Signify NV (LIGHT) AI Stock Analysis

• Market Cap: €2.57B
• Dividend Yield: 7.65%
• Average Volume (3M): 435.71K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.89
• Revenue Growth: -4.73%
• EPS Growth: 17.93%
• Country: NL
• Employees: 29,697
• Sector: Services
• Sector Strength: N/A
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.64
• Shares Outstanding: 128,344,240
• 10 Day Avg. Volume: 437,146
• 30 Day Avg. Volume: 435,709
• PEG Ratio: 0.14
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 6.56
• 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: €22.83
• Price Target Upside: 12.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €22.00 ▲(7.95% Upside)

Signify NV's overall stock score is driven by a mixed financial performance and bearish technical indicators. The financials show strong gross profit margins and improved return on equity, but declining revenue and cash flow are concerns. Technical analysis indicates bearish momentum, with the stock trading below key moving averages. However, the stock's valuation is attractive, with a low P/E ratio and high dividend yield, which could appeal to value and income-focused investors.

Positive Factors

Negative Factors

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 generates revenue primarily through the sale of lighting products, systems, and services. Its key revenue streams include traditional lighting products such as LED bulbs, fixtures, and luminaires, as well as advanced smart lighting solutions that incorporate Internet of Things (IoT) technology. Additionally, the company earns income from providing lighting services, which encompass installation, maintenance, and energy management solutions. Significant partnerships with technology firms and integration with smart home systems also contribute to its earnings, expanding its reach in the growing market for connected lighting solutions. Furthermore, the company capitalizes on sustainability trends by offering energy-efficient products that appeal to environmentally conscious consumers and businesses, thereby enhancing its market position and driving revenue growth.

Signify NV Financial Statement Overview

Summary

Signify NV's financial statements present a mixed picture. The company demonstrates strong gross profit margins and improved return on equity, but faces challenges with declining revenue and cash flow generation. The balance sheet shows a reduction in leverage, but the equity ratio suggests moderate reliance on debt. While profitability metrics are stable, the negative revenue and free cash flow growth rates indicate areas for improvement. Overall, the company needs to focus on enhancing sales growth and cash flow efficiency to strengthen its financial position.

Income Statement

Signify NV's income statement shows a mixed performance. The gross profit margin remains healthy at around 40% in TTM, indicating efficient cost management. However, the net profit margin has declined to 5.68% in TTM, reflecting pressure on profitability. Revenue growth has been negative over the past periods, with a notable decline of 1.06% in TTM, suggesting challenges in maintaining sales momentum. EBIT and EBITDA margins have remained relatively stable, but the declining revenue trend is a concern.

Balance Sheet

The balance sheet of Signify NV reflects a moderate financial position. The debt-to-equity ratio has improved to 0.61 in TTM, indicating a reduction in leverage. Return on equity has increased to 11.83% in TTM, showing improved efficiency in generating profits from shareholders' equity. However, the equity ratio stands at 38.74%, suggesting a moderate reliance on debt financing. Overall, the balance sheet shows stability with some room for improvement in equity strength.

Cash Flow

The cash flow statement indicates some challenges for Signify NV. Free cash flow growth has been negative, with a decline of 4.19% in TTM, highlighting potential issues in cash generation. The operating cash flow to net income ratio is relatively low at 0.22, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is 0.72, indicating that a significant portion of net income is converted into free cash flow. Overall, cash flow management needs attention to improve liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.06B	6.14B	6.70B	7.51B	6.86B	6.50B
Gross Profit	2.42B	2.44B	2.56B	2.73B	2.67B	2.50B
EBITDA	753.00M	773.00M	590.00M	1.04B	827.00M	718.00M
Net Income	344.00M	328.00M	203.00M	523.00M	397.00M	325.00M
Balance Sheet
Total Assets	6.71B	7.60B	8.00B	8.29B	8.26B	7.71B
Cash, Cash Equivalents and Short-Term Investments	399.00M	633.00M	1.16B	676.00M	852.00M	1.03B
Total Debt	1.59B	1.55B	2.23B	2.03B	2.01B	2.31B
Total Liabilities	4.02B	4.33B	5.06B	5.22B	5.66B	5.39B
Stockholders Equity	2.60B	3.16B	2.82B	2.92B	2.46B	2.19B
Cash Flow
Free Cash Flow	343.00M	415.00M	586.00M	244.00M	586.00M	792.00M
Operating Cash Flow	474.00M	514.00M	696.00M	376.00M	704.00M	891.00M
Investing Cash Flow	-100.00M	-72.00M	-115.00M	-256.00M	-91.00M	-1.38B
Financing Cash Flow	-528.00M	-970.00M	-67.00M	-295.00M	-876.00M	757.00M

Signify NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 20.38 is below the 20-day moving average (MA) of 21.44, below the 50-day MA of 22.28, and below the 200-day MA of 20.94, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 35.27 is Neutral, neither overbought nor oversold. The STOCH value of 18.16 is Positive, 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
KPN	67 Neutral	€15.37B	18.58	34.21%	4.44%	3.75%	0.28%
IMCD	61 Neutral	€5.14B	19.02	14.32%	2.62%	6.09%	-7.18%
LIGHT	60 Neutral	€2.57B	8.12	11.48%	7.65%	-4.73%	17.93%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RAND	55 Neutral	€5.98B	111.58	1.49%	8.33%	-3.62%	-87.74%
ALFEN	51 Neutral	€208.44M	-12.10	-10.80%	―	-13.84%	-286.67%
PNL	49 Neutral	€479.69M	-32.52	-12.23%	7.24%	2.44%	-179.02%