KONINKLIJKE PHILIPS NVR- NY (PHG) Stock Fundamental Analysis
NYSE:PHG - New York Stock Exchange, Inc. - US5004723038 - Currency: USD
Overall PHG gets a fundamental rating of 4 out of 10. We evaluated PHG against 187 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of PHG while its profitability can be described as average. PHG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PHG was profitable.
In the past year PHG had a positive cash flow from operations.
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
The Return On Assets of PHG (0.61%) is better than 71.66% of its industry peers.
The Return On Equity of PHG (1.56%) is better than 72.73% of its industry peers.
The Return On Invested Capital of PHG (4.49%) is better than 74.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 1.56% | ||
| ROIC | 4.49% |
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
With a decent Profit Margin value of 0.91%, PHG is doing good in the industry, outperforming 72.19% of the companies in the same industry.
The Operating Margin of PHG (6.11%) 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 43.85% is on the low side compared to the rest of the industry. PHG is outperformed by 64.17% of its industry peers.
PHG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | 0.91% | ||
| GM | 43.85% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PHG is destroying value.
Compared to 1 year ago, PHG has less shares outstanding
Compared to 5 years ago, PHG has more shares outstanding
PHG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.91 indicates that PHG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.91, PHG perfoms like the industry average, outperforming 59.36% of the companies in the same industry.
The Debt to FCF ratio of PHG is 19.41, which is on the high side as it means it would take PHG, 19.41 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 19.41, PHG is doing good in the industry, outperforming 70.59% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that PHG is somewhat dependend on debt financing.
PHG has a worse Debt to Equity ratio (0.69) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 19.41 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.67
WACC6.66%
2.3 Liquidity
PHG has a Current Ratio of 1.26. 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 (1.26) is worse than 81.28% of its industry peers.
PHG has a Quick Ratio of 1.26. This is a bad value and indicates that PHG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PHG (0.81) is worse than 85.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.17% 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 -1.53%.
Measured over the past years, PHG shows a small growth in Revenue. The Revenue has been growing by 1.00% on average per year.
EPS 1Y (TTM)11.17%
EPS 3Y-5.66%
EPS 5Y-7.17%
EPS Q2Q%21.91%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y1.65%
Revenue growth 5Y1%
Sales Q2Q%-2.12%
3.2 Future
The Earnings Per Share is expected to grow by 12.33% 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 2.97% on average per year.
EPS Next Y9.94%
EPS Next 2Y11.54%
EPS Next 3Y12.13%
EPS Next 5Y12.33%
Revenue Next Year-0.76%
Revenue Next 2Y1.39%
Revenue Next 3Y2.46%
Revenue Next 5Y2.97%
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 16.35 indicates a correct valuation of PHG.
PHG's Price/Earnings ratio is rather cheap when compared to the industry. PHG is cheaper than 83.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.87. PHG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.64, which indicates a correct valuation of PHG.
PHG's Price/Forward Earnings ratio is rather cheap when compared to the industry. PHG is cheaper than 87.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, PHG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PHG is valued cheaper than 85.56% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PHG indicates a somewhat cheap valuation: PHG is cheaper than 75.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.15 | ||
| EV/EBITDA | 12.25 |
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)1.65
PEG (5Y)N/A
EPS Next 2Y11.54%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
PHG has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
PHG's Dividend Yield is rather good when compared to the industry average which is at 1.75. PHG pays more dividend than 98.93% of the companies in the same industry.
PHG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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
0.62% of the earnings are spent on dividend by PHG. This is a low number and sustainable payout ratio.
DP0.62%
EPS Next 2Y11.54%
EPS Next 3Y12.13%
27.47
+0.24 (+0.88%)
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 Change-2.16%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap26.45B
Analysts75.38
Price Target31.42 (14.38%)
Short Float %0.35%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend0
Dividend Growth(5Y)-70.49%
DP0.62%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.64%
Min EPS beat(2)22.24%
Max EPS beat(2)31.04%
EPS beat(4)2
Avg EPS beat(4)6.19%
Min EPS beat(4)-16.56%
Max EPS beat(4)31.04%
EPS beat(8)3
Avg EPS beat(8)-1.09%
EPS beat(12)5
Avg EPS beat(12)15.29%
EPS beat(16)5
Avg EPS beat(16)3.51%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)-1.96%
Revenue beat(4)0
Avg Revenue beat(4)-3.05%
Min Revenue beat(4)-5.22%
Max Revenue beat(4)-1.96%
Revenue beat(8)0
Avg Revenue beat(8)-3.22%
Revenue beat(12)2
Avg Revenue beat(12)-1.61%
Revenue beat(16)2
Avg Revenue beat(16)-1.84%
PT rev (1m)4.79%
PT rev (3m)-3.06%
EPS NQ rev (1m)-4.66%
EPS NQ rev (3m)-14%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-3.09%
Revenue NQ rev (3m)-6.03%
Revenue NY rev (1m)-1.89%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.64 | ||
| P/S | 1.27 | ||
| P/FCF | 52.15 | ||
| P/OCF | 20.59 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.25 |
EPS(TTM)1.68
EY6.12%
EPS(NY)2.01
Fwd EY7.33%
FCF(TTM)0.53
FCFY1.92%
OCF(TTM)1.33
OCFY4.86%
SpS21.67
BVpS12.6
TBVpS-2.06
PEG (NY)1.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 1.56% | ||
| ROCE | 5.69% | ||
| ROIC | 4.49% | ||
| ROICexc | 4.97% | ||
| ROICexgc | 16.33% | ||
| OM | 6.11% | ||
| PM (TTM) | 0.91% | ||
| GM | 43.85% | ||
| FCFM | 2.43% |
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-Score8
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 19.41 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 51.35% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 4 | ||
| Cash Conversion | 46.06% | ||
| Profit Quality | 267.9% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.91 |
F-Score8
WACC6.66%
ROIC/WACC0.67
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)11.17%
EPS 3Y-5.66%
EPS 5Y-7.17%
EPS Q2Q%21.91%
EPS Next Y9.94%
EPS Next 2Y11.54%
EPS Next 3Y12.13%
EPS Next 5Y12.33%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y1.65%
Revenue growth 5Y1%
Sales Q2Q%-2.12%
Revenue Next Year-0.76%
Revenue Next 2Y1.39%
Revenue Next 3Y2.46%
Revenue Next 5Y2.97%
EBIT growth 1Y476.21%
EBIT growth 3Y0.03%
EBIT growth 5Y-7.17%
EBIT Next Year50.08%
EBIT Next 3Y20.59%
EBIT Next 5YN/A
FCF growth 1Y3516.67%
FCF growth 3Y-40.93%
FCF growth 5Y-1.73%
OCF growth 1Y43.47%
OCF growth 3Y-32.38%
OCF growth 5Y-4.03%