Royal KPN NV (KPN) AI Stock Analysis

• Market Cap: €14.75B
• Dividend Yield: 4.43%
• Average Volume (3M): 8.30M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.06
• Revenue Growth: 3.75%
• EPS Growth: 0.28%
• Country: NL
• Employees: 9,718
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.06
• Shares Outstanding: 3,827,465,300
• 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: 9.33% 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 ▲(16.58% 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

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 generates revenue primarily through its telecommunications services, which include mobile and fixed-line subscriptions, broadband internet services, and digital television offerings. The company's revenue model is diversified, with key streams coming from both consumer and business segments. Mobile services, including postpaid and prepaid subscriptions, represent a significant portion of KPN's earnings. The company also earns revenue from providing IT services and solutions to businesses, including cloud services, data management, and cybersecurity solutions. Additionally, KPN engages in partnerships with various content providers and technology firms, enhancing its service offerings and driving additional income through bundled services and promotions. Factors such as increasing demand for high-speed internet, a growing customer base, and strategic investments in network infrastructure contribute positively to KPN's 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: Negative
• Last Price: 3.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 3.86 is below the 20-day moving average (MA) of 3.93, below the 50-day MA of 3.94, and below the 200-day MA of 3.99, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 25.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€14.75B	18.12	34.21%	4.43%	3.75%	0.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PNL	51 Neutral	€567.69M	-38.48	-12.23%	6.72%	2.44%	-179.02%