ENXTAM:PHIA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value with adequate balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.4%

PHIA

-4.3%

NL Medical Equipment

-2.8%

NL Market


1 Year Return

2.7%

PHIA

11.7%

NL Medical Equipment

-10.8%

NL Market

Return vs Industry: PHIA underperformed the Dutch Medical Equipment industry which returned 12.8% over the past year.

Return vs Market: PHIA exceeded the Dutch Market which returned -10.8% over the past year.


Shareholder returns

PHIAIndustryMarket
7 Day-5.4%-4.3%-2.8%
30 Day-0.8%-1.9%-1.2%
90 Day-9.1%-3.2%-2.0%
1 Year2.7%2.7%12.9%11.7%-8.6%-10.8%
3 Year19.0%13.7%54.4%47.3%-7.1%-16.4%
5 Year78.9%61.0%116.4%98.1%20.8%-1.0%

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?

23.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PHIA (€39.88) is trading below our estimate of fair value (€52.14)

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 (33x) compared to the XE Medical Equipment industry average (39.1x).

PE vs Market: PHIA is poor value based on its PE Ratio (33x) compared to the Dutch market (20x).


Price to Earnings Growth Ratio

PEG Ratio: PHIA is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: PHIA is good value based on its PB Ratio (3.3x) compared to the XE Medical Equipment industry average (4x).


Next Steps

Future Growth

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

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHIA's forecast earnings growth (16.3% per year) is above the savings rate (0.4%).

Earnings vs Market: PHIA's earnings (16.3% per year) are forecast to grow slower than the Dutch market (25.7% per year).

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

Revenue vs Market: PHIA's revenue (3.9% per year) is forecast to grow slower than the Dutch market (9.4% per year).

High Growth Revenue: PHIA's revenue (3.9% 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 (13%).


Next Steps

Past Performance

How has Koninklijke Philips performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHIA has a large one-off loss of €552.0M impacting its September 30 2020 financial results.

Growing Profit Margin: PHIA's current net profit margins (5.9%) are lower than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: PHIA's earnings have grown significantly by 22.5% per year over the past 5 years.

Accelerating Growth: PHIA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PHIA had negative earnings growth (-15.5%) over the past year, making it difficult to compare to the Medical Equipment industry average (-3.1%).


Return on Equity

High ROE: PHIA's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Koninklijke Philips's financial position?


Financial Position Analysis

Short Term Liabilities: PHIA's short term assets (€10.0B) exceed its short term liabilities (€7.5B).

Long Term Liabilities: PHIA's short term assets (€10.0B) exceed its long term liabilities (€9.0B).


Debt to Equity History and Analysis

Debt Level: PHIA's debt to equity ratio (51.8%) is considered high.

Reducing Debt: PHIA's debt to equity ratio has increased from 46.3% to 51.8% over the past 5 years.

Debt Coverage: PHIA's debt is well covered by operating cash flow (40.7%).

Interest Coverage: PHIA's interest payments on its debt are well covered by EBIT (34.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.47%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PHIA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PHIA'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 PHIA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PHIA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PHIA is not paying a notable dividend for the Dutch market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PHIA'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?

3.5yrs

Average management tenure


CEO

Frans van Houten (60 yo)

9.5yrs

Tenure

€5,260,111

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 ($USD6.13M) is above average for companies of similar size in the Dutch market ($USD4.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
François van Houten
Chairman of the Board of Management & CEO9.5yrs€5.26m0.047%
€ 17.0m
Christine Poon
Independent Vice-Chairwoman of the Supervisory Board & Secretaryno data€187.17kno data
Abhijit Bhattacharya
Executive VP5yrs€2.60m0.014%
€ 4.9m
Marnix van Ginneken
Executive VP2.92yrs€1.86m0.0098%
€ 3.6m
Robert Cascella
EVP of Strategic Business Development & Member of Executive Committeeno datano datano data
Sophie Bechu
Executive VP & Chief of Operations4.08yrsno datano data
Kees Wesdorp
Chief Business Leader of the Precision Diagnosis Businesses & Member of Executive Committee0.42yrno datano data
Leandro Mazzoni
Head of Investor Relations1.17yrsno datano data
Daniela Seabrook
Executive VP & Chief Human Resources Officer0.83yrno datano data
Sean Carney
Chief Design Officer8.92yrsno datano data
Roy Jakobs
Executive VP & Chief Business Leader of Connected Care Business2yrsno datano data
Jeroen Tas
Executive VP and Chief Innovation & Strategy Officer4.25yrsno datano data

3.5yrs

Average Tenure

60yo

Average Age

Experienced Management: PHIA's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christine Poon
Independent Vice-Chairwoman of the Supervisory Board & Secretaryno data€187.17kno data
Orit Gadiesh
Independent Member of Supervisory Board6.42yrs€131.83kno data
David E. Pyott
Independent Member of Supervisory Board5.42yrs€158.50kno data
Jeroen van der Veer
Independent Chairman of the Supervisory Board9.58yrs€197.00k0.0021%
€ 751.7k
Feike Sijbesma
Vice Chairman of Supervisory Board0.75yrno datano data
Paulus Stoffels
Independent Member of Supervisory Board2.17yrs€114.50kno data
Peter Löscher
Member of Supervisory Board0.50yrno datano data
Neelam Dhawan
Independent Member of Supervisory Board8.5yrs€145.00kno data
A. Harrison
Independent Member of Supervisory Board2yrs€121.33kno data
Elizabeth Doherty
Independent Member of Supervisory Board1.42yrs€51.50kno data

2.2yrs

Average Tenure

63yo

Average Age

Experienced Board: PHIA's board of directors are not considered experienced ( 2.2 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.


Recent Insider Transactions

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: €36.488b
  • Shares outstanding: 909.47m
  • 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
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
PHIAXTRA (XETRA Trading Platform)ADR EACH REP 1 ORD EUR0.20DEEURJan 1980
0A2MLSE (London Stock Exchange)ADR EACH REP 1 ORD EUR0.20GBUSDJan 1980
RYLP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1980
PHI1DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1980
PHISWX (SIX Swiss Exchange)YesCommon SharesCHCHFDec 1980
PHIAENXTAM (Euronext Amsterdam)YesCommon SharesNLEURDec 1980
PHIABIT (Borsa Italiana)YesCommon SharesITEURDec 1980
PHI1XTRA (XETRA Trading Platform)YesCommon SharesDEEURDec 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

Biography

Koninklijke Philips N.V. operates as a health technology company worldwide. It operates through Diagnosis & Treatment, Connected Care, and Personal Health segments. It provides magnetic resonance imaging, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 20:53
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
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.