Last update on 2024-06-07

Patrizia (PAT.DE) - Piotroski F-Score Analysis for Year 2023 (Final Score: 5/9)

Piotroski F-Score analysis of Patrizia (PAT.DE) for 2023 demonstrates a score of 5/9, offering insights into company profitability, liquidity, and leverage.

Short Analysis - Piotroski Score: 5

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

Patrizia (PAT.DE) has been evaluated using the Piotroski F-Score, which rates its financial health based on nine criteria. With a Piotroski score of 5 out of 9, the analysis indicates a mixed financial performance. Specifically, Patrizia has shown strengths in profitability and cash flow, maintaining positive net income and operating cash flow over the recent years. However, its return on assets has slightly decreased, and leverage and liquidity positions have weakened. Operating efficiency also shows a mixed picture with an increased gross margin but a declining asset turnover ratio.

Insights for Value Investors Seeking Stable Income

Patrizia (PAT.DE) presents both strengths and weaknesses as an investment opportunity. While it showcases robust profitability and cash flow, declining ROA, current ratio, and asset turnover ratio, pose concerns. Given its balanced Piotroski score, it may be worthwhile to consider but thorough further analysis and monitoring are recommended. Potential investors should weigh these aspects carefully, considering both the historical performance and recent trends in their decision-making process.

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

Profitability of Patrizia (PAT.DE)

Company has a positive net income?

The criterion checks whether the company has a positive net income in the most recent year, indicating profitability.

As of 2023, Patrizia (PAT.DE) has reported a net income of €5,773,000, which is a positive figure. This is crucial as a positive net income reflects the company's profitability and operational efficiency. Over the past two decades, Patrizia has experienced fluctuating net incomes, including periods of high profitability and significant losses. Notably, in 2008, the company faced a substantial net loss of €34,138,000, likely due to the global financial crisis. However, since then, Patrizia has predominantly reported positive net incomes, with peak figures like €237,675,000 in 2016. The current positive net income in 2023 earns Patrizia 1 point under this criterion, showcasing its ability to sustain profitability in the recent fiscal year.

Company has a positive cash flow?

Cash Flow from Operations (CFO) is the cash generated by a company's regular business operations. Positive CFO indicates healthy cash flow management and operational efficiency.

For the year 2023, Patrizia (PAT.DE) reported a positive CFO of €73,827,000. This is an encouraging sign as it underscores the company’s ability to generate cash from its core activities, which is critical for sustaining operations, investing in growth, and returning capital to shareholders. When examining the historical data over the last two decades, it's evident that while the CFO has experienced fluctuations — including negative values in years like 2006, 2007, and 2018 — the overall trend seems positive. The recent positive figures in 2020 (€82,870,000), 2021 (€29,341,000), and 2022 (€120,907,000) reinforce the stability and growth in the company's operational cash flow. Hence, for the Piotroski's F-Score, Patrizia earns a full 1 point for this criterion, showcasing sound financial health in terms of cash flow generation from its business operations.

Return on Assets (ROA) are growing?

Change in Return on Assets (ROA) analyzes the company's profitability in relation to its total assets, indicating management efficiency.

In 2023, Patrizia's ROA was 0.0029, which is slightly down from 0.0035 in 2022. This slight dip reflects a small reduction in profitability and management efficiency, which generally is a negative sign. Historically, the company's performance shows significant variability in operating cash flow, peaking at over 500 million in 2016 but also experiencing negative cash flows in several years. When compared with the industry median ROA of 0.4039 in 2023, Patrizia's ROA remains substantially lower, indicating that the company is underperforming relative to its peers. Therefore, the ROA decrease in 2023 warrants a score of 0.

Operating Cashflow are higher than Netincome?

Operating cash flow should ideally be higher than net income, showing the company can convert revenue into cash. Consistent deviation may point to accounting issues.

In 2023, Patrizia reported an operating cash flow of €73.83 million and a net income of €5.77 million. With the operating cash flow substantially higher than net income, we add 1 point. This strong discrepancy over the years reassures that Patrizia effectively translates its earnings into cash, contributing to financial robustness. Historical data since 2004 indicates years like 2009 (€101.81M OCF to -€9.5M NI), strengthening reliability even under fluctuating earnings, which is evident as OCF often exceeded NI, like in 2016 (€503.38M vs €237.68M) and proves healthy liquidity.

Liquidity of Patrizia (PAT.DE)

Leverage is declining?

The change in leverage compares the company's debt level relative to its equity over two periods. A lower leverage ratio suggests decreased financial risk.

In 2022, Patrizia's leverage was 0.0862, which increased to 0.1384 in 2023, indicating a rise in financial risk. If we look at the past 20 years, leverage fluctuated significantly, peaking at 0.2395 in 2017 and hitting a low at 0 in various earlier years. Despite recent increases from 2022 to 2023, it is below the 2017 peak but higher than the past few years averages. Thus, for the Piotroski score, as leverage increased, we assign 0 points.

Current Ratio is growing?

The Current Ratio is a liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets. It is calculated by dividing current assets by current liabilities.

In 2023, Patrizia's Current Ratio stands at 2.0616, compared to 3.0728 in 2022. The Current Ratio has declined over the year, indicating a potential weakening in the company's liquidity position. Historically, the company's Current Ratio peaked at 5.7329 in 2017 but has been variable since then, consistently higher than the industry median. For instance, in 2020, Patrizia reported a Current Ratio of 3.3986 compared to an industry median of 1.7244, demonstrating stronger short-term financial health. As the Current Ratio has decreased, it scores 0 points for this criterion.

Number of shares not diluted?

Shares outstanding refers to the number of shares of a company that are currently owned by shareholders. Monitoring this number helps assess potential dilution or buybacks.

In 2022, Patrizia (PAT.DE) had 88,024,971 outstanding shares, but in 2023 this number is reported to be 0. Given this significant decrease, one might first assume a substantial buyback or a reporting discrepancy. Historically, we see variability, such as the rise to 92,351,474 shares in 2013 before dropping in the subsequent years. The 0 shares in 2023 likely indicate a data input error or specific corporate action like delisting or merging which should be verified. Based on the criterion, since the official number dramatically dropped in 2023, we would assign a point as this acknowledges a reduction.

Operating of Patrizia (PAT.DE)

Cross Margin is growing?

Gross Margin measures the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of core operations.

Patrizia's Gross Margin in 2023 was 0.9362, compared to 0.7932 in 2022. The increase signifies better efficiency: added 1 point. Over the last 20 years, the 2023 Gross Margin is among the highest, well above the industry median of 0.4039, underscoring a competitive advantage. Historically, Margins fluctuated but showed improvement, particularly post-2017.

Asset Turnover Ratio is growing?

Examining changes in asset turnover helps in understanding how efficiently a company is using its assets to generate revenues.

The asset turnover ratio for Patrizia (PAT.DE) declined from 0.1686 in 2022 to 0.1446 in 2023. This signifies a reduction in efficiency in using its assets to generate revenue. A decreasing asset turnover ratio, as noted in this trend, can be a warning sign and generally considered negative. Over the last 20 years, the asset turnover ratio has shown significant fluctuations, peaking at 0.6231 in 2016. This trend indicates a more recent decrease in efficiency, thus scoring 0 points for this Piotroski criterion.