OTCPK:KKPN.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.

Risks

  • Koninklijke KPN has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

0%

KKPN.F

-1.1%

US Telecom

-0.2%

US Market


1 Year Return

21.3%

KKPN.F

7.0%

US Telecom

1.1%

US Market

KKPN.F outperformed the Telecom industry which returned 7.9% over the past year.

KKPN.F outperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

KKPN.FIndustryMarket
7 Day0%-1.1%-0.2%
30 Day4.3%5.6%2.5%
90 Day1.0%8.8%1.6%
1 Year21.3%21.3%12.7%7.0%3.4%1.1%
3 Year-2.8%-2.8%14.4%-2.2%45.2%35.8%
5 Year-6.0%-6.0%34.8%3.9%62.6%44.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

Koninklijke KPN's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Koninklijke KPN is overvalued based on earnings compared to the US Telecom industry average.

Koninklijke KPN is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Koninklijke KPN is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

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

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Koninklijke KPN's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Koninklijke KPN's earnings are expected to grow by 16.1% yearly, however this is not considered high growth (20% yearly).

Koninklijke KPN's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Koninklijke KPN's earnings growth is expected to exceed the United States of America market average.

Koninklijke KPN's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Koninklijke KPN is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Koninklijke KPN performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Koninklijke KPN's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Koninklijke KPN's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Koninklijke KPN's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

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


Return on Assets

Koninklijke KPN used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Koninklijke KPN's financial position?


Financial Position Analysis

Koninklijke KPN's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Koninklijke KPN's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Koninklijke KPN's level of debt (437.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (239.8% vs 437.9% today).

Debt is well covered by operating cash flow (25.4%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

4.93%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Koninklijke KPN's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Koninklijke KPN's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.9x coverage).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Maximo Ibarra (51yo)

1.4yrs

Tenure

€2,096,072

Compensation

Mr. Maximo Ibarra has been Chief Executive Officer at Now TV S.r.l. since June, 2019. He has served as Director of Mediobanca - Banca di Credito Finanziario SpA since September 20, 2018. He is Chairman of  ...


CEO Compensation Analysis

Maximo's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Maximo to compare compensation growth.


Management Age and Tenure

5.7yrs

Average Tenure

51yo

Average Age

The average tenure for the Koninklijke KPN management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.9yrs

Average Tenure

61.5yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Joost Farwerck (54yo)

    COO & Member of the Management Board

    • Tenure: 6.7yrs
    • Compensation: €1.67m
  • Maximo Ibarra (51yo)

    Chairman of the Management Board & CEO

    • Tenure: 1.4yrs
    • Compensation: €2.10m
  • Kees De Jager (50yo)

    CFO & Member of the Management Board

    • Tenure: 4.8yrs
    • Compensation: €1.72m
  • Pieter Swarts (54yo)

    Chief Procurement Officer

    • Tenure: 7.4yrs
  • Jasper Spanbroek (44yo)

    Chief Legal Officer

    • Tenure: 6.6yrs
  • Wouter Stammeijer

    Chief Strategy Officer

    • Tenure: 0yrs
  • Bisera Grubesic

    Head of Investor Relations

    • Tenure: 1.2yrs
  • Babak Fouladi

    Chief Technology & Digital Officer

    • Tenure: 0yrs
  • Hilde Garssen

    Chief People Officer

    • Tenure: 0yrs
  • Hans Koeleman

    Chief Corporate Communications & CSR

    • Tenure: 0yrs

Board Members

  • Derk Haank (66yo)

    Vice Chairman of Supervisory Board

    • Tenure: 2.4yrs
    • Compensation: €82.50k
  • Carlos José García Moreno Elizondo (62yo)

    Member of the Supervisory Board

    • Tenure: 6.4yrs
    • Compensation: €70.00k
  • Duco Sickinghe (61yo)

    Chairman of Supervisory Board

    • Tenure: 4.4yrs
    • Compensation: €122.50k
  • Peter van Bommel (62yo)

    Member of the Supervisory Board

    • Tenure: 7.4yrs
    • Compensation: €80.00k
  • Edzard Overbeek (52yo)

    Member of the of the Supervisory Board

    • Tenure: 2yrs
    • Compensation: €16.88k
  • Claudia Zuiderwijk (57yo)

    Member of the Supervisory Board

    • Tenure: 5.4yrs
    • Compensation: €77.50k

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: €11.869b
  • Listing Market Cap: €13.117b
  • 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
KPNWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 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. It offers fixed and mobile telephony, broadband Internet, and television services to retail con ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:26
End of Day Share Price2019/09/12 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.