Last update on 2024-06-07

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

Explore Vossloh's (VOS.DE) Piotroski F-Score Analysis for 2023 with a robust financial score of 7/9, reflecting profitability, liquidity, and efficiency insights.

Short Analysis - Piotroski Score: 7

We're running Vossloh (VOS.DE) against the Piotroski 9-criteria scoring system to assess profitability, liquidity, and operating efficiency:

The Piotroski F-Score analysis of Vossloh (VOS.DE) yields a score of 7 out of 9, signifying a strong financial position. The company meets most of the Piotroski criteria, demonstrating profitability, liquidity, and operating efficiency. The positive net income and cash flow from operations, increased gross margin, and better asset turnover ratio support the analysis. Nevertheless, challenges like declining ROA, a reduced current ratio, and a significant drop in outstanding shares warrant attention. Historically, Vossloh has shown fluctuations in its financials, but recent trends indicate operational improvements.

Insights for Value Investors Seeking Stable Income

Vossloh (VOS.DE) appears to be a solid investment based on its Piotroski F-Score of 7. The company shows strong profitability and efficiency in operations. However, prospective investors should be aware of the declining ROA, reduced current ratio, and the drastic change in share count. Overall, it is worth considering Vossloh for investment but detailed vigilance on liquidity and consistency in asset utilization is recommended.

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

Profitability of Vossloh (VOS.DE)

Company has a positive net income?

This criterion assesses if the company generated positive net income in the most recent fiscal year, which indicates profitability and operational efficiency.

In 2023, Vossloh reported a net income of €44,700,000, which is indeed positive. This indicates that the company was profitable, adding 1 point to its Piotroski score. Over the past 20 years, Vossloh experienced several fluctuations in net income, including challenging periods with losses (such as in 2014 with -€213,900,000 and in 2017 with -€8,000,000). The consistent recovery and positive result in the latest fiscal year demonstrate a strong turnaround and operational robustness. Therefore, this positive net income trend is favorable for Vossloh.

Company has a positive cash flow?

Cash Flow from Operations (CFO) indicates the cash generated by a company’s regular operating activities.

The Cash Flow from Operations (CFO) for Vossloh (VOS.DE) in 2023 is €137.3 million, which is positive and favorable for the company. This places an additional point in Vossloh's Piotroski score. Over the last 20 years, Vossloh's CFO has shown significant variance, with notable lows like -€42.2 million in 2014 and highs like €196.9 million in 2006. The positive CFO in 2023 indicates improved operational efficiency and cash-generating ability, which is crucial for sustainability and growth. The trend, having recovered well from 2014’s low, demonstrates management’s focus on stabilizing cash flows, reflecting robust core operations. Therefore, this trend is positive for the given criterion.

Return on Assets (ROA) are growing?

ROA (Return on Assets) measures a company's efficiency at generating profit from its assets. A positive trend is indicative of good management and profitable use of assets.

Comparing the ROA of Vossloh in 2023 (0.0324) to 2022 (0.0359), we observe a slight decrease. This results in a score of 0 points being added for this criterion. This declining trend could signal a relative reduction in asset profitability, which is not desirable. The historical data shows that Vossloh's ROA has fluctuated, and consistently fallen short of the industry median. For instance, the median ROA for the industry was 0.2941 in 2022 compared to Vossloh's 0.0359. Such comparisons highlight ongoing challenges in achieving optimal asset utilization and profitability.

Operating Cashflow are higher than Netincome?

Operating Cash Flow higher than Net Income is important as it indicates strong cash generation beyond accounting profits.

In 2023, Vossloh reported an Operating Cash Flow of €137.3 million compared to a Net Income of €44.7 million. This significant disparity highlights Vossloh's robust cash-generation ability exceeding its accounting profits, which is an encouraging sign of financial health. This trend scores well for the Piotroski Analysis (1 point). Analyzing historical data, Vossloh faced fluctuations, such as in 2013 where both metrics were significantly low (€12.3 million and €15 million respectively), showing improvement and stabilization over time. This is positive for the company's financial resilience.

Liquidity of Vossloh (VOS.DE)

Leverage is declining?

For Piotroski analysis, leverage refers to the financial structure and aims to evaluate the risk by looking at the change in the proportion of total debt to total assets.

Comparing the leverage of 0.1954 in 2022 to 0.0873 in 2023, the leverage has decreased, suggesting a reduction in the company's debt ratio relative to its total assets. Historically, Vossloh's leverage has shown fluctuations, peaking at 0.2898 in 2019 before stabilizing. In 2023, the remarkable reduction in leverage indicates significant debt management and financial prudence. Although the target result is stated as an increase in leverage, our understanding of leverage reduction is generally considered positive as it signifies lower financial risk, enhanced solvency, and improved financial health.

Current Ratio is growing?

The Current Ratio measures a company's ability to pay short-term liabilities with short-term assets and indicates liquidity. It is a critical metric for assessing the solvency of a business in the near term, ensuring that a firm can meet its short-term obligations without additional capital.

Vossloh's Current Ratio has decreased from 1.4791 in 2022 to 1.0874 in 2023. This decline is significant as a lower Current Ratio tends to indicate a reduced ability of the company to cover its short-term liabilities with its short-term assets, making it a less favorable condition. While a ratio above 1 is typically acceptable and signals that the company can meet its short-term obligations, a decrease in this ratio from the previous year might point to worsening liquidity. Historical data shows the ratio fluctuating significantly with figures like 1.3115 in 2003 and 0.9729 in 2013. Notably, in 2023, Vossloh's Current Ratio is lower than the industry median, which stands at 1.197. Hence, for this criterion, Vossloh would receive a score of 0.

Number of shares not diluted?

Number of shares outstanding metric assesses a company’s capital structure and market value by examining listed shares.

The outstanding shares for Vossloh remained at 17,564,180 from 2020 through 2022 but dropped to 0 in 2023. This significant reduction suggests the company might have undergone a restructuring activity, delisting, or other major corporate action. This drastic drop flags caution, hence for the criterion, a score of 0 points is assigned.

Operating of Vossloh (VOS.DE)

Cross Margin is growing?

Change in Gross Margin reflects the alterations in the company's production efficiency and pricing strategies. An increase indicates that the company is either getting better at managing its production costs or it has increased its selling prices more than the increase in its cost of goods sold.

In 2023, Vossloh's Gross Margin stood at 0.2602, up from 0.2264 in 2022. This marks a positive increase in the Gross Margin, earning the company 1 point according to the Piotroski criteria. Historically, Vossloh's Gross Margin has experienced fluctuations but the increase in 2023 highlights an improvement relative to the previous year. Notably, when compared to the Gross Margin of the industry median, which was 0.3176 in 2023, Vossloh's margin is still below the industry average. Evaluating the long-term trend, Vossloh has had periods, such as in 2004 and 2005, where it grossly outperformed the industry average, but has struggled to maintain such high margins consistently. The upward trend in 2023 indicates a positive development but suggests there may still be room for improvement in aligning closer to industry standards for optimal financial health.

Asset Turnover Ratio is growing?

Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets to generate sales. Higher values generally indicate more efficient use of assets.

In 2023, Vossloh's Asset Turnover ratio increased to 0.8794 from 0.7871 in 2022, marking an improvement. This increase suggests that the company has become more efficient in utilizing its assets to generate revenue. Historically, the Asset Turnover ratio has shown variability over the last two decades, with a peak of 0.9848 in 2010 and a low of 0.1794 in 2004. The recent trend towards higher asset efficiency is positive for the company, adding 1 point for this criterion. Therefore, Asset Turnover for Vossloh has improved in 2023, indicating better asset management and operational efficiency.