Royal KPN NV (KPN) AI Stock Analysis

• Market Cap: €15.37B
• Dividend Yield: 4.44%
• Average Volume (3M): 8.30M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.04
• Revenue Growth: 3.75%
• EPS Growth: 0.28%
• Country: NL
• Employees: 9,718
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 0.06
• Shares Outstanding: 3,888,930,400
• 10 Day Avg. Volume: 7,730,284
• 30 Day Avg. Volume: 8,297,447
• PEG Ratio: 1.62
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 2.45
• P/FCF Ratio: 14.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €4.22
• Price Target Upside: 6.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €4.50 ▲(13.64% Upside)

Royal KPN NV's overall stock score reflects its solid financial performance and attractive dividend yield. However, the technical analysis indicates a lack of strong momentum, and the high leverage is a potential risk factor. The absence of earnings call insights and corporate events means these areas did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling investment in growth opportunities and debt management.

Return on Equity

High return on equity reflects efficient management and profitable use of shareholder funds, supporting sustainable growth.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting the company's ability to invest in growth or weather economic downturns.

Margin Decline

Declining margins may indicate rising costs or pricing pressures, which could affect profitability if not addressed.

Profit Margin Pressure

Pressure on profit margins can impact overall profitability, necessitating cost management and efficiency improvements.

Royal KPN NV Business Overview & Revenue Model

Company Description

Royal KPN NV (KPN) is a Dutch telecommunications company headquartered in The Hague. It is one of the leading providers of telecom services in the Netherlands, offering a wide range of products and services, including fixed-line and mobile telecommunications, broadband internet, and digital television. KPN operates in various sectors, including consumer, business, and wholesale markets, providing solutions that cater to both individual customers and large enterprises. The company is also focused on innovation and sustainability, investing in network infrastructure and digital transformation.

How the Company Makes Money

KPN primarily generates revenue through multiple streams, including mobile services, fixed-line telephony, broadband internet, and television subscriptions. The mobile segment contributes significantly to its earnings through postpaid and prepaid subscriptions, data packages, and value-added services. Fixed-line services encompass traditional telephony and broadband internet, both of which are key revenue sources as customers continue to rely on stable internet connections. Additionally, KPN earns revenue from its digital television offerings. The company also has significant partnerships with various content providers, enhancing its value proposition to consumers. Wholesale business services, including network access for other telecom operators, contribute to KPN's revenue as well. Overall, KPN's diversified portfolio and focus on innovation, along with strategic partnerships, play a crucial role in sustaining its earnings.

Royal KPN NV Financial Statement Overview

Summary

Royal KPN NV demonstrates solid financial health with consistent revenue growth and strong cash flow generation. The company is highly leveraged but effectively manages its equity to generate returns. The slight decline in profit margins warrants monitoring, but the overall financial position remains stable.

Income Statement

Royal KPN NV has shown consistent revenue growth with a TTM increase of 1.44%. The company maintains healthy margins, with a gross profit margin of 57.34% and a net profit margin of 14.44% in the TTM. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, indicating potential cost pressures.

Balance Sheet

The company has a high debt-to-equity ratio of 2.06, which suggests significant leverage. However, the return on equity remains strong at 22.96%, indicating effective use of equity. The equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

KPN's cash flow is robust, with a significant free cash flow growth rate of 16.52% in the TTM. The operating cash flow to net income ratio is strong at 1.67, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio of 0.55 suggests good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.75B	5.60B	5.44B	5.31B	5.27B	5.28B
Gross Profit	3.54B	4.09B	2.92B	2.84B	4.09B	4.00B
EBITDA	2.63B	2.60B	2.56B	2.19B	3.29B	2.40B
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	6.29B	7.62B	7.44B
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	1.01B	950.00M	993.00M	982.00M	908.00M	479.00M
Operating Cash Flow	1.93B	2.26B	2.24B	2.19B	2.13B	2.04B
Investing Cash Flow	-926.00M	-1.44B	-1.43B	-1.08B	-1.21B	-1.54B
Financing Cash Flow	-2.14B	-769.00M	-606.00M	-1.50B	-717.00M	-670.00M

Royal KPN NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:KPN, the sentiment is Positive. The current price of 3.96 is above the 20-day moving average (MA) of 3.92, below the 50-day MA of 4.00, and above the 200-day MA of 3.95, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 72.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:KPN.

Royal KPN NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KPN	67 Neutral	€15.37B	18.58	34.21%	4.44%	3.75%	0.28%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PNL	49 Neutral	€479.69M	-32.52	-12.23%	6.95%	2.44%	-179.02%