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Last update on 2024-06-07

Suedzucker (SZU.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 6/9)

Analyzing Suedzucker (SZU.DE) with a Piotroski F-Score of 6/9 for 2023 to determine financial health based on profitability, liquidity, and 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: 6

We're running Suedzucker (SZU.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?
1
Operating Cashflow are higher than Netincome?
0
Leverage is declining?
0
Current Ratio is growing?
0
Number of shares not diluted?
1
Cross Margin is growing?
1
Asset Turnover Ratio is growing?
1

Suedzucker (SZU.DE) has been evaluated using the Piotroski F-Score, a 9-criteria system that measures profitability, liquidity, and leverage. The score is 6 out of 9. Key points include positive net income in 2023 (€411.7M), consistent positive cash flow from operations, and increased ROA from 2022 to 2023. However, operating cash flow is lower than net income, leverage has increased, and the current ratio has slightly decreased. Other positives are the slight decrease in outstanding shares, an improved gross margin, and an increased asset turnover ratio.

Insights for Value Investors Seeking Stable Income

Suedzucker is showing some strong recovery signals and improvements in key areas such as profitability and asset efficiency. However, the increased leverage and decreasing current ratio indicate some rising financial risks. Overall, with a Piotroski Score of 6, it suggests that Suedzucker is a relatively good investment, but only if you are willing to tolerate some risk. It would be beneficial to monitor future financial statements to ensure the positive trends continue and the financial risks are mitigated.

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

Profitability of Suedzucker (SZU.DE)

Company has a positive net income?

Net income is a critical indicator of a company's profitability. A positive net income enhances shareholder value and indicates financial health.

Historical Net Income of Suedzucker (SZU.DE)

For the fiscal year 2023, Suedzucker has reported a net income of €411,700,000. This positive net income is a healthy sign, reflecting the company's ability to generate profit after accounting for all expenses, taxes, and costs. Historically, Suedzucker has shown a mixed trend, with significant losses in 2019 (€-831,100,000) and 2020 (€-108,500,000), followed by a gradual recovery. The positive net income in 2023, when juxtaposed against the past two decades, signifies a strong recovery phase. The improving net income trajectory can potentially translate into increased shareholder confidence and market value.

Company has a positive cash flow?

Cash Flow from Operations (CFO) measures the amount of cash generated by a company's regular business operations. It is important because it shows how well the company can generate cash from its core activities, which is essential for maintaining operations and funding dividends.

Historical Operating Cash Flow of Suedzucker (SZU.DE)

In 2023, Suedzucker's CFO is €243.5 million, which is positive. According to the Piotroski Analysis, a positive CFO warrants an addition of 1 point. This result is favorable and represents the company's ability to generate cash through its normal business activities. Historical data reveals that Suedzucker has consistently maintained positive CFO figures over most of the last 20 years, with only one instance of negative CFO in 2008. This trend underscores the company’s operational efficiency and the effectiveness of its core business operations in generating cash flow.

Return on Assets (ROA) are growing?

Return on Assets (ROA) measures how efficiently a company can manage its assets to produce profits during a period. An increasing ROA indicates better asset efficiency and overall company performance.

Historical change in Return on Assets (ROA) of Suedzucker (SZU.DE)

For Suedzucker (SZU.DE), the ROA improved significantly from 0.0095 in 2022 to 0.0454 in 2023. This substantial increase is a positive trend and adds 1 point for this criterion. Historically, SZU's ROA has fluctuated, with notable highs and lows over the past two decades. Compared to the industry median ROA, which hovers around 0.28, SZU's 2023 ROA remains relatively low. However, the Jump from 2022 to 2023 is a robust sign of improved efficiency. Their operating cash flow trajectory also highlights variability, notably turning positive in some years after significant negatives.

Operating Cashflow are higher than Netincome?

This criterion examines whether cash from operations exceeds net income, indicating high-quality earnings.

Historical accruals of Suedzucker (SZU.DE)

In 2023, Suedzucker (SZU.DE) reported an operating cash flow of €243.5 million, which is notably lower than the net income of €411.7 million. This adds 0 points to the Piotroski score. Historically, the company has shown fluctuations, but in most profitable years, operating cash flow was generally higher than or close to net income—except in 2022 and 2023, marking a concerning trend that may need further scrutiny. The accruals ratio, showing relatively low values, suggests that earnings manipulation isn't a concern, but the significant gap this year suggests either deteriorating earnings quality or substantial working capital changes.

Liquidity of Suedzucker (SZU.DE)

Leverage is declining?

Change in leverage measures whether the company has reduced its reliance on borrowing. Lower leverage typically indicates a stronger balance sheet and less financial risk.

Historical leverage of Suedzucker (SZU.DE)

Comparing the leverage of Suedzucker in 2022 (0.1566) with 2023 (0.1673), we observe an increase in leverage. This means the company's reliance on borrowing has increased rather than decreased, resulting in a score of 0 for this criterion. Historically, the company's leverage has varied, starting at very low levels in the early 2000s and then increasing significantly over time, peaking in 2021 at 0.1803. The upward trend in 2023 signifies potential rising financial risk, which could affect the company's financial health negatively.

Current Ratio is growing?

Current Ratio measures a company's ability to cover its short-term liabilities with its short-term assets and is critical in liquidity analysis.

Historical Current Ratio of Suedzucker (SZU.DE)

For Suedzucker (SZU.DE), the Current Ratio has marginally decreased from 1.9851 in 2022 to 1.9366 in 2023. This trend is slightly concerning as a declining Current Ratio may suggest a reduced ability to meet short-term obligations, lowering it below the needed threshold to earn a Piotroski point. Additionally, when compared with the industry median of 1.6315 in 2023, Suedzucker still holds a stronger liquidity position, retaining a higher Current Ratio than the median.

Number of shares not diluted?

Change in Shares Outstanding is a crucial indicator of a company's financial health. A decrease suggests share buybacks, enhancing shareholder value.

Historical outstanding shares of Suedzucker (SZU.DE)

Upon examining Suedzucker's outstanding shares data, there is a slight decrease in shares from 204180619 in 2022 to 204132407 in 2023. This decline, though minimal, signifies a share buyback trend, which can positively affect shareholder value. However, given the data trend over the past 20 years, this slight reduction follows a period of stability with occasional significant changes, such as the sharp decrease in 2008. Therefore, Suedzucker earns 1 point for reducing outstanding shares in 2023, indicating a marginal improvement in financial management aimed at boosting shareholder value.

Operating of Suedzucker (SZU.DE)

Cross Margin is growing?

The criterion of change in Gross Margin evaluates if a company's efficiency in producing goods or services has improved, indicating potential profitability enhancement.

Historical gross margin of Suedzucker (SZU.DE)

For Suedzucker (SZU.DE), the Gross Margin shows a slight increase from 0.3222 in 2022 to 0.3255 in 2023. While the difference seems marginal, this indicates a positive trend and suggests a potential improvement in operational efficiency. Historically, the Gross Margin of Suedzucker has shown considerable fluctuation, peaking in 2008 at 0.4173 and reaching a low in 2015 with 0.3074. Compared to the industry median, Suedzucker's Gross Margin remains above the industry's 0.282 in 2023. Given the consistent position above industry norms, the one-point addition is justified, reflecting an improved efficiency relative to prior performance and peers.

Asset Turnover Ratio is growing?

Asset Turnover measures a company's efficiency in using its assets to generate sales. It indicates how productively a company is utilizing its assets to produce revenue.

Historical asset turnover ratio of Suedzucker (SZU.DE)

In 2023, Suedzucker's Asset Turnover was 1.0472, an increase from 0.9259 in 2022. This rise reflects better utilization of the company's assets, translating to higher sales efficiency. The increasing trend over the last 20 years marks a positive shift, adding 1 point to the Piotroski score. Prior years saw fluctuating but generally lower ratios, stressing the importance of this upward momentum.


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