KONINKLIJKE PHILIPS NVR- NY (PHG) Stock Fundamental Analysis
NYSE:PHG - New York Stock Exchange, Inc. - US5004723038 - Currency: USD
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. PHG has a medium profitability rating, but doesn't score so well on its financial health evaluation. PHG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PHG was profitable.
The reported net income has been mixed in the past 5 years: PHG reported negative net income in multiple years.
Of the past 5 years PHG 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.37%, PHG is doing good in the industry, outperforming 74.33% of the companies in the same industry.
PHG has a better Return On Equity (3.19%) than 75.94% of its industry peers.
The Return On Invested Capital of PHG (3.75%) is better than 74.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 3.19% | ||
| ROIC | 3.75% |
ROA(3y)-3.08%
ROA(5y)1.15%
ROE(3y)-7.29%
ROE(5y)2.23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.07%, PHG is in the better half of the industry, outperforming 74.87% of the companies in the same industry.
The Operating Margin of PHG (5.39%) is better than 71.12% of its industry peers.
In the last couple of years the Operating Margin of PHG has declined.
PHG's Gross Margin of 43.42% is on the low side compared to the rest of the industry. PHG is outperformed by 63.10% of its industry peers.
PHG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.39% | ||
| PM (TTM) | 2.07% | ||
| GM | 43.42% |
OM growth 3Y-1.59%
OM growth 5Y-8.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.71%
GM growth 5Y1.08%
2. Health
2.1 Basic Checks
PHG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PHG has less shares outstanding
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 1.84. This is not the best score and indicates that PHG is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.84, PHG perfoms like the industry average, outperforming 58.29% of the companies in the same industry.
PHG has a Debt/Equity ratio of 0.60. This is a neutral value indicating PHG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, PHG is not doing good in the industry: 67.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.84 |
ROIC/WACC0.59
WACC6.33%
2.3 Liquidity
A Current Ratio of 1.28 indicates that PHG should not have too much problems paying its short term obligations.
PHG has a Current ratio of 1.28. This is in the lower half of the industry: PHG underperforms 79.68% of its industry peers.
A Quick Ratio of 0.79 indicates that PHG may have some problems paying its short term obligations.
The Quick ratio of PHG (0.79) is worse than 86.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.45% over the past year.
Measured over the past years, PHG shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.17% on average per year.
PHG shows a decrease in Revenue. In the last year, the revenue decreased by -0.89%.
PHG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.00% yearly.
EPS 1Y (TTM)7.45%
EPS 3Y-5.66%
EPS 5Y-7.17%
EPS Q2Q%-3.85%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y1.65%
Revenue growth 5Y1%
Sales Q2Q%-0.99%
3.2 Future
PHG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.40% yearly.
PHG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.10% yearly.
EPS Next Y9.94%
EPS Next 2Y11.54%
EPS Next 3Y12.13%
EPS Next 5Y12.4%
Revenue Next Year1.15%
Revenue Next 2Y2.61%
Revenue Next 3Y3.12%
Revenue Next 5Y3.1%
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 accelerating.
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
A Price/Earnings ratio of 15.38 indicates a correct valuation of PHG.
Based on the Price/Earnings ratio, PHG is valued cheaper than 85.03% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. PHG is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.25, the valuation of PHG can be described as correct.
86.63% of the companies in the same industry are more expensive than PHG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.44. PHG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PHG is valued cheaper than 87.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PHG's earnings are expected to grow with 12.13% in the coming years.
PEG (NY)1.55
PEG (5Y)N/A
EPS Next 2Y11.54%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
PHG has a Yearly Dividend Yield of 4.20%, which is a nice return.
PHG's Dividend Yield is rather good when compared to the industry average which is at 1.91. PHG pays more dividend than 99.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PHG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
The dividend of PHG decreases each year by -70.49%.
PHG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-70.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
0.27% of the earnings are spent on dividend by PHG. This is a low number and sustainable payout ratio.
DP0.27%
EPS Next 2Y11.54%
EPS Next 3Y12.13%
24.6
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners42.8%
Inst Owner Change0%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap23.69B
Analysts73.08
Price Target30.07 (22.24%)
Short Float %0.39%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend0
Dividend Growth(5Y)-70.49%
DP0.27%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.14%
Min EPS beat(2)-11.97%
Max EPS beat(2)22.24%
EPS beat(4)1
Avg EPS beat(4)-3.31%
Min EPS beat(4)-16.56%
Max EPS beat(4)22.24%
EPS beat(8)2
Avg EPS beat(8)-6.4%
EPS beat(12)4
Avg EPS beat(12)8.51%
EPS beat(16)5
Avg EPS beat(16)1.66%
Revenue beat(2)0
Avg Revenue beat(2)-2.5%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)-1.96%
Revenue beat(4)0
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-5.22%
Max Revenue beat(4)-1.96%
Revenue beat(8)0
Avg Revenue beat(8)-3.16%
Revenue beat(12)2
Avg Revenue beat(12)-1.77%
Revenue beat(16)2
Avg Revenue beat(16)-1.84%
PT rev (1m)-2.78%
PT rev (3m)-4.65%
EPS NQ rev (1m)-6.21%
EPS NQ rev (3m)-22.91%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-5.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 12.25 | ||
| P/S | 1.13 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.32 |
EPS(TTM)1.6
EY6.5%
EPS(NY)2.01
Fwd EY8.16%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS21.75
BVpS14.15
TBVpS-1.55
PEG (NY)1.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 3.19% | ||
| ROCE | 4.75% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 12.27% | ||
| OM | 5.39% | ||
| PM (TTM) | 2.07% | ||
| GM | 43.42% | ||
| FCFM | N/A |
ROA(3y)-3.08%
ROA(5y)1.15%
ROE(3y)-7.29%
ROE(5y)2.23%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y10.6%
ROICexcg growth 5Y-2.51%
ROICexc growth 3Y4.73%
ROICexc growth 5Y-6.98%
OM growth 3Y-1.59%
OM growth 5Y-8.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.71%
GM growth 5Y1.08%
F-ScoreN/A
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.84 |
F-ScoreN/A
WACC6.33%
ROIC/WACC0.59
Cap/Depr(3y)50.01%
Cap/Depr(5y)53.78%
Cap/Sales(3y)3.94%
Cap/Sales(5y)4.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.45%
EPS 3Y-5.66%
EPS 5Y-7.17%
EPS Q2Q%-3.85%
EPS Next Y9.94%
EPS Next 2Y11.54%
EPS Next 3Y12.13%
EPS Next 5Y12.4%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y1.65%
Revenue growth 5Y1%
Sales Q2Q%-0.99%
Revenue Next Year1.15%
Revenue Next 2Y2.61%
Revenue Next 3Y3.12%
Revenue Next 5Y3.1%
EBIT growth 1Y379.25%
EBIT growth 3Y0.03%
EBIT growth 5Y-7.17%
EBIT Next Year50.08%
EBIT Next 3Y20.59%
EBIT Next 5YN/A
FCF growth 1Y-45.51%
FCF growth 3Y-40.93%
FCF growth 5Y-1.73%
OCF growth 1Y-31.12%
OCF growth 3Y-32.38%
OCF growth 5Y-4.03%