ENXTAM:LIGHT

Stock Analysis Report

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Market Cap

€6.3b

Last Updated

2021/07/23 17:41 UTC

Data Sources

Company Financials +

Executive Summary

Signify N.V., together with its subsidiaries, develops, manufactures, and sells lighting products in Europe, the Americas, and internationally. More Details


Snowflake Analysis

Undervalued with proven track record.


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 is not significantly more volatile than the rest of Dutch stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LIGHT's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

LIGHT

2.8%

NL Electrical

1.1%

NL Market


1 Year Return

86.7%

LIGHT

39.8%

NL Electrical

31.7%

NL Market

Return vs Industry: LIGHT exceeded the Dutch Electrical industry which returned 39.8% over the past year.

Return vs Market: LIGHT exceeded the Dutch Market which returned 31.7% over the past year.


Shareholder returns

LIGHTIndustryMarket
7 Day1.2%2.8%1.1%
30 Day-3.4%2.2%1.9%
90 Day11.8%-1.2%2.0%
1 Year97.6%86.7%42.3%39.8%33.8%31.7%
3 Year142.8%117.9%96.4%82.4%30.6%18.7%
5 Year167.9%121.2%122.4%93.5%78.1%49.3%

Long-Term 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

Valuation

Is Signify undervalued compared to its fair value and its price relative to the market?

25.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LIGHT (€50.62) is trading below our estimate of fair value (€67.7)

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 (18.1x) compared to the European Electrical industry average (29.2x).

PE vs Market: LIGHT is good value based on its PE Ratio (18.1x) compared to the Dutch market (27.4x).


Price to Earnings Growth Ratio

PEG Ratio: LIGHT is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: LIGHT is good value based on its PB Ratio (2.7x) compared to the XE Electrical industry average (3.3x).


Future Growth

How is Signify forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIGHT's forecast earnings growth (15.6% per year) is above the savings rate (0.1%).

Earnings vs Market: LIGHT's earnings (15.6% per year) are forecast to grow faster than the Dutch market (15.5% per year).

High Growth Earnings: LIGHT's earnings are forecast to grow, but not significantly.

Revenue vs Market: LIGHT's revenue (1.3% per year) is forecast to grow slower than the Dutch market (6.6% per year).

High Growth Revenue: LIGHT's revenue (1.3% 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 (19.5%).


Past Performance

How has Signify performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIGHT has a large one-off loss of €174.0M impacting its March 31 2021 financial results.

Growing Profit Margin: LIGHT's current net profit margins (5.3%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: LIGHT's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: LIGHT's earnings growth over the past year (42.7%) exceeds its 5-year average (9% per year).

Earnings vs Industry: LIGHT earnings growth over the past year (42.7%) exceeded the Electrical industry 34.8%.


Return on Equity

High ROE: LIGHT's Return on Equity (14.9%) is considered low.


Financial Health

How is Signify's financial position?


Financial Position Analysis

Short Term Liabilities: LIGHT's short term assets (€3.5B) exceed its short term liabilities (€2.7B).

Long Term Liabilities: LIGHT's short term assets (€3.5B) exceed its long term liabilities (€2.8B).


Debt to Equity History and Analysis

Debt Level: LIGHT's debt to equity ratio (85%) is considered high.

Reducing Debt: LIGHT's debt to equity ratio has increased from 24.5% to 85% over the past 5 years.

Debt Coverage: LIGHT's debt is well covered by operating cash flow (45.1%).

Interest Coverage: LIGHT's interest payments on its debt are well covered by EBIT (20.8x coverage).


Balance Sheet


Dividend

What is Signify current dividend yield, its reliability and sustainability?

2.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LIGHT's dividend (2.77%) is higher than the bottom 25% of dividend payers in the Dutch market (1.43%).

High Dividend: LIGHT's dividend (2.77%) is low compared to the top 25% of dividend payers in the Dutch market (4.44%).


Stability and Growth of Payments

Stable Dividend: LIGHT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LIGHT's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (50%), LIGHT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LIGHT's dividends in 3 years are forecast to be well covered by earnings (38.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Eric Rondolat (55 yo)

5.17yrs

Tenure

€2,822,104

Compensation

Mr. Eric Rondolat has been Global Chief Executive Officer and Executive Vice President of Signify North America Corporation (formerly known as Philips Lighting North America Corporation) since March 20, 20...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Eric's total compensation is reasonable compared to companies of similar size in the Dutch market.

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LIGHT's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: LIGHT's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: €6.320b
  • Shares outstanding: 124.86m
  • Website: https://www.signify.com

Number of Employees


Location

  • Signify N.V.
  • High Tech Campus 48
  • Eindhoven
  • Noord-Brabant
  • 5656 AE
  • Netherlands

Listings


Biography

Signify N.V., together with its subsidiaries, develops, manufactures, and sells lighting products in Europe, the Americas, and internationally. It operates through Digital Solutions, Digital Products, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 17:41
End of Day Share Price2021/07/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.