KONINKLIJKE PHILIPS NVR- NY (PHG) Stock Fundamental Analysis
NYSE:PHG - New York Stock Exchange, Inc. - US5004723038 - Currency: USD
Taking everything into account, PHG scores 3 out of 10 in our fundamental rating. PHG was compared to 187 industry peers in the Health Care Equipment & Supplies industry. While PHG is still in line with the averages on profitability rating, there are concerns on its financial health. PHG has a correct valuation and a medium growth rate.
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.
PHG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PHG has a better Return On Assets (1.37%) than 74.33% of its industry peers.
The Return On Equity of PHG (3.19%) is better than 75.94% of its industry peers.
PHG has a better Return On Invested Capital (3.75%) 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
With a decent Profit Margin value of 2.07%, PHG is doing good in the industry, outperforming 74.87% of the companies in the same industry.
PHG has a better Operating Margin (5.39%) than 71.12% of its industry peers.
PHG's Operating Margin has declined in the last couple of years.
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.
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.
PHG has less shares outstanding than it did 1 year ago.
PHG has more shares outstanding than it did 5 years ago.
PHG has a worse debt/assets ratio than last year.
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.
PHG has a Altman-Z score of 1.80. This is comparable to the rest of the industry: PHG outperforms 57.75% of its industry peers.
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
PHG has a Current Ratio of 1.28. 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 (1.28) is worse than 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.
PHG has a Quick ratio of 0.79. This is amonst the worse of the industry: PHG underperforms 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.
Looking at the last year, PHG shows a decrease in Revenue. The Revenue has decreased by -0.89% in the last year.
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)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.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.89, PHG is valued correctly.
86.10% of the companies in the same industry are more expensive than PHG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.15. PHG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.87, which indicates a very decent valuation of PHG.
87.70% of the companies in the same industry are more expensive than PHG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, PHG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
89.30% of the companies in the same industry are more expensive than PHG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.85 |
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
PHG has a Yearly Dividend Yield of 4.30%, which is a nice return.
PHG's Dividend Yield is rather good when compared to the industry average which is at 1.82. PHG pays more dividend than 99.47% of the companies in the same industry.
PHG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| 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%
23.98
-0.16 (-0.66%)
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 Cap22.54B
Analysts72
Price Target29.99 (25.06%)
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 | 14.89 | ||
| Fwd PE | 11.87 | ||
| P/S | 1.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.85 |
EPS(TTM)1.61
EY6.71%
EPS(NY)2.02
Fwd EY8.42%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS22.42
BVpS14.58
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%