OTCPK:KKPN.F

Stock Analysis Report

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Executive Summary

Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. More Details


Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

How has Koninklijke KPN's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

KKPN.F

1.0%

US Telecom

2.3%

US Market


1 Year Return

-21.8%

KKPN.F

-11.1%

US Telecom

17.2%

US Market

Return vs Industry: KKPN.F underperformed the US Telecom industry which returned -11.1% over the past year.

Return vs Market: KKPN.F underperformed the US Market which returned 17.2% over the past year.


Shareholder returns

KKPN.FIndustryMarket
7 Day0%1.0%2.3%
30 Day-9.8%-2.8%-4.6%
90 Day-9.4%1.1%7.4%
1 Year-21.8%-21.8%-6.6%-11.1%19.8%17.2%
3 Year-31.4%-31.4%3.8%-11.2%37.4%28.3%
5 Year-34.2%-34.2%27.0%-0.4%83.8%63.0%

Price Volatility Vs. Market

How volatile is Koninklijke KPN's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Koninklijke KPN undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KKPN.F ($2.4) is trading below our estimate of fair value ($5.23)

Significantly Below Fair Value: KKPN.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KKPN.F is poor value based on its PE Ratio (12.9x) compared to the US Telecom industry average (11.3x).

PE vs Market: KKPN.F is good value based on its PE Ratio (12.9x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: KKPN.F is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: KKPN.F is overvalued based on its PB Ratio (3.7x) compared to the US Telecom industry average (1.2x).


Next Steps

Future Growth

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

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KKPN.F's forecast earnings growth (7.1% per year) is above the savings rate (2.2%).

Earnings vs Market: KKPN.F's earnings (7.1% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: KKPN.F's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: KKPN.F's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KKPN.F's Return on Equity is forecast to be high in 3 years time (26.1%)


Next Steps

Past Performance

How has Koninklijke KPN performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KKPN.F has a large one-off gain of €118.0M impacting its June 30 2020 financial results.

Growing Profit Margin: KKPN.F's current net profit margins (12.1%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: KKPN.F's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: KKPN.F's earnings growth over the past year (214.1%) exceeds its 5-year average (9% per year).

Earnings vs Industry: KKPN.F earnings growth over the past year (214.1%) exceeded the Telecom industry -12.9%.


Return on Equity

High ROE: Whilst KKPN.F's Return on Equity (26.31%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Koninklijke KPN's financial position?


Financial Position Analysis

Short Term Liabilities: KKPN.F's short term assets (€1.8B) do not cover its short term liabilities (€2.4B).

Long Term Liabilities: KKPN.F's short term assets (€1.8B) do not cover its long term liabilities (€7.1B).


Debt to Equity History and Analysis

Debt Level: KKPN.F's debt to equity ratio (271.7%) is considered high.

Reducing Debt: KKPN.F's debt to equity ratio has increased from 187.3% to 271.7% over the past 5 years.

Debt Coverage: KKPN.F's debt is well covered by operating cash flow (30.6%).

Interest Coverage: KKPN.F's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Koninklijke KPN current dividend yield, its reliability and sustainability?

6.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KKPN.F's dividend (6.23%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: KKPN.F's dividend (6.23%) is in the top 25% of dividend payers in the US market (4.89%)


Stability and Growth of Payments

Stable Dividend: KKPN.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: KKPN.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (108.3%), KKPN.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KKPN.F's dividends in 3 years are not forecast to be well covered by earnings (107.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Joost Farwerck (55 yo)

0.92

Tenure

€1,949,518

Compensation

Mr. Joost F. E. Farwerck has been the Chairman of Board of Management at Koninklijke KPN N.V. since October 1, 2019 and has been its Chief Executive Officer since 1 December 2019. He has been a Member of B ...


CEO Compensation Analysis

Compensation vs Market: Joost's total compensation ($USD2.29M) is below average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joost Farwerck
Chairman of Management Board & CEO0.92yr€1.95m0.014%
€ 1.4m
Marieke Snoep
Chief Business Market & Member of Management Board0.75yr€705.59k0.00060%
€ 59.3k
Jean-Pascal Emmanuel van Overbeke
Chief Consumer Market & Member of Management Board0.75yr€716.56k0.00060%
€ 59.3k
Babak Fouladi
Chief Technology & Digital Officer and Member of Management Board0.75yr€709.27k0.00013%
€ 12.9k
Hilde Garssen
Chief People Officer & Member of Management Board0.75yr€538.12k0.00055%
€ 54.4k
Hans Figee
CFO & Member of Management Board0.50yrno datano data
Bisera Grubesic
Head of Investor Relations2.17yrsno datano data
Jasper Spanbroek
Chief Legal Officer7.5yrsno datano data
Hans Koeleman
Chief Corporate Communications & CSRno datano datano data
Pieter Swarts
Chief Procurement Officer8.42yrsno datano data
Wouter Stammeijer
Chief Strategy Officerno datano datano data
Bob Mols
Executive Vice President of Customer Service4.75yrsno datano data

0.8yrs

Average Tenure

51yo

Average Age

Experienced Management: KKPN.F's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Hartman
Independent Member of the Supervisory Board5.42yrs€75.00kno data
Derk Haank
Independent Vice Chairman of Supervisory Board3.42yrs€87.50k0.00058%
€ 57.4k
Duco Sickinghe
Independent Chairman of Supervisory Board5.42yrs€115.00kno data
Catherine Guillouard
Member of the Supervisory Board0.42yrno datano data
Edzard Overbeek
Independent Member of the Supervisory Board3yrs€72.50kno data
Jolande Sap
Independent Member of the Supervisory Board5.42yrs€70.00kno data
Claudia Zuiderwijk
Independent Member of the Supervisory Board6.42yrs€70.00kno data
Alejandro Plater
Member of Supervisory Boardno datano datano data

5.4yrs

Average Tenure

58yo

Average Age

Experienced Board: KKPN.F's board of directors are considered experienced (5.4 years average tenure).


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 KPN N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Koninklijke KPN N.V.
  • Ticker: KKPN.F
  • Exchange: OTCPK
  • Founded: 1881
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €8.421b
  • Listing Market Cap: €9.889b
  • Shares outstanding: 4.20b
  • Website: https://www.kpn.com

Number of Employees


Location

  • Koninklijke KPN N.V.
  • Wilhelminakade 123
  • Rotterdam
  • Zuid-Holland
  • 3072 AP
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KKPN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1994
0O8FLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 1994
KPNENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJun 1994
KPOSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJun 1994
KPNXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJun 1994
KPNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1994
KPNABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 1994
KPN NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 1994
KPNWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 1994
KPN-UETLX (Eurotlx)YesOrdinary SharesITEURJun 1994
KKPN.YOTCPK (Pink Sheets LLC)SPON ADR EACH REP 1 ORD EUR0.24USUSDOct 1995
KPNBDB (Deutsche Boerse AG)SPON ADR EACH REP 1 ORD EUR0.24DEEUROct 1995

Biography

Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. The company operates through Consumer; Business; Wholesale; and Network, Operations & IT segmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 23:40
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
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.