SIGNIFY NV (LIGHT.AS) Stock Fundamental Analysis
AMS:LIGHT - Euronext Amsterdam - NL0011821392 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to LIGHT. LIGHT was compared to 54 industry peers in the Electrical Equipment industry. While LIGHT belongs to the best of the industry regarding profitability, there are concerns on its financial health. LIGHT is valued quite cheap, but it does not seem to be growing. LIGHT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LIGHT had positive earnings in the past year.
LIGHT had a positive operating cash flow in the past year.
LIGHT had positive earnings in each of the past 5 years.
Each year in the past 5 years LIGHT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LIGHT (4.86%) is better than 81.48% of its industry peers.
LIGHT has a better Return On Equity (11.46%) than 70.37% of its industry peers.
LIGHT has a Return On Invested Capital of 8.89%. This is in the better half of the industry: LIGHT outperforms 79.63% of its industry peers.
LIGHT had an Average Return On Invested Capital over the past 3 years of 8.31%. This is in line with the industry average of 8.11%.
The 3 year average ROIC (8.31%) for LIGHT is below the current ROIC(8.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 11.46% | ||
| ROIC | 8.89% |
ROA(3y)4.41%
ROA(5y)4.45%
ROE(3y)11.83%
ROE(5y)13.29%
ROIC(3y)8.31%
ROIC(5y)8.73%
1.3 Margins
The Profit Margin of LIGHT (5.75%) is better than 75.93% of its industry peers.
In the last couple of years the Profit Margin of LIGHT has grown nicely.
LIGHT has a better Operating Margin (8.72%) than 77.78% of its industry peers.
LIGHT's Operating Margin has improved in the last couple of years.
LIGHT has a Gross Margin (40.62%) which is comparable to the rest of the industry.
LIGHT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.72% | ||
| PM (TTM) | 5.75% | ||
| GM | 40.62% |
OM growth 3Y-2.99%
OM growth 5Y7.06%
PM growth 3Y-2.65%
PM growth 5Y4.95%
GM growth 3Y1.11%
GM growth 5Y1.97%
2. Health
2.1 Basic Checks
LIGHT 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, LIGHT has about the same amount of shares outstanding.
The number of shares outstanding for LIGHT remains at a similar level compared to 5 years ago.
The debt/assets ratio for LIGHT has been reduced compared to a year ago.
2.2 Solvency
LIGHT has a debt to FCF ratio of 4.16. This is a neutral value as LIGHT would need 4.16 years to pay back of all of its debts.
LIGHT's Debt to FCF ratio of 4.16 is fine compared to the rest of the industry. LIGHT outperforms 72.22% of its industry peers.
LIGHT has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.37, LIGHT perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | N/A |
ROIC/WACC1.25
WACC7.13%
2.3 Liquidity
LIGHT has a Current Ratio of 1.25. This is a normal value and indicates that LIGHT is financially healthy and should not expect problems in meeting its short term obligations.
LIGHT's Current ratio of 1.25 is on the low side compared to the rest of the industry. LIGHT is outperformed by 61.11% of its industry peers.
LIGHT has a Quick Ratio of 1.25. This is a bad value and indicates that LIGHT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LIGHT (0.81) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
LIGHT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.30%.
The Earnings Per Share has been decreasing by -2.28% on average over the past years.
Looking at the last year, LIGHT shows a decrease in Revenue. The Revenue has decreased by -5.73% in the last year.
The Revenue has been decreasing by -0.34% on average over the past years.
EPS 1Y (TTM)2.3%
EPS 3Y-12.27%
EPS 5Y-2.28%
EPS Q2Q%73.68%
Revenue 1Y (TTM)-5.73%
Revenue growth 3Y-3.61%
Revenue growth 5Y-0.34%
Sales Q2Q%-1.36%
3.2 Future
Based on estimates for the next years, LIGHT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.47% on average per year.
The Revenue is expected to grow by 0.04% on average over the next years.
EPS Next Y2.95%
EPS Next 2Y6.62%
EPS Next 3Y8.04%
EPS Next 5Y9.47%
Revenue Next Year-2.36%
Revenue Next 2Y-0.79%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 7.36 indicates a rather cheap valuation of LIGHT.
Based on the Price/Earnings ratio, LIGHT is valued cheaper than 94.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. LIGHT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.13, which indicates a rather cheap valuation of LIGHT.
LIGHT's Price/Forward Earnings ratio is rather cheap when compared to the industry. LIGHT is cheaper than 90.74% of the companies in the same industry.
LIGHT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 7.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIGHT is valued cheaply inside the industry as 90.74% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LIGHT indicates a rather cheap valuation: LIGHT is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| EV/EBITDA | 4.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LIGHT may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)N/A
EPS Next 2Y6.62%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
LIGHT has a Yearly Dividend Yield of 6.81%, which is a nice return.
Compared to an average industry Dividend Yield of 2.66, LIGHT pays a better dividend. On top of this LIGHT pays more dividend than 98.15% of the companies listed in the same industry.
LIGHT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.81% |
5.2 History
The dividend of LIGHT has a limited annual growth rate of 3.47%.
Dividend Growth(5Y)3.47%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
LIGHT pays out 62.78% of its income as dividend. This is not a sustainable payout ratio.
LIGHT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.78%
EPS Next 2Y6.62%
EPS Next 3Y8.04%
AMS:LIGHT (7/4/2025, 7:00:00 PM)
22.6
-0.28 (-1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners70.69%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap2.90B
Analysts70.83
Price Target25.5 (12.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.81% |
Yearly Dividend1.55
Dividend Growth(5Y)3.47%
DP62.78%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.58%
Min EPS beat(2)27.81%
Max EPS beat(2)77.34%
EPS beat(4)3
Avg EPS beat(4)29.62%
Min EPS beat(4)-12.02%
Max EPS beat(4)77.34%
EPS beat(8)6
Avg EPS beat(8)22.36%
EPS beat(12)9
Avg EPS beat(12)16.61%
EPS beat(16)13
Avg EPS beat(16)20.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.64%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)-1.56%
Revenue beat(8)0
Avg Revenue beat(8)-4.31%
Revenue beat(12)0
Avg Revenue beat(12)-4.12%
Revenue beat(16)2
Avg Revenue beat(16)-3.41%
PT rev (1m)1.01%
PT rev (3m)-7.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 7.13 | ||
| P/S | 0.47 | ||
| P/FCF | 7.76 | ||
| P/OCF | 6.09 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.91 |
EPS(TTM)3.07
EY13.58%
EPS(NY)3.17
Fwd EY14.03%
FCF(TTM)2.91
FCFY12.89%
OCF(TTM)3.71
OCFY16.41%
SpS47.71
BVpS23.94
TBVpS-2.48
PEG (NY)2.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 11.46% | ||
| ROCE | 10.77% | ||
| ROIC | 8.89% | ||
| ROICexc | 10.22% | ||
| ROICexgc | 47.88% | ||
| OM | 8.72% | ||
| PM (TTM) | 5.75% | ||
| GM | 40.62% | ||
| FCFM | 6.11% |
ROA(3y)4.41%
ROA(5y)4.45%
ROE(3y)11.83%
ROE(5y)13.29%
ROIC(3y)8.31%
ROIC(5y)8.73%
ROICexc(3y)10%
ROICexc(5y)10.94%
ROICexgc(3y)62.11%
ROICexgc(5y)58.99%
ROCE(3y)10.08%
ROCE(5y)10.59%
ROICexcg growth 3Y6.49%
ROICexcg growth 5Y14.46%
ROICexc growth 3Y-5.58%
ROICexc growth 5Y2.94%
OM growth 3Y-2.99%
OM growth 5Y7.06%
PM growth 3Y-2.65%
PM growth 5Y4.95%
GM growth 3Y1.11%
GM growth 5Y1.97%
F-Score8
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.16 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 41.13% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.87% | ||
| Profit Quality | 106.25% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | N/A |
F-Score8
WACC7.13%
ROIC/WACC1.25
Cap/Depr(3y)41.13%
Cap/Depr(5y)38.27%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.68%
Profit Quality(3y)152.64%
Profit Quality(5y)169.78%
High Growth Momentum
Growth
EPS 1Y (TTM)2.3%
EPS 3Y-12.27%
EPS 5Y-2.28%
EPS Q2Q%73.68%
EPS Next Y2.95%
EPS Next 2Y6.62%
EPS Next 3Y8.04%
EPS Next 5Y9.47%
Revenue 1Y (TTM)-5.73%
Revenue growth 3Y-3.61%
Revenue growth 5Y-0.34%
Sales Q2Q%-1.36%
Revenue Next Year-2.36%
Revenue Next 2Y-0.79%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.04%
EBIT growth 1Y-4.98%
EBIT growth 3Y-6.49%
EBIT growth 5Y6.7%
EBIT Next Year31.47%
EBIT Next 3Y11.7%
EBIT Next 5Y10.6%
FCF growth 1Y-23.05%
FCF growth 3Y-10.86%
FCF growth 5Y-4.11%
OCF growth 1Y-23.23%
OCF growth 3Y-9.95%
OCF growth 5Y-3.01%