ENXTAM:PHIA

Stock Analysis Report

Executive Summary

Koninklijke Philips N.V. operates as a health technology company worldwide.

Snowflake

Fundamentals

Proven track record 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


Market Performance


7 Day Return

-4.7%

PHIA

-2.2%

NL Medical Equipment

1.8%

NL Market


1 Year Return

11.1%

PHIA

15.2%

NL Medical Equipment

7.7%

NL Market

Return vs Industry: PHIA underperformed the Dutch Medical Equipment industry which returned 15.2% over the past year.

Return vs Market: PHIA exceeded the Dutch Market which returned 7.7% over the past year.


Share holder returns

PHIAIndustryMarket
7 Day-4.7%-2.2%1.8%
30 Day-9.4%-2.5%-1.1%
90 Day-1.1%-1.9%-0.9%
1 Year13.7%11.1%17.1%15.2%12.5%7.7%
3 Year59.2%48.4%61.4%53.1%41.9%26.1%
5 Year103.7%77.3%126.6%104.9%70.4%36.2%

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 based on future cash flows and its price relative to the stock market?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: PHIA (€39.12) is trading below our estimate of fair value (€56.79)

Significantly Undervalued: PHIA is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: PHIA is good value based on its PE Ratio (24.7x) compared to the Medical Equipment industry average (33.3x).

PE vs Market: PHIA is poor value based on its PE Ratio (24.7x) compared to the Dutch market (19x).


Price Based on Expected Growth

Low PEG Ratio: PHIA is poor value based on its PEG Ratio (1.5x)


Price Based on Value of Assets

PB vs Industry: PHIA is good value based on its PB Ratio (3x) compared to the XE Medical Equipment industry average (3.6x).


Next Steps

Future Growth

How is Koninklijke Philips expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PHIA's forecast earnings growth (16.6% per year) is above the savings rate (0.4%).

Earnings vs Market: PHIA's earnings (16.6% per year) are forecast to grow faster than the Dutch market (11.6% per year).

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

Revenue vs Market: PHIA's revenue (4.9% per year) is forecast to grow slower than the Dutch market (5.9% per year).

High Growth Revenue: PHIA's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: PHIA's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has Koninklijke Philips performed over the past 5 years?

29.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PHIA's earnings have grown significantly by 29.8% per year over the past 5 years.

Accelerating Growth: PHIA's earnings growth over the past year (66.7%) exceeds its 5-year average (29.8% per year).

Earnings vs Industry: PHIA earnings growth over the past year (66.7%) exceeded the Medical Equipment industry 4.3%.


Return on Equity

High ROE: PHIA's Return on Equity (12.2%) is considered low.


Return on Assets

ROA vs Industry: PHIA's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: PHIA has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Koninklijke Philips's financial position?


Financial Position Analysis

Short Term Liabilities: PHIA's short term assets (€9.1B) exceeds its short term liabilities (€7.1B)

Long Term Liabilities: PHIA's short term assets (9.1B) exceeds its long term liabilities (7.3B)


Debt to Equity History and Analysis

Debt Level: PHIA's debt to equity ratio (46%) is considered high

Reducing Debt: PHIA's debt to equity ratio has increased from 33.3% to 46% over the past 5 years.

Debt Coverage: PHIA's debt is well covered by operating cash flow (36.8%).

Interest Coverage: PHIA's interest payments on its debt are well covered by EBIT (25.8x coverage).


Balance Sheet

Inventory Level: PHIA has a high level of physical assets or inventory.

Debt Coverage by Assets: PHIA's debt is covered by short term assets (assets are 1.653970x debt).


Next Steps

Dividend

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

2.30%

Expected Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.3%markettop25%6.0%industryaverage1.3%forecastin3Years2.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: PHIA's dividend (2.17%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (2.27%).

High Dividend: PHIA's dividend (2.17%) is low compared to the top 25% of dividend payers in the Dutch market (5.98%).

Stable Dividend: PHIA's dividends per share have been stable 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 (53.7%), 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 (37.6% payout ratio).


Next Steps

Management

What is the CEO of Koninklijke Philips's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Frans van Houten (59yo)

8.5yrs

Tenure

€5,391,265

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 ($USD5.96M) is about average for companies of similar size in the Dutch market ($USD3.91M).

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


Management Age and Tenure

3.2yrs

Average Tenure

58.5yo

Average Age

Experienced Management: PHIA's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

64yo

Average Age

Experienced Board: PHIA's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Chris Poon (67yo)

    Vice-Chairwoman of the Supervisory Board & Secretary

    • Tenure: 0yrs
    • Compensation: €154.88k
  • Jeroen Tas (60yo)

    Executive VP and Chief Innovation & Strategy Officer

    • Tenure: 3.3yrs
  • Frans van Houten (59yo)

    Chairman of the Board of Management & CEO

    • Tenure: 8.5yrs
    • Compensation: €5.39m
  • Roy Jakobs (45yo)

    Executive VP & Chief Business Leader of Personal Health

    • Tenure: 1yrs
  • Abhijit Bhattacharya (58yo)

    Executive VP

    • Tenure: 4yrs
    • Compensation: €2.60m
  • Ronald de Jong (52yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 2.5yrs
  • Sean Carney

    Chief Design Officer

    • Tenure: 7.9yrs
  • Marnix van Ginneken (46yo)

    Executive VP

    • Tenure: 1.9yrs
    • Compensation: €1.86m
  • Sophie Bechu (59yo)

    Executive VP & Chief of Operations

    • Tenure: 3.1yrs
  • Pim Preesman

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Orit Gadiesh (68yo)

    Member of Supervisory Board

    • Tenure: 5.4yrs
    • Compensation: €121.25k
  • Chris Poon (67yo)

    Vice-Chairwoman of the Supervisory Board & Secretary

    • Tenure: 0yrs
    • Compensation: €154.88k
  • David E. Pyott (66yo)

    Member of Supervisory Board

    • Tenure: 4.4yrs
    • Compensation: €142.25k
  • Jeroen van der Veer (72yo)

    Chairman of the Supervisory Board

    • Tenure: 8.6yrs
    • Compensation: €179.50k
  • Paul Stoffels (57yo)

    Member of Supervisory Board

    • Tenure: 1.2yrs
    • Compensation: €46.67k
  • Neelam Dhawan (60yo)

    Member of Supervisory Board

    • Tenure: 7.5yrs
    • Compensation: €123.75k
  • A. Harrison (55yo)

    Member of Supervisory Board

    • Tenure: 1yrs
    • Compensation: €42.33k
  • Liz Doherty (62yo)

    Member of Supervisory Board

    • Tenure: 0.4yrs

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: €35.157b
  • Shares outstanding: 898.81m
  • Website: https://www.philips.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHIAXTRA (XETRA Trading Platform)ADR EACH REP 1 ORD EUR0.20DEEURJan 1980
PHGNYSE (New York Stock Exchange)ADR EACH REP 1 ORD EUR0.20USUSDJan 1980
PHIADB (Deutsche Boerse AG)ADR EACH REP 1 ORD EUR0.20DEEURJan 1980
0A2MLSE (London Stock Exchange)ADR EACH REP 1 ORD EUR0.20GBUSDJan 1980
PHISWX (SIX Swiss Exchange)YesCommon SharesCHCHFDec 1980
PHI1DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1980
PHIABIT (Borsa Italiana)YesCommon SharesITEURDec 1980
RYLP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1980
PHIAENXTAM (Euronext Amsterdam)YesCommon SharesNLEURDec 1980
0LNGLSE (London Stock Exchange)YesCommon SharesGBEURDec 1980
PHIAABATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURDec 1980
PHIAWBAG (Wiener Boerse AG)YesCommon SharesATEURDec 1980
PHIA NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1980
PHI1XTRA (XETRA Trading Platform)YesCommon SharesDEEURDec 1980

Biography

Koninklijke Philips N.V. operates as a health technology company worldwide. It operates through Diagnosis & Treatment, Connected Care & Health Informatics, and Personal Health segments. The company offers  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:49
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)