KONINKLIJKE KPN NV (KPN.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:KPN - NL0000009082 - Common Stock
3.888 EUR
+0.03 (+0.67%)
Overall KPN gets a fundamental rating of 5 out of 10. We evaluated KPN against 35 industry peers in the Diversified Telecommunication Services industry. KPN has an excellent profitability rating, but there are concerns on its financial health. KPN is valied quite expensively at the moment, while it does show 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.
- In the past 5 years KPN has always been profitable.
- Each year in the past 5 years KPN had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.43%, KPN belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
- With an excellent Return On Equity value of 23.51%, KPN belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
- The Return On Invested Capital of KPN (10.05%) is better than 86.11% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for KPN is in line with the industry average of 8.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 23.51% | ||
| ROIC | 10.05% |
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
- With a decent Profit Margin value of 14.24%, KPN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of KPN has grown nicely.
- KPN has a Operating Margin of 25.11%. This is amongst the best in the industry. KPN outperforms 91.67% of its industry peers.
- In the last couple of years the Operating Margin of KPN has grown nicely.
- KPN has a Gross Margin of 78.55%. This is amongst the best in the industry. KPN outperforms 83.33% 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.
- 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 1.18, we must say that KPN is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of KPN (1.18) is comparable to the rest of the industry.
- KPN has a debt to FCF ratio of 7.79. This is a slightly negative value and a sign of low solvency as KPN would need 7.79 years to pay back of all of its debts.
- KPN has a Debt to FCF ratio (7.79) which is in line with its industry peers.
- KPN has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.03, KPN is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 7.79 | ||
| Altman-Z | 1.18 |
ROIC/WACC1.69
WACC5.93%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that KPN may have some problems paying its short term obligations.
- With a Current ratio value of 0.72, KPN perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- A Quick Ratio of 0.70 indicates that KPN may have some problems paying its short term obligations.
- KPN has a Quick ratio (0.70) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- KPN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
- 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)0%
EPS 3Y-8.8%
EPS 5Y7.03%
EPS Q2Q%0%
Revenue 1Y (TTM)3%
Revenue growth 3Y2.15%
Revenue growth 5Y0.42%
Sales Q2Q%2.46%
3.2 Future
- The Earnings Per Share is expected to grow by 8.72% on average over the next years. This is quite good.
- KPN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.19% yearly.
EPS Next Y4.12%
EPS Next 2Y8.76%
EPS Next 3Y7.65%
EPS Next 5Y8.72%
Revenue Next Year3.45%
Revenue Next 2Y2.6%
Revenue Next 3Y2.44%
Revenue Next 5Y1.19%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.51, KPN is valued on the expensive side.
- KPN's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of KPN to the average of the S&P500 Index (27.21), we can say KPN is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 14.94, the valuation of KPN can be described as correct.
- KPN's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, KPN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 14.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KPN is valued a bit more expensive than 61.11% of the companies in the same industry.
- KPN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. KPN is more expensive than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.57 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- KPN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.49
PEG (5Y)2.64
EPS Next 2Y8.76%
EPS Next 3Y7.65%
5. Dividend
5.1 Amount
- KPN has a Yearly Dividend Yield of 4.53%, which is a nice return.
- KPN's Dividend Yield is a higher than the industry average which is at 3.26.
- KPN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
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
- KPN pays out 82.58% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of KPN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP82.58%
EPS Next 2Y8.76%
EPS Next 3Y7.65%
KONINKLIJKE KPN NV / KPN.AS FAQ
Can you provide the ChartMill fundamental rating for KONINKLIJKE KPN NV?
ChartMill assigns a fundamental rating of 5 / 10 to KPN.AS.
What is the valuation status of KONINKLIJKE KPN NV (KPN.AS) stock?
ChartMill assigns a valuation rating of 3 / 10 to KONINKLIJKE KPN NV (KPN.AS). This can be considered as Overvalued.
How profitable is KONINKLIJKE KPN NV (KPN.AS) stock?
KONINKLIJKE KPN NV (KPN.AS) has a profitability rating of 8 / 10.
How financially healthy is KONINKLIJKE KPN NV?
The financial health rating of KONINKLIJKE KPN NV (KPN.AS) is 2 / 10.
What is the expected EPS growth for KONINKLIJKE KPN NV (KPN.AS) stock?
The Earnings per Share (EPS) of KONINKLIJKE KPN NV (KPN.AS) is expected to grow by 4.12% in the next year.