Signify NV (LIGHT) AI Stock Analysis

• Market Cap: €2.84B
• Dividend Yield: 6.84%
• Average Volume (3M): 556.33K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.05
• Revenue Growth: -4.36%
• EPS Growth: 42.05%
• Country: NL
• Employees: 29,697
• Sector: Services
• Sector Strength: N/A
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.49
• Shares Outstanding: 128,344,240
• 10 Day Avg. Volume: 379,165
• 30 Day Avg. Volume: 556,333
• 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: €24.60
• Price Target Upside: 7.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 64 Neutral
• Price Target: €23.00 ▲(0.88% Upside)

The overall stock score for Signify NV is driven by a mixed financial performance and neutral technical indicators. The company's strong valuation metrics, including a low P/E ratio and high dividend yield, provide a positive offset to the challenges in revenue growth and cash flow. The absence of significant earnings call insights or corporate events means the score is primarily influenced by financial and technical factors.

Positive Factors

Guidance

2025 Guidance confirmed should provide some relief to the stock.

Regional Performance

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

Sales Growth

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

Negative Factors

Competitive Environment

The potential direct impact from tariffs in the next couple of quarters and indirect impact from rising competition are unanswered questions in these results.

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 NV, formerly known as Philips Lighting, is a global leader in lighting products, systems, and services. The company operates in the electronics sector, focusing on innovative lighting solutions that enhance energy efficiency and sustainability. Signify offers a wide range of products including LED lighting, smart lighting systems, and connected lighting solutions for various applications including residential, professional, and industrial markets.

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 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	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: Positive
• Last Price: 22.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:LIGHT, the sentiment is Positive. The current price of 22.8 is above the 20-day moving average (MA) of 21.82, above the 50-day MA of 22.29, and above the 200-day MA of 20.17, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 86.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:LIGHT.

Signify NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KPN	68 Neutral	€15.57B	18.82	34.21%	4.36%	3.75%	0.28%
LIGHT	64 Neutral	€2.84B	8.25	12.63%	6.84%	-4.36%	42.05%
IMCD	63 Neutral	€5.47B	20.23	14.32%	2.32%	6.09%	-7.18%
RAND	62 Neutral	€7.38B	96.38	2.09%	7.00%	-3.75%	-84.64%
ALFEN	56 Neutral	€259.58M	―	-16.28%	―	-3.34%	-190.95%
Sector *	53 Neutral	C$44.36M	64.02	11.44%	4.27%	0.75%	-26.57%
PNL	49 Neutral	€469.00M	24.36	-9.01%	7.44%	3.45%	-147.52%