Koninklijke Philips N.V. (PHIA) AI Stock Analysis

• Market Cap: €19.83B
• Dividend Yield: 4.01%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -0.81%
• EPS Growth: -54.90%
• Country: NL
• Employees: 67,247
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Devices
• EPS (TTM): 0.25
• Shares Outstanding: 962,920,100
• 10 Day Avg. Volume: 1,353,423
• 30 Day Avg. Volume: 1,680,414
• PEG Ratio: 0.33
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -985.91
• 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: €23.75
• Price Target Upside: 12.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 59 Neutral
• Price Target: €21.50 ▲(1.42%Upside)

The stock score is primarily impacted by financial performance and valuation concerns. While some operational improvements are evident, persistent net losses and declining revenue weigh heavily on the score. Technical analysis shows neutral momentum, adding little upside potential. The absence of positive earnings call or corporate events data further limits the score.

Positive Factors

Financial Performance

Philips expects higher group margin mainly driven by Connected Care.

Market Activity

Philips confirms an increase in tender activity in China for some provinces.

Negative Factors

China Market

There are continued soft expectations for the Chinese market, impacting growth.

Earnings

4Q 2024 came below expectations for Philips with 4Q sales -1% vs consensus.

Market Share

D&T performance was significantly lower than peer Siemens Healthineers, suggesting market share loss.

Koninklijke Philips N.V. Business Overview & Revenue Model

Company Description

Koninklijke Philips N.V., commonly known as Philips, is a diversified technology company headquartered in the Netherlands. Founded in 1891, Philips operates in several sectors, primarily focused on health technology. The company provides a wide range of products and services, including diagnostic imaging systems, image-guided therapy solutions, patient monitoring, health informatics, consumer health, and home care products. Philips is committed to improving people's health and well-being through meaningful innovation, with a strong emphasis on healthcare solutions that drive better patient outcomes and enhance healthcare efficiency.

How the Company Makes Money

Philips generates revenue through several key streams. The primary source of income is its HealthTech segment, which includes diagnostic and treatment businesses featuring imaging systems, ultrasound, and healthcare informatics. The Connected Care segment contributes to revenue via patient monitoring and analytics solutions, therapeutic care, and enterprise telehealth. In the Personal Health sector, Philips earns through the sale of consumer products such as electric toothbrushes, grooming products, and kitchen appliances. Philips also partners with healthcare providers and governments worldwide, securing long-term contracts and collaborations to provide integrated solutions and services, further bolstering its revenue streams. Additionally, Philips invests in research and development to continually introduce innovative products and maintain its competitive edge in the health technology market.

Koninklijke Philips N.V. Financial Statement Overview

Summary

Koninklijke Philips N.V. is facing a tough period with declining revenues and persistent net losses, despite some operational improvements and steady balance sheet metrics. The company must enhance profitability to strengthen financial health.

Income Statement

The income statement shows a mixed performance. While the gross profit margin improved slightly in 2024 compared to 2023, at 43.1% versus 41.0%, the company has struggled with net profitability, recording negative net income for the past three years. Revenue growth was negative at -0.8% from 2023 to 2024, reflecting a challenging market environment. The EBIT margin improved to 2.9% in 2024 from negative figures in prior years, indicating some operational improvements.

Balance Sheet

The balance sheet reveals moderate financial stability. The debt-to-equity ratio in 2024 is approximately 0.62, indicating a manageable level of leverage. Stockholders' equity has remained relatively stable, although total assets have decreased slightly. The equity ratio stands at around 41.5%, suggesting a solid equity base. However, persistent losses could pressure future equity levels.

Cash Flow

Cash flow analysis shows some recovery. Free cash flow increased to 893 million in 2024 from 1493 million in 2023, signaling improved cash management. However, the free cash flow to net income ratio is negative due to net losses. The operating cash flow to net income ratio is positive, highlighting the ability to generate cash despite accounting losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.02B	18.17B	17.83B	17.16B	19.54B
Gross Profit	7.77B	7.45B	7.19B	7.17B	8.78B
EBITDA	1.85B	1.04B	-280.00M	1.73B	2.56B
Net Income	-702.00M	-466.00M	-1.62B	612.00M	1.19B
Balance Sheet
Total Assets	28.98B	29.41B	30.69B	30.96B	27.71B
Cash, Cash Equivalents and Short-Term Investments	2.40B	1.87B	1.18B	2.31B	3.23B
Total Debt	7.49B	7.69B	8.20B	6.98B	6.93B
Total Liabilities	16.93B	17.34B	17.41B	16.49B	15.81B
Stockholders Equity	12.01B	12.03B	13.25B	14.44B	11.87B
Cash Flow
Free Cash Flow	893.00M	1.49B	-979.00M	866.00M	1.83B
Operating Cash Flow	1.57B	2.14B	-173.00M	1.63B	2.78B
Investing Cash Flow	-573.00M	-636.00M	-1.49B	-3.67B	-1.32B
Financing Cash Flow	-496.00M	-848.00M	500.00M	-2.35B	483.00M

Koninklijke Philips N.V. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.20
• 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:PHIA, the sentiment is Neutral. The current price of 21.2 is above the 20-day moving average (MA) of 20.61, above the 50-day MA of 20.55, and below the 200-day MA of 23.03, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 60.07 is Neutral, neither overbought nor oversold. The STOCH value of 80.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:PHIA.

Koninklijke Philips N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHIA	59 Neutral	€19.83B	―	-7.02%	4.01%	-0.81%	-54.90%
PHARM	58 Neutral	€595.05M	―	-6.31%	―	25.41%	-31.21%
Sector *	46 Neutral	C$197.02M	-3.33	-23.14%	2.65%	20.75%	-0.36%
GLPG	45 Neutral	€1.71B	19.98	-6.36%	―	―	―