KONINKLIJKE PHILIPS NVR- NY (PHG) Stock Fundamental Analysis
NYSE:PHG - New York Stock Exchange, Inc. - US5004723038 - Currency: USD
Taking everything into account, PHG scores 3 out of 10 in our fundamental rating. PHG was compared to 187 industry peers in the Health Care Equipment & Supplies industry. While PHG is still in line with the averages on profitability rating, there are concerns on its financial health. PHG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PHG had positive earnings in the past year.
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 has a Return On Assets of 1.37%. This is in the better half of the industry: PHG outperforms 74.33% of its industry peers.
PHG has a Return On Equity of 3.19%. This is in the better half of the industry: PHG outperforms 75.94% of its industry peers.
PHG has a Return On Invested Capital of 3.75%. This is in the better half of the industry: PHG outperforms 74.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 3.19% | ||
| ROIC | 3.75% |
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 (2.07%) is better than 74.87% of its industry peers.
Looking at the Operating Margin, with a value of 5.39%, PHG is in the better half of the industry, outperforming 71.12% of the companies in the same industry.
In the last couple of years the Operating Margin of PHG has declined.
With a Gross Margin value of 43.42%, PHG is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
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 | 5.39% | ||
| PM (TTM) | 2.07% | ||
| GM | 43.42% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PHG is destroying value.
PHG has less shares outstanding than it did 1 year ago.
PHG has more shares outstanding than it did 5 years ago.
PHG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.81, we must say that PHG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.81, PHG is in line with its industry, outperforming 57.75% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that PHG is somewhat dependend on debt financing.
PHG has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: PHG underperforms 67.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.81 |
ROIC/WACC0.6
WACC6.29%
2.3 Liquidity
PHG has a Current Ratio of 1.28. This is a normal value and indicates that PHG is financially healthy and should not expect problems in meeting its short term obligations.
PHG has a worse Current ratio (1.28) than 80.21% of its industry peers.
A Quick Ratio of 0.79 indicates that PHG may have some problems paying its short term obligations.
PHG has a Quick ratio of 0.79. This is amonst the worse of the industry: PHG underperforms 86.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
PHG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.45%.
The Earnings Per Share has been decreasing by -7.17% on average over the past years.
Looking at the last year, PHG shows a decrease in Revenue. The Revenue has decreased by -0.89% in the last year.
PHG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.00% yearly.
EPS 1Y (TTM)7.45%
EPS 3Y-5.66%
EPS 5Y-7.17%
EPS Q2Q%-3.85%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y1.65%
Revenue growth 5Y1%
Sales Q2Q%-0.99%
3.2 Future
The Earnings Per Share is expected to grow by 12.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y9.94%
EPS Next 2Y11.54%
EPS Next 3Y12.13%
EPS Next 5Y12.4%
Revenue Next Year1.15%
Revenue Next 2Y2.61%
Revenue Next 3Y3.12%
Revenue Next 5Y3.1%
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
Based on the Price/Earnings ratio of 14.89, the valuation of PHG can be described as correct.
Based on the Price/Earnings ratio, PHG is valued cheaply inside the industry as 86.10% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PHG to the average of the S&P500 Index (27.15), we can say PHG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.89, the valuation of PHG can be described as reasonable.
Based on the Price/Forward Earnings ratio, PHG is valued cheaper than 87.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PHG to the average of the S&P500 Index (21.60), we can say PHG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 11.89 |
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 89.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PHG's earnings are expected to grow with 12.13% in the coming years.
PEG (NY)1.5
PEG (5Y)N/A
EPS Next 2Y11.54%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
PHG has a Yearly Dividend Yield of 4.30%, which is a nice return.
PHG's Dividend Yield is rather good when compared to the industry average which is at 1.82. PHG pays more dividend than 99.47% of the companies in the same industry.
PHG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
The dividend of PHG decreases each year by -70.49%.
PHG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-70.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
0.27% of the earnings are spent on dividend by PHG. This is a low number and sustainable payout ratio.
DP0.27%
EPS Next 2Y11.54%
EPS Next 3Y12.13%
23.98
-0.16 (-0.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners42.8%
Inst Owner Change0.77%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap22.54B
Analysts72
Price Target29.99 (25.06%)
Short Float %0.44%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend0
Dividend Growth(5Y)-70.49%
DP0.27%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.14%
Min EPS beat(2)-11.97%
Max EPS beat(2)22.24%
EPS beat(4)1
Avg EPS beat(4)-3.31%
Min EPS beat(4)-16.56%
Max EPS beat(4)22.24%
EPS beat(8)2
Avg EPS beat(8)-6.4%
EPS beat(12)4
Avg EPS beat(12)8.51%
EPS beat(16)5
Avg EPS beat(16)1.66%
Revenue beat(2)0
Avg Revenue beat(2)-2.5%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)-1.96%
Revenue beat(4)0
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-5.22%
Max Revenue beat(4)-1.96%
Revenue beat(8)0
Avg Revenue beat(8)-3.16%
Revenue beat(12)2
Avg Revenue beat(12)-1.77%
Revenue beat(16)2
Avg Revenue beat(16)-1.84%
PT rev (1m)-7.5%
PT rev (3m)-5.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 11.89 | ||
| P/S | 1.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.92 |
EPS(TTM)1.61
EY6.71%
EPS(NY)2.02
Fwd EY8.41%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS22.39
BVpS14.56
TBVpS-1.59
PEG (NY)1.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 3.19% | ||
| ROCE | 4.75% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 12.27% | ||
| OM | 5.39% | ||
| PM (TTM) | 2.07% | ||
| GM | 43.42% | ||
| FCFM | N/A |
ROA(3y)-3.08%
ROA(5y)1.15%
ROE(3y)-7.29%
ROE(5y)2.23%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y10.6%
ROICexcg growth 5Y-2.51%
ROICexc growth 3Y4.73%
ROICexc growth 5Y-6.98%
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%
F-ScoreN/A
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.81 |
F-ScoreN/A
WACC6.29%
ROIC/WACC0.6
Cap/Depr(3y)50.01%
Cap/Depr(5y)53.78%
Cap/Sales(3y)3.94%
Cap/Sales(5y)4.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.45%
EPS 3Y-5.66%
EPS 5Y-7.17%
EPS Q2Q%-3.85%
EPS Next Y9.94%
EPS Next 2Y11.54%
EPS Next 3Y12.13%
EPS Next 5Y12.4%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y1.65%
Revenue growth 5Y1%
Sales Q2Q%-0.99%
Revenue Next Year1.15%
Revenue Next 2Y2.61%
Revenue Next 3Y3.12%
Revenue Next 5Y3.1%
EBIT growth 1Y379.25%
EBIT growth 3Y0.03%
EBIT growth 5Y-7.17%
EBIT Next Year50.08%
EBIT Next 3Y20.59%
EBIT Next 5YN/A
FCF growth 1Y-45.51%
FCF growth 3Y-40.93%
FCF growth 5Y-1.73%
OCF growth 1Y-31.12%
OCF growth 3Y-32.38%
OCF growth 5Y-4.03%