KONINKLIJKE KPN NV (KPN.AS)

NL0000009082 - Common Stock

3.444  +0.01 (+0.32%)

Fundamental Rating

5

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.



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

1.2 Ratios

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.
KPN has a Return On Equity of 24.12%. This is amongst the best in the industry. KPN outperforms 88.89% of its industry peers.
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 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's Profit Margin of 14.78% is amongst the best of the industry. KPN outperforms 85.19% 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 24.98%, KPN belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
KPN's Operating Margin has improved in the last couple of years.
KPN has a Gross Margin of 78.46%. This is amongst the best in the industry. KPN outperforms 81.48% of its industry peers.
In the last couple of years the Gross Margin of KPN has remained more or less at the same level.
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

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KPN is creating value.
KPN has less shares outstanding than it did 1 year ago.
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 1.06, we must say that KPN is in the distress zone and has some risk of bankruptcy.
KPN's Altman-Z score of 1.06 is in line compared to the rest of the industry. KPN outperforms 44.44% of its industry peers.
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.
KPN has a Debt to FCF ratio of 6.91. This is amongst the best in the industry. KPN outperforms 81.48% of its industry peers.
KPN has a Debt/Equity ratio of 1.90. This is a high value indicating a heavy dependency on external financing.
KPN has a Debt to Equity ratio of 1.90. This is amonst the worse of the industry: KPN underperforms 81.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.9
Debt/FCF 6.91
Altman-Z 1.06
ROIC/WACC1.81
WACC5.63%

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.
The Current ratio of KPN (0.65) is worse than 70.37% of its industry peers.
KPN has a Quick 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 worse Quick ratio (0.62) than 74.07% of its industry peers.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.62

3

3. Growth

3.1 Past

KPN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.89%.
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.
KPN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.72% yearly.
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%

3.2 Future

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%

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

4. Valuation

4.1 Price/Earnings Ratio

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.
KPN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.24, which is the current average of the S&P500 Index.
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 RankSector Rank
PE 16.4
Fwd PE 14.73

4.2 Price Multiples

KPN's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as KPN.
Industry RankSector Rank
P/FCF 14.53
EV/EBITDA 7.24

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)2.45
PEG (5Y)0.56
EPS Next 2Y6.8%
EPS Next 3Y7.72%

5

5. Dividend

5.1 Amount

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 RankSector Rank
Dividend Yield 4.33%

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.
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
Ins Owner Change
Market Cap13.58B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.33%
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(16)
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Revenue beat(2)
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Min 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 RankSector Rank
PE 16.4
Fwd PE 14.73
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)2.45
PEG (5Y)0.56
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)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%
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