Signify NV (LIGHT) AI Stock Analysis

• Market Cap: €2.47B
• Dividend Yield: 7.57%
• Average Volume (3M): 435.71K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.80
• 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: 122,581,100
• 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: €22.37
• Price Target Upside: 8.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €21.00 ▲(1.84% Upside)

The overall stock score of 63 reflects a mixed outlook. The most significant strength is the attractive valuation, with a low P/E ratio and high dividend yield. However, financial performance shows challenges with declining revenue and cash flow growth. Technical analysis indicates bearish momentum, which could pose short-term risks.

Positive Factors

Profitability Margins

Strong profitability margins indicate effective cost management and operational efficiency, supporting long-term financial stability.

Balanced Capital Structure

A balanced capital structure with moderate leverage enhances financial flexibility and reduces risk, supporting sustainable growth.

Market Position in Smart Lighting

Leadership in smart lighting and IoT positions Signify to capitalize on growing demand for energy-efficient and connected solutions.

Negative Factors

Declining Revenue Growth

Declining revenue growth may hinder the company's ability to expand its market share and invest in new opportunities, affecting long-term prospects.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests potential cash generation issues, which could limit the company's ability to fund operations and investments.

Revenue Challenges

Ongoing revenue challenges may impact the company's ability to maintain its competitive position and invest in future growth initiatives.

Signify NV Business Overview & Revenue Model

Company Description

Signify NV (LIGHT) is a global leader in lighting products, systems, and services. The company operates primarily in the sectors of professional and consumer lighting, as well as smart lighting and Internet of Things (IoT) applications. Signify's core offerings include innovative LED lighting solutions, connected lighting systems, and lighting management software, catering to a diverse range of markets including residential, commercial, and industrial applications.

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

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	5.93B	6.14B	6.70B	7.51B	6.86B	6.50B
Gross Profit	2.36B	2.44B	2.56B	2.73B	2.67B	2.50B
EBITDA	730.00M	773.00M	590.00M	1.04B	827.00M	718.00M
Net Income	312.00M	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	401.00M	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	3.98B	4.33B	5.06B	5.22B	5.66B	5.39B
Stockholders Equity	2.64B	3.16B	2.82B	2.92B	2.46B	2.19B
Cash Flow
Free Cash Flow	331.00M	415.00M	586.00M	244.00M	586.00M	792.00M
Operating Cash Flow	439.00M	514.00M	696.00M	376.00M	704.00M	891.00M
Investing Cash Flow	-106.00M	-72.00M	-115.00M	-256.00M	-91.00M	-1.38B
Financing Cash Flow	-545.00M	-970.00M	-67.00M	-295.00M	-876.00M	757.00M

Signify NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.62
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 20.62 is above the 20-day moving average (MA) of 20.18, above the 50-day MA of 20.58, and below the 200-day MA of 21.09, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 98.37 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	67 Neutral	€15.06B	18.55	34.21%	4.43%	3.75%	0.28%
LIGHT	63 Neutral	€2.47B	8.24	11.48%	7.57%	-4.73%	17.93%
IMCD	61 Neutral	€4.51B	16.60	14.32%	2.83%	6.09%	-7.18%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PNL	51 Neutral	€530.05M	-35.90	-12.23%	6.72%	2.44%	-179.02%
ALFEN	51 Neutral	€223.45M	-12.70	-10.80%	―	-13.84%	-286.67%
RAND	46 Neutral	€5.48B	105.53	1.49%	9.24%	-3.62%	-87.74%