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

1.3%

ENXTAM:PHIA

1.6%

NL Medical Equipment

0.8%

NL Market


1 Year Return

12.2%

ENXTAM:PHIA

6.5%

NL Medical Equipment

-2.7%

NL Market

PHIA outperformed the Medical Equipment industry which returned 5.1% over the past year.

PHIA outperformed the Market in Netherlands which returned -3.3% over the past year.


Share holder returns

PHIAIndustryMarket
7 Day1.3%1.6%0.8%
30 Day7.9%3.0%-5.1%
90 Day16.5%6.0%-3.2%
1 Year14.9%12.2%8.2%6.5%1.6%-2.7%
3 Year77.7%65.7%70.4%61.5%36.8%21.7%
5 Year107.0%80.1%117.9%98.0%51.8%21.1%

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?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Koninklijke Philips's share price is below the future cash flow value, and at a moderate discount (> 20%).

Koninklijke Philips's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Koninklijke Philips is good value based on earnings compared to the Europe Medical Equipment industry average.

Koninklijke Philips is overvalued based on earnings compared to the Netherlands market.


Price Based on Expected Growth

Koninklijke Philips is poor value based on expected growth next year.


Price Based on Value of Assets

Koninklijke Philips is good value based on assets compared to the Europe Medical Equipment industry average.


Next Steps

Future Growth

How is Koninklijke Philips expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Koninklijke Philips's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Koninklijke Philips's earnings are expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).

Koninklijke Philips's revenue growth is expected to exceed the Netherlands market average.

Koninklijke Philips's earnings growth is expected to exceed the Netherlands market average.

Koninklijke Philips's earnings growth is expected to exceed the low risk savings rate of 0.4%.


Earnings per Share Growth Estimates


Future Return on Equity

Koninklijke Philips is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Koninklijke Philips has delivered over 20% year on year earnings growth in the past 5 years.

Koninklijke Philips's 1-year earnings growth exceeds its 5-year average (66.7% vs 29.8%)

Koninklijke Philips's earnings growth has exceeded the Europe Medical Equipment industry average in the past year (66.7% vs 7.8%).


Return on Equity

Koninklijke Philips has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Koninklijke Philips used its assets less efficiently than the Europe Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Koninklijke Philips has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Koninklijke Philips's financial position?


Financial Position Analysis

Koninklijke Philips is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Koninklijke Philips's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Koninklijke Philips's level of debt (46%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (33.3% vs 46% today).

Debt is well covered by operating cash flow (36.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 25.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.21%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Koninklijke Philips's pays a lower dividend yield than the bottom 25% of dividend payers in Netherlands (2.39%).

Koninklijke Philips's dividend is below the markets top 25% of dividend payers in Netherlands (5.94%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Frans van Houten (59yo)

8.3yrs

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

Frans's remuneration is higher than average for companies of similar size in Netherlands.

Frans's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

58.5yo

Average Age

The tenure for the Koninklijke Philips management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

66yo

Average Age

The tenure for the Koninklijke Philips board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Chris Poon (67yo)

    Vice-Chairwoman of the Supervisory Board & Secretary

    • Tenure: 0.0yrs
    • Compensation: €154.88k
  • Jeroen Tas (60yo)

    Executive VP and Chief Innovation & Strategy Officer

    • Tenure: 3.1yrs
  • Frans van Houten (59yo)

    Chairman of the Board of Management & CEO

    • Tenure: 8.3yrs
    • Compensation: €5.39m
  • Roy Jakobs (45yo)

    Executive VP & Chief Business Leader of Personal Health

    • Tenure: 0.8yrs
  • Abhijit Bhattacharya (58yo)

    Executive VP

    • Tenure: 3.8yrs
    • Compensation: €2.60m
  • Ronald de Jong (52yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 2.3yrs
  • Sean Carney

    Chief Design Officer

    • Tenure: 7.8yrs
  • Marnix van Ginneken (46yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: €1.86m
  • Sophie Bechu (59yo)

    Executive VP & Chief of Operations

    • Tenure: 2.9yrs
  • Pim Preesman

    Head of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Orit Gadiesh (68yo)

    Member of Supervisory Board

    • Tenure: 5.3yrs
    • Compensation: €121.25k
  • Chris Poon (67yo)

    Vice-Chairwoman of the Supervisory Board & Secretary

    • Tenure: 0.0yrs
    • Compensation: €154.88k
  • David E. Pyott (66yo)

    Member of Supervisory Board

    • Tenure: 4.3yrs
    • Compensation: €142.25k
  • Jeroen van der Veer (72yo)

    Chairman of the Supervisory Board

    • Tenure: 8.4yrs
    • Compensation: €179.50k
  • Paul Stoffels (57yo)

    Member of Supervisory Board

    • Tenure: 1.0yrs
    • Compensation: €46.67k
  • Susim Datta (83yo)

    • Tenure: 0.0yrs
  • Neelam Dhawan (60yo)

    Member of Supervisory Board

    • Tenure: 7.3yrs
    • Compensation: €123.75k
  • A. Harrison (55yo)

    Member of Supervisory Board

    • Tenure: 0.8yrs
    • Compensation: €42.33k
  • Liz Doherty (62yo)

    Member of Supervisory Board

    • Tenure: 0.3yrs

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: €37.824b
  • Shares outstanding: 900.56m
  • 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
PHISWX (SIX Swiss Exchange)YesCommon SharesCHCHFDec 1980
PHIAENXTAM (Euronext Amsterdam)YesCommon SharesNLEURDec 1980
PHIA NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1980
RYLP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1980
PHI1DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 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
PHIABIT (Borsa Italiana)YesCommon SharesITEURDec 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 Analysis2019/08/19 20:40
End of Day Share Price2019/08/19 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.