KONINKLIJKE PHILIPS NVR- NY (PHG)
US5004723038
PHG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 191 industry peers in the Health Care Equipment & Supplies industry. PHG has a bad profitability rating. Also its financial health evaluation is rather negative. PHG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PHG had positive earnings in the past year.
PHG had a positive operating cash flow in the past year.
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
The Return On Assets of PHG (-1.58%) is better than 67.02% of its industry peers.
PHG has a Return On Equity of -3.87%. This is in the better half of the industry: PHG outperforms 65.97% of its industry peers.
| Industry Rank | Sector 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.
With a Gross Margin value of 41.00%, PHG is not doing good in the industry: 63.87% of the companies in the same industry are doing better.
PHG's Gross Margin has been stable in the last couple of years.
PHG does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector 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%
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.
Compared to 5 years ago, PHG has more shares outstanding
PHG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that PHG is in the distress zone and has some risk of bankruptcy.
PHG has a Altman-Z score (1.69) 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.
The Debt to FCF ratio of PHG (4.76) is better than 81.68% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that PHG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, PHG is doing worse than 70.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.76 | ||
| Altman-Z | 1.69 |
ROIC/WACCN/A
WACC6.34%
2.3 Liquidity
A Current Ratio of 1.20 indicates that PHG should not have too much problems paying its short term obligations.
PHG has a Current ratio of 1.20. This is amonst the worse of the industry: PHG underperforms 88.48% of its industry peers.
A Quick Ratio of 0.78 indicates that PHG may have some problems paying 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 91.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.78 |
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.
The Revenue has been growing slightly by 0.36% in the past year.
Measured over the past years, PHG shows a small growth in Revenue. The Revenue has been growing by 0.05% on average per year.
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
Based on estimates for the next years, PHG will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.13% on average per year.
The Revenue is expected to grow by 4.56% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 18.53, PHG is valued on the expensive side.
Based on the Price/Earnings ratio, PHG is valued cheaply inside the industry as 89.01% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PHG to the average of the S&P500 Index (24.41), we can say PHG is valued slightly cheaper.
PHG is valuated correctly with a Price/Forward Earnings ratio of 14.80.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PHG indicates a rather cheap valuation: PHG is cheaper than 90.58% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. PHG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 14.8 |
4.2 Price Multiples
73.82% of the companies in the same industry are more expensive than PHG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PHG indicates a rather cheap valuation: PHG is cheaper than 93.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.71 | ||
| EV/EBITDA | 24.19 |
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. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, PHG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.70, PHG pays a better dividend. On top of this PHG pays more dividend than 99.48% of the companies listed in the same industry.
PHG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector 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 (7/26/2024, 7:04:00 PM)
After market: 26.5 +0.74 (+2.87%)25.76
+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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.53 | ||
| Fwd PE | 14.8 | ||
| 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 Rank | Sector 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 Rank | Sector 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