KONINKLIJKE KPN NV (KPN.AS) Stock Fundamental Analysis
AMS:KPN - Euronext Amsterdam - NL0000009082 - Common Stock - Currency: EUR
Overall KPN gets a fundamental rating of 5 out of 10. We evaluated KPN against 26 industry peers in the Diversified Telecommunication Services industry. While KPN belongs to the best of the industry regarding profitability, there are concerns on its financial health. KPN has a correct valuation and a medium growth rate. Finally KPN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KPN had positive earnings in the past year.
KPN had a positive operating cash flow in the past year.
KPN had positive earnings in each of the past 5 years.
KPN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.23%, KPN belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.97%, KPN belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
KPN has a better Return On Invested Capital (10.77%) than 88.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KPN is above the industry average of 7.93%.
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 better Profit Margin (14.24%) than 80.77% of its industry peers.
KPN's Profit Margin has improved in the last couple of years.
KPN's Operating Margin of 25.11% is amongst the best of the industry. KPN outperforms 92.31% of its industry peers.
KPN's Operating Margin has improved in the last couple of years.
The Gross Margin of KPN (78.55%) is better than 80.77% 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 just above the Cost of Capital (WACC), which means it is creating some value.
KPN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KPN has less shares outstanding
Compared to 1 year ago, KPN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that KPN is in the distress zone and has some risk of bankruptcy.
KPN has a Altman-Z score (1.16) which is in line with its industry peers.
KPN has a debt to FCF ratio of 7.27. This is a slightly negative value and a sign of low solvency as KPN would need 7.27 years to pay back of all of its debts.
KPN has a Debt to FCF ratio of 7.27. This is in the better half of the industry: KPN outperforms 69.23% 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.
KPN has a Debt to Equity ratio of 1.67. This is in the lower half of the industry: KPN underperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 1.16 |
ROIC/WACC1.77
WACC6.08%
2.3 Liquidity
A Current Ratio of 0.70 indicates that KPN may have some problems paying its short term obligations.
KPN has a Current ratio of 0.70. This is in the lower half of the industry: KPN underperforms 61.54% 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.
With a Quick ratio value of 0.68, KPN is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| 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
The Earnings Per Share is expected to grow by 8.98% on average over the next years. This is quite good.
Based on estimates for the next years, KPN will show a small growth in Revenue. The Revenue will grow by 2.37% on average per year.
EPS Next Y9.24%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
EPS Next 5Y8.98%
Revenue Next Year2.76%
Revenue Next 2Y2.47%
Revenue Next 3Y2.34%
Revenue Next 5Y2.37%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.27, KPN is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as KPN.
Compared to an average S&P500 Price/Earnings ratio of 28.92, KPN is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.72 indicates a correct valuation of KPN.
KPN's Price/Forward Earnings ratio is in line with the industry average.
KPN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 16.72 |
4.2 Price Multiples
KPN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KPN is more expensive than 61.54% of the companies in the same industry.
61.54% of the companies in the same industry are more expensive than KPN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.68 | ||
| EV/EBITDA | 8.18 |
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)1.98
PEG (5Y)2.6
EPS Next 2Y8.35%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, KPN is a good candidate for dividend investing.
KPN's Dividend Yield is comparable with the industry average which is at 5.08.
KPN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of KPN is nicely growing with an annual growth rate of 6.22%!
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.
The dividend of KPN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.56%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
AMS:KPN (4/24/2025, 7:00:00 PM)
4.019
-0.01 (-0.25%)
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 Cap15.63B
Analysts72.5
Price Target4.06 (1.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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%
PT rev (3m)0.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 16.72 | ||
| P/S | 2.79 | ||
| P/FCF | 15.68 | ||
| P/OCF | 6.84 | ||
| P/B | 4.3 | ||
| P/tB | 23.94 | ||
| EV/EBITDA | 8.18 |
EPS(TTM)0.22
EY5.47%
EPS(NY)0.24
Fwd EY5.98%
FCF(TTM)0.26
FCFY6.38%
OCF(TTM)0.59
OCFY14.61%
SpS1.44
BVpS0.93
TBVpS0.17
PEG (NY)1.98
PEG (5Y)2.6
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 | 1.16 |
F-Score6
WACC6.08%
ROIC/WACC1.77
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 Y9.24%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
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 Year93.15%
EBIT Next 3Y26.71%
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%