Signify NV (LIGHT) AI Stock Analysis

• Market Cap: €2.12B
• Dividend Yield: 7.57%
• Average Volume (3M): 435.71K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.85
• Revenue Growth: -4.73%
• EPS Growth: 17.93%
• Country: NL
• Employees: 29,697
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.52
• Shares Outstanding: 122,581,100
• 10 Day Avg. Volume: 437,146
• 30 Day Avg. Volume: 435,709
• PEG Ratio: -0.49
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 6.47
• 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: €19.94
• Price Target Upside: 13.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.73
• Revenue Forecast (FY): €5.55B

• Rating: 64 Neutral
• Price Target: €21.00 ▲(19.39% Upside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is supported primarily by strong cash generation and an attractive valuation (low P/E and high dividend yield). This is tempered by weakening income-statement trends (shrinking revenue and compressed margins) and bearish technicals with the stock below key moving averages and negative momentum.

Positive Factors

Strong free cash flow generation

Consistent and growing free cash flow (~€399M, +20.5% YoY) provides durable financial flexibility to fund capex, R&D for connected lighting, pay dividends, and de-lever. Reliable cash conversion supports sustained operations and strategic investments over the medium term.

Manageable leverage and improving capital structure

A lower debt-to-equity (~0.59) versus earlier years indicates a healthier capital structure, reducing refinancing and solvency risk. This durability in leverage supports resilience across cycles and preserves strategic optionality for partnerships or smart-city projects without straining cash flow.

Leadership in connected lighting and IoT

Market leadership in LED, connected lighting and IoT, plus participation in smart-city initiatives, gives durable competitive advantages: established channel relationships, recurring services, and technology differentiation that sustain revenues and support pricing over the medium term.

Negative Factors

Multi-year revenue contraction

Persistent revenue declines over multiple years weaken top-line momentum and limit operating leverage. Continued contraction makes it harder to absorb fixed costs, constrain reinvestment capacity, and raises execution risk for growth initiatives in core and connected segments.

Compressed profitability margins

Material margin compression from 2022 levels reduces earnings power and the ability to self-fund strategic investments. Lower margins increase sensitivity to cost inflation and pricing pressure, limiting reinvestment, dividend sustainability, and long-term return trends if not reversed.

Moderating returns and reduced equity cushion

Falling ROE and a reduced equity base signal declining capital efficiency and a thinner balance-sheet buffer. This limits flexibility to pursue large contracts or absorb shocks, raises the importance of improving profitability, and could constrain long-term investment capacity.

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 through multiple streams, primarily from the sale of lighting products, which include LED lamps, luminaires, and lighting systems. A significant portion of its revenue also comes from providing connected lighting solutions, which involve smart lighting technology and IoT integration. The company benefits from long-term contracts and relationships with large-scale customers in various industries, including retail, hospitality, and urban development. Additionally, partnerships with technology firms and participation in smart city initiatives contribute to its earnings by expanding its product offerings and market reach. The growing demand for energy-efficient lighting and smart home products further enhances Signify's revenue potential.

Signify NV Financial Statement Overview

Summary

Cash flow is a clear strength (TTM free cash flow ~€399M, up ~20.5% YoY) and leverage appears manageable (debt-to-equity ~0.59). Offsetting this, profitability has cooled with multi-year revenue contraction (TTM down ~2.8%) and margin compression versus 2022 (TTM net margin ~4.4% vs ~7.0%), which pressures earnings quality and returns (ROE ~9.5% vs ~17.9% in 2022).

Income Statement

Profitability remains positive, with TTM (Trailing-Twelve-Months) gross margin around 40% and EBITDA margin in the low-teens, but earnings power has cooled versus prior years. Revenue has been shrinking for multiple years (TTM down ~2.8% after declines in 2023–2024), and margins have compressed from 2022 highs (net margin ~4.4% in TTM vs ~7.0% in 2022), indicating weaker operating leverage and/or tougher pricing and cost conditions.

Balance Sheet

Leverage looks manageable with debt-to-equity at ~0.59 in TTM (improved from ~1.05 in 2020), suggesting a healthier capital structure than earlier years. However, equity has stepped down from 2024 to TTM and returns have moderated (ROE ~9.5% in TTM vs ~17.9% in 2022), pointing to a less efficient profitability profile and somewhat reduced balance-sheet cushion versus last year.

Cash Flow

Cash generation is a relative strength: TTM (Trailing-Twelve-Months) free cash flow is solid (~€399M) and grew ~20.5% year over year, supporting financial flexibility. That said, cash conversion is not perfect—free cash flow is below net income in TTM (about three-quarters of earnings), and operating cash flow relative to debt is modest, implying the balance sheet still benefits from continued steady cash discipline.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.76B	6.14B	6.70B	7.51B	6.86B
Gross Profit	2.31B	2.44B	2.56B	2.73B	2.67B
EBITDA	693.00M	773.00M	590.00M	1.04B	827.00M
Net Income	254.00M	328.00M	203.00M	523.00M	397.00M
Balance Sheet
Total Assets	6.72B	7.60B	8.00B	8.29B	8.26B
Cash, Cash Equivalents and Short-Term Investments	623.00M	633.00M	1.16B	676.00M	852.00M
Total Debt	1.58B	1.55B	2.23B	2.03B	2.01B
Total Liabilities	3.95B	4.33B	5.06B	5.22B	5.66B
Stockholders Equity	2.67B	3.16B	2.82B	2.92B	2.46B
Cash Flow
Free Cash Flow	399.00M	415.00M	586.00M	244.00M	586.00M
Operating Cash Flow	531.00M	514.00M	696.00M	376.00M	704.00M
Investing Cash Flow	-110.00M	-72.00M	-115.00M	-256.00M	-91.00M
Financing Cash Flow	-415.00M	-970.00M	-67.00M	-295.00M	-876.00M

Signify NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 17.59 is below the 20-day moving average (MA) of 18.87, below the 50-day MA of 19.78, and below the 200-day MA of 21.30, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 29.62 is Positive, neither overbought nor oversold. The STOCH value of 23.68 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
KPN	66 Neutral	€17.91B	19.36	34.21%	4.43%	3.75%	0.28%
LIGHT	64 Neutral	€2.12B	10.85	11.48%	7.57%	-4.73%	17.93%
IMCD	64 Neutral	€4.15B	20.99	10.83%	2.83%	6.09%	-7.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RAND	58 Neutral	€4.08B	18.97	1.49%	9.24%	-3.62%	-87.74%
PNL	50 Neutral	€554.46M	-31.57	-12.23%	6.72%	2.44%	-179.02%
ALFEN	50 Neutral	€179.11M	51.38	-10.80%	―	-13.84%	-286.67%