As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Koninklijke Philips N.V. (AMS:PHIA), it is a company with great financial health as well as a an impressive history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Koninklijke Philips here.
Excellent balance sheet with proven track record
In the previous year, PHIA has ramped up its bottom line by 60%, with its latest earnings level surpassing its average level over the last five years. Not only did PHIA outperformed its past performance, its growth also surpassed the Medical Equipment industry expansion, which generated a 11% earnings growth. This is what investors like to see! PHIA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that PHIA has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. PHIA seems to have put its debt to good use, generating operating cash levels of 0.5x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Koninklijke Philips, I’ve compiled three pertinent aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for PHIA’s future growth? Take a look at our free research report of analyst consensus for PHIA’s outlook.
- Valuation: What is PHIA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PHIA is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PHIA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.