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

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NL:PHIA

Koninklijke Philips N.V.

(LSE:PHIA)

Rating:56Neutral
Price Target:
€25.00
▲(9.46% Upside)
The overall stock score reflects significant challenges in financial performance, with declining revenues and negative net income being key concerns. Despite these issues, recent improvements in operational margins and cash flow management provide some optimism. Technical analysis indicates short-term bullish momentum, but caution is warranted due to overbought signals. The valuation is hindered by negative earnings, though the dividend yield offers some support.
Positive Factors
Business Momentum
The PH business saw strong momentum driven by stable US consumer spending and positive surprises in European spending.
Market Outlook
China mid-term outlook remains positive, with management confident the market can return to MSD growth and aims to capture further upside.
Negative Factors
Financial Guidance
Philips guided to Q3 margins decreasing sequentially, driven by an increased tariff headwind.
Regional Performance
China had a double-digit decline this quarter, mainly impacting Personal Health and D&T.
Sales Performance
4Q sales came below expectations for Philips with a decline of 1% versus the consensus.

Koninklijke Philips N.V. (PHIA) vs. iShares MSCI Netherlands ETF (EWN)

Koninklijke Philips N.V. Business Overview & Revenue Model

Company DescriptionKoninklijke 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 MoneyPhilips 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
The company's financial performance indicates challenges with declining revenues and persistent net losses. However, there are signs of improvement in operational margins and cash flow management. The balance sheet remains stable, providing a foundation for recovery.
Income Statement
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue17.86B18.02B18.17B17.83B17.16B19.54B
Gross Profit7.83B7.77B7.45B7.19B7.17B8.78B
EBITDA1.83B1.85B1.04B-280.00M1.73B2.56B
Net Income162.00M-702.00M-466.00M-1.61B3.32B1.19B
Balance Sheet
Total Assets26.38B28.98B29.41B30.69B30.96B27.71B
Cash, Cash Equivalents and Short-Term Investments1.82B2.40B1.87B1.18B2.31B3.23B
Total Debt8.43B7.49B7.69B8.20B6.98B6.93B
Total Liabilities15.97B16.93B17.34B17.41B16.49B15.81B
Stockholders Equity10.38B12.01B12.03B13.25B14.44B11.87B
Cash Flow
Free Cash Flow279.00M893.00M1.49B-979.00M866.00M1.83B
Operating Cash Flow1.10B1.57B2.14B-173.00M1.63B2.78B
Investing Cash Flow-382.00M-573.00M-636.00M-1.49B-3.67B-1.14B
Financing Cash Flow498.00M-496.00M-848.00M500.00M-2.35B483.00M

Koninklijke Philips N.V. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.84
Price Trends
50DMA
20.88
Positive
100DMA
21.11
Positive
200DMA
22.68
Positive
Market Momentum
MACD
0.68
Negative
RSI
61.70
Neutral
STOCH
38.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:PHIA, the sentiment is Positive. The current price of 22.84 is above the 20-day moving average (MA) of 21.83, above the 50-day MA of 20.88, and above the 200-day MA of 22.68, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 61.70 is Neutral, neither overbought nor oversold. The STOCH value of 38.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:PHIA.

Koninklijke Philips N.V. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
€21.83B-7.02%3.72%-0.81%-54.90%
51
Neutral
$7.39B0.42-62.86%2.37%15.61%-1.95%
$833.75M-3.41%
€1.90B19.97-10.39%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL:PHIA
Koninklijke Philips N.V.
22.84
-2.77
-10.83%
PHGUF
Pharming Group
1.14
0.34
42.50%
GB:0JXZ
Galapagos
29.13
4.97
20.57%
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 30, 2025