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

• Market Cap: €19.61B
• Dividend Yield: 3.6%
• Average Volume (3M): 2.06M
• 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: 46
• Industry: Medical - Devices
• EPS (TTM): 0.25
• Shares Outstanding: 962,920,100
• 10 Day Avg. Volume: 2,118,644
• 30 Day Avg. Volume: 2,060,009
• PEG Ratio: 0.02
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.19
• 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: €23.93
• Price Target Upside: 15.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 54 Neutral
• Price Target: €21.50 ▲(4.17%Upside)

Koninklijke Philips N.V. faces significant challenges with persistent net losses and declining revenues. Despite some operational and cash flow improvements, the company's financial health requires attention. The technical indicators suggest a neutral to bearish trend, and the valuation remains unattractive due to negative earnings. The company's relatively stable balance sheet provides some foundation for potential recovery, but efforts to improve profitability are paramount.

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. operates as a health technology company in North America and internationally. It operates through Diagnosis & Treatment Businesses, Connected Care Businesses, and Personal Health Businesses segments. The company provides diagnostic imaging solutions, includes magnetic resonance imaging, computed tomography (CT) systems, X-ray systems, and detector-based spectral CT solutions, as well as molecular and hybrid imaging solutions for nuclear medicine; integrated interventional systems; echography solutions focused on diagnosis, treatment planning and guidance for cardiology, general imaging, obstetrics/gynecology, and point-of-care applications; proprietary software to enable diagnostics and intervention; and enterprise diagnostic informatics products and services. It also offers acute patient management solutions; emergency care solutions; sleep and respiratory care solutions; and electronic medical record and care management solutions. In addition, the company provides power toothbrushes, brush heads, and interdental cleaning and teeth whitening products; infant feeding and digital parental solutions; and male grooming and beauty products and solutions. It has a strategic collaboration with Ibex Medical Analytics Ltd. to jointly promote the digital pathology and AI solutions to hospitals, health networks, and pathology laboratories worldwide, as well as a strategic partnership agreement with NICO.LAB. The company was formerly known as Koninklijke Philips Electronics N.V. and changed its name to Koninklijke Philips N.V. in May 2013. Koninklijke Philips N.V. was founded in 1891 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

Philips generates revenue through its three primary business segments: Diagnosis & Treatment, Connected Care, and Personal Health. The Diagnosis & Treatment segment provides advanced imaging systems, ultrasound, and image-guided therapy solutions, catering primarily to hospitals and healthcare professionals. Connected Care focuses on comprehensive patient care solutions, including patient monitoring and health informatics, designed to improve care delivery and patient outcomes. The Personal Health segment offers consumer health products such as oral healthcare, mother and child care, and personal care appliances, targeting individual consumers. Philips also leverages strategic partnerships and collaborations with healthcare providers, technology companies, and research institutions to expand its market reach and enhance its product offerings, contributing to its overall revenue growth.

Koninklijke Philips N.V. Financial Statement Overview

Summary

Koninklijke Philips N.V. is navigating a challenging period characterized by declining revenues and persistent net losses. While operational margins and cash flow management show signs of improvement, the company must address its profitability issues to bolster financial health. The balance sheet remains relatively robust, providing a foundation for potential recovery.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.98B	18.02B	18.17B	17.83B	17.16B	19.54B
Gross Profit	7.81B	7.77B	7.45B	7.19B	7.17B	8.78B
EBITDA	1.73B	1.85B	1.04B	-280.00M	1.73B	2.56B
Net Income	373.00M	-702.00M	-466.00M	-1.62B	612.00M	1.19B
Balance Sheet
Total Assets	27.17B	28.98B	29.41B	30.69B	30.96B	27.71B
Cash, Cash Equivalents and Short-Term Investments	1.20B	2.40B	1.87B	1.18B	2.31B	3.23B
Total Debt	7.57B	7.49B	7.69B	8.20B	6.98B	6.93B
Total Liabilities	15.44B	16.93B	17.34B	17.41B	16.49B	15.81B
Stockholders Equity	11.70B	12.01B	12.03B	13.25B	14.44B	11.87B
Cash Flow
Free Cash Flow	-20.00M	893.00M	1.49B	-979.00M	866.00M	1.83B
Operating Cash Flow	807.00M	1.57B	2.14B	-173.00M	1.63B	2.78B
Investing Cash Flow	-320.00M	-573.00M	-636.00M	-1.49B	-3.67B	-1.32B
Financing Cash Flow	425.00M	-496.00M	-848.00M	500.00M	-2.35B	483.00M

Koninklijke Philips N.V. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.64
• 50DMA: Negative
• 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 20.64 is above the 20-day moving average (MA) of 20.12, above the 50-day MA of 20.62, and below the 200-day MA of 23.57, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 54.11 is Neutral, neither overbought nor oversold. The STOCH value of 83.01 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	54 Neutral	€19.61B	―	-7.02%	3.60%	-0.81%	-54.90%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.34%	16.99%	1.69%
PHGUF		$742.99M	―	-6.31%	―	―	―
0JXZ		€1.58B	19.97	-6.36%	―	―	―