Koninklijke Philips N.V. (AMS:PHIA) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of PHIA, it is a financially-healthy , dividend-paying company with a a strong history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Koninklijke Philips here.
Established dividend payer with proven track record
PHIA delivered a bottom-line expansion of 23% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did PHIA outperformed its past performance, its growth also exceeded the Medical Equipment industry expansion, which generated a 12% earnings growth. This is an optimistic signal for the future. PHIA’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. 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’s has produced operating cash levels of 0.45x total debt over the past year, which implies that PHIA’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
PHIA is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Koninklijke Philips, there are three essential factors you should further research:
- 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!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.