Royal KPN (KKPNY) AI Stock Analysis

• Market Cap: $17.47B
• Dividend Yield: 3.94%
• Average Volume (3M): 653.11K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.08
• Revenue Growth: 4.33%
• EPS Growth: 0.83%
• Country: US
• Employees: 9,718
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.07
• Shares Outstanding: 3,888,930,400
• 10 Day Avg. Volume: 238,618
• 30 Day Avg. Volume: 653,113
• PEG Ratio: 0.00
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 15.52
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 4.88
• Enterprise Value/Gross Profit: 7.93
• Enterprise Value/Ebitda: 10.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $5.00 ▲(11.36% Upside)

Royal KPN's overall stock score reflects solid financial performance and positive earnings call highlights, tempered by technical analysis indicating a bearish trend and moderate valuation. The company's strategic initiatives in fiber expansion and service revenue growth are promising, but high leverage and cash flow concerns warrant caution.

Royal KPN Business Overview & Revenue Model

Company Description

Koninklijke 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 Money

Royal 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 Financial Statement Overview

Summary

Royal KPN demonstrates solid financial performance with stable revenue growth and strong profitability margins. However, high leverage and declining free cash flow growth present potential risks. The company maintains strong operational efficiency, but cost management and debt levels should be monitored closely to sustain financial health.

Income Statement

Royal KPN's income statement shows a stable revenue growth rate of 1.44% in the TTM period, with a solid gross profit margin of 57.34%. The net profit margin is healthy at 14.44%, indicating efficient cost management. However, the gross profit margin has decreased from previous periods, suggesting potential cost pressures. The EBIT and EBITDA margins remain strong, reflecting robust operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.06, indicating significant leverage, which could pose financial risks. However, the return on equity is strong at 22.96%, demonstrating effective use of equity to generate profits. The equity ratio stands at 27.34%, suggesting a moderate reliance on equity financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 2.89% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is robust at 1.67, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.55 suggests adequate cash flow to support net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.75B	5.60B	5.44B	5.32B	5.27B	5.28B
Gross Profit	3.54B	4.09B	2.92B	4.08B	2.79B	4.00B
EBITDA	2.63B	2.60B	2.56B	2.19B	3.31B	2.06B
Net Income	878.00M	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	7.63B
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	1.04B	950.00M	993.00M	982.00M	908.00M	479.00M
Operating Cash Flow	1.96B	2.26B	2.24B	2.19B	2.13B	2.04B
Investing Cash Flow	-558.00M	-1.44B	-1.43B	-1.08B	-1.21B	-1.54B
Financing Cash Flow	-4.04B	-769.00M	-606.00M	-1.50B	-717.00M	-670.00M

Royal KPN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KKPNY, the sentiment is Negative. The current price of 4.49 is below the 20-day moving average (MA) of 4.59, below the 50-day MA of 4.68, and above the 200-day MA of 4.44, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 77.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KKPNY.

Royal KPN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	81 Outperform	$11.30B	15.97	14.93%	6.27%	-4.90%	14.83%
TLK	78 Outperform	$21.03B	15.54	15.54%	6.13%	-5.21%	-7.45%
VIV	77 Outperform	$20.99B	19.88	8.36%	4.73%	-3.16%	4.70%
KKPNY	68 Neutral	$17.47B	19.27	33.12%	3.94%	4.33%	0.83%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
VOD	58 Neutral	$29.46B	―	-7.08%	3.99%	19.67%	-278.51%
TEF	45 Neutral	$24.45B	―	-0.70%	7.67%	-5.49%	-75.51%

Royal KPN Corporate Events

KPN Reports Steady Growth and Fiber Expansion in Q3 2025

Royal KPN NV is a leading telecommunications company in the Netherlands, providing a wide range of services including broadband, mobile, and fiber connectivity, with a strong focus on innovation and customer satisfaction.

KPN Earnings Call: Mixed Outlook with Growth and Challenges

KPN’s recent earnings call presented a mixed outlook, reflecting both positive growth and ongoing challenges. The company reported notable increases in service revenues, EBITDA, and fiber expansion, yet faced hurdles such as slowed consumer revenue growth, price pressure in the B2B mobile sector, and declines in specific business areas like Tailored Solutions.