KONINKLIJKE PHILIPS NVR- NY (PHG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PHG - US5004723038
29.4 USD
-0.34 (-1.14%)
29.59 USD
+0.19 (+0.65%)
Overall PHG gets a fundamental rating of 4 out of 10. We evaluated PHG against 186 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of PHG while its profitability can be described as average. PHG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year PHG was profitable.
- In the past year PHG had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: PHG reported negative net income in multiple years.
- PHG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- PHG's Return On Assets of 0.63% is fine compared to the rest of the industry. PHG outperforms 73.66% of its industry peers.
- Looking at the Return On Equity, with a value of 1.56%, PHG is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
- PHG has a Return On Invested Capital of 4.44%. This is in the better half of the industry: PHG outperforms 75.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 1.56% | ||
| ROIC | 4.44% |
ROA(3y)-3.08%
ROA(5y)1.15%
ROE(3y)-7.29%
ROE(5y)2.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of PHG (0.93%) is better than 73.66% of its industry peers.
- PHG has a better Operating Margin (6.10%) than 71.51% of its industry peers.
- PHG's Operating Margin has declined in the last couple of years.
- The Gross Margin of PHG (43.49%) is worse than 63.98% of its industry peers.
- In the last couple of years the Gross Margin of PHG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.1% | ||
| PM (TTM) | 0.93% | ||
| GM | 43.49% |
OM growth 3Y-1.59%
OM growth 5Y-8.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.71%
GM growth 5Y1.08%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PHG is destroying value.
- Compared to 1 year ago, PHG has less shares outstanding
- Compared to 5 years ago, PHG has more shares outstanding
- Compared to 1 year ago, PHG has a worse debt to assets ratio.
2.2 Solvency
- PHG has an Altman-Z score of 2.01. This is not the best score and indicates that PHG is in the grey zone with still only limited risk for bankruptcy at the moment.
- PHG has a Altman-Z score of 2.01. This is in the better half of the industry: PHG outperforms 60.22% of its industry peers.
- The Debt to FCF ratio of PHG is 14.51, which is on the high side as it means it would take PHG, 14.51 years of fcf income to pay off all of its debts.
- PHG has a better Debt to FCF ratio (14.51) than 70.97% of its industry peers.
- PHG has a Debt/Equity ratio of 0.69. This is a neutral value indicating PHG is somewhat dependend on debt financing.
- PHG has a worse Debt to Equity ratio (0.69) than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 14.51 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.65
WACC6.78%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that PHG should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.32, PHG is doing worse than 77.96% of the companies in the same industry.
- A Quick Ratio of 0.86 indicates that PHG may have some problems paying its short term obligations.
- PHG's Quick ratio of 0.86 is on the low side compared to the rest of the industry. PHG is outperformed by 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- PHG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.15%, which is quite good.
- The Earnings Per Share has been decreasing by -7.17% on average over the past years.
- The Revenue has decreased by -1.43% in the past year.
- The Revenue has been growing slightly by 1.00% on average over the past years.
EPS 1Y (TTM)15.15%
EPS 3Y-5.66%
EPS 5Y-7.17%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-1.43%
Revenue growth 3Y1.65%
Revenue growth 5Y1%
Sales Q2Q%-1.71%
3.2 Future
- PHG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.28% yearly.
- Based on estimates for the next years, PHG will show a small growth in Revenue. The Revenue will grow by 3.00% on average per year.
EPS Next Y4.35%
EPS Next 2Y4.98%
EPS Next 3Y7.73%
EPS Next 5Y10.28%
Revenue Next Year-2.27%
Revenue Next 2Y0.25%
Revenue Next 3Y1.58%
Revenue Next 5Y3%
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
- The Price/Earnings ratio is 16.99, which indicates a correct valuation of PHG.
- 87.10% of the companies in the same industry are more expensive than PHG, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of PHG to the average of the S&P500 Index (27.21), we can say PHG is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 16.45, the valuation of PHG can be described as correct.
- Based on the Price/Forward Earnings ratio, PHG is valued cheaply inside the industry as 86.56% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, PHG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 16.45 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PHG indicates a rather cheap valuation: PHG is cheaper than 84.41% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PHG indicates a somewhat cheap valuation: PHG is cheaper than 74.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.84 | ||
| EV/EBITDA | 13.28 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PHG does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.91
PEG (5Y)N/A
EPS Next 2Y4.98%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
- PHG has a Yearly Dividend Yield of 3.80%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.19, PHG pays a better dividend. On top of this PHG pays more dividend than 98.92% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, PHG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
5.2 History
- The dividend of PHG decreases each year by -70.49%.
- PHG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-70.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PHG pays out 199.39% of its income as dividend. This is not a sustainable payout ratio.
DP199.39%
EPS Next 2Y4.98%
EPS Next 3Y7.73%
KONINKLIJKE PHILIPS NVR- NY / PHG FAQ
What is the ChartMill fundamental rating of KONINKLIJKE PHILIPS NVR- NY (PHG) stock?
ChartMill assigns a fundamental rating of 4 / 10 to PHG.
Can you provide the valuation status for KONINKLIJKE PHILIPS NVR- NY?
ChartMill assigns a valuation rating of 5 / 10 to KONINKLIJKE PHILIPS NVR- NY (PHG). This can be considered as Fairly Valued.
How profitable is KONINKLIJKE PHILIPS NVR- NY (PHG) stock?
KONINKLIJKE PHILIPS NVR- NY (PHG) has a profitability rating of 4 / 10.
How financially healthy is KONINKLIJKE PHILIPS NVR- NY?
The financial health rating of KONINKLIJKE PHILIPS NVR- NY (PHG) is 3 / 10.
Is the dividend of KONINKLIJKE PHILIPS NVR- NY sustainable?
The dividend rating of KONINKLIJKE PHILIPS NVR- NY (PHG) is 4 / 10 and the dividend payout ratio is 199.39%.