KONINKLIJKE KPN NV (KPN.AS) Stock Fundamental Analysis
AMS:KPN - Euronext Amsterdam - NL0000009082 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to KPN. KPN was compared to 27 industry peers in the Diversified Telecommunication Services industry. While KPN has a great profitability rating, there are quite some concerns on its financial health. KPN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KPN was profitable.
KPN had a positive operating cash flow in the past year.
In the past 5 years KPN has always been profitable.
KPN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KPN has a better Return On Assets (6.23%) than 88.89% of its industry peers.
Looking at the Return On Equity, with a value of 21.97%, KPN belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
The Return On Invested Capital of KPN (10.77%) is better than 92.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KPN is above the industry average of 7.76%.
The last Return On Invested Capital (10.77%) for KPN is above the 3 year average (10.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 21.97% | ||
| ROIC | 10.77% |
ROA(3y)6.38%
ROA(5y)6.75%
ROE(3y)21.85%
ROE(5y)25.23%
ROIC(3y)10.15%
ROIC(5y)9.14%
1.3 Margins
KPN has a Profit Margin of 14.24%. This is amongst the best in the industry. KPN outperforms 88.89% of its industry peers.
KPN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.11%, KPN belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
KPN's Operating Margin has improved in the last couple of years.
KPN's Gross Margin of 78.55% is amongst the best of the industry. KPN outperforms 81.48% of its industry peers.
KPN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.11% | ||
| PM (TTM) | 14.24% | ||
| GM | 78.55% |
OM growth 3Y7.85%
OM growth 5Y7.45%
PM growth 3Y-16.33%
PM growth 5Y4.6%
GM growth 3Y1.42%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
KPN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, KPN has less shares outstanding
KPN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KPN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that KPN is in the distress zone and has some risk of bankruptcy.
KPN has a Altman-Z score (1.17) which is comparable to the rest of the industry.
The Debt to FCF ratio of KPN is 7.27, which is on the high side as it means it would take KPN, 7.27 years of fcf income to pay off all of its debts.
KPN's Debt to FCF ratio of 7.27 is in line compared to the rest of the industry. KPN outperforms 44.44% of its industry peers.
A Debt/Equity ratio of 1.67 is on the high side and indicates that KPN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.67, KPN is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 1.17 |
ROIC/WACC1.8
WACC6%
2.3 Liquidity
KPN has a Current Ratio of 0.70. This is a bad value and indicates that KPN is not financially healthy enough and could expect problems in meeting its short term obligations.
KPN has a Current ratio (0.70) which is comparable to the rest of the industry.
A Quick Ratio of 0.68 indicates that KPN may have some problems paying its short term obligations.
KPN has a Quick ratio (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.33% over the past year.
Measured over the past 5 years, KPN shows a small growth in Earnings Per Share. The EPS has been growing by 7.03% on average per year.
The Revenue has been growing slightly by 3.00% in the past year.
The Revenue has been growing slightly by 0.42% on average over the past years.
EPS 1Y (TTM)10.33%
EPS 3Y-8.8%
EPS 5Y7.03%
EPS Q2Q%-12.16%
Revenue 1Y (TTM)3%
Revenue growth 3Y2.15%
Revenue growth 5Y0.42%
Sales Q2Q%2.98%
3.2 Future
The Earnings Per Share is expected to grow by 6.85% on average over the next years.
Based on estimates for the next years, KPN will show a small growth in Revenue. The Revenue will grow by 0.71% on average per year.
EPS Next Y9.24%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
EPS Next 5Y6.85%
Revenue Next Year2.81%
Revenue Next 2Y2.47%
Revenue Next 3Y2.26%
Revenue Next 5Y0.71%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.73, the valuation of KPN can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as KPN.
KPN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
KPN is valuated correctly with a Price/Forward Earnings ratio of 15.95.
62.96% of the companies in the same industry are cheaper than KPN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. KPN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 15.95 |
4.2 Price Multiples
KPN's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as KPN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.07 | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KPN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of KPN may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)2.67
EPS Next 2Y8.35%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
KPN has a Yearly Dividend Yield of 4.16%, which is a nice return.
Compared to an average industry Dividend Yield of 4.66, KPN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, KPN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
On average, the dividend of KPN grows each year by 6.22%, which is quite nice.
Dividend Growth(5Y)6.22%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
73.56% of the earnings are spent on dividend by KPN. This is not a sustainable payout ratio.
KPN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP73.56%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
AMS:KPN (7/4/2025, 7:00:00 PM)
4.12
+0.04 (+0.88%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners57.65%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap16.02B
Analysts69.6
Price Target4.18 (1.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend0.17
Dividend Growth(5Y)6.22%
DP73.56%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.58%
Min EPS beat(2)-21.84%
Max EPS beat(2)10.69%
EPS beat(4)3
Avg EPS beat(4)1.43%
Min EPS beat(4)-21.84%
Max EPS beat(4)12.28%
EPS beat(8)7
Avg EPS beat(8)10.15%
EPS beat(12)11
Avg EPS beat(12)15.43%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)1.34%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.13%
PT rev (3m)2.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 15.95 | ||
| P/S | 2.86 | ||
| P/FCF | 16.07 | ||
| P/OCF | 7.02 | ||
| P/B | 4.41 | ||
| P/tB | 24.54 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)0.22
EY5.34%
EPS(NY)0.26
Fwd EY6.27%
FCF(TTM)0.26
FCFY6.22%
OCF(TTM)0.59
OCFY14.26%
SpS1.44
BVpS0.93
TBVpS0.17
PEG (NY)2.03
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 21.97% | ||
| ROCE | 13.93% | ||
| ROIC | 10.77% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 18.14% | ||
| OM | 25.11% | ||
| PM (TTM) | 14.24% | ||
| GM | 78.55% | ||
| FCFM | 17.79% |
ROA(3y)6.38%
ROA(5y)6.75%
ROE(3y)21.85%
ROE(5y)25.23%
ROIC(3y)10.15%
ROIC(5y)9.14%
ROICexc(3y)10.93%
ROICexc(5y)9.93%
ROICexgc(3y)15.72%
ROICexgc(5y)14.55%
ROCE(3y)13.12%
ROCE(5y)11.8%
ROICexcg growth 3Y10.82%
ROICexcg growth 5Y5.54%
ROICexc growth 3Y10.74%
ROICexc growth 5Y6.37%
OM growth 3Y7.85%
OM growth 5Y7.45%
PM growth 3Y-16.33%
PM growth 5Y4.6%
GM growth 3Y1.42%
GM growth 5Y0.59%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 7.27 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 106.54% | ||
| Cap/Sales | 22.97% | ||
| Interest Coverage | 6.48 | ||
| Cash Conversion | 87.34% | ||
| Profit Quality | 124.94% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.17 |
F-Score6
WACC6%
ROIC/WACC1.8
Cap/Depr(3y)99.71%
Cap/Depr(5y)96.69%
Cap/Sales(3y)23.04%
Cap/Sales(5y)24.4%
Profit Quality(3y)124.87%
Profit Quality(5y)106.46%
High Growth Momentum
Growth
EPS 1Y (TTM)10.33%
EPS 3Y-8.8%
EPS 5Y7.03%
EPS Q2Q%-12.16%
EPS Next Y9.24%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
EPS Next 5Y6.85%
Revenue 1Y (TTM)3%
Revenue growth 3Y2.15%
Revenue growth 5Y0.42%
Sales Q2Q%2.98%
Revenue Next Year2.81%
Revenue Next 2Y2.47%
Revenue Next 3Y2.26%
Revenue Next 5Y0.71%
EBIT growth 1Y3.53%
EBIT growth 3Y10.18%
EBIT growth 5Y7.9%
EBIT Next Year94.35%
EBIT Next 3Y26.93%
EBIT Next 5Y14.05%
FCF growth 1Y6.63%
FCF growth 3Y1.56%
FCF growth 5Y1.25%
OCF growth 1Y4.53%
OCF growth 3Y2.1%
OCF growth 5Y2.44%