquidity.

Insights for Value Investors Seeking Stable Income

Stabilus (STM.DE) scoring 7 out of 9 on the Piotroski F-Score suggests it is a solid investment choice. It shows strong profitability, efficient cash flow, and improved liquidity, though there’s room for improvement in efficiency. These factors combined imply that the company is financially stable and worth considering for investment. However, potential investors should monitor its return on assets and gross margin trends closely.

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

Profitability of Stabilus (STM.DE)

Company has a positive net income?

Net income reflects the profitability of a company and is a crucial indicator of financial health. A positive net income suggests the company is generating more revenue than expenses, indicating efficient operations and management.

Historical Net Income of Stabilus (STM.DE)

The net income for Stabilus in 2023 is €101,784,000, which is positive. Hence, according to the Piotroski score, this criterion adds 1 point to the company's score. This positive net income signifies that the company is profitable. Over the past 12 years, Stabilus has consistently increased its net income, except in 2013 when it was negative at -€15,938,000. The company has shown a robust ability to recover and grow, reflecting a strengthening financial position each year. It reached its highest net income in 2022, €102,961,000, slightly higher than the 2023 figure, indicating consistent profitability. This positive trend bodes well for investors, as it indicates that the company successfully manages its expenses and optimizes revenue.

Company has a positive cash flow?

Cash Flow from Operations (CFO) represents the cash a company generates from its regular business operations, excluding costs associated with long-term investment. Positive CFO is crucial.

Historical Operating Cash Flow of Stabilus (STM.DE)

For the fiscal year 2023, Stabilus (STM.DE) reported a CFO of €178,103,000, which is distinctly positive and thus earns the company 1 point in the Piotroski F-Score assessment. A thorough analysis of the last 12 years reveals a generally upward trajectory in the firm's CFO, with the latest figure being a significant jump from €125,733,000 in 2022. This long-term growth trend in cash flow from operations not only underscores the robustness of Stabilus' core business but also suggests strong fundamentals that can sustain future operations. Over the past decade, the least CFO reported was in 2012 at €56,347,000, making the current leap remarkable.

Return on Assets (ROA) are growing?

Change in Return on Assets (ROA): This criterion assesses whether the company's efficiency in generating profit from its assets is improving. A higher ROA indicates better management and operational performance.

Historical change in Return on Assets (ROA) of Stabilus (STM.DE)

Comparing Stabilus's ROA of 0.0783 in 2023 with 0.0846 in 2022, it is clear that there has been a decline. Therefore, we would assign 0 points for this criterion. Stabilus's ROA has decreased by 0.0063 points, moving from 0.0846 to 0.0783. Despite the year-on-year decline, it's also critical to consider the broader industry context: the industry median ROA has generally been higher and showing comparatively less fluctuation, ranging between approximately 0.3285 and 0.3616 over the past several years. Stabilus's ROA has consistently been below the industry median, indicating that the company is less efficient than its peers in asset utilization. This downward trend in 2023 suggests potential areas for operational efficiency improvements. Additionally, observing the operating cash flow over the years, we see a noticeable increase in 2023 to 178,103,000, which might be a mixed signal that demands further granular analysis and strategic realignment to regain optimal asset efficiency and profitability.

Operating Cashflow are higher than Netincome?

The criterion states that the Operating Cash Flow should be higher than the Net Income. This is a sign of strong earnings quality and efficient operations.

Historical accruals of Stabilus (STM.DE)

In 2023, Stabilus' Operating Cash Flow was €178,103,000, significantly higher than its Net Income of €101,784,000. This discrepancy indicates good earnings quality, as it shows that the company's core operations are generating sufficient cash to support profitability. Historical data supports this trend, showing a consistent growth in Operating Cash Flow from €56,347,000 in 2012 to €178,103,000 in 2023. Net Income, while more volatile, has generally trended upwards, thus reflecting good overall financial health. Therefore, for this criterion, we add 1 point.

Liquidity of Stabilus (STM.DE)

Leverage is declining?

Change in Leverage assesses how a firm's financial leverage has altered over time.

Historical leverage of Stabilus (STM.DE)

Between 2022 and 2023, Stabilus' leverage decreased from 0.2217 to 0.2072. This decrease signifies a reduction in the company's financial risk, meriting 1 point in the Piotroski scoring. Historically, the last 20 years depict significant fluctuations, notably a peak of 0.4931 in 2014 and a consistent downward trend post-2017, highlighting strengthened financial stability in recent years.

Current Ratio is growing?

Change in Current Ratio for Stabilus, which is an indicator of the company's ability to pay short-term liabilities with its short-term assets. It's important as it reflects financial health and liquidity.

Historical Current Ratio of Stabilus (STM.DE)

Stabilus's Current Ratio has increased from 2.5451 in 2022 to 2.6442 in 2023, indicating improved liquidity. A current ratio above 1 suggests the company can cover its short-term obligations, and a rising ratio is a positive sign. Comparing with the industry median, Stabilus consistently maintains a higher ratio across the past two decades. Thus, a point has been added for this criterion.

Number of shares not diluted?

Change in shares outstanding reflects a company's capital strategy and impacts earnings per share.

Historical outstanding shares of Stabilus (STM.DE)

For Stabilus (STM.DE), examining the shares outstanding over the years from 2012 to 2023, we see no change in the number of shares outstanding between 2022 and 2023, maintaining steady at 24,700,000. This stability suggests that the company has not issued additional shares, indicating a neutral stance on changes in equity financing. This trend receives a Piotroski score of 0 as there wasn’t a decrease in shares outstanding from the previous year.

Operating of Stabilus (STM.DE)

Cross Margin is growing?

Gross Margin signifies the proportion of revenue retained after incurring the direct costs associated with producing the goods and services sold. It's crucial as it highlights the core profitability of underlying operations.

Historical gross margin of Stabilus (STM.DE)

Gross margin for Stabilus (STM.DE) has slightly decreased from 0.2659 in 2022 to 0.2643 in 2023. This 0.0016 dip, translates to a 0.6% decline in profitability. While this reduction might seem minor, it is noteworthy primarily because it's against a backdrop where the industry median gross margin has increased. Hence, for this specific Piotroski criterion, Stabilus would not be awarded a point.

Asset Turnover Ratio is growing?

Explain the criterion for Stabilus (STM.DE) and why it is important to consider

Historical asset turnover ratio of Stabilus (STM.DE)

Asset Turnover is an important efficiency ratio. It measures how effectively a company is utilizing its assets to generate sales. For Stabilus (STM.DE), understanding this ratio helps investors gauge operational efficiency. Higher ratios generally indicate that the company is generating more revenue per dollar of assets, which is a positive indicator.


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