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

• Market Cap: €23.32B
• Dividend Yield: 3.65%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -0.81%
• EPS Growth: -54.90%
• Country: NL
• Employees: 67,247
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.36
• Shares Outstanding: 962,920,100
• 10 Day Avg. Volume: 1,198,930
• 30 Day Avg. Volume: 1,333,770
• PEG Ratio: -0.54
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 25.50
• 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: €25.83
• Price Target Upside: 11.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: €24.00 ▲(3.14% Upside)

The overall stock score reflects the company's financial challenges, with persistent net losses and declining revenues weighing heavily. Technical analysis suggests some support in the longer term, but short-term momentum is weak. The valuation is impacted by negative earnings, though the dividend yield offers some compensation. Financial performance is the most significant factor, highlighting the need for improved profitability.

Positive Factors

Strategic Partnership

This partnership expands Philips' reach in the U.S. healthcare market, providing access to 3.4 million members, enhancing its market position and potential revenue streams.

Operational Margin Improvement

Improved operational margins indicate better cost management and operational efficiency, which can lead to enhanced profitability over the long term.

Cash Flow Management

Improved cash flow management enhances financial flexibility, allowing Philips to invest in growth opportunities and manage debt more effectively.

Negative Factors

Declining Revenue

Negative revenue growth reflects challenges in market demand or competitive pressures, which could impact long-term financial performance and market share.

Persistent Net Losses

Ongoing net losses can strain resources and limit investment in growth initiatives, potentially affecting long-term sustainability and shareholder value.

Equity Pressure

Continuous financial losses may erode equity over time, reducing financial stability and limiting the company's ability to raise capital or invest in strategic initiatives.

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 multiple key streams, primarily from its three main sectors: Personal Health, Diagnosis & Treatment, and Connected Care. The company earns money by selling medical equipment such as imaging systems, patient monitoring solutions, and other diagnostic tools, which are essential in hospitals and healthcare facilities. Additionally, Philips has a strong presence in consumer health products, including personal care items and home healthcare devices, contributing to its revenue. The company also benefits from recurring revenue through software solutions, maintenance contracts, and subscription services, which provide ongoing support to healthcare providers. Strategic partnerships with healthcare institutions and technology companies further enhance its market reach and innovation capabilities, driving additional revenue growth.

Koninklijke Philips N.V. Financial Statement Overview

Summary

Koninklijke Philips N.V. is experiencing a challenging period with declining revenues and persistent net losses. Despite these challenges, there are signs of improvement in operational margins and cash flow management. 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	17.78B	18.02B	18.17B	17.83B	17.16B	19.54B
Gross Profit	7.73B	7.77B	7.45B	7.19B	7.17B	8.78B
EBITDA	1.95B	1.85B	1.04B	-280.00M	1.73B	2.56B
Net Income	165.00M	-702.00M	-466.00M	-1.61B	3.32B	1.19B
Balance Sheet
Total Assets	26.34B	28.98B	29.41B	30.69B	30.96B	27.71B
Cash, Cash Equivalents and Short-Term Investments	1.91B	2.40B	1.87B	1.18B	2.31B	3.23B
Total Debt	8.38B	7.49B	7.69B	8.20B	6.98B	6.93B
Total Liabilities	15.76B	16.93B	17.34B	17.41B	16.49B	15.81B
Stockholders Equity	10.55B	12.01B	12.03B	13.25B	14.44B	11.87B
Cash Flow
Free Cash Flow	264.00M	893.00M	1.49B	-979.00M	866.00M	1.83B
Operating Cash Flow	1.16B	1.57B	2.14B	-173.00M	1.63B	2.78B
Investing Cash Flow	-540.00M	-573.00M	-636.00M	-1.49B	-3.67B	-1.14B
Financing Cash Flow	430.00M	-496.00M	-848.00M	500.00M	-2.35B	483.00M

Koninklijke Philips N.V. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:PHIA, the sentiment is Negative. The current price of 23.27 is below the 20-day moving average (MA) of 24.12, below the 50-day MA of 24.07, and above the 200-day MA of 22.49, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 50.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
PHARM	67 Neutral	€966.06M	-7,050.00	0.44%	―	24.19%	99.16%
PHIA	56 Neutral	€23.32B	-32.49	-7.02%	3.65%	-0.81%	-54.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLPG	48 Neutral	€1.78B	-4.09	-16.72%	―	―	―