Koninklijke Philips N.V. Fundamental Analysis (XETRA: PHI1.DE)
Koninklijke Philips N.V. Fundamental Analysis (XETRA: PHI1.DE)
Koninklijke Philips N.V. (XETRA: PHI1.DE) shows weak financial fundamentals with a PE ratio of 20.18, profit margin of 6.31%, and ROE of 10.05%. The company generates $18.1B in annual revenue with weak year-over-year growth of -1.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PHI1.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakPHI1.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPHI1.DE trades at attractive valuation levels.
Growth Score
WeakPHI1.DE faces weak or negative growth trends.
Financial Health Score
ExcellentPHI1.DE maintains a strong and stable balance sheet.
Profitability Score
WeakPHI1.DE struggles to sustain strong margins.
Key Financial Metrics
Is PHI1.DE Expensive or Cheap?
P/E Ratio
PHI1.DE trades at 20.18 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PHI1.DE's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Koninklijke Philips N.V. at 1.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.69 times EBITDA. This is generally considered low.
How Well Does PHI1.DE Make Money?
Net Profit Margin
For every $100 in sales, Koninklijke Philips N.V. keeps $6.31 as profit after all expenses.
Operating Margin
Core operations generate 10.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.05 in profit for every $100 of shareholder equity.
ROA
Koninklijke Philips N.V. generates $4.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Koninklijke Philips N.V. produces operating cash flow of $2.33B, showing steady but balanced cash generation.
Free Cash Flow
Koninklijke Philips N.V. generates strong free cash flow of $1.94B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.99 in free cash annually.
FCF Yield
PHI1.DE converts 8.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How PHI1.DE Stacks Against Its Sector Peers
| Metric | PHI1.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.18 | 30.97 | Better (Cheaper) |
| ROE | 10.05% | 515.00% | Weak |
| Net Margin | 6.31% | 30197.00% | Weak |
| Debt/Equity | 0.65 | 0.53 | Weak (High Leverage) |
| Current Ratio | 1.26 | 5.71 | Neutral |
| ROA | 4.17% | -16.00% (disorted) | Weak |
PHI1.DE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Koninklijke Philips N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-8.71%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-24.51%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-57.80%
Industry Style: Defensive, Growth, Innovation
Declining