ENXTAM:PHIA

Stock Analysis Report

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Market Cap

€40.8b

Last Updated

2021/06/14 22:26 UTC

Data Sources

Company Financials +

Executive Summary

Koninklijke Philips N.V. operates as a health technology company in North America, Greater China, and internationally. More Details


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Koninklijke Philips's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PHIA is less volatile than 75% of Dutch stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PHIA's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

PHIA

1.3%

NL Medical Equipment

1.3%

NL Market


1 Year Return

8.5%

PHIA

23.0%

NL Medical Equipment

35.5%

NL Market

Return vs Industry: PHIA underperformed the Dutch Medical Equipment industry which returned 24.5% over the past year.

Return vs Market: PHIA underperformed the Dutch Market which returned 35.6% over the past year.


Shareholder returns

PHIAIndustryMarket
7 Day-3.4%1.3%1.3%
30 Day-3.9%5.3%3.9%
90 Day-5.4%7.0%5.4%
1 Year10.4%8.5%24.5%23.0%37.8%35.5%
3 Year32.0%26.7%60.7%54.4%32.9%20.5%
5 Year113.9%95.9%156.3%137.0%80.4%50.0%

Long-Term Price Volatility Vs. Market

How volatile is Koninklijke Philips's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

42.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PHIA (€46.38) is trading below our estimate of fair value (€77.11)

Significantly Below Fair Value: PHIA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PHIA is good value based on its PE Ratio (36.7x) compared to the European Medical Equipment industry average (36.9x).

PE vs Market: PHIA is poor value based on its PE Ratio (36.7x) compared to the Dutch market (29.4x).


Price to Earnings Growth Ratio

PEG Ratio: PHIA is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: PHIA is good value based on its PB Ratio (3.5x) compared to the XE Medical Equipment industry average (5.4x).


Future Growth

How is Koninklijke Philips forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHIA's forecast earnings growth (17.1% per year) is above the savings rate (0.1%).

Earnings vs Market: PHIA's earnings (17.1% per year) are forecast to grow slower than the Dutch market (17.4% per year).

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

Revenue vs Market: PHIA's revenue (5.1% per year) is forecast to grow slower than the Dutch market (6.4% per year).

High Growth Revenue: PHIA's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PHIA's Return on Equity is forecast to be low in 3 years time (14%).


Past Performance

How has Koninklijke Philips performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHIA has high quality earnings.

Growing Profit Margin: PHIA's current net profit margins (5.8%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: PHIA's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: PHIA's earnings growth over the past year (8.7%) is below its 5-year average (17.4% per year).

Earnings vs Industry: PHIA earnings growth over the past year (8.7%) underperformed the Medical Equipment industry 21.1%.


Return on Equity

High ROE: PHIA's Return on Equity (9.7%) is considered low.


Financial Health

How is Koninklijke Philips's financial position?


Financial Position Analysis

Short Term Liabilities: PHIA's short term assets (€11.2B) exceed its short term liabilities (€7.7B).

Long Term Liabilities: PHIA's short term assets (€11.2B) exceed its long term liabilities (€8.1B).


Debt to Equity History and Analysis

Debt Level: PHIA's debt to equity ratio (48.1%) is considered high.

Reducing Debt: PHIA's debt to equity ratio has increased from 48% to 48.1% over the past 5 years.

Debt Coverage: PHIA's debt is well covered by operating cash flow (47%).

Interest Coverage: PHIA's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet


Dividend

What is Koninklijke Philips's current dividend yield, its reliability and sustainability?

1.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PHIA's dividend (1.83%) is higher than the bottom 25% of dividend payers in the Dutch market (1.57%).

High Dividend: PHIA's dividend (1.83%) is low compared to the top 25% of dividend payers in the Dutch market (4.45%).


Stability and Growth of Payments

Stable Dividend: PHIA's dividend payments have been volatile in the past 10 years.

Growing Dividend: PHIA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.2%), PHIA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PHIA's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Frans van Houten (61 yo)

10.17yrs

Tenure

€6,153,066

Compensation

Mr. François Adrianus van Houten, also known as Frans, has been the Chief Executive Officer and Chairman of Management Board of Royal Philips at Philips India Limited since April 2011. Mr. van Houten serve...


CEO Compensation Analysis

Compensation vs Market: Frans's total compensation ($USD7.44M) is above average for companies of similar size in the Dutch market ($USD3.19M).

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


Leadership Team

Experienced Management: PHIA's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: PHIA's board of directors are not considered experienced ( 1.2 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: 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

Koninklijke Philips N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Koninklijke Philips N.V.
  • Ticker: PHIA
  • Exchange: ENXTAM
  • Founded: 1891
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: €40.778b
  • Shares outstanding: 917.40m
  • Website: https://www.philips.com

Number of Employees


Location

  • Koninklijke Philips N.V.
  • Philips Center
  • Amstelplein 2
  • Amsterdam
  • Noord-Holland
  • 1096 BC
  • Netherlands

Listings


Biography

Koninklijke Philips N.V. operates as a health technology company in North America, Greater China, and internationally. It operates through Diagnosis & Treatment, Connected Care, and Personal Health segment...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 22:26
End of Day Share Price2021/06/14 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.