Last update on 2024-06-07

Intevac (IVAC) - Piotroski F-Score Analysis for Year 2023 (Final Score: 2/9)

Analyze Intevac (IVAC) using Piotroski F-Score for 2023, concluding with a score of 2/9, covering profitability, liquidity, and asset turnover.

Short Analysis - Piotroski Score: 2

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

The Piotroski F-Score helps investors understand a company's financial health, using 9 criteria related to profitability, liquidity, and operating efficiency. Intevac (IVAC) scores a 2 out of 9, indicating potential financial weaknesses: 1. Profitability: - Net Income: -$12,190,000 (Score: 0) - Cash Flow from Operations: -$35,073,000 (Score: 0) - ROA: Improved from -0.1032 to -0.074 (Score: 1) - OCF < Net Income (Score: 0) 2. Liquidity: - Leverage increased (Score: 0) - Current Ratio dropped, but still above industry median (Score: 0) - Shares diluted (Score: 0) 3. Operating Efficiency: - Gross Margin decreased but remains above industry median (Score: 0) - Asset Turnover increased (Score: 1) Historical data suggest persistent challenges in profitability and fluctuating performance.

Insights for Value Investors Seeking Stable Income

Intevac (IVAC) shows signs of financial struggle with a low Piotroski F-Score of 2. It has a history of negative net income, negative cash flows, increasing leverage, and dilution of shares. Although there are some positive signs like slight improvements in ROA and Asset Turnover, the overall financial health is concerning. Potential investors might want to be cautious and look for stronger, more consistent financial performance before considering this stock.

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

Profitability of Intevac (IVAC)

Company has a positive net income?

The criterion checks whether the company has achieved a positive net income in the most recent fiscal year.

Intevac's net income for 2023 is -$12,190,000, which is negative. Therefore, under this criterion, Intevac scores 0 points. Historically, only six of the past twenty years have shown positive net income, indicating a persistent challenge in achieving profitable operations. This trend raises concerns about the company's ability to sustain long-term profitability.

Company has a positive cash flow?

Cash Flow from Operations (CFO) assesses the quality of earnings and provides insights into the actual liquidity of the company. A positive CFO is crucial as it indicates that the company can generate more liquidity from its core business operations.

For Intevac (IVAC), the CFO in 2023 is -$35,073,000, a stark negative value. This negative trend indicates liquidity issues originating from its core operations. Analyzing historical data, it's seen that since 2003, the CFO fluctuated between negative and occasionally positive territories: the highs were $55,191,000 in 2006, and the CFO remained considerably positive until 2007. However, since 2007, the company has witnessed mostly negative CFOs with fleeting improvements. This points to a systemic issue in generating sustainable cash flow and efficiency in core operational execution. This criterion gets a 0 due to sustained negative performance.

Return on Assets (ROA) are growing?

Change in ROA (Return on Assets) measures the efficiency with which a company uses its assets to generate profits year-over-year.

For Intevac (IVAC), the ROA has improved from -0.1032 in 2022 to -0.074 in 2023. This represents a positive shift and awards Intevac 1 point in the Piotroski F-Score. Comparing this with the last 20 years of the industry median ROA, where the industry median has consistently been positive within the range of 0.2171 to 0.2688, highlighting that Intevac still lags the industry. Nevertheless, the upward trajectory in its ROA signifies an attempt at better asset utilization, which is a good sign.

Operating Cashflow are higher than Netincome?

Operating Cash Flow (OCF) higher than Net Income indicates that a company's core business operations generate sufficient cash to cover its net income, which is vital for sustainability.

In 2023, Intevac's OCF was -$35,073,000, while Net Income was -$12,190,000. With OCF being lower than Net Income, the company doesn't earn a point for this criterion. This indicates that Intevac is currently facing a challenging operational environment where its core activities are not generating enough cash. Over the past 20 years, the OCF has shown volatility, but it is particularly concerning to see such a substantial negative gap in 2023. This could be indicative of operational inefficiencies or increased capital expenditures that are not translating into immediate income.

Liquidity of Intevac (IVAC)

Leverage is declining?

This criterion evaluates whether a company has succeeded in decreasing its leverage compared to the previous year, which is important for assessing its financial risk.

The leverage of Intevac has increased from 0.0082 in 2022 to 0.0446 in 2023. This is an unfavorable trend indicating a rise in financial risk. Historical data shows occasional fluctuations in Intevac's leverage over the last 20 years, with notable spikes in 2019 and 2020.\nResult for 2023: 0

Current Ratio is growing?

Overview of evaluating changes in a company's Current Ratio.

When assessing Intevac's (IVAC) Current Ratio for 2023, it was 4.1026, compared to 5.4733 in 2022. The Current Ratio has decreased in 2023, reflecting a decline in liquidity. Over the last 20 years, Intevac's Current Ratio has shown fluctuations, peaking at 6.8385 in 2021 and dipping to 1.9017 in 2003. In 2023, Intevac's Current Ratio stands significantly above the industry's median of 2.1805, indicating better liquidity than peers. However, given the decrease from 2022, this criterion scores 0 points. Current Ratio decreasing is not favorable as it denotes lesser short-term solvency.

Number of shares not diluted?

Change in shares outstanding refer to the increase or decrease in the total amount of shares a company has issued. Significant changes can impact EPS and investor's perception.

Outstanding shares for Intevac increased from 25,192,000 in 2022 to 26,121,000 in 2023, marking a growth. This increase does not favor the criterion that seeks a reduction in outstanding shares, thereby contributing 0 points. Observing the trend, Intevac's outstanding shares have fluctuated over the last 20 years, rising notably from 12,948,000 shares in 2003, indicating the company's strategy of possible equity financing and stock issuance.

Operating of Intevac (IVAC)

Cross Margin is growing?

Assessing the change in Gross Margin for Intevac (IVAC) helps in determining the company's performance efficiency over time.

Intevac's Gross Margin in 2023 is 0.3841, a decrease from the 0.4219 recorded in 2022, resulting in 0 points for this criterion. Historically, its Gross Margin fluctuated from 0.2708 in 2003 to around 0.3841 in 2023, oftentimes outperforming the industry median. For instance, in 2023, Intevac’s 0.3841 GM was substantially higher than the industry median of 0.2484, suggesting solid cost management relative to peers, despite the year-over-year dip.

Asset Turnover Ratio is growing?

Asset Turnover measures sales generated per dollar of assets. Higher ratios indicate efficient use of assets.

Intevac's Asset Turnover has increased from 0.2162 in 2022 to 0.3196 in 2023. This rise suggests improved efficiency in utilizing assets to generate sales, a positive trend. Historical data demonstrates fluctuations over the past two decades, with notable peaks and troughs, highlighting cyclical challenges and successes the company has experienced. The recent improvement earns a point in the Piotroski analysis.