Last update on 2024-06-07

CEWE Stiftung (CWC.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 9/9)

CEWE Stiftung (CWC.DE) achieves a perfect Piotroski F-Score of 9/9 in 2023, highlighting strong financial health, profitability, and operational efficiency.

Short Analysis - Piotroski Score: 9

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

CEWE Stiftung (CWC.DE) achieved a perfect Piotroski F-Score of 9 out of 9, indicating strong financial health, growth, and operational efficiency. The score assesses profitability, liquidity, and leverage across various criteria, all of which CEWE Stiftung met positively, barring leverage reduction where it scored 0. Positive net income, strong cash flow, improved return on assets, better liquidity, controlled share dilution, growing gross margin, and effective asset turnover all reflect the company's solid fundamentals and positive trajectory over the years.

Insights for Value Investors Seeking Stable Income

Based on the strong Piotroski F-Score of 9, CEWE Stiftung appears to be an excellent investment opportunity. The company shows promising profitability, operational efficiency, and strong cash flows, making it a worthy contender for your investment portfolio. As always, further analysis and consideration of market conditions are recommended before making a final investment decision.

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

Profitability of CEWE Stiftung (CWC.DE)

Company has a positive net income?

The net income criterion gauges the profitability of a company on an annual basis. Turning a profit is fundamental for sustainability and growth, making this a pivotal metric.

CEWE Stiftung (CWC.DE) registered a net income of 57,313,000 EUR in 2023, indicating a positive result. The trend over the last 20 years shows a general upward trajectory, starting from a low of 1,169,000 EUR in 2004 and peaking at 57,313,000 EUR in 2023. This sustained growth in net income is a positive sign, reflecting the company’s improving profitability over time. Given the positive net income, we assign 1 point for this criterion.

Company has a positive cash flow?

Cash flow from Operations (CFO) is a measure of the amount of cash generated by a company's regular business operations. Positive CFO signifies that a company is able to generate sufficient cash to maintain and grow its operations, indicating financial health.

CEWE Stiftung's CFO in 2023 is €130,771,000, which is a significant positive figure. Historically, the company has shown strong operational cash flows over the last two decades, ranging from as low as €35,466,000 in 2008 to peaking at €142,286,000 in 2020. The latest figure of €130,771,000 denotes a strong upward trend after dipping to €65,611,000 in 2021, reflecting a positive trajectory and the company's robust capability to generate cash from its core business operations. Thus, CEWE Stiftung fulfills this Piotroski criterion with a score of 1.

Return on Assets (ROA) are growing?

Change in ROA (Return on Assets) measures a company's ability to improve profitability relative to its total assets over time. It is a key indicator of financial health and efficiency.

The ROA for CEWE Stiftung (CWC.DE) increased from 2022 to 2023. In 2022, the company had a ROA of 0.0829, while in 2023, it increased to 0.0883. This improvement indicates that CEWE Stiftung has become more efficient in utilizing its assets to generate profits. The increase from 0.0829 to 0.0883 represents a 6.53% increase in ROA, which is a positive signal of enhanced asset profitability. When compared to the Industry Median ROA (0.4975 for 2023), CEWE Stiftung lags significantly behind, despite its improvement.

Operating Cashflow are higher than Netincome?

Operating Cash Flow being higher than Net Income indicates a company's ability to generate sufficient cash from its core operations, which can be more sustainable and less affected by accounting maneuvers.

In 2023, CEWE Stiftung (CWC.DE) has an Operating Cash Flow of €130,771,000 and a Net Income of €57,313,000. This results in an Operating Cash Flow that exceeds Net Income by €73,458,000, earning 1 point for this criterion. Historically, examining the last 20 years, Operating Cash Flow has often exceeded Net Income, signaling strong operational efficiency. This is evident particularly in years like 2020 (€142,286,000 vs. €51,936,000) and 2019 (€102,112,000 vs. €31,818,000), reinforcing the company's ability to convert sales into actual cash effectively.

Liquidity of CEWE Stiftung (CWC.DE)

Leverage is declining?

The criterion evaluates if the company has reduced or maintained its leverage. Reduced leverage generally means lower financial risk.

The Leverage for CEWE Stiftung increased from 0.0557 in 2023 to 0.0643 in 2022. This points towards an increase, suggesting heightened financial risk—thus the criterion scores 0 here. Historical data shows leverage has mostly been below 0.01 until 2019, peaking at 0.0944 in 2019 before starting to decline. Consider the long-term leverage trend to assess overall risk tolerance and history.

Current Ratio is growing?

Current Ratio measures a company's ability to cover its short-term obligations with its current assets, indicating liquidity.

CEWE Stiftung (CWC.DE) saw its Current Ratio rise from 1.303 in 2022 to 1.4085 in 2023, an increase reflecting an improvement in its liquidity. This metric becomes crucial when evaluating a company's efficient management of short-term liabilities and sufficiency in meeting short-term obligations. Over the past 20 years, CEWE Stiftung's Current Ratio has often aligned closely with the industry median, though 2023 marks a significant improvement, especially compared to the falling industry median of 0.8169. Therefore, this trend is good for CEWE Stiftung, giving it a score of 1 as per the criterion. Its current ratio surpasses the industry's, hinting at a more robust liquidity position.

Number of shares not diluted?

A change in shares outstanding is a crucial metric as it directly affects earnings per share and ownership percentage. When a company decreases its shares outstanding, it often signals a buyback or consolidation, delivering higher value to existing shareholders.

CEWE Stiftung's outstanding shares have decreased from 7,089,068 in 2022 to 7,071,350 in 2023, resulting in a reduction. Based on the Piotroski criterion, this decrease is a positive indicator, earning 1 point. Historical data supports this positive trend; for instance, this practice of reducing outstanding shares to add shareholder value is evident as seen in past years like 2009, 2011, etc. Thus, this trend is beneficial because reducing the number of shares outstanding typically improves earnings per share and augments each investor's ownership stake. CEWE's strategic buybacks or consolidated share actions are likely being perceived positively by investors, reflecting confidence in the company’s financial health. In summary, based on the Piotroski criterion, a score of 1 is justified.

Operating of CEWE Stiftung (CWC.DE)

Cross Margin is growing?

Change in Gross Margin for CEWE Stiftung is important as it reflects the company's operational efficiency in managing production costs and generating profits over time.

The Gross Margin for CEWE Stiftung has increased from 0.7668 in 2022 to 0.7729 in 2023. This positive change results in a 1-point increase in the Piotroski F-Score for this criterion. Reviewing historical data, CEWE's Gross Margin has shown a general upward trend over the last 20 years, starting at 0.6042 in 2003 and reaching a peak of 0.7789 in 2021. This consistent performance outpaces the industry median Gross Margin, which was only 0.4975 in 2023. Such improvements indicate robust operational control and a strong competitive position within the industry, highlighting the company's efficiency and potentially higher profitability moving forward.

Asset Turnover Ratio is growing?

Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue. It's calculated by dividing the sales revenue by the total assets.

CEWE Stiftung (CWC.DE) demonstrated a slight improvement in its Asset Turnover in 2023, increasing to 1.2408 from 1.2366 in 2022. Although the increase is modest, it indicates a positive trend in the efficient use of its assets to generate revenue. This consistency could suggest effective management practices. When we add this point based on the Piotroski F-Score criterion, the company gains one point for this slight enhancement over the previous year. Historical data show fluctuations, with a peak around 2004 at 1.6769 and a downward trend until reaching its lowest in 2021 with 1.1753. The stability in the past few years suggests that the company may have stabilized its asset efficiency strategies.