Royal KPN NV (KKPNY)
OTHER OTC:KKPNY
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Royal KPN
(OTC:KKPNY)
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Rating:67Neutral
Price Target:
$6.00
â–²(33.63% Upside)
Action:DowngradedDate:03/01/26
The score is supported by solid profitability/cash generation and strong technical momentum, reinforced by upbeat 2026 guidance and shareholder return plans. It is held back primarily by elevated and rising leverage (balance-sheet risk) and a valuation that looks relatively full given the company’s modest growth profile.
Positive Factors
Profitability and margins
Sustained high gross and healthy net margins indicate durable operational efficiency and pricing power across services. These margins support reinvestment in network buildout and allow consistent operating cash generation, underpinning long-term resilience versus low-margin peers.
Negative Factors
Elevated financial leverage
Significant leverage constrains strategic flexibility and increases exposure to interest rate and refinancing risk. Even with targets to reduce leverage, elevated indebtedness limits capacity for aggressive M&A, increases fixed costs, and can amplify downside in cyclical revenue dips.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and margins
Sustained high gross and healthy net margins indicate durable operational efficiency and pricing power across services. These margins support reinvestment in network buildout and allow consistent operating cash generation, underpinning long-term resilience versus low-margin peers.
Read all positive factors
Royal KPN (KKPNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.49B
Dividend Yield3.37%
Average Volume (3M)819.62K
Price to Earnings (P/E)8.8
Beta (1Y)0.02
Revenue Growth8.04%
EPS Growth7.09%
CountryUS
Employees9,718
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.21
Shares Outstanding3,827,465,300
10 Day Avg. Volume1,759,996
30 Day Avg. Volume819,622
Financial Highlights & Ratios
PEG Ratio4.08
Price to Book (P/B)6.63
Price to Sales (P/S)3.01
P/FCF Ratio13.49
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue4.60
Enterprise Value/Gross Profit14.88
Enterprise Value/Ebitda9.92
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.29
Revenue Forecast (FY)$6.92B
Royal KPN Business Overview & Revenue Model
Company Description
Royal KPN N.V. (KKPNY) is a leading telecommunications and IT services provider based in the Netherlands. The company operates in various sectors, including mobile and fixed-line telecommunications, broadband internet, and digital services. KPN se...
How the Company Makes Money
Royal KPN generates revenue through multiple streams, primarily from its telecommunications services, which include mobile and fixed-line subscriptions, data services, and broadband internet. The company earns significant income from selling mobil...
Royal KPN Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: the company delivered on its 2025 outlook with revenue and EBITDA growth, strong free cash flow (EUR 952m), improved margins and clear shareholder returns (dividend increase and EUR 250m buyback). Commercial momentum in Consumer (record fiber connects and repeated broadband net adds), Mobile and Wholesale sponsorships underpinned growth, while disciplined cost control and a clear CapEx roadmap (step‑down to <EUR 1bn in 2027) support future cash conversion. Near‑term headwinds include a decline in Tailored Solutions revenues, wholesale copper base effects tied to a customer brand shutdown, higher cash taxes/interest and some one‑off items/I PR adjustments that temper like‑for‑like cash growth. Regulatory and competitive uncertainties remain but are portrayed as manageable by management.Positive Updates
Revenue and EBITDA Growth
Adjusted revenues up ~2.7% year‑on‑year (Q4); group service revenues grew ~2.7% (full-year commentary). Adjusted EBITDA after leases grew 5.1% in Q4 and underlying EBITDA (excl. LTO) grew 3.7%. EBITDA margin improved by 100 bps to 44.6% of adjusted revenues.
Negative Updates
Tailored Solutions Revenue Decline
Tailored Solutions service revenue decreased as the company focuses on value steering and contract quality; this weighs on B2B reporting (B2B growth is expected to be skewed toward H2 2026).
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and EBITDA Growth
Adjusted revenues up ~2.7% year‑on‑year (Q4); group service revenues grew ~2.7% (full-year commentary). Adjusted EBITDA after leases grew 5.1% in Q4 and underlying EBITDA (excl. LTO) grew 3.7%. EBITDA margin improved by 100 bps to 44.6% of adjusted revenues.
Read all positive updates
Company Guidance
KPN guided 2026 for group service revenue growth of 2.0–2.5%, adjusted EBITDA after leases of about €2.67bn (≈3% like‑for‑like), CapEx of roughly €1.25bn, and free cash flow of more than €950m (like‑for‑like low‑ to mid‑single‑digit growth); it expects €15–20m of net indirect OpEx savings in 2026 (targeting ~€100m by 2030), will pay a regular DPS of €0.20 in 2026 (up 10%) with a planned €250m share buyback and aims for ≈€0.25 DPS in 2027, and provided segment guidance of ~1.5% Consumer service revenue growth, ~3% B2B (with SME ≈5%), and ~3% Wholesale; management also reiterated a ~€250m CapEx step‑down in 2027 to below €1bn, operating free cash flow growth of ~10% p.a. over the strategic period (operating FCF margin improving from ~24% to ~30%), a leverage target below a 2.5x ceiling (current 2.4x) and ROCE marching toward ~15%.Royal KPN Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
43
Neutral
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.57B | 5.60B | 5.44B | 5.32B | 5.27B |
| Gross Profit | 1.72B | 4.09B | 2.92B | 2.84B | 2.79B |
| EBITDA | 2.58B | 2.60B | 2.56B | 2.19B | 3.31B |
| Net Income | 821.26M | 848.00M | 844.00M | 760.00M | 1.29B |
Balance Sheet | |||||
| Total Assets | 13.06B | 12.55B | 12.25B | 11.96B | 12.74B |
| Cash, Cash Equivalents and Short-Term Investments | 586.75M | 802.00M | 828.00M | 527.00M | 1.11B |
| Total Debt | 8.55B | 7.10B | 6.79B | 6.29B | 7.62B |
| Total Liabilities | 10.49B | 9.01B | 8.69B | 8.31B | 9.51B |
| Stockholders Equity | 2.53B | 3.53B | 3.56B | 3.65B | 3.23B |
Cash Flow | |||||
| Free Cash Flow | 1.24B | 950.00M | 993.00M | 982.00M | 908.00M |
| Operating Cash Flow | 2.22B | 2.26B | 2.24B | 2.19B | 2.13B |
| Investing Cash Flow | -1.34B | -1.44B | -1.43B | -1.08B | -1.21B |
| Financing Cash Flow | -1.13B | -769.00M | -606.00M | -1.50B | -717.00M |
Royal KPN Technical Analysis
Neutral
4.49
Price Trends
5.49
Negative
5.07
Positive
4.87
Positive
Market Momentum
0.04
Positive
47.61
Neutral
50.72
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 4.49 is below the 20-day moving average (MA) of 5.51, below the 50-day MA of 5.49, and below the 200-day MA of 4.87, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 50.72 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $16.71B | 16.17 | 15.56% | 6.14% | -5.21% | -7.46% | |
73 Outperform | $11.14B | 20.05 | 17.55% | 7.82% | 8.21% | 30.97% | |
70 Outperform | $24.77B | 13.62 | 9.03% | 5.03% | 2.80% | 11.44% | |
67 Neutral | $20.49B | 8.84 | 28.91% | 3.37% | 8.04% | 7.09% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $36.24B | 7.35 | -8.37% | 3.77% | 19.66% | -278.57% |
* Communication Services Sector Average
KKPNY
Royal KPN
5.31
0.87
19.65%
TLK
PT Telekomunikasi Indonesia Tbk
16.99
2.02
13.46%
VIV
Telefonica Brasil
15.38
5.77
60.11%
TIMB
TIM
23.60
7.44
46.05%
VOD
Vodafone
15.69
6.79
76.37%
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.