Koninklijke Philips (PHG) AI Stock Analysis

• Market Cap: $22.84B
• Dividend Yield: 3.67%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -0.76%
• EPS Growth: -55.03%
• Country: US
• Employees: 67,247
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Devices
• EPS (TTM): 0.28
• Shares Outstanding: 962,920,100
• 10 Day Avg. Volume: 958,591
• 30 Day Avg. Volume: 1,094,060
• PEG Ratio: 0.32
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -897.18
• 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: $30.30
• Price Target Upside: 25.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $24.00 ▼(-0.70%Downside)

Philips is navigating financial and operational challenges, reflected in its overall score. Key strengths include stable cash flow and strong innovation impact, supporting some resilience in margins. However, declining revenues, net losses, and weak technicals are significant concerns. The earnings call offers a cautiously optimistic outlook with expected sales growth and operational efficiencies, but geopolitical risks and valuation issues weigh heavily.

Koninklijke Philips Business Overview & Revenue Model

Company Description

Koninklijke Philips N.V., commonly known as Philips, is a Dutch multinational corporation headquartered in Amsterdam, Netherlands. The company operates primarily in the health technology sector, focusing on improving people's health through meaningful innovation. Philips offers a wide range of products and services, including diagnostic imaging systems, patient monitoring solutions, and personal health products like electric toothbrushes and air purifiers. With a strong emphasis on research and development, Philips aims to deliver integrated solutions across the healthcare continuum, from healthy living and prevention to diagnosis, treatment, and home care.

How the Company Makes Money

Philips generates revenue through the sale of its health technology products and services. The company's revenue streams include the sale of medical diagnostic imaging equipment, patient monitoring devices, and personal health products, such as sleep and respiratory care devices. Additionally, Philips earns income from providing healthcare consulting, software solutions, and maintenance services to hospitals and healthcare providers. Strategic partnerships with healthcare institutions, governments, and technology companies also contribute to its earnings, as does its focus on expanding its presence in emerging markets. Philips' business model relies heavily on innovation, leveraging its research and development capabilities to sustain growth and adapt to the evolving healthcare landscape.

Koninklijke Philips Financial Statement Overview

Summary

Koninklijke Philips is currently facing financial challenges with declining revenues and net losses, although there is some operational recovery indicated by improvements in EBIT margin. The balance sheet is stable but at risk due to ongoing losses, and while cash flow remains positive, it highlights the need for better earnings quality. The financial outlook suggests potential for recovery if revenue growth and operational improvements continue.

Income Statement

Koninklijke Philips has experienced a declining revenue trend from its peak in 2020. The gross profit margin has also decreased over the years, indicating challenges in cost management or pricing power. The company has been suffering net losses in recent years, which impacts the net profit margin negatively. The EBIT margin is low, though there has been an improvement in the latest year, suggesting some operational recovery. Overall, the income statement reflects a company facing profitability challenges with some signs of stabilization.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which suggests a balanced leverage position but with room for improvement. The equity ratio indicates a relatively stable financial foundation, though the decline in stockholders' equity over recent years could be a concern. Return on equity is negative due to net losses, highlighting the need for improved profitability. Overall, the balance sheet reveals a stable yet potentially vulnerable position due to ongoing losses.

Cash Flow

Philips has managed to generate positive operating cash flow, with free cash flow remaining positive recently, despite capital expenditures. The free cash flow growth rate has been fluctuating, reflecting challenges in maintaining consistent cash generation. The operating cash flow to net income ratio is healthy, indicating that cash generation is stronger than earnings performance would suggest. Overall, the cash flow statement shows resilience in cash management but underscores the need to enhance earnings quality.

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	2.10B	1.92B	1.04B	115.00M	2.00B	2.75B
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	7.61B	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	2.51B
Investing Cash Flow	-320.00M	-573.00M	-636.00M	-1.49B	-3.67B	-1.27B
Financing Cash Flow	425.00M	-496.00M	-848.00M	500.00M	-2.35B	483.00M

Koninklijke Philips Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.17
• 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 PHG, the sentiment is Positive. The current price of 24.17 is above the 20-day moving average (MA) of 23.45, above the 50-day MA of 23.60, and below the 200-day MA of 25.64, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 93.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHG.

Koninklijke Philips Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYK	81 Outperform	$151.06B	53.34	14.26%	0.85%	10.76%	-15.22%
ABT	74 Outperform	$233.90B	17.44	30.66%	1.75%	5.00%	139.98%
ABT	74 Outperform	$233.90B	17.44	30.66%	1.75%	5.00%	139.98%
BSX	74 Outperform	$154.34B	76.44	9.65%	―	19.35%	14.31%
BSX	74 Outperform	$154.34B	76.44	9.65%	―	19.35%	14.31%
EW	64 Neutral	$45.05B	51.31	16.73%	―	-9.84%	-35.77%
PHG	51 Neutral	$22.84B	―	-7.10%	3.67%	-0.76%	-55.03%
SSKN	49 Neutral	$9.72M	―	-151.23%	―	3.30%	31.84%
Sector *	46 Neutral	C$194.71M	-4.33	-8.58%	2.64%	13.66%	-0.73%