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Koninklijke Philips

ENXTAM:PHIA
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PHIA
ENXTAM
€35B
Market Cap
  1. Home
  2. NL
  3. Healthcare
Company description

Koninklijke Philips N.V. operates as a health technology company worldwide. The last earnings update was 57 days ago. More info.


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PHIA Share Price and Events
7 Day Returns
0.6%
ENXTAM:PHIA
0.4%
Europe Medical Equipment
1.5%
NL Market
1 Year Returns
5.8%
ENXTAM:PHIA
8.7%
Europe Medical Equipment
2.2%
NL Market
PHIA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Koninklijke Philips (PHIA) 0.6% 4.9% 5.5% 5.8% 78.2% 63.2%
Europe Medical Equipment 0.4% 2.5% 5.5% 8.7% 72.8% 87.7%
NL Market 1.5% 1.8% 2.4% 2.2% 34% 25.4%
1 Year Return vs Industry and Market
  • PHIA underperformed the Medical Equipment industry which returned 8.7% over the past year.
  • PHIA outperformed the Market in Netherlands which returned 2.2% over the past year.
Price Volatility
PHIA
Industry
5yr Volatility vs Market
Related Companies

PHIA Value

 Is Koninklijke Philips undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Koninklijke Philips to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Koninklijke Philips.

ENXTAM:PHIA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year NL Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ENXTAM:PHIA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NL Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.851 (1 + (1- 25%) (13.83%))
0.96
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.37% + (0.96 * 5.96%)
6.09%

Discounted Cash Flow Calculation for ENXTAM:PHIA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Koninklijke Philips is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ENXTAM:PHIA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 6.09%)
2019 1,531.39 Analyst x8 1,443.49
2020 1,806.20 Analyst x6 1,604.80
2021 2,030.50 Analyst x5 1,700.53
2022 2,199.05 Est @ 8.3% 1,735.98
2023 2,329.28 Est @ 5.92% 1,733.23
2024 2,428.41 Est @ 4.26% 1,703.28
2025 2,503.46 Est @ 3.09% 1,655.12
2026 2,560.40 Est @ 2.27% 1,595.60
2027 2,604.00 Est @ 1.7% 1,529.62
2028 2,637.93 Est @ 1.3% 1,460.61
Present value of next 10 years cash flows €16,162.24
ENXTAM:PHIA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €2,637.93 × (1 + 0.37%) ÷ (6.09% – 0.37%)
€46,291.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €46,291.16 ÷ (1 + 6.09%)10
€25,631.14
ENXTAM:PHIA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €16,162.24 + €25,631.14
€41,793.38
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €41,793.38 / 920.00
€45.43
ENXTAM:PHIA Discount to Share Price
Calculation Result
Value per share (EUR) From above. €45.43
Current discount Discount to share price of €37.88
= -1 x (€37.88 - €45.43) / €45.43
16.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Koninklijke Philips is available for.
Intrinsic value
17%
Share price is €37.88 vs Future cash flow value of €45.43
Current Discount Checks
For Koninklijke Philips to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Koninklijke Philips's share price is below the future cash flow value, but not 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Koninklijke Philips's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Koninklijke Philips's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ENXTAM:PHIA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €1.50
ENXTAM:PHIA Share Price ** ENXTAM (2019-06-25) in EUR €37.88
Europe Medical Equipment Industry PE Ratio Median Figure of 59 Publicly-Listed Medical Equipment Companies 32.2x
Netherlands Market PE Ratio Median Figure of 82 Publicly-Listed Companies 17.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Koninklijke Philips.

ENXTAM:PHIA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTAM:PHIA Share Price ÷ EPS (both in EUR)

= 37.88 ÷ 1.50

25.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Koninklijke Philips's expected growth come at a high price?
Raw Data
ENXTAM:PHIA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
14.1%per year
Europe Medical Equipment Industry PEG Ratio Median Figure of 40 Publicly-Listed Medical Equipment Companies 2.42x
Netherlands Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

ENXTAM:PHIA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.26x ÷ 14.1%

1.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Koninklijke Philips is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Koninklijke Philips's assets?
Raw Data
ENXTAM:PHIA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €13.22
ENXTAM:PHIA Share Price * ENXTAM (2019-06-25) in EUR €37.88
Europe Medical Equipment Industry PB Ratio Median Figure of 140 Publicly-Listed Medical Equipment Companies 3.31x
Netherlands Market PB Ratio Median Figure of 104 Publicly-Listed Companies 1.92x
ENXTAM:PHIA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTAM:PHIA Share Price ÷ Book Value per Share (both in EUR)

= 37.88 ÷ 13.22

2.86x

* Primary Listing of Koninklijke Philips.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Koninklijke Philips is good value based on assets compared to the Europe Medical Equipment industry average.
X
Value checks
We assess Koninklijke Philips's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Koninklijke Philips has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PHIA Future Performance

 How is Koninklijke Philips expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Koninklijke Philips expected to grow at an attractive rate?
  • Koninklijke Philips's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • Koninklijke Philips's earnings growth is expected to exceed the Netherlands market average.
  • Koninklijke Philips's revenue growth is expected to exceed the Netherlands market average.
Annual Growth Rates Comparison
Raw Data
ENXTAM:PHIA Future Growth Rates Data Sources
Data Point Source Value (per year)
ENXTAM:PHIA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 14.1%
ENXTAM:PHIA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 4.8%
Europe Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 18.5%
Europe Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
Netherlands Market Earnings Growth Rate Market Cap Weighted Average 9%
Netherlands Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ENXTAM:PHIA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ENXTAM:PHIA Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 23,501 0 2,615 2
2022-12-31 22,197 0 2,347 3
2021-12-31 21,186 2,934 2,073 13
2020-12-31 20,212 2,618 1,807 15
2019-12-31 19,280 2,262 1,510 15
ENXTAM:PHIA Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 18,330 1,830 1,381
2018-12-31 18,121 2,427 1,303
2018-09-30 17,838 1,022
2018-06-30 17,680 2,231 871
2018-03-31 17,687 3,179 808
2017-12-31 17,780 2,933 814
2017-09-30 17,783 830
2017-06-30 17,792 3,193 876
2017-03-31 24,724 2,526 1,105
2016-12-31 17,422 3,321 788
2016-09-30 19,211 3,164 218
2016-06-30 20,890 2,948 248

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Koninklijke Philips's earnings are expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).
  • Koninklijke Philips's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ENXTAM:PHIA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Koninklijke Philips Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTAM:PHIA Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.83 2.89 2.76 2.00
2022-12-31 2.56 2.59 2.52 2.00
2021-12-31 2.21 2.42 2.04 9.00
2020-12-31 1.94 2.14 1.82 12.00
2019-12-31 1.59 1.78 1.48 13.00
ENXTAM:PHIA Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 1.50
2018-12-31 1.41
2018-09-30 1.10
2018-06-30 0.94
2018-03-31 0.87
2017-12-31 0.88
2017-09-30 0.90
2017-06-30 0.95
2017-03-31 1.20
2016-12-31 0.86
2016-09-30 0.24
2016-06-30 0.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Koninklijke Philips is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Koninklijke Philips's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Koninklijke Philips has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PHIA Past Performance

  How has Koninklijke Philips performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Koninklijke Philips's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (70.9% vs 22.4%)
  • Koninklijke Philips's earnings growth has exceeded the Europe Medical Equipment industry average in the past year (70.9% vs 9%).
Earnings and Revenue History
Koninklijke Philips's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Koninklijke Philips Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTAM:PHIA Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 18,330.00 1,381.00 5,104.00 1,701.00
2018-12-31 18,121.00 1,303.00 5,039.00 1,695.00
2018-09-30 17,838.00 1,022.00 4,944.00 1,640.00
2018-06-30 17,680.00 871.00 4,915.00 1,676.00
2018-03-31 17,687.00 808.00 4,832.00 1,672.00
2017-12-31 17,780.00 814.00 4,836.00 1,670.00
2017-09-30 17,783.00 830.00 4,754.00 1,731.00
2017-06-30 17,792.00 876.00 4,720.00 1,708.00
2017-03-31 24,724.00 1,105.00 6,594.00 2,037.00
2016-12-31 17,422.00 788.00 4,623.00 1,648.00
2016-09-30 19,211.00 218.00 5,435.00 1,741.00
2016-06-30 20,890.00 248.00 5,920.00 1,784.00
2016-03-31 22,732.00 365.00 6,404.00 1,855.00
2015-12-31 16,806.00 145.00 5,121.00 1,562.00
2015-09-30 23,685.00 590.00 6,470.00 1,820.00
2015-06-30 23,043.00 228.00 6,275.00 1,721.00
2015-03-31 22,038.00 191.00 6,001.00 1,638.00
2014-12-31 21,391.00 225.00 5,930.00 1,635.00
2014-09-28 20,373.00 437.00 5,712.00 1,498.00
2014-06-29 20,774.00 839.00 5,742.00 1,575.00
2014-03-30 21,437.00 974.00 5,834.00 1,601.00
2013-12-31 21,990.00 1,031.00 5,903.00 1,657.00
2013-09-29 23,231.00 309.00 6,019.00 1,746.00
2013-06-30 23,457.00 132.00 6,073.00 1,744.00
2013-03-31 23,395.00 -128.00 6,075.00 1,758.00
2012-12-31 22,234.00 -171.00 5,957.00 1,666.00
2012-09-30 23,410.00 466.00 6,127.00 1,786.00
2012-07-01 22,983.00 500.00 6,024.00 1,728.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Koninklijke Philips has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Koninklijke Philips used its assets less efficiently than the Europe Medical Equipment industry average last year based on Return on Assets.
  • Koninklijke Philips has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Koninklijke Philips's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Koninklijke Philips has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PHIA Health

 How is Koninklijke Philips's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Koninklijke Philips's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Koninklijke Philips's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Koninklijke Philips Company Filings, last reported 2 months ago.

ENXTAM:PHIA Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 12,117.00 4,821.00 2,124.00
2018-12-31 12,117.00 4,491.00 2,124.00
2018-09-30 11,700.00 4,927.00 1,615.00
2018-06-30 11,700.00 4,927.00 1,615.00
2018-03-31 12,023.00 4,716.00 1,941.00
2017-12-31 12,023.00 4,434.00 1,941.00
2017-09-30 12,970.00 4,750.00 999.00
2017-06-30 13,747.00 2,896.00 2,220.00
2017-03-31 14,030.00 5,344.00 2,731.00
2016-12-31 13,453.00 5,327.00 2,435.00
2016-09-30 12,473.00 5,768.00 1,859.00
2016-06-30 12,341.00 5,808.00 1,926.00
2016-03-31 11,409.00 5,689.00 1,385.00
2015-12-31 11,780.00 5,549.00 1,766.00
2015-09-30 11,554.00 5,547.00 1,038.00
2015-06-30 11,511.00 5,680.00 1,139.00
2015-03-31 11,496.00 5,785.00 1,792.00
2014-12-31 10,968.00 3,909.00 1,873.00
2014-09-28 11,001.00 4,309.00 1,842.00
2014-06-29 10,758.00 3,768.00 1,560.00
2014-03-30 11,025.00 3,717.00 1,738.00
2013-12-31 11,227.00 3,702.00 2,475.00
2013-09-29 10,951.00 4,066.00 2,044.00
2013-06-30 10,802.00 4,411.00 2,308.00
2013-03-31 11,197.00 4,602.00 3,067.00
2012-12-31 11,185.00 4,291.00 3,834.00
2012-09-30 12,081.00 4,696.00 3,232.00
2012-07-01 12,177.00 4,900.00 3,134.00
  • Koninklijke Philips's level of debt (39.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (33.7% vs 39.8% today).
  • Debt is well covered by operating cash flow (38%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.2x coverage).
X
Financial health checks
We assess Koninklijke Philips's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Koninklijke Philips has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PHIA Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.24%
Current annual income from Koninklijke Philips dividends. Estimated to be 2.43% next year.
If you bought €2,000 of Koninklijke Philips shares you are expected to receive €45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Koninklijke Philips's pays a lower dividend yield than the bottom 25% of dividend payers in Netherlands (2.27%).
  • Koninklijke Philips's dividend is below the markets top 25% of dividend payers in Netherlands (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ENXTAM:PHIA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Europe Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.5%
Netherlands Market Average Dividend Yield Market Cap Weighted Average of 69 Stocks 3.9%
Netherlands Minimum Threshold Dividend Yield 10th Percentile 1.6%
Netherlands Bottom 25% Dividend Yield 25th Percentile 2.3%
Netherlands Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ENXTAM:PHIA Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.08 1.00
2022-12-31 1.04 1.00
2021-12-31 0.99 12.00
2020-12-31 0.90 14.00
2019-12-31 0.86 14.00
ENXTAM:PHIA Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-27 0.850 2.355
2019-01-29 0.850 2.479
2018-02-20 0.800 2.325
2018-01-30 0.800 2.569
2017-02-21 0.800 2.488
2017-01-24 0.800 2.911
2016-02-23 0.800 3.179
2016-01-26 0.800 3.532
2015-02-24 0.800 3.301
2015-01-27 0.800 3.179
2014-05-02 0.800 3.436
2013-05-06 0.750 3.081
2012-02-23 0.750 4.146
2012-01-30 0.750 4.762
2011-03-31 0.750 4.711
2010-02-22 0.700 2.976
2010-01-25 0.700 3.231

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Koninklijke Philips has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Koninklijke Philips only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Koninklijke Philips's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Koninklijke Philips's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Koninklijke Philips afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Koninklijke Philips has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PHIA Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Frans van Houten
COMPENSATION €5,391,265
AGE 58
TENURE AS CEO 8.2 years
CEO Bio

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 serves as the Chief Executive Officer at Philips International B.V. He has been the Chairman of the Board of Management and Chief Executive Officer at Koninklijke Philips N.V. April 2011. He has been the Chairman of Management Board and Chief Executive Officer of Philips Electronics Australia Limited since November 2011 and also serves as its Member of Management Board. He serves as the Chief Executive Officer and President of Philips Electronics NV. He served as Temporary Advisor to Management Board at ASM International NV since March 2009. In 2009 and 2010, he was a consultant to the boards of companies such as ING Group NV and ASM International NV. He supported ASM’s management Board in its on-going efforts to ensure it has the strongest operational framework with which to withstand current extreme economic and industry conditions. Previously, he also served as a Member of Board of Management at Koninklijke Philips N.V. since April 1, 2006. He served as an Acting Chief Executive Officer/Chief Executive Officer of Philips Lighting Limited of Koninklijke until March 20, 2012. He served as the Chief Executive Officer at NXP Semiconductors Netherlands B.V. He served as the Chairman of Management Board, Chief Executive Officer and President of NXP Semiconductors NV from November 2004 to January 1, 2009 and served as its Member of Management Board. Prior to re-joining Philips late 2010, he was leading the project to separate ING Group’s banking and insurance operations as an Independent Advisor to ING’s management board. He served as an Acting Chief Executive Officer of Philips LumiLeds Lighting Company LLC. He served as the President and Chief Executive Officer of NXP B.V. (formerly, Philips Semiconductors BV) from November 1, 2004 to January 1, 2009. He served as the Chairman and Member of Management Board of NXP until January 2009. Mr. van Houten served as Senior Vice President of Royal Philips Electronics of Koninklijke Philips N.V. He also served as the Co-Chief Executive Officer of Philips Consumer Electronics Business Groups since July 21, 2003. He served as an Executive Vice President of Philips Consumer Electronics of Philips Electronics Asia Pacific Pvt. Ltd., Singapore. He served as the General Manager of Global Business Creation at Philips Consumer Electronics. He started his career with Philips in 1986 in marketing and sales at Philips Data Systems. He served as the Chief Executive Officer of Philips Airvision, a small in-flight entertainment start-up. From 1993 to 1996, he served as Vice President of International Sales & Operations of the Communication Network Systems Division at PKI (Philips Kommunikations Industrie) in Germany, providing solutions to Telecom Operators. In 1996, he joined Philips Consumer Electronics in Eindhoven to set up the Disc Systems Business Unit and to lead the global birth of two product categories: Audio CD Recording and DVD Video. Two years later, he also served as the Chief Operating Officer of the Digital Video Group at Philips in Palo Alto, California and served as its Executive Vice President of Consumer Electronics for the regions of Asia Pacific and Middle East & Africa since 1999. He was Vice Chairman of Supervisory Board at Philips Lighting N.V. since May 2016 until December 31, 2017 and was its Member of Supervisory Board since 2016 until December 31, 2017. He served as Vice Chairman and Director of LG Display Co., Ltd. (also known as L.G. Phillips LCD Co. Ltd.) since December 2003. He has been Independent Non-Executive Director of Novartis AG since February 28, 2017. He serves as a Director of Philips Electronics Shanghai and Philips Electronics Indonesia. He serves as a Non-Executive Member of the Supervisory Board of LG. Phillips Displays Holding B.V. He served as a Director of LG Display since December 2003. He served as a Non-Executive Director of Philips Electronics India Limited (now Philips India Limited) from July 22, 1999 to July 26, 2002 and a Director at NXP B.V. until December 31, 2008. He has been a Member of the European Round Table of Industrialists since October 2010. Mr. van Houten received his Undergraduate Degree in Economics, Marketing and Business Management. He holds a Master’s Degree in Business Administration/Master’s Degree in Economics and Business Management from Erasmus University of Rotterdam.

CEO Compensation
  • Frans's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Frans's remuneration is higher than average for companies of similar size in Netherlands.
Management Team Tenure

Average tenure and age of the Koninklijke Philips management team in years:

2.8
Average Tenure
57.5
Average Age
  • The tenure for the Koninklijke Philips management team is about average.
Management Team

Frans van Houten

TITLE
Chairman of the Board of Management & CEO
COMPENSATION
€5M
AGE
58
TENURE
8.2 yrs

Christine Poon

TITLE
Vice-Chairwoman of the Supervisory Board & Secretary
COMPENSATION
€155K
AGE
66

Abhijit Bhattacharya

TITLE
Executive VP
COMPENSATION
€3M
AGE
57
TENURE
3.7 yrs

Marnix van Ginneken

TITLE
Executive VP
COMPENSATION
€2M
AGE
45
TENURE
1.6 yrs

Sophie Bechu

TITLE
Executive VP & Chief of Operations
AGE
58
TENURE
2.8 yrs

Pim Preesman

TITLE
Head of Investor Relations

Ronald de Jong

TITLE
Executive VP & Chief Human Resources Officer
AGE
51
TENURE
2.2 yrs

Sean Carney

TITLE
Chief Design Officer
TENURE
7.6 yrs

Roy Jakobs

TITLE
Executive VP & Chief Business Leader of Personal Health
AGE
44
TENURE
0.7 yrs

Jeroen Tas

TITLE
Executive VP and Chief Innovation & Strategy Officer
AGE
59
TENURE
2.9 yrs
Board of Directors Tenure

Average tenure and age of the Koninklijke Philips board of directors in years:

4.1
Average Tenure
65
Average Age
  • The tenure for the Koninklijke Philips board of directors is about average.
Board of Directors

Jeroen van der Veer

TITLE
Chairman of the Supervisory Board
COMPENSATION
€180K
AGE
71
TENURE
8.3 yrs

Christine Poon

TITLE
Vice-Chairwoman of the Supervisory Board & Secretary
COMPENSATION
€155K
AGE
66

Susim Datta

TITLE
AGE
82

Neelam Dhawan

TITLE
Member of Supervisory Board
COMPENSATION
€124K
AGE
59
TENURE
7.2 yrs

Orit Gadiesh

TITLE
Member of Supervisory Board
COMPENSATION
€121K
AGE
67
TENURE
5.1 yrs

David E. Pyott

TITLE
Member of Supervisory Board
COMPENSATION
€142K
AGE
65
TENURE
4.1 yrs

Paul Stoffels

TITLE
Member of Supervisory Board
COMPENSATION
€47K
AGE
56
TENURE
0.8 yrs

A. Harrison

TITLE
Member of Supervisory Board
COMPENSATION
€42K
AGE
54
TENURE
0.7 yrs

Liz Doherty

TITLE
Member of Supervisory Board
AGE
61
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Koninklijke Philips's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Koninklijke Philips has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PHIA News

Simply Wall St News

Should You Investigate Koninklijke Philips N.V. (AMS:PHIA) At €37.67?

Let’s take a look at Koninklijke Philips’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … It’s trading around 17% below my intrinsic value, which means if you buy Koninklijke Philips today, you’d be paying a fair price for it. … Since Koninklijke Philips’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy.

Simply Wall St -

Our Take On Koninklijke Philips N.V.'s (AMS:PHIA) CEO Salary

This analysis aims first to contrast CEO compensation with other large companies. … See our latest analysis for Koninklijke Philips How Does Frans van Houten's Compensation Compare With Similar Sized Companies? … We compared the total CEO remuneration paid by Koninklijke Philips N.V., and compared it to remuneration at a group of other large companies.

Simply Wall St -

Should Koninklijke Philips (AMS:PHIA) Be Disappointed With Their 50% Profit?

Koninklijke Philips was able to grow its EPS at 56% per year over three years, sending the share price higher. … We note that for Koninklijke Philips the TSR over the last 3 years was 61%, which is better than the share price return mentioned above. … Before deciding if you like the current share price, check how Koninklijke Philips scores on these 3 valuation metrics.

Simply Wall St -

What Should We Expect From Koninklijke Philips N.V.'s (AMS:PHIA) Earnings Over The Next Year?

Below is a brief commentary on the longer term outlook the market has for Koninklijke Philips. … View our latest analysis for Koninklijke Philips What can we expect from Koninklijke Philips in the longer term? … ENXTAM:PHIA Past and Future Earnings, May 27th 2019 This results in an annual growth rate of 14% based on the most recent earnings level of €1.3b to the final forecast of €2.0b by 2022.

Simply Wall St -

Evaluating Koninklijke Philips N.V.’s (AMS:PHIA) Investments In Its Business

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Koninklijke Philips: 0.11 = €1.9b ÷ (€26b - €7.9b) (Based on the trailing twelve months to March 2019.) Therefore, Koninklijke Philips has an ROCE of 11%. … How Koninklijke Philips's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Should Koninklijke Philips N.V. (AMS:PHIA) Be Part Of Your Dividend Portfolio?

Today we'll take a closer look at Koninklijke Philips N.V. … On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … Investors might not know much about Koninklijke Philips's dividend prospects, even though it has been paying dividends for the last nine years and offers a 2.3% yield.

Simply Wall St -

A Look At Koninklijke Philips N.V.'s (AMS:PHIA) Exceptional Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a.

Simply Wall St -

Consider These Factors, Then Buy Koninklijke Philips N.V. (AMS:PHIA)

High quality companies, such as Koninklijke Philips N.V., are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … View our latest analysis for Koninklijke Philips. … Koninklijke Philips N.V.

Simply Wall St -

Does The Data Make Koninklijke Philips N.V. (AMS:PHIA) An Attractive Investment?

(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

Simply Wall St -

One Factor To Consider Before Investing In Koninklijke Philips N.V. (AMS:PHIA)

I will take you through Koninklijke Philips’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Koninklijke Philips’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … The two ways to assess whether Koninklijke Philips’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

PHIA Company Info

Description

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 mother, child care, and oral healthcare products; male grooming and beauty products; food preparation and home care products; and sleep and respiratory care. It provides diagnostic X-ray, integrated clinical, magnetic resonance imaging, computed tomography, and molecular imaging solutions. The company also offers interventional X-ray systems, and imaging and therapy devices for treatment of coronary artery and peripheral vascular disease; imaging products focus on diagnosis, treatment planning, and guidance for cardiology, general imaging, obstetrics/gynecology, and point-of-care applications; and proprietary software to enable diagnostics and intervention. Further, it provides patient monitoring solutions; patient analytics, precision diagnosis, and clinical decision support systems; therapeutic care products; patient monitoring and therapeutic care consumables; and customer services. Additionally, the company offers healthcare information technology, clinical, and visualization and quantification informatics solutions for radiology, cardiology, and oncology departments; universal data management solutions, picture archiving and communication systems, and integrated electronic medical record systems; clinical and hospital IT platforms; technology-enabled monitoring and intervention, actionable program, cloud-based, and population health management software solutions. It also provides digital frameworks that connect consumers, patients, and healthcare providers in a cloud-based connected health ecosystem of devices, apps, and tools. The company was formerly known as Koninklijke Philips Electronics N.V. and changed its name to Koninklijke Philips N.V. in May 2013. Koninklijke Philips N.V. was founded in 1891 and is headquartered in Amsterdam, the Netherlands.

Details
Name: Koninklijke Philips N.V.
PHIA
Exchange: ENXTAM
Founded: 1891
€34,849,613,409
920,000,354
Website: http://www.philips.com
Address: Koninklijke Philips N.V.
Philips Center,
Amstelplein 2,
Amsterdam,
Noord-Holland, 1096 BC,
Netherlands
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTAM PHIA Common Shares Euronext Amsterdam NL EUR 18. Dec 1980
OTCPK RYLP.F Common Shares Pink Sheets LLC US USD 18. Dec 1980
DB PHI1 Common Shares Deutsche Boerse AG DE EUR 18. Dec 1980
XTRA PHI1 Common Shares XETRA Trading Platform DE EUR 18. Dec 1980
LSE 0LNG Common Shares London Stock Exchange GB EUR 18. Dec 1980
SWX PHI Common Shares SIX Swiss Exchange CH CHF 18. Dec 1980
BIT PHIA Common Shares Borsa Italiana IT EUR 18. Dec 1980
WBAG PHIA Common Shares Wiener Boerse AG AT EUR 18. Dec 1980
BMV PHIA N Common Shares Bolsa Mexicana de Valores MX MXN 18. Dec 1980
BATS-CHIXE PHIAA Common Shares BATS 'Chi-X Europe' GB EUR 18. Dec 1980
NYSE PHG ADR EACH REP 1 ORD EUR0.20 New York Stock Exchange US USD 02. Jan 1980
DB PHIA ADR EACH REP 1 ORD EUR0.20 Deutsche Boerse AG DE EUR 02. Jan 1980
XTRA PHIA ADR EACH REP 1 ORD EUR0.20 XETRA Trading Platform DE EUR 02. Jan 1980
Number of employees
Current staff
Staff numbers
77,400
Koninklijke Philips employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/25 20:41
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/25
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.