KONINKLIJKE KPN NV (KPN.AS)
NL0000009082 - Common Stock
Taking everything into account, KPN scores 5 out of 10 in our fundamental rating. KPN was compared to 31 industry peers in the Diversified Telecommunication Services industry. KPN scores excellent on profitability, but there are concerns on its financial health. KPN has a decent growth rate and is not valued too expensively.
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.
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
With an excellent Return On Assets value of 6.84%, KPN belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
KPN's Return On Equity of 24.12% is amongst the best of the industry. KPN outperforms 89.66% of its industry peers.
KPN has a better Return On Invested Capital (10.18%) than 93.10% of its industry peers.
KPN had an Average Return On Invested Capital over the past 3 years of 9.02%. This is in line with the industry average of 7.13%.
The 3 year average ROIC (9.02%) for KPN is below the current ROIC(10.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.84% | ||
| ROE | 24.12% | ||
| ROIC | 10.18% |
ROA(3y)7.6%
ROA(5y)6.49%
ROE(3y)27.51%
ROE(5y)25.69%
ROIC(3y)9.02%
ROIC(5y)8.43%
1.3 Margins
The Profit Margin of KPN (14.78%) is better than 86.21% of its industry peers.
KPN's Profit Margin has improved in the last couple of years.
KPN has a better Operating Margin (24.94%) than 93.10% of its industry peers.
KPN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 74.58%, KPN belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
KPN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.94% | ||
| PM (TTM) | 14.78% | ||
| GM | 74.58% |
OM growth 3Y11.55%
OM growth 5Y8.4%
PM growth 3Y12.26%
PM growth 5Y30.05%
GM growth 3Y-0.48%
GM growth 5Y-0.48%
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
Compared to 5 years ago, KPN has less shares outstanding
The debt/assets ratio for KPN is higher compared to a year ago.
2.2 Solvency
KPN has an Altman-Z score of 1.04. This is a bad value and indicates that KPN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.04, KPN is in line with its industry, outperforming 44.83% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 6.91, KPN is doing good in the industry, outperforming 79.31% 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.
The Debt to Equity ratio of KPN (1.90) is worse than 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 6.91 | ||
| Altman-Z | 1.04 |
ROIC/WACC1.81
WACC5.61%
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.
With a Current ratio value of 0.65, KPN is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
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's Quick ratio of 0.62 is on the low side compared to the rest of the industry. KPN is outperformed by 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
KPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.65%, which is quite good.
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.
KPN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.72% yearly.
EPS 1Y (TTM)17.65%
EPS 3Y15.44%
EPS 5Y29.35%
EPS growth Q2Q0%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y1.03%
Revenue growth 5Y-0.72%
Revenue growth Q2Q1.14%
3.2 Future
The Earnings Per Share is expected to decrease by -4.50% on average over the next years.
KPN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.00% yearly.
EPS Next Y6.7%
EPS Next 2Y6.8%
EPS Next 3Y7.72%
EPS Next 5Y-4.5%
Revenue Next Year2.55%
Revenue Next 2Y2.35%
Revenue Next 3Y2.4%
Revenue Next 5Y1%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.61 indicates a correct valuation of KPN.
62.07% of the companies in the same industry are more expensive than KPN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KPN to the average of the S&P500 Index (24.76), we can say KPN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.18, the valuation of KPN can be described as correct.
KPN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of KPN to the average of the S&P500 Index (21.26), we can say KPN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 15.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KPN is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as KPN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.01 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KPN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.48
PEG (5Y)0.57
EPS Next 2Y6.8%
EPS Next 3Y7.72%
5. Dividend
5.1 Amount
KPN has a Yearly Dividend Yield of 4.39%, which is a nice return.
Compared to an average industry Dividend Yield of 5.12, KPN has a dividend in line with its industry peers.
KPN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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 (4/19/2024, 7:00:00 PM)
3.321
-0.06 (-1.72%)
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 Cap13.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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(8)
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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 | 16.61 | ||
| Fwd PE | 15.18 | ||
| 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)2.48
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.84% | ||
| ROE | 24.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.94% | ||
| PM (TTM) | 14.78% | ||
| GM | 74.58% | ||
| 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)
Growth
EPS 1Y (TTM)17.65%
EPS 3Y15.44%
EPS 5Y
EPS growth 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
Revenue growth 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