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Royal KPN NV (KKPNY)
OTHER OTC:KKPNY
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Royal KPN
(OTC:KKPNY)
Select Model
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Rating:74Outperform
Price Target:
$5.50
â–²(17.02% Upside)
Royal KPN's overall stock score is driven by its strong financial performance and positive earnings call, which highlighted robust revenue and EBITDA growth. The technical analysis supports a positive trend, while the valuation is fair with a solid dividend yield. Challenges in free cash flow and certain segments slightly temper the overall positive outlook.
Royal KPN (KKPNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.61B
Dividend Yield3.79%
Average Volume (3M)668.01K
Price to Earnings (P/E)20.6
Beta (1Y)0.13
Revenue Growth4.33%
EPS Growth0.83%
CountryUS
Employees9,718
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding3,888,930,400
10 Day Avg. Volume1,479,200
30 Day Avg. Volume668,013
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)4.17
Price to Sales (P/S)2.63
P/FCF Ratio15.52
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue4.92
Enterprise Value/Gross Profit8.58
Enterprise Value/Ebitda12.38
Forecast
1Y Price Target
$5.50Price Target Upside17.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Royal KPN Business Overview & Revenue Model
Company DescriptionRoyal KPN N.V. (KKPNY) is a leading telecommunications and IT service provider based in the Netherlands. The company operates primarily in the mobile and fixed-line telecommunications sectors, offering a range of services including voice, data, broadband, and television services. KPN serves both consumer and business segments, delivering solutions that encompass connectivity, cloud services, and cybersecurity, while also focusing on innovation and digital transformation.
How the Company Makes MoneyRoyal KPN generates revenue through multiple key streams, primarily from its mobile and fixed-line services. The mobile segment includes subscription-based services, prepaid plans, and mobile data offerings, while the fixed-line segment encompasses broadband internet, landline telephony, and digital television services. Additionally, KPN earns revenue from its business solutions division, which provides tailored IT and communications services to corporate clients. Partnerships with technology providers and other telecom companies enhance its service offerings and market reach. Factors contributing to its earnings include a strong customer base, competitive pricing, and investments in network infrastructure to improve service quality and expand coverage.
Royal KPN Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong service revenue and EBITDA growth, particularly in B2B and fiber expansion, alongside strategic achievements and an upgraded outlook. However, challenges in free cash flow and pressure in consumer mobile and wholesale broadband segments tempered the overall positive results.Q2-2025 Updates
Positive Updates
Strong Group Service Revenue Growth
Group service revenues increased by 3.7% with growth visible across all segments. Consumer services saw growth in both fixed and mobile segments.
EBITDA Growth and Favorable Legal Settlement
Delivered strong EBITDA growth, benefiting from a favorable settlement related to intellectual property rights. Adjusted EBITDA grew by 6.4% compared to last year.
Expansion of Fiber Footprint
Expanded fiber footprint by adding 160,000 homes, now covering 2/3 of the Netherlands, with 80% of connected homes and significant progress in retail base on fiber.
Positive Performance in B2B Segment
B2B segment achieved 5.7% year-on-year growth, driven by cloud, workspace, and IoT growth, maintaining a stable net promoter score.
Upgraded Full-Year 2025 Outlook
Raised full-year 2025 outlook for EBITDA and free cash flow due to IPR settlements and solid business progress.
Negative Updates
Decline in Free Cash Flow
Free cash flow declined by 15% year-on-year due to working capital phasing and higher interest FX payments.
Pressure in Consumer Mobile Segment
Postpaid revenue declined due to increased promotional activity in the no-frill segment, affecting mobile service revenue growth.
Challenges in Wholesale Broadband Net Adds
Wholesale broadband net adds decreased by 21,000 due to churn on lower ARPU copper lines in overbuild areas.
Company Guidance
During the second quarter of 2025, KPN reported a robust performance with several key metrics highlighting its growth trajectory. The group service revenues increased by 3.7%, with growth visible across all segments, particularly in consumer fixed and mobile services, while business-to-business (B2B) services grew by 5.7%. KPN's adjusted EBITDA grew by 6.4%, benefiting from a favorable intellectual property rights (IPR) settlement. Despite a year-on-year decline in free cash flow due to working capital phasing and higher interest payments, the company expects recovery in the second half of the year. KPN expanded its fiber footprint, now covering two-thirds of the Netherlands, and upgraded its full-year 2025 outlook for EBITDA and free cash flow. The company remains committed to its "Connect, Activate and Grow" strategy, aiming for a 3% growth in service revenues and adjusted EBITDA, and a 7% growth in free cash flow per annum. The quarter also saw a healthy inflow of 13,000 broadband net adds, and a postpaid base increase by 37,000, despite a decline in postpaid revenue due to promotional activities.Royal KPN Financial Statement Overview
Summary
Royal KPN displays a strong financial position characterized by consistent revenue and profit growth, strong margins, and effective cash flow management. The company's high leverage is a potential risk but is balanced by its solid equity returns and operational efficiency. Overall, KPN is well-positioned in the telecommunications industry, with stable growth and profitability.Income Statement
The company has demonstrated consistent revenue growth over the years, with a 3.01% increase in 2024, following a 2.18% increase in 2023. Gross profit margin remains strong at 73.0% in 2024, indicating efficient cost management. The net profit margin is stable at 15.1%, and EBIT margin at 24.8% shows solid operational performance. The EBITDA margin is robust at 46.4%, reflecting strong earnings before non-cash expenses.75
Positive
Balance Sheet
The debt-to-equity ratio is 2.01, indicating high leverage but typical for the telecommunications industry. Return on equity is strong at 24.0%, showing effective use of equity. The equity ratio is 28.1%, suggesting a moderate reliance on debt. Despite high leverage, the company maintains a solid equity base and returns.70
Positive
Cash Flow
Free cash flow has shown stability, though slightly declining by 4.33% in 2024. Operating cash flow is strong at 2.67x net income, indicating good cash generation from operations. The free cash flow to net income ratio is 1.12, highlighting effective cash flow management and ability to cover dividends or reinvest in the business.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.71B | 5.60B | 5.44B | 5.32B | 5.27B | 5.28B |
| Gross Profit | 3.27B | 4.09B | 2.92B | 4.08B | 2.79B | 4.00B |
| EBITDA | 2.27B | 2.60B | 2.56B | 2.19B | 3.31B | 2.06B |
| Net Income | 824.00M | 848.00M | 844.00M | 760.00M | 1.29B | 560.00M |
Balance Sheet | ||||||
| Total Assets | 12.42B | 12.55B | 12.25B | 11.96B | 12.74B | 12.08B |
| Cash, Cash Equivalents and Short-Term Investments | 374.00M | 802.00M | 828.00M | 527.00M | 1.11B | 867.00M |
| Total Debt | 7.00B | 7.10B | 6.79B | 7.28B | 7.62B | 7.93B |
| Total Liabilities | 8.98B | 9.01B | 8.69B | 8.31B | 9.51B | 9.46B |
| Stockholders Equity | 3.40B | 3.53B | 3.56B | 3.65B | 3.23B | 2.62B |
Cash Flow | ||||||
| Free Cash Flow | 1.21B | 950.00M | 993.00M | 982.00M | 908.00M | 479.00M |
| Operating Cash Flow | 2.17B | 2.26B | 2.24B | 2.19B | 2.13B | 2.04B |
| Investing Cash Flow | -1.18B | -1.44B | -1.43B | -1.08B | -1.21B | -1.54B |
| Financing Cash Flow | -1.51B | -769.00M | -606.00M | -1.50B | -717.00M | -670.00M |
Royal KPN Technical Analysis
Neutral
4.70
Price Trends
4.70
Positive
4.70
Positive
4.27
Positive
Market Momentum
>-0.01
Positive
43.22
Neutral
39.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KKPNY, the sentiment is Neutral. The current price of 4.7 is below the 20-day moving average (MA) of 4.82, above the 50-day MA of 4.70, and above the 200-day MA of 4.27, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 39.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KKPNY.
Royal KPN Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.59B | 16.85 | 14.43% | 6.64% | -7.99% | 2.16% | |
74 Outperform | $18.61B | 20.56 | 33.12% | 3.79% | 4.33% | 0.83% | |
74 Outperform | $18.24B | 13.04 | 17.30% | 6.81% | -5.13% | -5.90% | |
72 Outperform | $20.04B | 20.17 | 7.96% | 4.58% | -6.51% | -0.21% | |
60 Neutral | $27.80B | -6.39 | -7.90% | 4.33% | 0.89% | -494.16% | |
52 Neutral | $28.93B | -11.37 | -13.79% | 7.10% | -4.73% | -251.31% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.