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Royal KPN NV (KKPNY)
OTHER OTC:KKPNY
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Royal KPN
(OTC:KKPNY)
Rating:73Outperform
Price Target:
$5.00
▲(7.07% Upside)
Royal KPN (KKPNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.00B
Dividend Yield3.82%
Average Volume (3M)490.17K
Price to Earnings (P/E)19.8
Beta (1Y)0.15
Revenue Growth4.33%
EPS Growth0.83%
CountryUS
Employees9,718
SectorCommunication Services
Sector Strength92
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding3,888,930,400
10 Day Avg. Volume256,683
30 Day Avg. Volume490,165
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 Cap1.56
Enterprise Value/Revenue4.99
Enterprise Value/Gross Profit9.29
Enterprise Value/Ebitda12.35
Forecast
1Y Price Target
$5.00Price Target Upside7.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Royal KPN Business Overview & Revenue Model
Company DescriptionKoninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It operates through Consumer; Business; Wholesale; and Network, Operations & IT segments. The company offers fixed and mobile telephony, fixed and mobile broadband internet, and television services to retail consumers; infrastructure and network related IT solutions to business customers; and wholesale network services to third parties. It also provides IT services, includes cloud and workspace, and cybersecurity; and interconnect traffic, visitor roaming, digital products, and NL-ix, an interconnect exchange, as well as sells handsets and peripheral equipment, and software licenses. The company was founded in 1881 and is headquartered in Rotterdam, the Netherlands.
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: -2.51%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
KPN delivered a strong quarter with notable achievements in revenue growth and fiber expansion, supported by favorable legal settlements. However, challenges remain in consumer mobile pricing and free cash flow, which declined in the first half of the year. The overall sentiment is positive due to significant progress in growth areas outweighing the challenges.Q2-2025 Updates
Positive Updates
Group Service Revenue Growth
KPN's group service revenues increased by 3.7% with growth visible across all segments, including a strong performance in both fixed and mobile consumer segments.
EBITDA and Free Cash Flow Outlook Raised
KPN raised its full-year 2025 outlook for EBITDA and free cash flow due to favorable legal settlements and solid business and financial progress.
Fiber Footprint Expansion
KPN expanded its fiber footprint, now covering 2/3 of the Netherlands, with nearly 80% of total homes connected to fiber.
B2B Segment Growth
B2B delivered a strong quarter with 5.7% year-on-year growth, driven by solid performance in Mobile, cloud services, and broadband.
Wholesale Revenue Increase
Wholesale service revenues grew by over 8% year-on-year, driven by strong performance in Mobile and international sponsored roaming business.
Negative Updates
Consumer Mobile Pricing Pressure
There was pressure on consumer mobile pricing, particularly in the no-frills segment, affecting postpaid revenue despite net add growth.
Free Cash Flow Decline in First Half
Free cash flow declined by 15% in the first half of the year compared to the previous year, primarily due to working capital phasing and higher interest payments.
Impact of Competitive Intensity
Competitive intensity, particularly in the no-frills mobile segment, remains a challenge, with increased promotional activity affecting postpaid revenue.
Company Guidance
During KPN's second quarter earnings call for fiscal year 2025, several key metrics and guidance updates were highlighted. The company reported a 3.7% increase in group service revenues, with growth across all segments, including a notable 5.7% year-on-year growth in the B2B segment. Consumer service revenues also grew by 1.3%, driven by improvements in both fixed and mobile services. KPN's EBITDA showed strong growth, partly due to a favorable intellectual property rights (IPR) settlement, with the company revising its full-year 2025 outlook for EBITDA to over EUR 2.630 billion and free cash flow to over EUR 940 million. The fiber footprint in the Netherlands expanded, now covering two-thirds of the country, contributing to a 13,000 broadband net add inflow and a 1.2% increase in fixed ARPU. Despite a temporary decline in free cash flow due to working capital changes, KPN expects a recovery in the second half of the year. The company reiterated its commitment to a 337 CAGR framework, targeting approximately 3% growth in service revenues and adjusted EBITDA, and a 7% increase in free cash flow annually over the coming years.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 | 5.63B | 5.60B | 5.44B | 5.32B | 5.27B | 5.28B |
| Gross Profit | 3.02B | 4.09B | 2.92B | 4.08B | 4.09B | 4.00B |
| EBITDA | 2.27B | 2.60B | 2.56B | 2.55B | 3.31B | 2.44B |
| Net Income | 843.00M | 848.00M | 844.00M | 760.00M | 1.29B | 560.00M |
Balance Sheet | ||||||
| Total Assets | 13.59B | 12.55B | 12.25B | 11.96B | 12.74B | 12.08B |
| Cash, Cash Equivalents and Short-Term Investments | 1.24B | 802.00M | 828.00M | 527.00M | 1.11B | 867.00M |
| Total Debt | 7.49B | 7.10B | 6.79B | 6.29B | 7.62B | 7.44B |
| Total Liabilities | 9.74B | 9.01B | 8.69B | 8.31B | 9.51B | 9.46B |
| Stockholders Equity | 3.85B | 3.53B | 3.56B | 3.65B | 3.23B | 2.62B |
Cash Flow | ||||||
| Free Cash Flow | 1.25B | 950.00M | 993.00M | 982.00M | 908.00M | 479.00M |
| Operating Cash Flow | 2.23B | 2.26B | 2.24B | 2.19B | 2.13B | 2.04B |
| Investing Cash Flow | -1.60B | -1.44B | -1.43B | -1.08B | -1.21B | -1.54B |
| Financing Cash Flow | -460.00M | -769.00M | -606.00M | -1.50B | -717.00M | -670.00M |
Royal KPN Technical Analysis
Positive
4.67
Price Trends
4.68
Negative
4.55
Positive
4.10
Positive
Market Momentum
-0.02
Negative
54.55
Neutral
74.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KKPNY, the sentiment is Positive. The current price of 4.67 is above the 20-day moving average (MA) of 4.58, below the 50-day MA of 4.68, and above the 200-day MA of 4.10, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 74.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KKPNY.
Royal KPN Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $19.74B | 19.61 | 8.20% | 3.56% | -6.51% | -0.21% | |
74 Outperform | $57.73B | 19.96 | 14.41% | 2.77% | -0.64% | 56.92% | |
74 Outperform | $20.91B | 14.15 | 17.71% | 6.41% | -5.13% | -5.90% | |
73 Outperform | $18.00B | 19.83 | 33.12% | 3.82% | 4.33% | 0.83% | |
62 Neutral | $28.14B | 9.21 | -7.17% | 4.24% | 0.89% | -494.16% | |
60 Neutral | $31.58B | ― | -3.55% | 6.33% | -4.73% | -251.31% | |
60 Neutral | $44.04B | 1.92 | -11.93% | 4.00% | 2.47% | -38.33% |
* Communication Services Sector Average
Performance Comparison
KKPNY
Royal KPN
4.67
0.86
22.57%
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VIV
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TEF
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5.63
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VOD
Vodafone
11.67
2.49
27.12%
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.