KONINKLIJKE PHILIPS NV (PHI1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PHI1 - NL0000009538 - Common Stock
25.2 EUR
+0.55 (+2.23%)
Taking everything into account, PHI1 scores 3 out of 10 in our fundamental rating. PHI1 was compared to 67 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and financial health of PHI1 have multiple concerns. PHI1 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year PHI1 was profitable.
- PHI1 had a positive operating cash flow in the past year.
- In multiple years PHI1 reported negative net income over the last 5 years.
- PHI1 had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- PHI1 has a worse Return On Assets (0.63%) than 62.69% of its industry peers.
- PHI1's Return On Equity of 1.56% is on the low side compared to the rest of the industry. PHI1 is outperformed by 62.69% of its industry peers.
- PHI1's Return On Invested Capital of 3.95% is on the low side compared to the rest of the industry. PHI1 is outperformed by 62.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 1.56% | ||
| ROIC | 3.95% |
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
- With a Profit Margin value of 0.93%, PHI1 is not doing good in the industry: 62.69% of the companies in the same industry are doing better.
- PHI1 has a Operating Margin (6.10%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of PHI1 has declined.
- Looking at the Gross Margin, with a value of 43.49%, PHI1 is doing worse than 74.63% of the companies in the same industry.
- In the last couple of years the Gross Margin of PHI1 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PHI1 is destroying value.
- Compared to 1 year ago, PHI1 has less shares outstanding
- The number of shares outstanding for PHI1 has been increased compared to 5 years ago.
- Compared to 1 year ago, PHI1 has a worse debt to assets ratio.
2.2 Solvency
- PHI1 has an Altman-Z score of 2.01. This is not the best score and indicates that PHI1 is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.01, PHI1 is in line with its industry, outperforming 40.30% of the companies in the same industry.
- PHI1 has a debt to FCF ratio of 14.51. This is a negative value and a sign of low solvency as PHI1 would need 14.51 years to pay back of all of its debts.
- PHI1 has a Debt to FCF ratio (14.51) which is in line with its industry peers.
- A Debt/Equity ratio of 0.69 indicates that PHI1 is somewhat dependend on debt financing.
- PHI1 has a worse Debt to Equity ratio (0.69) than 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 14.51 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.6
WACC6.6%
2.3 Liquidity
- PHI1 has a Current Ratio of 1.32. This is a normal value and indicates that PHI1 is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of PHI1 (1.32) is comparable to the rest of the industry.
- PHI1 has a Quick Ratio of 1.32. This is a bad value and indicates that PHI1 is not financially healthy enough and could expect problems in meeting its short term obligations.
- PHI1 has a Quick ratio of 0.86. This is in the lower half of the industry: PHI1 underperforms 65.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- PHI1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.15%, which is quite good.
- PHI1 shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.17% yearly.
- PHI1 shows a decrease in Revenue. In the last year, the revenue decreased by -1.43%.
- PHI1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.00% yearly.
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
- Based on estimates for the next years, PHI1 will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.28% on average per year.
- PHI1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.00% yearly.
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.
- 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
- The Price/Earnings ratio is 17.03, which indicates a rather expensive current valuation of PHI1.
- 94.03% of the companies in the same industry are more expensive than PHI1, based on the Price/Earnings ratio.
- PHI1's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
- Based on the Price/Forward Earnings ratio of 16.51, the valuation of PHI1 can be described as correct.
- 73.13% of the companies in the same industry are more expensive than PHI1, based on the Price/Forward Earnings ratio.
- PHI1 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 16.51 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PHI1 indicates a somewhat cheap valuation: PHI1 is cheaper than 70.15% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as PHI1.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.98 | ||
| EV/EBITDA | 13.2 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.92
PEG (5Y)N/A
EPS Next 2Y4.98%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
- PHI1 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
KONINKLIJKE PHILIPS NV / PHI1.DE FAQ
What is the ChartMill fundamental rating of KONINKLIJKE PHILIPS NV (PHI1.DE) stock?
ChartMill assigns a fundamental rating of 3 / 10 to PHI1.DE.
What is the valuation status for PHI1 stock?
ChartMill assigns a valuation rating of 4 / 10 to KONINKLIJKE PHILIPS NV (PHI1.DE). This can be considered as Fairly Valued.
How profitable is KONINKLIJKE PHILIPS NV (PHI1.DE) stock?
KONINKLIJKE PHILIPS NV (PHI1.DE) has a profitability rating of 2 / 10.
How financially healthy is KONINKLIJKE PHILIPS NV?
The financial health rating of KONINKLIJKE PHILIPS NV (PHI1.DE) is 2 / 10.
Can you provide the dividend sustainability for PHI1 stock?
The dividend rating of KONINKLIJKE PHILIPS NV (PHI1.DE) is 0 / 10 and the dividend payout ratio is 199.39%.