Signify NV (LIGHT) AI Stock Analysis

• Market Cap: €2.54B
• Dividend Yield: 7.74%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.13
• Revenue Growth: -4.36%
• EPS Growth: 42.05%
• Country: NL
• Employees: 29,697
• Sector: Industrials
• Sector Strength: 95
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.48
• Shares Outstanding: 128,344,240
• 10 Day Avg. Volume: 644,886
• 30 Day Avg. Volume: 1,149,078
• PEG Ratio: 1.12
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.08
• 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: €24.68
• Price Target Upside: 22.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: €22.00 ▲(9.13%Upside)

Signify NV has a strong valuation with an attractive P/E ratio and high dividend yield, suggesting potential for income and growth. Solid financial performance supports this, although the lack of revenue growth and mild profit pressures need addressing. Technical indicators suggest caution due to bearish momentum, slightly offset by potential oversold conditions. Overall, the stock shows significant value potential with some risks.

Positive Factors

Guidance

The company maintains full-year sales guidance for positive organic growth excluding Conventional, indicating expected acceleration in the second half.

Organic Growth

Organic growth (excluding Conventional) returned to positive for the first time since 2023.

Regional Performance

Signify highlighted sequential improvement in most businesses, even China, where both Professional and Consumer showed improvements leading the region to moderate growth.

Negative Factors

Cost Challenges

Price/cost in the EBIT bridge is becoming an increasing headwind.

Market Conditions

More EBITA improvement is required for rest of the year, which remains challenging given the current pricing headwind, tariff induced costs, and negative market conditions in Professional Europe.

Profitability

Adjusted EBITA missed by 4% compared to consensus.

Signify NV Business Overview & Revenue Model

Company Description

Signify N.V. provides lighting products, systems, and services in Europe, the Americas, and internationally. The company operates through Digital Solutions, Digital Products, and Conventional Products segments. It offers light-emitting diode (LED) and conventional luminaires, systems, and services for various market segments comprising offices, commercial buildings, shops, hospitality, industry, agriculture, and outdoor environments. The company also provides various LED lamps, including spots, bulbs, and tubes for the professional and consumer channels; and LED electronic components, such as LED drivers and modules to original equipment manufacturers (OEMs) for professional luminaire applications in the retail, office, industry, and outdoor segments, as well as develops and sells connected lighting systems and luminaires. In addition, it produces and sells lamps based on non-LED based technologies, which comprise high intensity discharge lamps, TL, compact fluorescent, halogen, incandescent, electronic ballast and drivers, and specialty lighting products for residential and professional applications; and digital projection lamps and drivers to the OEM market and replacement market. The company was formerly known as Philips Lighting N.V. and changed its name to Signify N.V. in May 2018. Signify N.V. was founded in 1891 and is headquartered in Eindhoven, the Netherlands.

How the Company Makes Money

Signify NV generates revenue through the sale of lighting products and systems, including LED products, conventional lamps, and electronics. The company's revenue streams are diversified across different segments such as Professional, which provides lighting solutions for commercial and industrial clients; Consumer, which focuses on residential lighting; and OEM, which supplies components to other manufacturers. Additionally, Signify capitalizes on its connected lighting systems and services, offering smart lighting solutions that integrate with Internet of Things (IoT) platforms. Strategic partnerships with technology companies and a strong global distribution network further bolster its earnings by expanding market reach and enhancing product offerings.

Signify NV Financial Statement Overview

Summary

Signify NV shows a solid financial performance with strengths in operational efficiency and cash flow management. However, challenges in revenue growth and mild pressure on net profitability suggest a need for strategic initiatives to enhance growth and margin improvements. The balance sheet remains stable, but continued monitoring of debt levels is advisable to maintain financial health.

Income Statement

The gross profit margin for TTM is strong at 40.1%, showing efficient cost management. However, the net profit margin decreased from 5.3% in 2022 to 5.7% in TTM, indicating some pressure on net earnings. Revenue has declined over the past years, with a decrease of 2.0% from 2024 to TTM, highlighting a need for growth strategies. The EBIT margin is stable at 8.2%, and the EBITDA margin remains robust at 12.6%, supporting operational efficiency.

Balance Sheet

The debt-to-equity ratio is moderately high at 0.51 in TTM, showing reliance on debt financing. Return on equity (ROE) is healthy at 11.4%, reflecting effective use of equity capital. The equity ratio is stable at 42.4%, indicating a balanced capital structure. The company maintains a solid asset base with total assets at €7.25 billion.

Cash Flow

Free cash flow generation is consistent, although it decreased by 13.7% from 2024 to TTM. The operating cash flow to net income ratio of 1.4 indicates strong cash conversion efficiency. The free cash flow to net income ratio is 1.0, demonstrating efficient cash flow management. Overall, cash flow stability supports financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.14B	6.70B	7.51B	6.86B	6.50B
Gross Profit	2.44B	2.56B	2.73B	2.67B	2.50B
EBITDA	773.00M	590.00M	1.04B	827.00M	718.00M
Net Income	328.00M	203.00M	523.00M	397.00M	325.00M
Balance Sheet
Total Assets	7.60B	8.00B	8.29B	8.26B	7.71B
Cash, Cash Equivalents and Short-Term Investments	633.00M	1.16B	676.00M	852.00M	1.03B
Total Debt	1.55B	2.23B	2.03B	2.01B	2.31B
Total Liabilities	4.33B	5.06B	5.22B	5.66B	5.39B
Stockholders Equity	3.16B	2.82B	2.92B	2.46B	2.19B
Cash Flow
Free Cash Flow	415.00M	586.00M	244.00M	586.00M	792.00M
Operating Cash Flow	514.00M	696.00M	376.00M	704.00M	891.00M
Investing Cash Flow	-72.00M	-115.00M	-256.00M	-91.00M	-1.38B
Financing Cash Flow	-970.00M	-67.00M	-295.00M	-876.00M	757.00M

Signify NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:LIGHT, the sentiment is Negative. The current price of 20.16 is below the 20-day moving average (MA) of 22.67, below the 50-day MA of 22.22, and above the 200-day MA of 20.08, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 30.84 is Neutral, neither overbought nor oversold. The STOCH value of 40.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:LIGHT.

Signify NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUR	80 Outperform	€1.39B	5.13	18.89%	5.98%	4.03%	8.35%
TWEKA	76 Outperform	€1.51B	14.72	11.59%	4.08%	-7.30%	-36.81%
LIGHT	71 Outperform	€2.54B	7.38	12.63%	7.74%	-4.36%	42.05%
ARCAD	70 Neutral	€3.84B	15.78	21.16%	2.35%	-0.17%	51.55%
NEDAP	67 Neutral	€557.84M	26.66	29.06%	3.72%	4.11%	22.38%
Sector *	66 Neutral	€3.36B	24.25	11.11%	4.59%	0.86%	-22.21%
AALB	57 Neutral	€3.08B	20.30	6.13%	4.06%	-4.31%	-50.32%