SIGNIFY NV (LIGHT.AS) Stock Fundamental Analysis
AMS:LIGHT - Euronext Amsterdam - NL0011821392 - Common Stock - Currency: EUR
LIGHT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 59 industry peers in the Electrical Equipment industry. LIGHT scores excellent on profitability, but there are some minor 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.
In the past year LIGHT had a positive cash flow from operations.
Each year in the past 5 years LIGHT has been profitable.
In the past 5 years LIGHT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.38%, LIGHT is doing good in the industry, outperforming 73.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.40%, LIGHT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
LIGHT has a Return On Invested Capital of 8.73%. This is in the better half of the industry: LIGHT outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LIGHT is in line with the industry average of 8.25%.
The last Return On Invested Capital (8.73%) for LIGHT is above the 3 year average (8.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 10.4% | ||
| ROIC | 8.73% |
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 (5.36%) is better than 73.33% of its industry peers.
LIGHT's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.76%, LIGHT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
LIGHT's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 40.75%, LIGHT is doing good in the industry, outperforming 61.67% of the companies in the same industry.
LIGHT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.76% | ||
| PM (TTM) | 5.36% | ||
| GM | 40.75% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LIGHT 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.
LIGHT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that LIGHT is in the distress zone and has some risk of bankruptcy.
LIGHT's Altman-Z score of 1.70 is in line compared to the rest of the industry. LIGHT outperforms 58.33% of its industry peers.
The Debt to FCF ratio of LIGHT is 3.74, which is a good value as it means it would take LIGHT, 3.74 years of fcf income to pay off all of its debts.
LIGHT has a better Debt to FCF ratio (3.74) than 75.00% of its industry peers.
LIGHT has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.36, LIGHT is doing good in the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.25
WACC6.96%
2.3 Liquidity
A Current Ratio of 1.22 indicates that LIGHT should not have too much problems paying its short term obligations.
The Current ratio of LIGHT (1.22) is worse than 65.00% of its industry peers.
A Quick Ratio of 0.80 indicates that LIGHT may have some problems paying its short term obligations.
LIGHT's Quick ratio of 0.80 is on the low side compared to the rest of the industry. LIGHT is outperformed by 61.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
LIGHT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.75%.
The Earnings Per Share has been decreasing by -2.28% on average over the past years.
LIGHT shows a decrease in Revenue. In the last year, the revenue decreased by -8.38%.
LIGHT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.34% yearly.
EPS 1Y (TTM)-16.75%
EPS 3Y-12.27%
EPS 5Y-2.28%
EPS Q2Q%-18.7%
Revenue 1Y (TTM)-8.38%
Revenue growth 3Y-3.61%
Revenue growth 5Y-0.34%
Sales Q2Q%-4.56%
3.2 Future
The Earnings Per Share is expected to grow by 10.63% on average over the next years. This is quite good.
LIGHT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.91% yearly.
EPS Next Y10.91%
EPS Next 2Y9.43%
EPS Next 3Y10.23%
EPS Next 5Y10.63%
Revenue Next Year0.67%
Revenue Next 2Y1.11%
Revenue Next 3Y1.31%
Revenue Next 5Y0.91%
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
A Price/Earnings ratio of 7.48 indicates a rather cheap valuation of LIGHT.
91.67% of the companies in the same industry are more expensive than LIGHT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. LIGHT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.75, which indicates a rather cheap valuation of LIGHT.
Based on the Price/Forward Earnings ratio, LIGHT is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, LIGHT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 6.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LIGHT indicates a rather cheap valuation: LIGHT is cheaper than 83.33% of the companies listed in the same industry.
95.00% of the companies in the same industry are more expensive than LIGHT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.46 | ||
| EV/EBITDA | 4.54 |
4.3 Compensation for Growth
LIGHT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of LIGHT may justify a higher PE ratio.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y9.43%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.43%, LIGHT is a good candidate for dividend investing.
LIGHT's Dividend Yield is rather good when compared to the industry average which is at 2.91. LIGHT pays more dividend than 100.00% of the companies in the same industry.
LIGHT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.43% |
5.2 History
The dividend of LIGHT has a limited annual growth rate of 3.47%.
Dividend Growth(5Y)3.47%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
LIGHT pays out 59.57% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of LIGHT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.57%
EPS Next 2Y9.43%
EPS Next 3Y10.23%
AMS:LIGHT (3/7/2025, 7:00:00 PM)
20.88
-0.12 (-0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.91%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap2.68B
Analysts73.04
Price Target27.45 (31.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.43% |
Yearly Dividend1.55
Dividend Growth(5Y)3.47%
DP59.57%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.59%
Min EPS beat(2)25.36%
Max EPS beat(2)27.81%
EPS beat(4)3
Avg EPS beat(4)12.01%
Min EPS beat(4)-12.02%
Max EPS beat(4)27.81%
EPS beat(8)5
Avg EPS beat(8)12.65%
EPS beat(12)9
Avg EPS beat(12)13.05%
EPS beat(16)13
Avg EPS beat(16)17.39%
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)-3.27%
Revenue beat(4)0
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-7.79%
Max Revenue beat(4)-3.27%
Revenue beat(8)0
Avg Revenue beat(8)-4.82%
Revenue beat(12)1
Avg Revenue beat(12)-3.75%
Revenue beat(16)2
Avg Revenue beat(16)-3.45%
PT rev (1m)-3.83%
PT rev (3m)-9.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)-4.66%
EPS NY rev (3m)-5.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.48 | ||
| Fwd PE | 6.75 | ||
| P/S | 0.44 | ||
| P/FCF | 6.46 | ||
| P/OCF | 5.21 | ||
| P/B | 0.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.54 |
EPS(TTM)2.79
EY13.36%
EPS(NY)3.09
Fwd EY14.81%
FCF(TTM)3.23
FCFY15.49%
OCF(TTM)4
OCFY19.18%
SpS47.87
BVpS24.64
TBVpS-2.72
PEG (NY)0.69
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 10.4% | ||
| ROCE | 10.59% | ||
| ROIC | 8.73% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 47.32% | ||
| OM | 8.76% | ||
| PM (TTM) | 5.36% | ||
| GM | 40.75% | ||
| FCFM | 6.76% |
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-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.74 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 38.82% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.82% | ||
| Profit Quality | 126.14% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.7 |
F-Score7
WACC6.96%
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)-16.75%
EPS 3Y-12.27%
EPS 5Y-2.28%
EPS Q2Q%-18.7%
EPS Next Y10.91%
EPS Next 2Y9.43%
EPS Next 3Y10.23%
EPS Next 5Y10.63%
Revenue 1Y (TTM)-8.38%
Revenue growth 3Y-3.61%
Revenue growth 5Y-0.34%
Sales Q2Q%-4.56%
Revenue Next Year0.67%
Revenue Next 2Y1.11%
Revenue Next 3Y1.31%
Revenue Next 5Y0.91%
EBIT growth 1Y-8.03%
EBIT growth 3Y-6.49%
EBIT growth 5Y6.7%
EBIT Next Year45.93%
EBIT Next 3Y21.17%
EBIT Next 5Y16.82%
FCF growth 1Y-28.2%
FCF growth 3Y-10.86%
FCF growth 5Y-4.11%
OCF growth 1Y-26.15%
OCF growth 3Y-9.95%
OCF growth 5Y-3.01%