KONINKLIJKE KPN NV (KPN.AS)

NL0000009082 - Common Stock

3.618  +0.03 (+0.81%)

Fundamental Rating

5

Taking everything into account, KPN scores 5 out of 10 in our fundamental rating. KPN was compared to 25 industry peers in the Diversified Telecommunication Services industry. While KPN has a great profitability rating, there are quite some concerns on its financial health. KPN is quite expensive at the moment. It does show a decent growth rate.



9

1. Profitability

1.1 Basic Checks

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.
Each year in the past 5 years KPN had a positive operating cash flow.

1.2 Ratios

KPN's Return On Assets of 6.84% is amongst the best of the industry. KPN outperforms 91.67% of its industry peers.
Looking at the Return On Equity, with a value of 24.12%, KPN belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.20%, KPN belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KPN is in line with the industry average of 7.70%.
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 RankSector 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%

1.3 Margins

KPN has a better Profit Margin (14.78%) than 87.50% of its industry peers.
In the last couple of years the Profit Margin of KPN has grown nicely.
Looking at the Operating Margin, with a value of 24.98%, KPN belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
KPN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.46%, KPN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
KPN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

3

2. Health

2.1 Basic Checks

KPN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, KPN has less shares outstanding
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.

2.2 Solvency

Based on the Altman-Z score of 1.09, we must say that KPN is in the distress zone and has some risk of bankruptcy.
KPN has a Altman-Z score of 1.09. This is comparable to the rest of the industry: KPN outperforms 50.00% of its industry peers.
KPN has a debt to FCF ratio of 6.91. This is a slightly negative value and a sign of low solvency as KPN would need 6.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.91, KPN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Debt/Equity ratio of 1.90 is on the high side and indicates that KPN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.90, KPN is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.9
Debt/FCF 6.91
Altman-Z 1.09
ROIC/WACC1.83
WACC5.56%

2.3 Liquidity

KPN has a Current Ratio of 0.65. 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 Current ratio (0.65) which is in line with its industry peers.
A Quick Ratio of 0.62 indicates that KPN may have some problems paying its short term obligations.
KPN has a Quick ratio of 0.62. This is comparable to the rest of the industry: KPN outperforms 45.83% of its industry peers.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.62

4

3. Growth

3.1 Past

KPN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.50%.
KPN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.35% yearly.
Looking at the last year, KPN shows a small growth in Revenue. The Revenue has grown by 2.41% in the last year.
Measured over the past years, KPN shows a decrease in Revenue. The Revenue has been decreasing by -0.72% on average per year.
EPS 1Y (TTM)2.5%
EPS 3Y15.44%
EPS 5Y29.35%
EPS Q2Q%20%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y1.03%
Revenue growth 5Y-0.72%
Sales Q2Q%4.27%

3.2 Future

Based on estimates for the next years, KPN will show a small growth in Earnings Per Share. The EPS will grow by 6.63% on average per year.
The Revenue is expected to grow by 1.20% on average over the next years.
EPS Next Y6.26%
EPS Next 2Y7.89%
EPS Next 3Y7.68%
EPS Next 5Y6.63%
Revenue Next Year3.61%
Revenue Next 2Y3.09%
Revenue Next 3Y2.83%
Revenue Next 5Y1.2%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.23 indicates a rather expensive 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.
When comparing the Price/Earnings ratio of KPN to the average of the S&P500 Index (28.94), we can say KPN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.16, the valuation of KPN can be described as correct.
KPN's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, KPN is valued a bit cheaper.
Industry RankSector Rank
PE 17.23
Fwd PE 15.16

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, KPN is valued a bit more expensive than 62.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KPN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 15.03
EV/EBITDA 7.39

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of KPN may justify a higher PE ratio.
PEG (NY)2.75
PEG (5Y)0.59
EPS Next 2Y7.89%
EPS Next 3Y7.68%

6

5. Dividend

5.1 Amount

KPN has a Yearly Dividend Yield of 4.62%, which is a nice return.
KPN's Dividend Yield is comparable with the industry average which is at 5.50.
Compared to an average S&P500 Dividend Yield of 2.23, KPN pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.62%

5.2 History

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

5.3 Sustainability

71.89% 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.
DP71.89%
EPS Next 2Y7.89%
EPS Next 3Y7.68%

KONINKLIJKE KPN NV

AMS:KPN (11/8/2024, 5:35:30 PM)

3.618

+0.03 (+0.81%)

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 Cap14.06B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.62%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 17.23
Fwd PE 15.16
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.75
PEG (5Y)0.59
Profitability
Industry RankSector 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)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
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 RankSector 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)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.5%
EPS 3Y15.44%
EPS 5Y
EPS Q2Q%
EPS Next Y6.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.41%
Revenue growth 3Y1.03%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y