NL0000009082 - Common Stock

We assign a fundamental rating of **5** out of 10 to **KPN**. **KPN** was compared to 29 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** has a valuation in line with the averages, but it does not seem to be growing.

In the past year **KPN** was profitable.

In the past year **KPN** had a positive cash flow from operations.

Each year in the past 5 years **KPN** has been profitable.

In the past 5 years **KPN** always reported a positive cash flow from operatings.

With an excellent **Return On Assets** value of **6.84%**, **KPN** belongs to the best of the industry, outperforming **92.59%** of the companies in the same industry.

The **Return On Invested Capital** of **KPN** (**10.20%**) is better than **88.89%** of its industry peers.

The **Average Return On Invested Capital** over the past 3 years for **KPN** is in line with the industry average of **7.62%**.

The last **Return On Invested Capital** (**10.20%**) for **KPN** is above the 3 year average (**9.06%**), which is a sign of increasing profitability.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 6.84% | ||

ROE | 24.12% | ||

ROIC | 10.2% |

ROA(3y)7.6%

ROA(5y)6.49%

ROE(3y)27.51%

ROE(5y)25.69%

ROIC(3y)9.06%

ROIC(5y)8.46%

In the last couple of years the **Profit Margin** of **KPN** has grown nicely.

With an excellent **Operating Margin** value of **24.98%**, **KPN** belongs to the best of the industry, outperforming **88.89%** 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 | 24.98% | ||

PM (TTM) | 14.78% | ||

GM | 78.46% |

OM growth 3Y11.6%

OM growth 5Y8.43%

PM growth 3Y12.26%

PM growth 5Y30.05%

GM growth 3Y1.22%

GM growth 5Y0.54%

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), **KPN** is creating value.

The number of shares outstanding for **KPN** has been reduced compared to 5 years ago.

Compared to 1 year ago, **KPN** has a worse debt to assets ratio.

Based on the Altman-Z score of **1.06**, we must say that **KPN** is in the distress zone and has some risk of bankruptcy.

The Debt to FCF ratio of **KPN** is **6.91**, which is on the high side as it means it would take **KPN**, **6.91** years of fcf income to pay off all of its debts.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.9 | ||

Debt/FCF | 6.91 | ||

Altman-Z | 1.06 |

ROIC/WACC1.81

WACC5.63%

The **Current ratio** of **KPN** (**0.65**) is worse than **70.37%** of its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 0.65 | ||

Quick Ratio | 0.62 |

The **Earnings Per Share** has been growing by **29.35%** on average over the past years. This is a very strong growth

Looking at the last year, **KPN** shows a small growth in **Revenue**. The Revenue has grown by **2.41%** in the last year.

EPS 1Y (TTM)7.89%

EPS 3Y15.44%

EPS 5Y29.35%

EPS Q2Q%N/A

Revenue 1Y (TTM)2.41%

Revenue growth 3Y1.03%

Revenue growth 5Y-0.72%

Sales Q2Q%3.3%

The **Earnings Per Share** is expected to decrease by **-18.08%** on average over the next years. This is quite bad

The **Revenue** is expected to grow by **1.10%** on average over the next years.

EPS Next Y6.7%

EPS Next 2Y6.8%

EPS Next 3Y7.72%

EPS Next 5Y-18.08%

Revenue Next Year2.55%

Revenue Next 2Y2.35%

Revenue Next 3Y2.4%

Revenue Next 5Y1.1%

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

A **Price/Earnings** ratio of **16.40** indicates a correct valuation of **KPN**.

Compared to the rest of the industry, the **Price/Earnings** ratio of **KPN** is on the same level as its industry peers.

Based on the **Price/Forward Earnings** ratio of **14.73**, the valuation of **KPN** can be described as correct.

The rest of the industry has a similar **Price/Forward Earnings** ratio as **KPN**.

The average S&P500 **Price/Forward Earnings** ratio is at **19.93**. **KPN** is valued slightly cheaper when compared to this.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 16.4 | ||

Fwd PE | 14.73 |

The rest of the industry has a similar **Price/Free Cash Flow** ratio as **KPN**.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 14.53 | ||

EV/EBITDA | 7.24 |

The high **PEG Ratio(NY)**, which compensates the Price/Earnings for growth, indicates **KPN** does not grow enough to justify the current Price/Earnings ratio.

The excellent profitability rating of **KPN** may justify a higher PE ratio.

PEG (NY)2.45

PEG (5Y)0.56

EPS Next 2Y6.8%

EPS Next 3Y7.72%

With a **Yearly Dividend Yield** of **4.33%**, **KPN** is a good candidate for dividend investing.

Compared to an average industry **Dividend Yield** of **5.09**, **KPN** has a dividend in line with its industry peers.

Compared to an average S&P500 **Dividend Yield** of **2.36**, **KPN** pays a better dividend.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 4.33% |

The dividend of **KPN** has a limited annual growth rate of **3.14%**.

Dividend Growth(5Y)3.14%

Div Incr Years5

Div Non Decr Years5

The **Dividend Rate** of **KPN** has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.

DP71.89%

EPS Next 2Y6.8%

EPS Next 3Y7.72%

**KONINKLIJKE KPN NV**

AMS:KPN (5/24/2024, 7:00:00 PM)

**3.444**

**+0.01 (+0.32%) **

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupTelecommunication Services

GICS IndustryDiversified Telecommunication Services

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

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Market Cap13.58B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
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Dividend Yield | 4.33% |

Dividend Growth(5Y)

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Surprises & Revisions

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Revenue NQ rev (1m)

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Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 16.4 | ||

Fwd PE | 14.73 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

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PEG (NY)2.45

PEG (5Y)0.56

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 6.84% | ||

ROE | 24.12% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 24.98% | ||

PM (TTM) | 14.78% | ||

GM | 78.46% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

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ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.46

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.9 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 0.65 | ||

Quick Ratio | 0.62 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

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Profit Quality(5y)

High Growth Momentum

Growth

EPS 1Y (TTM)7.89%

EPS 3Y15.44%

EPS 5Y

EPS Q2Q%

EPS Next Y6.7%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)2.41%

Revenue growth 3Y1.03%

Revenue growth 5Y

Sales Q2Q%

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Revenue Next 5Y

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