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Signify (NL:LIGHT)
:LIGHT
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Signify NV (LIGHT) AI Stock Analysis

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NL:LIGHT

Signify NV

(LSE:LIGHT)

Rating:71Outperform
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 (LIGHT) vs. iShares MSCI Netherlands ETF (EWN)

Signify NV Business Overview & Revenue Model

Company DescriptionSignify 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 MoneySignify 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
72
Positive
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
68
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.14B6.70B7.51B6.86B6.50B
Gross Profit2.44B2.56B2.73B2.67B2.50B
EBITDA773.00M590.00M1.04B827.00M718.00M
Net Income328.00M203.00M523.00M397.00M325.00M
Balance Sheet
Total Assets7.60B8.00B8.29B8.26B7.71B
Cash, Cash Equivalents and Short-Term Investments633.00M1.16B676.00M852.00M1.03B
Total Debt1.55B2.23B2.03B2.01B2.31B
Total Liabilities4.33B5.06B5.22B5.66B5.39B
Stockholders Equity3.16B2.82B2.92B2.46B2.19B
Cash Flow
Free Cash Flow415.00M586.00M244.00M586.00M792.00M
Operating Cash Flow514.00M696.00M376.00M704.00M891.00M
Investing Cash Flow-72.00M-115.00M-256.00M-91.00M-1.38B
Financing Cash Flow-970.00M-67.00M-295.00M-876.00M757.00M

Signify NV Technical Analysis

Technical Analysis Sentiment
Negative
Last Price20.16
Price Trends
50DMA
22.22
Negative
100DMA
20.35
Negative
200DMA
20.08
Positive
Market Momentum
MACD
0.05
Positive
RSI
30.84
Neutral
STOCH
40.56
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
€1.39B5.1318.89%5.98%4.03%8.35%
76
Outperform
€1.51B14.7211.59%4.08%-7.30%-36.81%
71
Outperform
€2.54B7.3812.63%7.74%-4.36%42.05%
70
Neutral
€3.84B15.7821.16%2.35%-0.17%51.55%
67
Neutral
€557.84M26.6629.06%3.72%4.11%22.38%
66
Neutral
€3.36B24.2511.11%4.59%0.86%-22.21%
57
Neutral
€3.08B20.306.13%4.06%-4.31%-50.32%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL:LIGHT
Signify NV
20.16
-1.09
-5.11%
NL:FUR
Fugro NV
12.54
-10.33
-45.17%
NL:ARCAD
Arcadis NV
42.60
-21.66
-33.71%
NL:TWEKA
TKH Group N.V.
36.78
-1.76
-4.56%
NL:AALB
Aalberts Industries N.V.
27.82
-5.93
-17.56%
NL:NEDAP
Nedap N.V
86.00
30.32
54.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 26, 2025