ENXTAM:LIGHT

Stock Analysis Report

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Executive Summary

Signify N.V., together with its subsidiaries, develops, manufactures, and sells lighting products worldwide.


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

7.3%

LIGHT

6.3%

NL Electrical

4.9%

NL Market


1 Year Return

-11.5%

LIGHT

17.6%

NL Electrical

-9.1%

NL Market

Return vs Industry: LIGHT underperformed the Dutch Electrical industry which returned 13.3% over the past year.

Return vs Market: LIGHT matched the Dutch Market which returned -11.3% over the past year.


Shareholder returns

LIGHTIndustryMarket
7 Day7.3%6.3%4.9%
30 Day19.1%17.0%11.4%
90 Day-10.8%1.5%-0.07%
1 Year-11.5%-11.5%20.6%17.6%-6.1%-9.1%
3 Year-33.6%-40.0%5.1%-3.4%6.8%-4.1%
5 Yearn/a45.4%-27.6%27.1%3.2%

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?

41.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LIGHT (€21.57) is trading below our estimate of fair value (€36.97)

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 (10.9x) compared to the Electrical industry average (21.1x).

PE vs Market: LIGHT is good value based on its PE Ratio (10.9x) compared to the Dutch market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: LIGHT is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: LIGHT is good value based on its PB Ratio (1.2x) compared to the XE Electrical industry average (2.2x).


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 (20.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LIGHT's revenue (2.8% per year) is forecast to grow slower than the Dutch market (7.2% per year).

High Growth Revenue: LIGHT's revenue (2.8% 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?

6.00%

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?

1.3yrs

Average management tenure


CEO

Eric Rondolat (53yo)

4.08yrs

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 ($USD3.17M) is above average for companies of similar size in the Dutch market ($USD2.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eric Rondolat
Chairman of the Board of Management & CEO4.08yrs€2.82m0.13% 3.6m
René Van Schooten
CFO & Member of the Board of Management0.25yr€1.62m0.0099% 269.7k
Rogier Dierckx
Head of Investor Relations0.17yrno datano data
Bill Bien
Chief Strategy & Marketing Officerno datano datano data
Maria Mariani
Chief Marketing Officer & Head of Strategyno datano data0.0056% 151.3k
Mark Van Bijsterveld
Chief HR Officerno datano datano data
Chris White
President of the Americas2.25yrsno datano data

1.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: LIGHT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Arthur P. Van der Poel
Independent Chairman of Supervisory Boardno data€137.50kno data
Gerard J. Van de Aast
Independent Vice Chairman of Supervisory Board2.42yrs€113.00kno data
Eelco Blok
Independent Member of Supervisory Board2.08yrs€95.50kno data
Ghim Lee
Independent Member of Supervisory Board3.08yrs€115.00kno data
Rita Lane
Independent Member of Supervisory Board4.42yrs€121.69kno data

2.8yrs

Average Tenure

62yo

Average Age

Experienced Board: LIGHT's board of directors are not considered experienced ( 2.8 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: €2.716b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LIGHTENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURMay 2016
LIGHTABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 2016
G14DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2016
0RHILSE (London Stock Exchange)YesOrdinary SharesGBEURMay 2016
SFFY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2016
PHPP.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 00:23
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.