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

Stable Share Price: PHIA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.01%

PHIA

0.9%

NL Medical Equipment

0.04%

NL Market


1 Year Return

19.4%

PHIA

22.3%

NL Medical Equipment

9.7%

NL Market

Return vs Industry: PHIA underperformed the Dutch Medical Equipment industry which returned 22.3% over the past year.

Return vs Market: PHIA exceeded the Dutch Market which returned 9.7% over the past year.


Shareholder returns

PHIAIndustryMarket
7 Day0.01%0.9%0.04%
30 Day1.2%5.3%1.9%
90 Day-2.8%4.8%9.7%
1 Year22.2%19.4%24.3%22.3%15.0%9.7%
3 Year59.0%48.3%73.9%64.9%47.7%31.1%
5 Year98.1%72.3%116.0%95.9%66.7%33.2%

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 compared to its fair value and its price relative to the market?

33.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PHIA (€39.81) is trading below our estimate of fair value (€60.01)

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


Price To Earnings Ratio

PE vs Industry: PHIA is good value based on its PE Ratio (26.8x) compared to the Medical Equipment industry average (33.4x).

PE vs Market: PHIA is poor value based on its PE Ratio (26.8x) compared to the Dutch market (20.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PHIA is good value based on its PB Ratio (3x) compared to the XE Medical Equipment industry average (3.7x).


Next Steps

Future Growth

How is Koninklijke Philips forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHIA's forecast earnings growth (17.9% per year) is above the savings rate (0.4%).

Earnings vs Market: PHIA's earnings (17.9% per year) are forecast to grow faster than the Dutch market (11.8% per year).

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

Revenue vs Market: PHIA's revenue (5.2% per year) is forecast to grow slower than the Dutch market (5.3% per year).

High Growth Revenue: PHIA's revenue (5.2% 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 (15%).


Next Steps

Past Performance

How has Koninklijke Philips performed over the past 5 years?

34.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHIA has high quality earnings.

Growing Profit Margin: PHIA's current net profit margins (7.1%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: PHIA's earnings have grown significantly by 34.5% per year over the past 5 years.

Accelerating Growth: PHIA's earnings growth over the past year (32.5%) is below its 5-year average (34.5% per year).

Earnings vs Industry: PHIA earnings growth over the past year (32.5%) exceeded the Medical Equipment industry 2.4%.


Return on Equity

High ROE: PHIA's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


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 37.3% to 46% over the past 5 years.

Debt Coverage: PHIA's debt is well covered by operating cash flow (46.1%).

Interest Coverage: PHIA's interest payments on its debt are well covered by EBIT (50.2x 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 1.7x debt).


Next Steps

Dividend

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

2.14%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.1%markettop25%5.6%industryaverage1.4%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: PHIA's dividend (2.14%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (2.14%).

High Dividend: PHIA's dividend (2.14%) is low compared to the top 25% of dividend payers in the Dutch market (5.59%).


Stability and Growth of Payments

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 (57.1%), 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 (40.3% 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)

8.6yrs

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 ($USD5.93M) is above average for companies of similar size in the Dutch market ($USD3.90M).

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

4.5yrs

Average Tenure

64yo

Average Age

Experienced Board: PHIA's board of directors are considered experienced (4.5 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.


Recent Insider Transactions

Buy€466,75225 Jul 19
François van Houten
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board of Management & CEO
Shares20,400
Max Price€22.88
Buy€377,52025 Jul 19
Abhijit Bhattacharya
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares16,500
Max Price€22.88
Sell€860,26825 Jul 19
François van Houten
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board of Management & CEO
Shares20,400
Max Price€42.17
Sell€696,30025 Jul 19
Abhijit Bhattacharya
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares16,500
Max Price€42.20
Sell€758,00730 Apr 19
Abhijit Bhattacharya
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares20,448
Max Price€37.07
Sell€596,54630 Apr 19
Marnix van Ginneken
EntityIndividual
Role
Member of Management Board
Executive VP
Shares16,092.41
Max Price€37.07
Buy€66,30830 Jan 19
Marnix van Ginneken
EntityIndividual
Role
Member of Management Board
Executive VP
Shares5,250
Max Price€12.63
Sell€125,27130 Jan 19
Marnix van Ginneken
EntityIndividual
Role
Member of Management Board
Executive VP
Shares3,754
Max Price€33.37

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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: 8.6yrs
    • Compensation: €5.39m
  • Roy Jakobs (45yo)

    Executive VP & Chief Business Leader of Personal Health

    • Tenure: 1.1yrs
  • Abhijit Bhattacharya (58yo)

    Executive VP

    • Tenure: 4.1yrs
    • Compensation: €2.60m
  • Ronald de Jong (52yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 2.6yrs
  • Sean Carney

    Chief Design Officer

    • Tenure: 8yrs
  • Marnix van Ginneken (46yo)

    Executive VP

    • Tenure: 2yrs
    • Compensation: €1.86m
  • Sophie Bechu (59yo)

    Executive VP & Chief of Operations

    • Tenure: 3.2yrs
  • Leandro Mazzoni

    Head of Investor Relations

    • Tenure: 0.3yrs

Board Members

  • Orit Gadiesh (68yo)

    Member of Supervisory Board

    • Tenure: 5.5yrs
    • 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: 4.5yrs
    • Compensation: €142.25k
  • Jeroen van der Veer (72yo)

    Chairman of the Supervisory Board

    • Tenure: 8.7yrs
    • Compensation: €179.50k
  • Paul Stoffels (57yo)

    Member of Supervisory Board

    • Tenure: 1.3yrs
    • Compensation: €46.67k
  • Neelam Dhawan (60yo)

    Member of Supervisory Board

    • Tenure: 7.6yrs
    • Compensation: €123.75k
  • A. Harrison (55yo)

    Member of Supervisory Board

    • Tenure: 1.1yrs
    • Compensation: €42.33k
  • Liz Doherty (62yo)

    Member of Supervisory Board

    • Tenure: 0.5yrs

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: €35.725b
  • Shares outstanding: 897.39m
  • 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 Analysis2019/11/13 20:41
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.