KONINKLIJKE KPN NV (KPN.AS) Stock Fundamental Analysis
AMS:KPN - Euronext Amsterdam - NL0000009082 - Common Stock - Currency: EUR
Overall KPN gets a fundamental rating of 6 out of 10. We evaluated KPN against 29 industry peers in the Diversified Telecommunication Services industry. KPN has an excellent profitability rating, but there are concerns on its financial health. KPN is not valued too expensively and it also shows a decent growth rate. Finally KPN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KPN was profitable.
In the past year KPN had a positive cash flow from operations.
KPN had positive earnings in each of the past 5 years.
In the past 5 years KPN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KPN (6.23%) is better than 86.67% of its industry peers.
KPN has a better Return On Equity (21.97%) than 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.77%, KPN belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KPN is above the industry average of 7.55%.
The 3 year average ROIC (10.15%) for KPN is below the current ROIC(10.77%), indicating increased profibility in the last year.
| 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
The Profit Margin of KPN (14.24%) is better than 83.33% 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 93.33% of the companies in the same industry.
KPN's Operating Margin has improved in the last couple of years.
The Gross Margin of KPN (78.55%) is better than 83.33% of its industry peers.
In the last couple of years the Gross Margin of KPN has remained more or less at the same level.
| 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 well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for KPN has been reduced compared to 1 year ago.
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 1.07, we must say that KPN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.07, KPN is in line with its industry, outperforming 53.33% of the companies in the same 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 has a better Debt to FCF ratio (7.27) than 66.67% of its industry peers.
KPN has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.67, KPN is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 1.07 |
ROIC/WACC1.84
WACC5.85%
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's Current ratio of 0.70 is in line compared to the rest of the industry. KPN outperforms 46.67% of its industry peers.
KPN has a Quick 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 Quick ratio of 0.68. This is comparable to the rest of the industry: KPN outperforms 46.67% of 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 been growing slightly by 7.32% over the past year.
KPN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.03% yearly.
KPN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.00%.
Measured over the past years, KPN shows a small growth in Revenue. The Revenue has been growing by 0.42% on average per year.
EPS 1Y (TTM)7.32%
EPS 3Y-8.8%
EPS 5Y7.03%
EPS Q2Q%20%
Revenue 1Y (TTM)3%
Revenue growth 3Y2.15%
Revenue growth 5Y0.42%
Sales Q2Q%0.77%
3.2 Future
Based on estimates for the next years, KPN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.98% on average per year.
The Revenue is expected to grow by 2.37% on average over the next years.
EPS Next Y9.26%
EPS Next 2Y8.28%
EPS Next 3Y8.55%
EPS Next 5Y8.98%
Revenue Next Year2.76%
Revenue Next 2Y2.47%
Revenue Next 3Y2.34%
Revenue Next 5Y2.37%
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 accelerating.
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
With a Price/Earnings ratio of 16.84, KPN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of KPN is on the same level as its industry peers.
KPN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 15.41 indicates a correct valuation of KPN.
The rest of the industry has a similar Price/Forward Earnings ratio as KPN.
When comparing the Price/Forward Earnings ratio of KPN to the average of the S&P500 Index (22.10), we can say KPN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KPN is on the same level as its industry peers.
KPN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.45 | ||
| EV/EBITDA | 7.7 |
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.
KPN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)2.4
EPS Next 2Y8.28%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
KPN has a Yearly Dividend Yield of 4.72%, which is a nice return.
KPN's Dividend Yield is a higher than the industry average which is at 5.01.
KPN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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 more than its dividend. This makes the dividend growth sustainable.
DP73.56%
EPS Next 2Y8.28%
EPS Next 3Y8.55%
AMS:KPN (3/7/2025, 7:00:00 PM)
3.704
+0.1 (+2.92%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.79%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap14.40B
Analysts72.5
Price Target4.06 (9.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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)-0.74%
PT rev (3m)1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.41 | ||
| P/S | 2.57 | ||
| P/FCF | 14.45 | ||
| P/OCF | 6.31 | ||
| P/B | 3.97 | ||
| P/tB | 22.06 | ||
| EV/EBITDA | 7.7 |
EPS(TTM)0.22
EY5.94%
EPS(NY)0.24
Fwd EY6.49%
FCF(TTM)0.26
FCFY6.92%
OCF(TTM)0.59
OCFY15.86%
SpS1.44
BVpS0.93
TBVpS0.17
PEG (NY)1.82
PEG (5Y)2.4
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 | 1.07 |
F-Score6
WACC5.85%
ROIC/WACC1.84
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)7.32%
EPS 3Y-8.8%
EPS 5Y7.03%
EPS Q2Q%20%
EPS Next Y9.26%
EPS Next 2Y8.28%
EPS Next 3Y8.55%
EPS Next 5Y8.98%
Revenue 1Y (TTM)3%
Revenue growth 3Y2.15%
Revenue growth 5Y0.42%
Sales Q2Q%0.77%
Revenue Next Year2.76%
Revenue Next 2Y2.47%
Revenue Next 3Y2.34%
Revenue Next 5Y2.37%
EBIT growth 1Y3.53%
EBIT growth 3Y10.18%
EBIT growth 5Y7.9%
EBIT Next Year92.8%
EBIT Next 3Y24.84%
EBIT Next 5Y18.24%
FCF growth 1Y6.63%
FCF growth 3Y1.56%
FCF growth 5Y1.25%
OCF growth 1Y4.53%
OCF growth 3Y2.1%
OCF growth 5Y2.44%