Last update on 2024-06-07

Jungheinrich (JUN3.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 8/9)

Piotroski F-Score analysis shows Jungheinrich (JUN3.DE) achieved a promising 8/9 in 2023, highlighting financial strength and investment potential.

Short Analysis - Piotroski Score: 8

We're running Jungheinrich (JUN3.DE) against the Piotroski 9-criteria scoring system to assess profitability, liquidity, and operating efficiency:

Jungheinrich (JUN3.DE) scored an impressive 8 out of 9 on the Piotroski F-Score, a measure of a company's financial strength and profitability. The company demonstrated positive net income and cash flow from operations, an increase in return on assets, and operating cash flow surpassing net income. Furthermore, Jungheinrich's gross margin and asset turnover have improved. However, the company did lose points for increasing leverage, a declining current ratio, and no changes in share dilution.

Insights for Value Investors Seeking Stable Income

Based on an 8 out of 9 on the Piotroski F-Score, Jungheinrich (JUN3.DE) shows strong financial health and profitability, making it a valuable consideration for investors. Despite minor issues with increasing leverage and a lower current ratio, the overall financials look solid. Investors should keep an eye on these metrics but can feel confident in the stock's potential.

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

Profitability of Jungheinrich (JUN3.DE)

Company has a positive net income?

Assess if the net income is positive or negative. Positive net income earns 1 point, while negative nets 0.

Jungheinrich's net income for 2023 stands at €299,275,000, indicating a positive income. This is aligned with a historical trend over the past 20 years, where the company has consistently improved its profitability, barring a notable dip in 2009. Therefore, for the Piotroski criterion, Jungheinrich secures a point for maintaining a positive net income in 2023.

Company has a positive cash flow?

Cash Flow from Operations (CFO) refers to the amount of cash generated by a company's regular business operations. Positive CFO indicates that the company is generating sufficient cash from its business activities, a key indicator of financial health.

For Jungheinrich (JUN3.DE), the CFO for 2023 is €472,329,000, which is indeed positive. This is a very strong signal as it represents a significant recovery from the negative CFO of -€136,093,000 in 2022. Historically, Jungheinrich has generally maintained a positive CFO, with the exception of a few years such as 2022 and some instances in the 2000s. The last 20 years demonstrate a strong ability to generate cash flow, except for occasional downturns. This trend favors a solid rating on the Piotroski scale, earning 1 point for the CFO criterion. Continuing on this path could bolster investor confidence significantly, especially coming out of a year of negative cash flow.

Return on Assets (ROA) are growing?

explain the criterion for Jungheinrich (JUN3.DE) and why it is important to consider

The Return on Assets (ROA) measures the company's ability to generate profits relative to its total assets. An increasing ROA implies better efficiency in using assets to generate earnings, a critical factor for any business evaluation, and suggests improved management effectiveness. The change in ROA from 0.0451 in 2022 to 0.0458 in 2023 indicates a small, but positive improvement, adding 1 point for this criterion.

Operating Cashflow are higher than Netincome?

Operating Cash Flow higher than Net Income is a sign of high earnings quality. This indicates that the company is generating real cash from its operations, which is generally seen as a positive signal for its health.

Jungheinrich's operating cash flow for 2023 stands at €472.33 million, vastly outperforming its net income of €299.28 million. This difference of €173.06 million indicates robust financial health, as it shows that the company is indeed generating strong cash flow from its core operations. Historically, Jungheinrich has shown variability in this aspect, but the consistency of positive cash generation in recent years should reassure investors about the quality of earnings. Therefore, this criterion scores a solid 1 point, signaling a favorable trend.

Liquidity of Jungheinrich (JUN3.DE)

Leverage is declining?

Change in Leverage measures the shift in the financial leverage or indebtedness of the company relative to its equity base.

In 2023, Jungheinrich (JUN3.DE) saw an increase in its financial leverage to 0.0697 from 0.053 in 2022. This upward trend signifies that the company's relative level of debt compared to its equity increased over the past year, indicating higher financial risk. Over the last 20 years, the leverage ratio has shown fluctuations, peaking in 2019 at 0.1134. The recent increase could be a red flag for investors as it may imply higher interest expense and lower financial stability. Given this, Jungheinrich does not earn a point for this criterion.

Current Ratio is growing?

Compare the Current Ratio of 1.2557 in 2023 with the Current Ratio of 1.4689 in 2022 and check if Current Ratio increased or decreased.

The Current Ratio for Jungheinrich in 2023 is 1.2557, a decrease from 1.4689 in 2022. This indicates a downward trend, suggesting that the company's ability to cover short-term liabilities with short-term assets has diminished. A decreasing Current Ratio can signify potential liquidity issues, which might alarm investors and creditors. Comparing Jungheinrich's Current Ratio to the industry median (1.7757) as of 2023 reveals that the company is underperforming relative to its peers. Since the ratio has decreased, we assign 0 points.

Number of shares not diluted?

Change in Shares Outstanding is important as it indicates if the company is diluting its existing shares or consolidating. A decrease is generally preferable.

For Jungheinrich (JUN3.DE), the Outstanding Shares remained consistent at 102,000,000 from 2022 to 2023, hence there was no increase or decrease. Given the 20-year data, the shares have occasionally fluctuated but stabilized over recent years. According to the Piotroski score, since there was no reduction in outstanding shares, this criterion scores 0 points.

Operating of Jungheinrich (JUN3.DE)

Cross Margin is growing?

This criterion assesses whether the company's gross margin has improved over the past year. It reflects the proportion of revenue that exceeds the cost of goods sold.

Jungheinrich's gross margin increased from 0.3093 in 2022 to 0.3108 in 2023. In numerical terms, this signifies a modest increase of 0.0015, indicating that the company has slightly improved its efficiency in converting sales into actual profit. When examining the historical data over the past 20 years, the gross margin has shown a general upward trend with some fluctuations. Notably, the industry's median gross margin for 2023 stands at 0.3492, compared to Jungheinrich's 0.3108, suggesting the company is still operating below the industry average. Nonetheless, the upward shift in gross margin is a positive sign and earns Jungheinrich 1 point for this criterion.

Asset Turnover Ratio is growing?

Asset turnover is a key efficiency metric that measures a company's ability to generate sales from its assets. Higher ratios are generally favorable.

Jungheinrich's asset turnover has improved from 0.7983 in 2022 to 0.8484 in 2023, indicating better use of assets to generate sales. Historically, the highest ratio was 1.0298 in 2007, while the lowest was 0.7158 in 2020. The increase in 2023 is a positive trend, highlighting enhanced operational efficiency. Thus, Jungheinrich earns 1 point under the Piotroski analysis for this criterion.