KONINKLIJKE PHILIPS NVR- NY (PHG)

US5004723038

26  -0.68 (-2.55%)

After market: 26 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to PHG. PHG was compared to 187 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and financial health of PHG have multiple concerns. PHG has a decent growth rate and is not valued too expensively.



3

1. Profitability

1.1 Basic Checks

PHG had positive earnings in the past year.
In the past year PHG had a positive cash flow from operations.
In multiple years PHG reported negative net income over the last 5 years.
PHG had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

PHG's Return On Assets of -1.58% is fine compared to the rest of the industry. PHG outperforms 67.38% of its industry peers.
PHG has a Return On Equity of -3.87%. This is in the better half of the industry: PHG outperforms 66.31% of its industry peers.
Industry RankSector Rank
ROA -1.58%
ROE -3.87%
ROIC N/A
ROA(3y)1.3%
ROA(5y)2.5%
ROE(3y)2.33%
ROE(5y)5.25%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

In the last couple of years the Operating Margin of PHG has declined.
The Gross Margin of PHG (41.00%) is worse than 64.71% of its industry peers.
In the last couple of years the Gross Margin of PHG has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for PHG so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 41%
OM growth 3Y-40.52%
OM growth 5Y-26.4%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.47%
GM growth 5Y-1.32%

3

2. Health

2.1 Basic Checks

PHG does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for PHG has been reduced compared to 1 year ago.
The number of shares outstanding for PHG has been increased compared to 5 years ago.
PHG has a worse debt/assets ratio than last year.

2.2 Solvency

PHG has an Altman-Z score of 1.70. This is a bad value and indicates that PHG is not financially healthy and even has some risk of bankruptcy.
PHG has a Altman-Z score (1.70) which is comparable to the rest of the industry.
The Debt to FCF ratio of PHG is 4.76, which is a neutral value as it means it would take PHG, 4.76 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.76, PHG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
PHG has a Debt/Equity ratio of 0.58. This is a neutral value indicating PHG is somewhat dependend on debt financing.
PHG has a worse Debt to Equity ratio (0.58) than 70.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 4.76
Altman-Z 1.7
ROIC/WACCN/A
WACC6.45%

2.3 Liquidity

PHG has a Current Ratio of 1.20. This is a normal value and indicates that PHG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PHG (1.20) is worse than 89.84% of its industry peers.
PHG has a Quick Ratio of 1.20. This is a bad value and indicates that PHG is not financially healthy enough and could expect problems in meeting its short term obligations.
PHG's Quick ratio of 0.78 is on the low side compared to the rest of the industry. PHG is outperformed by 91.98% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 0.78

5

3. Growth

3.1 Past

PHG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.49%, which is quite impressive.
Measured over the past years, PHG shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.67% on average per year.
Looking at the last year, PHG shows a small growth in Revenue. The Revenue has grown by 0.36% in the last year.
The Revenue has been growing slightly by 0.05% on average over the past years.
EPS 1Y (TTM)25.49%
EPS 3Y-15.7%
EPS 5Y-2.67%
EPS Q2Q%18.18%
Revenue 1Y (TTM)0.36%
Revenue growth 3Y1.62%
Revenue growth 5Y0.05%
Sales Q2Q%-0.7%

3.2 Future

The Earnings Per Share is expected to grow by 16.13% on average over the next years. This is quite good.
Based on estimates for the next years, PHG will show a small growth in Revenue. The Revenue will grow by 4.56% on average per year.
EPS Next Y17.07%
EPS Next 2Y13.73%
EPS Next 3Y13.94%
EPS Next 5Y16.13%
Revenue Next Year1.37%
Revenue Next 2Y3.14%
Revenue Next 3Y3.67%
Revenue Next 5Y4.56%

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 accelerating.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.57 indicates a rather expensive valuation of PHG.
PHG's Price/Earnings ratio is rather cheap when compared to the industry. PHG is cheaper than 88.24% of the companies in the same industry.
PHG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.19.
The Price/Forward Earnings ratio is 14.86, which indicates a correct valuation of PHG.
Based on the Price/Forward Earnings ratio, PHG is valued cheaper than 89.30% of the companies in the same industry.
PHG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.63, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.57
Fwd PE 14.86

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PHG is valued a bit cheaper than the industry average as 74.33% of the companies are valued more expensively.
93.05% of the companies in the same industry are more expensive than PHG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.77
EV/EBITDA 24.28

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PHG's earnings are expected to grow with 13.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y13.73%
EPS Next 3Y13.94%

5

5. Dividend

5.1 Amount

PHG has a Yearly Dividend Yield of 4.15%, which is a nice return.
Compared to an average industry Dividend Yield of 1.74, PHG pays a better dividend. On top of this PHG pays more dividend than 99.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, PHG pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.15%

5.2 History

The dividend of PHG decreases each year by -65.46%.
PHG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-65.46%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

The earnings of PHG are negative and hence is the payout ratio. PHG will probably not be able to sustain this dividend level.
DP-0.43%
EPS Next 2Y13.73%
EPS Next 3Y13.94%

KONINKLIJKE PHILIPS NVR- NY

NYSE:PHG (7/15/2024, 7:04:00 PM)

After market: 26 0 (0%)

26

-0.68 (-2.55%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.25B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.15%
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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Revenue beat(2)
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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 18.57
Fwd PE 14.86
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)1.09
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.58%
ROE -3.87%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 41%
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 Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.2
Quick Ratio 0.78
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)25.49%
EPS 3Y-15.7%
EPS 5Y
EPS Q2Q%
EPS Next Y17.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.36%
Revenue growth 3Y1.62%
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