KONINKLIJKE PHILIPS NV (1PHIA.MI) Stock Fundamental Analysis

Europe • Euronext Milan • BIT:1PHIA • NL0000009538

24.76 EUR

-0.93 (-3.62%)

Last: Jan 26, 2026, 07:00 PM

Fundamental Rating

Overall 1PHIA gets a fundamental rating of 3 out of 10. We evaluated 1PHIA against 68 industry peers in the Health Care Equipment & Supplies industry. 1PHIA may be in some trouble as it scores bad on both profitability and health. 1PHIA has a correct valuation and a medium growth rate.

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1. Profitability

1.1 Basic Checks

In the past year 1PHIA was profitable.
1PHIA had a positive operating cash flow in the past year.
In multiple years 1PHIA reported negative net income over the last 5 years.
Of the past 5 years 1PHIA 4 years had a positive operating cash flow.

1.2 Ratios

1PHIA has a Return On Assets of 0.63%. This is in the lower half of the industry: 1PHIA underperforms 66.18% of its industry peers.
With a Return On Equity value of 1.56%, 1PHIA is not doing good in the industry: 66.18% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.21%, 1PHIA is doing worse than 63.24% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	0.63%
ROE	1.56%
ROIC	4.21%

ROA(3y)-3.08%

ROA(5y)1.15%

ROE(3y)-7.29%

ROE(5y)2.23%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

1PHIA has a Profit Margin of 0.93%. This is in the lower half of the industry: 1PHIA underperforms 66.18% of its industry peers.
With a Operating Margin value of 6.10%, 1PHIA is not doing good in the industry: 63.24% of the companies in the same industry are doing better.
1PHIA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 43.49%, 1PHIA is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
1PHIA's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	6.1%
PM (TTM)	0.93%
GM	43.49%

OM growth 3Y-1.59%

OM growth 5Y-8.09%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y4.71%

GM growth 5Y1.08%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1PHIA is destroying value.
1PHIA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1PHIA has been increased compared to 5 years ago.
The debt/assets ratio for 1PHIA is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 1.99 indicates that 1PHIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
1PHIA has a Altman-Z score of 1.99. This is comparable to the rest of the industry: 1PHIA outperforms 44.12% of its industry peers.
The Debt to FCF ratio of 1PHIA is 14.51, which is on the high side as it means it would take 1PHIA, 14.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1PHIA (14.51) is worse than 61.76% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that 1PHIA is somewhat dependend on debt financing.
The Debt to Equity ratio of 1PHIA (0.69) is worse than 70.59% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.69
Debt/FCF	14.51
Altman-Z	1.99

ROIC/WACC0.63

WACC6.7%

2.3 Liquidity

A Current Ratio of 1.32 indicates that 1PHIA should not have too much problems paying its short term obligations.
1PHIA has a Current ratio of 1.32. This is in the lower half of the industry: 1PHIA underperforms 60.29% of its industry peers.
1PHIA has a Quick Ratio of 1.32. This is a bad value and indicates that 1PHIA is not financially healthy enough and could expect problems in meeting its short term obligations.
1PHIA's Quick ratio of 0.86 is on the low side compared to the rest of the industry. 1PHIA is outperformed by 66.18% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.32
Quick Ratio	0.86

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

1PHIA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.15%, which is quite good.
1PHIA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.17% yearly.
Looking at the last year, 1PHIA shows a decrease in Revenue. The Revenue has decreased by -1.43% in the last year.
Measured over the past years, 1PHIA shows a small growth in Revenue. The Revenue has been growing by 1.00% on average per year.

EPS 1Y (TTM)15.15%

EPS 3Y-5.66%

EPS 5Y-7.17%

EPS Q2Q%12.5%

Revenue 1Y (TTM)-1.43%

Revenue growth 3Y1.65%

Revenue growth 5Y1%

Sales Q2Q%-1.71%

3.2 Future

1PHIA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.28% yearly.
The Revenue is expected to grow by 3.00% on average over the next years.

EPS Next Y4.94%

EPS Next 2Y4.81%

EPS Next 3Y7.44%

EPS Next 5Y10.28%

Revenue Next Year-2.27%

Revenue Next 2Y0.25%

Revenue Next 3Y1.58%

Revenue Next 5Y3%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 16.73, the valuation of 1PHIA can be described as correct.
91.18% of the companies in the same industry are more expensive than 1PHIA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1PHIA to the average of the S&P500 Index (28.41), we can say 1PHIA is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.27 indicates a correct valuation of 1PHIA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PHIA indicates a somewhat cheap valuation: 1PHIA is cheaper than 69.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, 1PHIA is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	16.73
Fwd PE	16.27

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, 1PHIA is valued a bit cheaper than the industry average as 66.18% of the companies are valued more expensively.
1PHIA's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	41.25
EV/EBITDA	13.03

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PHIA does not grow enough to justify the current Price/Earnings ratio.