SIGNIFY NV (LIGHT.AS) Stock Fundamental Analysis
AMS:LIGHT - Euronext Amsterdam - NL0011821392 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to LIGHT. LIGHT was compared to 53 industry peers in the Electrical Equipment industry. LIGHT has an excellent profitability rating, but there are some minor concerns on its financial health. LIGHT is valued quite cheap, but it does not seem to be growing. LIGHT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LIGHT had positive earnings in the past year.
LIGHT had a positive operating cash flow in the past year.
In the past 5 years LIGHT has always been profitable.
In the past 5 years LIGHT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.86%, LIGHT belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
LIGHT has a better Return On Equity (11.46%) than 71.70% of its industry peers.
LIGHT has a better Return On Invested Capital (8.89%) than 75.47% of its industry peers.
LIGHT had an Average Return On Invested Capital over the past 3 years of 8.31%. This is in line with the industry average of 8.21%.
The last Return On Invested Capital (8.89%) for LIGHT is above the 3 year average (8.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 11.46% | ||
| ROIC | 8.89% |
ROA(3y)4.41%
ROA(5y)4.45%
ROE(3y)11.83%
ROE(5y)13.29%
ROIC(3y)8.31%
ROIC(5y)8.73%
1.3 Margins
The Profit Margin of LIGHT (5.75%) is better than 77.36% of its industry peers.
In the last couple of years the Profit Margin of LIGHT has grown nicely.
With a decent Operating Margin value of 8.72%, LIGHT is doing good in the industry, outperforming 77.36% of the companies in the same industry.
In the last couple of years the Operating Margin of LIGHT has grown nicely.
LIGHT has a better Gross Margin (40.62%) than 62.26% of its industry peers.
LIGHT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.72% | ||
| PM (TTM) | 5.75% | ||
| GM | 40.62% |
OM growth 3Y-2.99%
OM growth 5Y7.06%
PM growth 3Y-2.65%
PM growth 5Y4.95%
GM growth 3Y1.11%
GM growth 5Y1.97%
2. Health
2.1 Basic Checks
LIGHT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LIGHT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LIGHT has about the same amount of shares outstanding.
Compared to 1 year ago, LIGHT has an improved debt to assets ratio.
2.2 Solvency
LIGHT has a debt to FCF ratio of 4.16. This is a neutral value as LIGHT would need 4.16 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.16, LIGHT is in the better half of the industry, outperforming 73.58% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that LIGHT is not too dependend on debt financing.
LIGHT has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: LIGHT outperforms 58.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | N/A |
ROIC/WACC1.2
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.25 indicates that LIGHT should not have too much problems paying its short term obligations.
LIGHT has a Current ratio of 1.25. This is comparable to the rest of the industry: LIGHT outperforms 45.28% of its industry peers.
A Quick Ratio of 0.81 indicates that LIGHT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, LIGHT is doing worse than 62.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for LIGHT have decreased strongly by -16.75% in the last year.
The Earnings Per Share has been decreasing by -2.28% on average over the past years.
The Revenue has decreased by -5.73% in the past year.
LIGHT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.34% yearly.
EPS 1Y (TTM)-16.75%
EPS 3Y-12.27%
EPS 5Y-2.28%
EPS Q2Q%51.43%
Revenue 1Y (TTM)-5.73%
Revenue growth 3Y-3.61%
Revenue growth 5Y-0.34%
Sales Q2Q%-1.36%
3.2 Future
The Earnings Per Share is expected to grow by 9.78% on average over the next years. This is quite good.
Based on estimates for the next years, LIGHT will show a decrease in Revenue. The Revenue will decrease by -0.44% on average per year.
EPS Next Y2.95%
EPS Next 2Y6.62%
EPS Next 3Y8.04%
EPS Next 5Y9.78%
Revenue Next Year-0.77%
Revenue Next 2Y0.13%
Revenue Next 3Y0.36%
Revenue Next 5Y-0.44%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.66, the valuation of LIGHT can be described as very cheap.
LIGHT's Price/Earnings ratio is rather cheap when compared to the industry. LIGHT is cheaper than 96.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of LIGHT to the average of the S&P500 Index (28.10), we can say LIGHT is valued rather cheaply.
The Price/Forward Earnings ratio is 5.86, which indicates a rather cheap valuation of LIGHT.
Based on the Price/Forward Earnings ratio, LIGHT is valued cheaper than 94.34% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, LIGHT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.66 | ||
| Fwd PE | 5.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LIGHT is valued cheaply inside the industry as 88.68% of the companies are valued more expensively.
LIGHT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LIGHT is cheaper than 96.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.38 | ||
| EV/EBITDA | 4.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LIGHT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)N/A
EPS Next 2Y6.62%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.59%, LIGHT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.77, LIGHT pays a better dividend. On top of this LIGHT pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, LIGHT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.59% |
5.2 History
The dividend of LIGHT has a limited annual growth rate of 3.47%.
Dividend Growth(5Y)3.47%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
LIGHT pays out 62.78% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LIGHT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.78%
EPS Next 2Y6.62%
EPS Next 3Y8.04%
AMS:LIGHT (5/6/2025, 11:25:21 AM)
18.59
-0.74 (-3.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.91%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap2.39B
Analysts70.83
Price Target26.13 (40.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.59% |
Yearly Dividend1.55
Dividend Growth(5Y)3.47%
DP62.78%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.61%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-4.31%
Revenue beat(12)0
Avg Revenue beat(12)-4.11%
Revenue beat(16)2
Avg Revenue beat(16)-3.4%
PT rev (1m)-2.69%
PT rev (3m)-8.48%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-18.73%
EPS NY rev (1m)-4.48%
EPS NY rev (3m)-11.51%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)-1.43%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.66 | ||
| Fwd PE | 5.86 | ||
| P/S | 0.39 | ||
| P/FCF | 6.38 | ||
| P/OCF | 5.01 | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.33 |
EPS(TTM)2.79
EY15.01%
EPS(NY)3.17
Fwd EY17.05%
FCF(TTM)2.91
FCFY15.68%
OCF(TTM)3.71
OCFY19.95%
SpS47.71
BVpS23.94
TBVpS-2.48
PEG (NY)2.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 11.46% | ||
| ROCE | 10.77% | ||
| ROIC | 8.89% | ||
| ROICexc | 10.22% | ||
| ROICexgc | 47.88% | ||
| OM | 8.72% | ||
| PM (TTM) | 5.75% | ||
| GM | 40.62% | ||
| FCFM | 6.11% |
ROA(3y)4.41%
ROA(5y)4.45%
ROE(3y)11.83%
ROE(5y)13.29%
ROIC(3y)8.31%
ROIC(5y)8.73%
ROICexc(3y)10%
ROICexc(5y)10.94%
ROICexgc(3y)62.11%
ROICexgc(5y)58.99%
ROCE(3y)10.08%
ROCE(5y)10.59%
ROICexcg growth 3Y6.49%
ROICexcg growth 5Y14.46%
ROICexc growth 3Y-5.58%
ROICexc growth 5Y2.94%
OM growth 3Y-2.99%
OM growth 5Y7.06%
PM growth 3Y-2.65%
PM growth 5Y4.95%
GM growth 3Y1.11%
GM growth 5Y1.97%
F-Score8
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.16 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 41.13% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.87% | ||
| Profit Quality | 106.25% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | N/A |
F-Score8
WACC7.39%
ROIC/WACC1.2
Cap/Depr(3y)41.13%
Cap/Depr(5y)38.27%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.68%
Profit Quality(3y)152.64%
Profit Quality(5y)169.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.75%
EPS 3Y-12.27%
EPS 5Y-2.28%
EPS Q2Q%51.43%
EPS Next Y2.95%
EPS Next 2Y6.62%
EPS Next 3Y8.04%
EPS Next 5Y9.78%
Revenue 1Y (TTM)-5.73%
Revenue growth 3Y-3.61%
Revenue growth 5Y-0.34%
Sales Q2Q%-1.36%
Revenue Next Year-0.77%
Revenue Next 2Y0.13%
Revenue Next 3Y0.36%
Revenue Next 5Y-0.44%
EBIT growth 1Y-4.98%
EBIT growth 3Y-6.49%
EBIT growth 5Y6.7%
EBIT Next Year36.13%
EBIT Next 3Y13.12%
EBIT Next 5Y10.91%
FCF growth 1Y-23.05%
FCF growth 3Y-10.86%
FCF growth 5Y-4.11%
OCF growth 1Y-23.23%
OCF growth 3Y-9.95%
OCF growth 5Y-3.01%