Royal KPN NV (KPN) AI Stock Analysis

• Market Cap: €15.77B
• Dividend Yield: 4.27%
• Average Volume (3M): 8.39M
• Price to Earnings (P/E): 19.1
• 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: 7,735,551
• 30 Day Avg. Volume: 8,388,432
• 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: €4.40
• Price Target Upside: 7.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: €4.50 ▲(9.76% Upside)

Royal KPN NV's overall stock score is driven by its solid financial performance and attractive dividend yield. While technical indicators suggest a neutral trend, the company's high leverage and slight decline in profit margins are areas to monitor. The absence of significant earnings call data or corporate events limits additional insights.

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 demonstrates solid financial health with consistent revenue growth and strong cash flow generation. The company effectively manages its equity to generate returns despite high leverage. However, a slight decline in profit margins requires attention.

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: 4.10
• 50DMA: Positive
• 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 4.1 is above the 20-day moving average (MA) of 4.05, above the 50-day MA of 4.07, and above the 200-day MA of 3.85, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 79.96 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	68 Neutral	€15.77B	19.06	34.21%	4.27%	3.75%	0.28%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PNL	51 Neutral	€513.77M	24.36	-9.01%	6.90%	3.45%	-147.52%