Market Cap
€2.5b
Last Updated
2020/05/29 00:36 UTC
Data Sources
Company Financials +
Executive Summary
Signify N.V., together with its subsidiaries, develops, manufactures, and sells lighting products worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with moderate growth potential.
Similar Companies
Share Price & News
How has Signify's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LIGHT's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
16.3%
LIGHT
6.3%
NL Electrical
1.8%
NL Market
1 Year Return
-16.1%
LIGHT
9.8%
NL Electrical
-13.2%
NL Market
Return vs Industry: LIGHT underperformed the Dutch Electrical industry which returned 8.8% over the past year.
Return vs Market: LIGHT underperformed the Dutch Market which returned -14% over the past year.
Shareholder returns
| LIGHT | Industry | Market | |
|---|---|---|---|
| 7 Day | 16.3% | 6.3% | 1.8% |
| 30 Day | 4.4% | 6.6% | 3.6% |
| 90 Day | -25.0% | -6.6% | -4.6% |
| 1 Year | -16.1%-16.1% | 12.6%9.8% | -10.3%-13.2% |
| 3 Year | -33.1%-39.5% | -1.7%-9.7% | 2.2%-8.3% |
| 5 Year | n/a | 32.8%-33.7% | 21.0%-1.8% |
Price Volatility Vs. Market
How volatile is Signify's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Should You Think About Buying Signify N.V. (AMS:LIGHT) Now?2 weeks ago | Simply Wall St
Signify (AMS:LIGHT) Takes On Some Risk With Its Use Of Debt4 weeks ago | Simply Wall St
Chairman of the Board of Management & CEO Eric Rondolat Just Bought 148% More Shares In Signify N.V. (AMS:LIGHT)Valuation
Is Signify undervalued compared to its fair value and its price relative to the market?
43.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LIGHT (€20.1) is trading below our estimate of fair value (€35.48)
Significantly Below Fair Value: LIGHT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LIGHT is good value based on its PE Ratio (10.2x) compared to the Electrical industry average (20.2x).
PE vs Market: LIGHT is good value based on its PE Ratio (10.2x) compared to the Dutch market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: LIGHT is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: LIGHT is good value based on its PB Ratio (1.1x) compared to the XE Electrical industry average (2.1x).
Next Steps
Future Growth
How is Signify forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
23.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LIGHT's forecast earnings growth (23% per year) is above the savings rate (0.4%).
Earnings vs Market: LIGHT's earnings (23% per year) are forecast to grow faster than the Dutch market (20.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LIGHT's revenue (3.8% per year) is forecast to grow slower than the Dutch market (7.2% per year).
High Growth Revenue: LIGHT's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LIGHT's Return on Equity is forecast to be low in 3 years time (13%).
Next Steps
Past Performance
How has Signify performed over the past 5 years?
7.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LIGHT has a large one-off loss of €170.0M impacting its March 31 2020 financial results.
Growing Profit Margin: LIGHT's current net profit margins (4%) are lower than last year (4.5%).
Past Earnings Growth Analysis
Earnings Trend: LIGHT's earnings have grown by 7.5% per year over the past 5 years.
Accelerating Growth: LIGHT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LIGHT had negative earnings growth (-13.4%) over the past year, making it difficult to compare to the Electrical industry average (-0.2%).
Return on Equity
High ROE: LIGHT's Return on Equity (10.7%) is considered low.
Next Steps
Financial Health
How is Signify's financial position?
Financial Position Analysis
Short Term Liabilities: LIGHT's short term assets (€3.4B) exceed its short term liabilities (€2.2B).
Long Term Liabilities: LIGHT's short term assets (€3.4B) do not cover its long term liabilities (€3.5B).
Debt to Equity History and Analysis
Debt Level: LIGHT's debt to equity ratio (106.3%) is considered high.
Reducing Debt: LIGHT's debt to equity ratio has increased from 2.5% to 106.3% over the past 5 years.
Debt Coverage: LIGHT's debt is well covered by operating cash flow (26.7%).
Interest Coverage: LIGHT's interest payments on its debt are well covered by EBIT (33.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Signify's current dividend yield, its reliability and sustainability?
6.44%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LIGHT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LIGHT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LIGHT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LIGHT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: LIGHT is not paying a notable dividend for the Dutch market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LIGHT's dividend in 3 years as they are not forecast to pay a notable one for the Dutch market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.2yrs
Average management tenure
CEO
Eric Rondolat (53yo)
4yrs
Tenure
€2,822,104
Compensation
Mr. Eric Rondolat has been Global Chief Executive Officer and Executive Vice President of Philips Lighting North America Corporation since March 20, 2012. Mr. Rondolat has been the Chief Executive Officer ...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($USD3.10M) is above average for companies of similar size in the Dutch market ($USD2.08M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board of Management & CEO | 4yrs | €2.82m | 0.13% €3.4m | |
| CFO & Member of the Board of Management | 0.17yr | €1.62m | 0.0099% €251.4k | |
| Head of Investor Relations | 0.083yr | no data | no data | |
| Chief Strategy & Marketing Officer | no data | no data | no data | |
| Chief HR Officer | no data | no data | no data | |
| President of the Americas | 2.17yrs | no data | no data |
1.2yrs
Average Tenure
56yo
Average Age
Experienced Management: LIGHT's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Chairman of Supervisory Board | no data | €137.50k | no data | |
| Independent Vice Chairman of Supervisory Board | 2.33yrs | €113.00k | no data | |
| Independent Member of Supervisory Board | 2yrs | €95.50k | no data | |
| Independent Member of Supervisory Board | 3yrs | €115.00k | no data | |
| Independent Member of Supervisory Board | 4.33yrs | €121.69k | no data |
2.7yrs
Average Tenure
62yo
Average Age
Experienced Board: LIGHT's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LIGHT insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Signify N.V.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Signify N.V.
- Ticker: LIGHT
- Exchange: ENXTAM
- Founded: 1891
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Market Cap: €2.531b
- Shares outstanding: 125.94m
- Website: https://www.signify.com
Number of Employees
Location
- Signify N.V.
- High Tech Campus 45
- Eindhoven
- Noord-Brabant
- 5656 AE
- Netherlands
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LIGHT | ENXTAM (Euronext Amsterdam) | Yes | Ordinary Shares | NL | EUR | May 2016 |
| LIGHTA | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | May 2016 |
| G14 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 2016 |
| 0RHI | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | May 2016 |
| SFFY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 2016 |
| PHPP.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Oct 2017 |
Biography
Signify N.V., together with its subsidiaries, develops, manufactures, and sells lighting products worldwide. It operates through four segments: Lamps, LED, Professional, and Home. The company offers various light-emitting diode (LED) lamps, including spots, bulbs, and tubes for the professional and consumer channels, and original equipment manufacturers (OEMs); and LED electronic components, such as LED drivers and LED modules for luminaire OEMs, as well as for professional luminaire applications in the retail, office, and outdoor segments. It also provides LED and conventional luminaires, systems, and services for various market segments comprising offices, commercial buildings, shops, hospitality, industry, and outdoor environments that include smart cities; and develops and sells connected lighting systems, functional and decorative home luminaires, and premium luminaires. In addition, the company produces and sells lamps, which comprise high intensity discharge lamp, TL, fluorescent, and halogen, as well as electronic components, including electronic ballast and drivers; and specialty lighting products, as well as digital projection lighting and drivers to the OEM market and replacement market. It provides its consumer and professional lamps to consumers, electrical installers, and professional end-users through various channels for use in residential and professional applications; and lamp electronics for luminaire manufacturers directly, as well as replacement products through electrical wholesalers. The company was formerly known as Philips Lighting N.V. and changed its name to Signify N.V. in May 2018. Signify N.V. was founded in 1891 and is headquartered in Eindhoven, the Netherlands.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/29 00:36 |
| End of Day Share Price | 2020/05/28 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.