KONINKLIJKE KPN NV (KPN.AS)
NL0000009082 - Common Stock
KPN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Diversified Telecommunication Services industry. KPN has an excellent profitability rating, but there are concerns on its financial health. KPN is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years KPN always reported a positive cash flow from operatings.
1.2 Ratios
KPN has a better Return On Assets (6.84%) than 93.33% of its industry peers.
KPN has a Return On Equity of 24.12%. This is amongst the best in the industry. KPN outperforms 93.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.20%, KPN belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
KPN had an Average Return On Invested Capital over the past 3 years of 9.06%. This is in line with the industry average of 7.17%.
The 3 year average ROIC (9.06%) for KPN is below the current ROIC(10.20%), indicating increased profibility in the last year.
| 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%
1.3 Margins
KPN has a better Profit Margin (14.78%) than 90.00% of its industry peers.
KPN's Profit Margin has improved in the last couple of years.
KPN has a better Operating Margin (24.98%) than 90.00% of its industry peers.
In the last couple of years the Operating Margin of KPN has grown nicely.
KPN's Gross Margin of 78.46% is amongst the best of the industry. KPN outperforms 83.33% of its industry peers.
KPN's Gross Margin has been stable in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KPN is still 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
Based on the Altman-Z score of 1.13, we must say that KPN is in the distress zone and has some risk of bankruptcy.
KPN has a Altman-Z score (1.13) which is in line with 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 80.00% 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.
KPN's Debt to Equity ratio of 1.90 is on the low side compared to the rest of the industry. KPN is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 6.91 | ||
| Altman-Z | 1.13 |
ROIC/WACC1.75
WACC5.83%
2.3 Liquidity
A Current Ratio of 0.65 indicates that KPN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.65, KPN is doing worse than 70.00% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that KPN may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, KPN is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.89% over the past year.
Measured over the past years, KPN shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.35% on average per year.
KPN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.41%.
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)7.89%
EPS 3Y15.44%
EPS 5Y29.35%
EPS Q2Q%10.68%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y1.03%
Revenue growth 5Y-0.72%
Sales Q2Q%3.52%
3.2 Future
KPN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.63% yearly.
KPN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.20% yearly.
EPS Next Y5.49%
EPS Next 2Y7.53%
EPS Next 3Y8.27%
EPS Next 5Y6.63%
Revenue Next Year2.97%
Revenue Next 2Y2.57%
Revenue Next 3Y2.6%
Revenue Next 5Y1.2%
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 decreasing.
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
With a Price/Earnings ratio of 17.30, KPN is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as KPN.
The average S&P500 Price/Earnings ratio is at 24.41. KPN is valued slightly cheaper when compared to this.
KPN is valuated correctly with a Price/Forward Earnings ratio of 15.33.
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 60.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. KPN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.3 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
KPN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KPN is more expensive than 60.00% of the companies in the same industry.
KPN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.33 | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
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)3.15
PEG (5Y)0.59
EPS Next 2Y7.53%
EPS Next 3Y8.27%
5. Dividend
5.1 Amount
KPN has a Yearly Dividend Yield of 4.01%, which is a nice return.
Compared to an average industry Dividend Yield of 5.07, KPN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, KPN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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
KPN pays out 71.89% of its income as dividend. 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 2Y7.53%
EPS Next 3Y8.27%
KONINKLIJKE KPN NV
AMS:KPN (7/26/2024, 7:00:00 PM)
3.634
-0.06 (-1.62%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.3 | ||
| Fwd PE | 15.33 | ||
| 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)3.15
PEG (5Y)0.59
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)
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 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)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.89%
EPS 3Y15.44%
EPS 5Y
EPS Q2Q%
EPS Next Y5.49%
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
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y