KONINKLIJKE KPN NV (KPN.AS) Stock Fundamental Analysis
AMS:KPN - Euronext Amsterdam - NL0000009082 - Common Stock - Currency: EUR
Overall KPN gets a fundamental rating of 5 out of 10. We evaluated KPN against 32 industry peers in the Diversified Telecommunication Services industry. While KPN belongs to the best of the industry regarding profitability, there are concerns on its financial health. KPN is valied quite expensively at the moment, while it does show a decent growth rate. KPN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KPN was profitable.
KPN had a positive operating cash flow in the past year.
KPN had positive earnings in each of the past 5 years.
In the past 5 years KPN always reported a positive cash flow from operatings.
1.2 Ratios
KPN has a Return On Assets of 6.23%. This is amongst the best in the industry. KPN outperforms 90.63% of its industry peers.
KPN has a Return On Equity of 21.97%. This is amongst the best in the industry. KPN outperforms 93.75% of its industry peers.
With an excellent Return On Invested Capital value of 10.77%, KPN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KPN is above the industry average of 7.75%.
The 3 year average ROIC (10.15%) for KPN is below the current ROIC(10.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 21.97% | ||
| ROIC | 10.77% |
ROA(3y)6.38%
ROA(5y)6.75%
ROE(3y)21.85%
ROE(5y)25.23%
ROIC(3y)10.15%
ROIC(5y)9.14%
1.3 Margins
With an excellent Profit Margin value of 14.24%, KPN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of KPN has grown nicely.
KPN has a better Operating Margin (25.11%) than 93.75% of its industry peers.
KPN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 78.55%, KPN belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Gross Margin of KPN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.11% | ||
| PM (TTM) | 14.24% | ||
| GM | 78.55% |
OM growth 3Y7.85%
OM growth 5Y7.45%
PM growth 3Y-16.33%
PM growth 5Y4.6%
GM growth 3Y1.42%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
KPN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for KPN has been reduced compared to 1 year ago.
The number of shares outstanding for KPN has been reduced compared to 5 years ago.
KPN has a worse debt/assets ratio than last year.
2.2 Solvency
KPN has an Altman-Z score of 1.19. This is a bad value and indicates that KPN is not financially healthy and even has some risk of bankruptcy.
KPN has a Altman-Z score (1.19) which is in line with its industry peers.
KPN has a debt to FCF ratio of 7.27. This is a slightly negative value and a sign of low solvency as KPN would need 7.27 years to pay back of all of its debts.
KPN's Debt to FCF ratio of 7.27 is in line compared to the rest of the industry. KPN outperforms 56.25% of its industry peers.
KPN has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of KPN (1.67) is worse than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 7.27 | ||
| Altman-Z | 1.19 |
ROIC/WACC1.76
WACC6.11%
2.3 Liquidity
A Current Ratio of 0.70 indicates that KPN may have some problems paying its short term obligations.
The Current ratio of KPN (0.70) is worse than 62.50% of its industry peers.
KPN has a Quick Ratio of 0.70. This is a bad value and indicates that KPN is not financially healthy enough and could expect problems in meeting its short term obligations.
KPN has a Quick ratio (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
KPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.33%, which is quite good.
The Earnings Per Share has been growing slightly by 7.03% on average over the past years.
Looking at the last year, KPN shows a small growth in Revenue. The Revenue has grown by 3.00% in the last year.
KPN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.42% yearly.
EPS 1Y (TTM)10.33%
EPS 3Y-8.8%
EPS 5Y7.03%
EPS Q2Q%-12.16%
Revenue 1Y (TTM)3%
Revenue growth 3Y2.15%
Revenue growth 5Y0.42%
Sales Q2Q%2.98%
3.2 Future
Based on estimates for the next years, KPN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.98% on average per year.
The Revenue is expected to grow by 2.37% on average over the next years.
EPS Next Y9.24%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
EPS Next 5Y8.98%
Revenue Next Year2.81%
Revenue Next 2Y2.47%
Revenue Next 3Y2.26%
Revenue Next 5Y2.37%
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
KPN is valuated rather expensively with a Price/Earnings ratio of 18.85.
KPN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.35. KPN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.06, KPN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KPN indicates a slightly more expensive valuation: KPN is more expensive than 62.50% of the companies listed in the same industry.
KPN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.06 |
4.2 Price Multiples
62.50% of the companies in the same industry are cheaper than KPN, based on the Enterprise Value to EBITDA ratio.
KPN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.18 | ||
| EV/EBITDA | 8.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KPN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)2.68
EPS Next 2Y8.35%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
KPN has a Yearly Dividend Yield of 4.07%, which is a nice return.
KPN's Dividend Yield is comparable with the industry average which is at 4.30.
Compared to an average S&P500 Dividend Yield of 2.40, KPN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
5.2 History
The dividend of KPN is nicely growing with an annual growth rate of 6.22%!
Dividend Growth(5Y)6.22%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
73.56% of the earnings are spent on dividend by KPN. This is not a sustainable payout ratio.
KPN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP73.56%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
AMS:KPN (5/27/2025, 7:00:00 PM)
4.147
-0.02 (-0.38%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.79%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap16.13B
Analysts71.2
Price Target4.19 (1.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend0.17
Dividend Growth(5Y)6.22%
DP73.56%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.58%
Min EPS beat(2)-21.84%
Max EPS beat(2)10.69%
EPS beat(4)3
Avg EPS beat(4)1.43%
Min EPS beat(4)-21.84%
Max EPS beat(4)12.28%
EPS beat(8)7
Avg EPS beat(8)10.15%
EPS beat(12)11
Avg EPS beat(12)15.43%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)1.34%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.02%
PT rev (3m)2.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.06 | ||
| P/S | 2.88 | ||
| P/FCF | 16.18 | ||
| P/OCF | 7.06 | ||
| P/B | 4.44 | ||
| P/tB | 24.7 | ||
| EV/EBITDA | 8.38 |
EPS(TTM)0.22
EY5.31%
EPS(NY)0.26
Fwd EY6.23%
FCF(TTM)0.26
FCFY6.18%
OCF(TTM)0.59
OCFY14.16%
SpS1.44
BVpS0.93
TBVpS0.17
PEG (NY)2.04
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 21.97% | ||
| ROCE | 13.93% | ||
| ROIC | 10.77% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 18.14% | ||
| OM | 25.11% | ||
| PM (TTM) | 14.24% | ||
| GM | 78.55% | ||
| FCFM | 17.79% |
ROA(3y)6.38%
ROA(5y)6.75%
ROE(3y)21.85%
ROE(5y)25.23%
ROIC(3y)10.15%
ROIC(5y)9.14%
ROICexc(3y)10.93%
ROICexc(5y)9.93%
ROICexgc(3y)15.72%
ROICexgc(5y)14.55%
ROCE(3y)13.12%
ROCE(5y)11.8%
ROICexcg growth 3Y10.82%
ROICexcg growth 5Y5.54%
ROICexc growth 3Y10.74%
ROICexc growth 5Y6.37%
OM growth 3Y7.85%
OM growth 5Y7.45%
PM growth 3Y-16.33%
PM growth 5Y4.6%
GM growth 3Y1.42%
GM growth 5Y0.59%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 7.27 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 106.54% | ||
| Cap/Sales | 22.97% | ||
| Interest Coverage | 6.48 | ||
| Cash Conversion | 87.34% | ||
| Profit Quality | 124.94% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.19 |
F-Score6
WACC6.11%
ROIC/WACC1.76
Cap/Depr(3y)99.71%
Cap/Depr(5y)96.69%
Cap/Sales(3y)23.04%
Cap/Sales(5y)24.4%
Profit Quality(3y)124.87%
Profit Quality(5y)106.46%
High Growth Momentum
Growth
EPS 1Y (TTM)10.33%
EPS 3Y-8.8%
EPS 5Y7.03%
EPS Q2Q%-12.16%
EPS Next Y9.24%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
EPS Next 5Y8.98%
Revenue 1Y (TTM)3%
Revenue growth 3Y2.15%
Revenue growth 5Y0.42%
Sales Q2Q%2.98%
Revenue Next Year2.81%
Revenue Next 2Y2.47%
Revenue Next 3Y2.26%
Revenue Next 5Y2.37%
EBIT growth 1Y3.53%
EBIT growth 3Y10.18%
EBIT growth 5Y7.9%
EBIT Next Year94.35%
EBIT Next 3Y26.93%
EBIT Next 5Y18.24%
FCF growth 1Y6.63%
FCF growth 3Y1.56%
FCF growth 5Y1.25%
OCF growth 1Y4.53%
OCF growth 3Y2.1%
OCF growth 5Y2.44%