Signify NV (LIGHT) AI Stock Analysis

• Market Cap: €2.16B
• Dividend Yield: 7.57%
• Average Volume (3M): 435.71K
• Price to Earnings (P/E): 8.7
• 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): 0.56
• 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: €18.92
• Price Target Upside: 1.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €19.00 ▲(1.66% Upside)

The score reflects solid underlying profitability and a reasonably leveraged balance sheet, plus supportive valuation (low P/E and high dividend yield). These positives are tempered by weak technical signals (price below key moving averages and negative MACD) and fundamental headwinds from declining revenue growth and negative free cash flow growth.

Positive Factors

Free Cash Flow Generation

Strong and improving free cash flow provides durable financial flexibility: supports capex for smart lighting and IoT, funds dividends and debt service, and cushions the business through cycles. A ~20% YoY FCF increase materially strengthens strategic optionality over months.

Improved Leverage

Meaningfully lower leverage enhances resilience and lowers refinancing risk, giving management capacity to invest in R&D, smart-city projects, and selective M&A. A healthier capital structure supports dividends and long-term strategy execution even in weaker sales periods.

Market Position & Structural Demand

Leadership in LED, connected lighting and IoT taps durable structural trends: energy efficiency, smart buildings, and urbanization. Diversified end markets and long-term contracts create repeatable revenues and higher switching costs from integrated lighting systems and services.

Negative Factors

Revenue Contraction

Persistent revenue declines erode operating leverage and the scale that underpins margins and R&D funding. Continued top-line shrinkage reduces pricing power and limits reinvestment capacity, increasing risk to medium-term growth and profitability restoration.

Margin Compression & Lower Returns

Material margin and ROE deterioration signal weakened earnings power and capital efficiency. Lower margins reduce free cash flow conversion and the firm's ability to fund innovation or sustain dividends, while lower ROE indicates less effective use of shareholders' capital long term.

Earnings Deterioration

Steep EPS decline reflects earnings pressure that can curtail investment, dividend sustainability, and strategic initiatives. Coupled with a stepped-down equity base, weaker earnings reduce the balance-sheet cushion and heighten vulnerability to cyclical shocks over the coming months.

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	652.00M	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: 18.69
• 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:LIGHT, the sentiment is Negative. The current price of 18.69 is below the 20-day moving average (MA) of 20.91, below the 50-day MA of 20.54, and below the 200-day MA of 21.48, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 35.97 is Neutral, neither overbought nor oversold. The STOCH value of 37.39 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	67 Neutral	€15.70B	18.38	34.21%	4.43%	3.75%	0.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LIGHT	62 Neutral	€2.16B	8.68	11.48%	7.57%	-4.73%	17.93%
IMCD	61 Neutral	€4.65B	17.21	14.32%	2.83%	6.09%	-7.18%
PNL	54 Neutral	€601.77M	-40.90	-12.23%	6.72%	2.44%	-179.02%
ALFEN	51 Neutral	€244.61M	-14.26	-10.80%	―	-13.84%	-286.67%
RAND	46 Neutral	€5.30B	101.62	1.49%	9.24%	-3.62%	-87.74%