VOXX 2.69 (+1.51%)
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Last update on 2024-06-07

VOXX (VOXX) - Piotroski F-Score Analysis for Year 2023 (Final Score: 1/9)

In-depth Piotroski F-Score analysis of VOXX (VOXX) for 2023, scoring only 1/9, detailing financial health including profitability, liquidity, and leverage.

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: 1

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

Criteria
Company has a positive net income?
0
Company has a positive cash flow?
0
Return on Assets (ROA) are growing?
0
Operating Cashflow are higher than Netincome?
0
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

The Piotroski F-Score measures a company's financial health on a 0-9 scale. Higher scores mean better financial strength. VOXX got a score of 1, which is very low. It struggled in most criteria: its net income and cash flow are negative, its return on assets decreased, and its operating cash flow is less than net income. Its financial leverage increased, the current ratio and share count barely changed, gross margins declined, and asset turnover decreased too. This all shows poor profitability, liquidity, and efficiency.

Insights for Value Investors Seeking Stable Income

Based on its Piotroski F-Score of 1, VOXX seems to be in weak financial health. Its negative net income, cash flows, declining return on assets, and decreasing gross margins show serious problems. It might not be a good stock to invest in right now. You might want to look into other companies with better Piotroski F-Scores for more reliable investments.

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

Profitability of VOXX (VOXX)

Company has a positive net income?

Net income is a key profitability metric that indicates whether a company is making a profit or a loss after all expenses.

Historical Net Income of VOXX (VOXX)

For VOXX (VOXX), the net income for 2023 is -$28,576,000, signaling a negative number for the current year. Historically, the net income for VOXX has fluctuated significantly over the last 20 years. The company's net income has ranged from losses as high as -$71,029,000 in 2009 to a profit of $77,200,000 in 2005. Frequent periods of losses punctuate their profitability history. This trend would be considered bad for the net income criterion, resulting in a score of 0 for Piotroski analysis. The negative net income underscores a challenging fiscal position, which can concern investors about the company's long-term profitability.

Company has a positive cash flow?

Evaluate if Cash Flow from Operations (CFO) is positive or negative.

Historical Operating Cash Flow of VOXX (VOXX)

The CFO is -38,208,000 as of 2023, resulting in a negative value. Therefore, 0 points are awarded for this criterion. Historical data over the last 20 years shows fluctuations, with several years also displaying negative values, such as 2004, 2006, 2008, 2015, 2016, 2018, 2020, and 2022. A consistently negative CFO can be disconcerting as it triangulates a company’s struggles with generating sufficient cash from its core operations. However, it's worth noting that even profitable encounters, such as 2021 (36,611,000) and 2017 (22,562,000), indicate potential volatility in operating cash flow.

Return on Assets (ROA) are growing?

Return on Assets (ROA) captures how efficiently a company utilizes its assets to generate profit. A higher ROA indicates better asset usage and profitability.

Historical change in Return on Assets (ROA) of VOXX (VOXX)

Comparing VOXX's ROA of -0.0517 in 2023 with -0.0393 in 2022, we observe a decline, signaling deteriorating efficiency in asset utilization for profit generation. Industry median ROA trends confirm VOXX's underperformance; as industry medians ranged from 0.2455 to 0.3474, VOXX's negative figures indicate persistent struggles, implying challenges in competitiveness and profitability. Thus, for the Piotroski score, VOXX earns 0 points for ROA change.

Operating Cashflow are higher than Netincome?

The criterion examines whether Operating Cash Flow (OCF) is higher than Net Income. OCF is cash generated from the core business activities, while Net Income is the profit after all expenses. These figures are important as they indicate the company's profitability and quality of earnings.

Historical accruals of VOXX (VOXX)

For VOXX in 2023, Operating Cash Flow is -$38,208,000 and Net Income is -$28,576,000. Since OCF is lower than Net Income, this trend might raise concerns for investors about the firm's liquidity and cash generation from core operations. Historically, the cash flow from operations has shown significant variability, occasionally dipping negative in years like 2004, 2006, and 2023. Similarly, net income fluctuated, with substantial negatives in years such as 2009, 2018, and the most recent in 2023. This criterion does not meet the requirements; therefore, a score of 0 is given. Accruals over the last 20 years reveal variability, with positive and negative swings, indicating periods of conservative earnings and potential aggressive recognition.

Liquidity of VOXX (VOXX)

Leverage is declining?

This criterion evaluates the change in financial leverage from one period to the next. Financial leverage indicates the extent to which a company utilizes borrowed funds to finance its operations. Lower leverage is preferred as it implies reduced financial risk.

Historical leverage of VOXX (VOXX)

In 2022, the leverage for VOXX was 0.0224, which increased to 0.0772 in 2023. This increase in leverage is indicative of a higher reliance on debt financing. Given this trend, the calculated point for this criterion is 0. Historically, VOXX's leverage has varied significantly, with notable spikes in 2012 (0.0632) and 2013 (0.1797). Compared to these peaks, the 2023 figure is high but not unprecedented.

Current Ratio is growing?

Explain the criterion for VOXX (VOXX) and why it is important to consider

Historical Current Ratio of VOXX (VOXX)

The current ratio provides insight into a company's ability to pay short-term obligations with short-term assets. A higher ratio generally indicates a stronger liquidity position and financial health. Comparing the current ratio year over year helps assess whether liquidity is improving or deteriorating.

Number of shares not diluted?

Change in shares outstanding involves comparing the number of shares from one year to the next.

Historical outstanding shares of VOXX (VOXX)

Between 2022 and 2023, VOXX saw a modest increase in its shares outstanding from 24,287,179 to 24,325,938. This slight rise of 38,759 shares marks a negligible change on the vast scale of overall shares. Historically, the number of outstanding shares for VOXX shows a general uptrend, as compared with data over the last 20 years. The slight increase for this specific interval translates into a score of 0 under the Piotroski F-Score criteria, which rewards reductions in outstanding shares to capture shareholder value distribution.

Operating of VOXX (VOXX)

Cross Margin is growing?

It examines the increase or decrease in a company's gross margin over a given period.

Historical gross margin of VOXX (VOXX)

The gross margin for VOXX in 2022 was 0.2665, but it declined to 0.2515 in 2023, indicating a decrease. Consequently, this criterion scores 0 points for VOXX. While analyzing the trend over the past 20 years, VOXX's gross margin has shown considerable volatility, starting at 0.0678 in 2003, reaching a peak of 0.2959 in 2017, and then declining again. In comparison, the industry median gross margin has been generally more stable and higher, although it too saw declines in certain periods. From 2022 to 2023, the industry median gross margin decreased from 0.2882 to 0.2762, suggesting sector-wide pressures. Still, VOXX’s performance lags behind its industry peers, making this decline concerning.

Asset Turnover Ratio is growing?

Asset Turnover indicates how efficiently a company uses its assets to generate sales. A higher ratio suggests better efficiency.

Historical asset turnover ratio of VOXX (VOXX)

When comparing the asset turnover of VOXX International Corporation (VOXX), we observe a decrease from 1.1181 in 2022 to 0.9656 in 2023. This indicates a less efficient use of assets in generating revenue over the year, leading to a decline in asset efficiency. Although this difference might seem modest when examining a longer historical span, where VOXX showed much higher efficiencies with values even surpassing 2.0 in the early 2000s, the current trend is unfavorable.


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