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Francotyp-Postalia Holding AG (XTER:FPH) Financial Strength : 6 (As of Dec. 2023)


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What is Francotyp-Postalia Holding AG Financial Strength?

Francotyp-Postalia Holding AG has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Francotyp-Postalia Holding AG's Interest Coverage for the quarter that ended in Dec. 2023 was 14.54. Francotyp-Postalia Holding AG's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.14. As of today, Francotyp-Postalia Holding AG's Altman Z-Score is 1.41.


Competitive Comparison of Francotyp-Postalia Holding AG's Financial Strength

For the Specialty Business Services subindustry, Francotyp-Postalia Holding AG's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Francotyp-Postalia Holding AG's Financial Strength Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Francotyp-Postalia Holding AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where Francotyp-Postalia Holding AG's Financial Strength falls into.



Francotyp-Postalia Holding AG Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Francotyp-Postalia Holding AG's Interest Expense for the months ended in Dec. 2023 was €-0.4 Mil. Its Operating Income for the months ended in Dec. 2023 was €6.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €30.2 Mil.

Francotyp-Postalia Holding AG's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*5.976/-0.411
=14.54

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Francotyp-Postalia Holding AG's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(3.376 + 30.151) / 237.432
=0.14

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Francotyp-Postalia Holding AG has a Z-score of 1.41, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.41 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Francotyp-Postalia Holding AG  (XTER:FPH) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Francotyp-Postalia Holding AG has the Financial Strength Rank of 6.


Francotyp-Postalia Holding AG Financial Strength Related Terms

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Francotyp-Postalia Holding AG (XTER:FPH) Business Description

Traded in Other Exchanges
Address
Prenzlauer Promenade 28, Berlin, BB, DEU, 13089
Francotyp-Postalia Holding AG is a company dealing with mail communication. Its business activities focus on traditional product business, which consists of the development, manufacture, and distribution of franking systems, as well as inserting machines and after-sale business. The company also comprises services such as the collection of business mail and software solutions.
Executives
Ralf Georg Spielberger Board of Directors
Carsten Von Lavergne-peguilhen Lind Board of Directors
Dr. Alexander Granderath Supervisory Board
Martin Eckhardt Geisel Board of Directors
Dr. Hans Alexander Granderath Supervisory Board
Carsten Lavergne-peguilhen Lind Board of Directors
Patricius De Gruyter Board of Directors

Francotyp-Postalia Holding AG (XTER:FPH) Headlines

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