KONINKLIJKE KPN NV (KPN.AS) Stock Fundamental Analysis
AMS:KPN - Euronext Amsterdam - NL0000009082 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to KPN. KPN was compared to 30 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. Finally 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.
In the past 5 years KPN has always been profitable.
KPN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.43%, KPN belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
The Return On Equity of KPN (23.51%) is better than 93.33% of its industry peers.
With an excellent Return On Invested Capital value of 10.05%, KPN belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
KPN had an Average Return On Invested Capital over the past 3 years of 10.15%. This is above the industry average of 7.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 23.51% | ||
| ROIC | 10.05% |
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
KPN has a better Profit Margin (14.24%) than 93.33% of its industry peers.
In the last couple of years the Profit Margin of KPN has grown nicely.
With an excellent Operating Margin value of 25.11%, KPN belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
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 86.67% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KPN is creating some value.
The number of shares outstanding for KPN has been reduced compared to 1 year ago.
KPN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KPN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that KPN is in the distress zone and has some risk of bankruptcy.
KPN's Altman-Z score of 1.25 is in line compared to the rest of the industry. KPN outperforms 53.33% of its industry peers.
The Debt to FCF ratio of KPN is 7.79, which is on the high side as it means it would take KPN, 7.79 years of fcf income to pay off all of its debts.
KPN has a Debt to FCF ratio (7.79) which is in line with its industry peers.
A Debt/Equity ratio of 2.03 is on the high side and indicates that KPN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.03, KPN is doing worse than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 7.79 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.68
WACC5.98%
2.3 Liquidity
A Current Ratio of 0.72 indicates that KPN may have some problems paying its short term obligations.
KPN has a Current ratio of 0.72. This is in the lower half of the industry: KPN underperforms 63.33% of its industry peers.
KPN has a Quick Ratio of 0.72. 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's Quick ratio of 0.70 is on the low side compared to the rest of the industry. KPN is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
KPN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.44%.
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.
Measured over the past years, KPN shows a small growth in Revenue. The Revenue has been growing by 0.42% on average per year.
EPS 1Y (TTM)2.44%
EPS 3Y-8.8%
EPS 5Y7.03%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)3%
Revenue growth 3Y2.15%
Revenue growth 5Y0.42%
Sales Q2Q%5.82%
3.2 Future
The Earnings Per Share is expected to grow by 8.11% on average over the next years. This is quite good.
KPN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.55% yearly.
EPS Next Y9.24%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
EPS Next 5Y8.11%
Revenue Next Year3.11%
Revenue Next 2Y2.52%
Revenue Next 3Y2.31%
Revenue Next 5Y1.55%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 19.48.
Compared to the rest of the industry, the Price/Earnings ratio of KPN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.86. KPN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.84 indicates a correct valuation of KPN.
The rest of the industry has a similar Price/Forward Earnings ratio as KPN.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.94, KPN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
KPN's Enterprise Value to EBITDA ratio is in line with the industry average.
63.33% of the companies in the same industry are cheaper than KPN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 8.23 |
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)2.11
PEG (5Y)2.77
EPS Next 2Y8.35%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.40%, KPN is a good candidate for dividend investing.
KPN's Dividend Yield is comparable with the industry average which is at 4.67.
KPN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
On average, the dividend of KPN grows each year by 6.22%, which is quite nice.
Dividend Growth(5Y)6.22%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
KPN pays out 82.58% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KPN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP82.58%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
AMS:KPN (8/21/2025, 9:38:13 AM)
4.09
-0.01 (-0.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners57.65%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap15.91B
Analysts69.6
Price Target4.3 (5.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Yearly Dividend0.17
Dividend Growth(5Y)6.22%
DP82.58%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.07%
Min EPS beat(2)-27.99%
Max EPS beat(2)-20.15%
EPS beat(4)2
Avg EPS beat(4)-7.86%
Min EPS beat(4)-27.99%
Max EPS beat(4)10.01%
EPS beat(8)5
Avg EPS beat(8)-3.21%
EPS beat(12)9
Avg EPS beat(12)4.15%
EPS beat(16)13
Avg EPS beat(16)9.61%
Revenue beat(2)1
Avg Revenue beat(2)0.41%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)1.73%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)1.73%
Revenue beat(8)3
Avg Revenue beat(8)-0.1%
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)2.85%
PT rev (3m)2.72%
EPS NQ rev (1m)2.92%
EPS NQ rev (3m)-1.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 15.84 | ||
| P/S | 2.84 | ||
| P/FCF | 17.71 | ||
| P/OCF | 7.35 | ||
| P/B | 4.69 | ||
| P/tB | 66.83 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)0.21
EY5.13%
EPS(NY)0.26
Fwd EY6.31%
FCF(TTM)0.23
FCFY5.65%
OCF(TTM)0.56
OCFY13.61%
SpS1.44
BVpS0.87
TBVpS0.06
PEG (NY)2.11
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 23.51% | ||
| ROCE | 12.99% | ||
| ROIC | 10.05% | ||
| ROICexc | 10.4% | ||
| ROICexgc | 14.86% | ||
| OM | 25.11% | ||
| PM (TTM) | 14.24% | ||
| GM | 78.55% | ||
| FCFM | 16.03% |
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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 7.79 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 95.84% | ||
| Cap/Sales | 22.6% | ||
| Interest Coverage | 4.94 | ||
| Cash Conversion | 79.33% | ||
| Profit Quality | 112.53% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.25 |
F-Score8
WACC5.98%
ROIC/WACC1.68
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)2.44%
EPS 3Y-8.8%
EPS 5Y7.03%
EPS Q2Q%-16.67%
EPS Next Y9.24%
EPS Next 2Y8.35%
EPS Next 3Y8.34%
EPS Next 5Y8.11%
Revenue 1Y (TTM)3%
Revenue growth 3Y2.15%
Revenue growth 5Y0.42%
Sales Q2Q%5.82%
Revenue Next Year3.11%
Revenue Next 2Y2.52%
Revenue Next 3Y2.31%
Revenue Next 5Y1.55%
EBIT growth 1Y3.53%
EBIT growth 3Y10.18%
EBIT growth 5Y7.9%
EBIT Next Year94.35%
EBIT Next 3Y26.93%
EBIT Next 5Y15.32%
FCF growth 1Y-3.96%
FCF growth 3Y1.56%
FCF growth 5Y1.25%
OCF growth 1Y-0.96%
OCF growth 3Y2.1%
OCF growth 5Y2.44%