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Royal KPN NV (KKPNY)
:KKPNY
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Royal KPN
(OTC:KKPNY)
Rating:78Outperform
Price Target:―
Royal KPN (KKPNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.29B
Dividend Yield3.17%
Average Volume (3M)570.80K
Price to Earnings (P/E)20.2
Beta (1Y)0.22
Revenue Growth3.07%
EPS Growth2.35%
CountryUS
Employees9,718
SectorCommunication Services
Sector Strength88
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.05
Shares Outstanding3,888,930,400
10 Day Avg. Volume528,663
30 Day Avg. Volume570,800
Financial Highlights & Ratios
PEG Ratio3.35
Price to Book (P/B)3.90
Price to Sales (P/S)0.00
P/FCF Ratio10.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.35Price Target Upside-8.61% Downside
Rating ConsensusHold
Number of Analyst Covering0
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 a diversified portfolio of telecommunications services. The company's primary revenue streams include fixed-line services, such as broadband internet and television subscriptions, and mobile services, including voice, data, and messaging. KPN also earns income from business solutions, offering ICT services such as cloud computing, cybersecurity, and data management to corporate clients. Additionally, KPN leverages strategic partnerships and investments in infrastructure to enhance its service offerings and expand its market presence. The combination of these revenue streams allows KPN to maintain a strong financial performance and support its ongoing business growth and innovation efforts.
Royal KPN Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 4.62%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The call reflected a balanced performance with strong growth in service revenues and EBITDA, but challenges in free cash flow and net profits due to specific one-off costs. The company showed resilience in the face of economic uncertainties and highlighted strategic efforts to improve customer satisfaction and reduce churn.Q1-2025 Updates
Positive Updates
Solid Group Service Revenue Growth
Service revenues increased by 3.8% year-on-year, with Consumer service revenues up by 4.6% and Business segment revenues growing by 5.1%.
EBITDA Growth and Margin Expansion
Adjusted EBITDA after leases grew by 4.7%, with an EBITDA margin increase of 72 basis points to 44.7%.
Fiber Expansion
Fiber footprint expanded by 100,000 homes, now covering 64% of Dutch households.
Operational Free Cash Flow Increase
Operational free cash flow increased by 12% year-on-year, supported by contributions from Althio and Youfone.
Award for Best Mobile Network
KPN received an award from Umlaut for having the Best Mobile Network in the Netherlands.
Negative Updates
Free Cash Flow Decline
Free cash flow decreased by 70% or €26 million compared to last year, due to higher interest payments and phasing of working capital.
Net Profit Decrease
Reported net profits decreased despite EBITDA growth, due to one-off costs related to the Althio transaction.
Consumer Net Promoter Score Decline
Consumer Net Promoter Score declined, influenced by challenging consumer sentiment at the start of the year.
Challenges in LCE Service Revenue Growth
LCE service revenues remain stable, with some price pressure in mobile.
Company Guidance
During KPN's Q1 2025 earnings call, the company reported a 3.8% increase in group service revenues, with notable contributions from Youfone and mobile services in both the Consumer and Business segments. EBITDA grew by 4.7%, driven by higher service revenues, while free cash flow declined due to increased interest and tax payments, expected to recover in the second half of the year. KPN expanded its fiber footprint by adding 100,000 homes, covering 64% of Dutch households, and maintained a stable business net promoter score despite economic uncertainties. The company aims for a 3% CAGR in service revenues and adjusted EBITDA, and a 7% CAGR in free cash flow in the coming years, supported by its Connect, Activate & Grow strategy. KPN also upgraded its full-year 2025 outlook to over €2.6 billion in adjusted EBITDA after leases and €920 million in free cash flow, with stable CapEx at around €1.25 billion.Royal KPN Financial Statement Overview
Summary
Royal KPN shows strong profitability and cash flow generation with a robust gross profit margin and improved net profit margin. However, the high debt-to-equity ratio and declining gross profit trend are concerns.Income Statement
Royal KPN shows a steady revenue base with a slight revenue growth of 2.2% from 2022 to 2023. The gross profit margin is robust at 53.8%, indicating efficient cost management. Net profit margin has improved to 15.5% from 14.3% in 2022, reflecting enhanced profitability. EBIT and EBITDA margins are strong at 24.7% and 47.1%, respectively, showing solid operational performance. However, a declining gross profit trend from 2021 is a concern.75
Positive
Balance Sheet
The company maintains a high debt-to-equity ratio of 1.91, highlighting significant leverage, which poses a risk. Return on equity stands at 23.7%, indicating good profitability on shareholder investment. The equity ratio of 29% suggests a moderate reliance on equity financing. While the company is stable, the high leverage could impact financial flexibility.68
Positive
Cash Flow
Operating cash flow is strong, covering net income comfortably with a ratio of 2.66. Free cash flow shows a positive growth rate of 1.1%, ensuring liquidity for future investments. The free cash flow to net income ratio of 1.18 demonstrates effective cash generation. Overall, cash flows are solid, supporting operational and strategic needs.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.89B | 5.44B | 5.32B | 5.27B | 5.28B | 5.50B | Gross Profit |
| 3.13B | 2.92B | 4.08B | 4.09B | 4.00B | 4.32B | EBIT |
| 1.78B | 1.34B | 1.21B | 1.86B | 912.00M | 1.04B | EBITDA |
| 3.22B | 2.56B | 2.55B | 3.31B | 2.44B | 2.50B | Net Income Common Stockholders |
| 1.06B | 844.00M | 760.00M | 1.29B | 560.00M | 624.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.09B | 828.00M | 527.00M | 1.11B | 867.00M | 1.04B | Total Assets |
| 13.01B | 12.25B | 11.96B | 12.74B | 12.08B | 12.30B | Total Debt |
| 8.66B | 6.79B | 6.29B | 7.62B | 7.44B | 7.59B | Net Debt |
| 8.07B | 6.18B | 5.89B | 6.82B | 6.84B | 6.82B | Total Liabilities |
| 11.13B | 8.69B | 8.31B | 9.51B | 9.46B | 9.80B | Stockholders Equity |
| 1.88B | 3.56B | 3.65B | 3.23B | 2.62B | 2.51B |
| Cash Flow | Free Cash Flow | ||||
| 1.40B | 993.00M | 982.00M | 908.00M | 479.00M | 892.00M | Operating Cash Flow |
| 2.81B | 2.24B | 2.19B | 2.13B | 2.04B | 2.01B | Investing Cash Flow |
| -2.09B | -1.43B | -1.08B | -1.21B | -1.54B | -707.00M | Financing Cash Flow |
| 61.00M | -606.00M | -1.50B | -717.00M | -670.00M | -1.15B |
Royal KPN Technical Analysis
Positive
4.76
Price Trends
4.53
Positive
4.13
Positive
3.99
Positive
Market Momentum
0.08
Positive
58.00
Neutral
52.08
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 4.76 is above the 20-day moving average (MA) of 4.69, above the 50-day MA of 4.53, and above the 200-day MA of 3.99, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 58.00 is Neutral, neither overbought nor oversold. The STOCH value of 52.08 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $16.81B | 16.48 | 7.95% | 4.23% | -5.69% | -0.05% | |
79 Outperform | $17.25B | 11.75 | 16.28% | 4.82% | -5.14% | -7.47% | |
78 Outperform | $18.29B | 20.22 | 33.56% | 3.17% | 3.07% | 2.35% | |
71 Outperform | $24.67B | 9.21 | -7.17% | 7.00% | -24.84% | -74.77% | |
71 Outperform | $52.02B | 31.06 | 8.54% | 2.98% | 0.19% | -49.68% | |
64 Neutral | $30.17B | ― | -0.55% | 4.48% | 1.18% | ― | |
61 Neutral | $14.60B | 5.95 | -4.32% | 3.69% | 2.76% | -30.49% |
* Communication Services Sector Average
Performance Comparison
KKPNY
Royal KPN
4.76
1.13
31.13%
AMX
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16.83
0.39
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TLK
PT Telekomunikasi Indonesia Tbk
17.56
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-4.46%
VIV
Telefonica Brasil
10.35
2.57
33.03%
TEF
Telefonica
5.30
0.95
21.84%
VOD
Vodafone
9.91
1.31
15.23%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.