Royal KPN NV (KPN) AI Stock Analysis

• Market Cap: €15.45B
• Dividend Yield: 4.41%
• Average Volume (3M): 9.16M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.09
• 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: 7,518,815
• 30 Day Avg. Volume: 9,157,686
• 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: €4.35
• Price Target Upside: 9.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: €4.50 ▲(13.64% Upside)

Royal KPN NV's overall stock score is driven by its solid financial performance and attractive valuation. The company's strong cash flow and effective equity management are significant strengths. However, technical indicators suggest potential short-term weakness, and the high leverage requires careful monitoring.

Royal KPN NV 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

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 exhibits strong profitability with a gross profit margin of 72.97% and a net profit margin of 15.13%. Operational efficiency is evident from EBIT and EBITDA margins at 24.84% and 46.44%, respectively. However, moderate growth rates and high leverage with a debt-to-equity ratio of 2.01 are areas of concern.

Income Statement

Royal KPN NV has shown steady revenue growth over the years, with a 3.02% increase from 2023 to 2024. The company maintains a strong gross profit margin at approximately 72.97% and a healthy net profit margin at 15.13% in 2024. EBIT and EBITDA margins are also robust at 24.84% and 46.44% respectively, indicating efficient operational performance. However, the growth rates are modest, and net income has seen minor fluctuations over the years.

Balance Sheet

The balance sheet of Royal KPN NV reflects a moderate debt-to-equity ratio of 2.01, indicating significant leverage. The return on equity is strong at 24.01%, suggesting effective use of equity to generate profits. The equity ratio stands at 28.15%, showing a relatively balanced capital structure. Despite the high leverage, the company has been able to maintain stable equity levels.

Cash Flow

The cash flow statement reveals consistent free cash flow generation, though the free cash flow growth was negative at -4.33% from 2023 to 2024. The operating cash flow to net income ratio is 2.67, highlighting strong cash generation capabilities relative to net income. However, the free cash flow to net income ratio is 1.12, indicating limited free cash flow relative to net income growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.71B	5.60B	5.44B	5.31B	5.27B	5.28B
Gross Profit	3.27B	4.09B	2.92B	2.84B	4.09B	4.00B
EBITDA	2.27B	2.60B	2.56B	2.19B	3.29B	2.40B
Net Income	824.00M	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	1.45B	950.00M	993.00M	982.00M	908.00M	479.00M
Operating Cash Flow	2.64B	2.26B	2.24B	2.19B	2.13B	2.04B
Investing Cash Flow	-1.83B	-1.44B	-1.43B	-1.08B	-1.21B	-1.54B
Financing Cash Flow	-1.63B	-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: Positive
• 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 below the 20-day moving average (MA) of 3.97, below the 50-day MA of 4.01, and above the 200-day MA of 3.70, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 53.42 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
PRX	79 Outperform	$115.44B	11.02	27.07%	0.19%	14.03%	102.46%
KPN	68 Neutral	€15.45B	18.68	34.21%	4.41%	3.75%	0.28%
Sector *	57 Neutral	$1.60B	-3.70	3.73%	4.29%	5.38%	-37.86%