KONINKLIJKE PHILIPS NVR- NY (PHG) Stock Fundamental Analysis
NYSE:PHG - New York Stock Exchange, Inc. - US5004723038 - Currency: USD
PHG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PHG had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 1.37%, PHG is in the better half of the industry, outperforming 74.33% of the companies in the same industry.
The Return On Equity of PHG (3.19%) is better than 75.94% of its industry peers.
PHG's Return On Invested Capital of 3.75% is fine compared to the rest of the industry. PHG outperforms 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
PHG's Profit Margin of 2.07% is fine compared to the rest of the industry. PHG outperforms 74.87% of its industry peers.
PHG's Operating Margin of 5.39% is fine compared to the rest of the industry. PHG outperforms 71.12% of its industry peers.
In the last couple of years the Operating Margin of PHG has declined.
With a Gross Margin value of 43.42%, PHG is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of PHG has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PHG is destroying value.
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.
Compared to 1 year ago, PHG has a worse debt to assets ratio.
2.2 Solvency
PHG has an Altman-Z score of 1.80. This is a bad value and indicates that PHG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.80, PHG is in line with its industry, outperforming 56.68% 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.
PHG has a worse Debt to Equity ratio (0.60) than 67.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.8 |
ROIC/WACC0.6
WACC6.29%
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 amonst the worse of the industry: PHG underperforms 80.21% of its industry peers.
PHG has a Quick Ratio of 1.28. This is a bad value and indicates that PHG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.79, PHG is doing worse than 86.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
PHG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.45%.
PHG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.17% yearly.
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
Based on estimates for the next years, PHG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.40% on average per year.
Based on estimates for the next years, PHG will show a small growth in Revenue. The Revenue will grow by 3.10% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.92 indicates a correct valuation of PHG.
Based on the Price/Earnings ratio, PHG is valued cheaply inside the industry as 86.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.45, PHG is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.90, the valuation of PHG can be described as reasonable.
Based on the Price/Forward Earnings ratio, PHG is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
PHG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PHG indicates a rather cheap valuation: PHG is cheaper than 89.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.88 |
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 12.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.5
PEG (5Y)N/A
EPS Next 2Y11.54%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, PHG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.82, PHG pays a better dividend. On top of this PHG pays more dividend than 99.47% 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
The dividend of PHG decreases each year by -70.49%.
PHG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-70.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PHG pays out 0.27% of its income as dividend. This is a sustainable payout ratio.
DP0.27%
EPS Next 2Y11.54%
EPS Next 3Y12.13%
24.17
-0.35 (-1.43%)
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 Change0.77%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap22.72B
Analysts72
Price Target29.99 (24.08%)
Short Float %0.41%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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)-7.5%
PT rev (3m)-5.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 11.9 | ||
| P/S | 1.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.88 |
EPS(TTM)1.62
EY6.7%
EPS(NY)2.03
Fwd EY8.4%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS22.54
BVpS14.66
TBVpS-1.6
PEG (NY)1.5
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 | 1.8 |
F-ScoreN/A
WACC6.29%
ROIC/WACC0.6
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%