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Koninklijke Philips N.V. (PHG)
:PHG
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Koninklijke Philips
(NYSE:PHG)
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Rating:56Neutral
Price Target:
$29.00
▲(3.57% Upside)
Philips' overall stock score of 56 reflects its current financial struggles, with declining revenues and profitability challenges being significant concerns. The technical analysis suggests a strong momentum, though caution is advised due to overbought indicators. The earnings call provided a balanced view with some positive outlooks, but valuation remains an issue due to negative earnings. The potential for recovery exists if operational improvements and revenue growth continue.
Koninklijke Philips (PHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.61B
Dividend Yield3.16%
Average Volume (3M)658.74K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-0.76%
EPS Growth-55.03%
CountryUS
Employees67,247
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.41
Shares Outstanding962,920,100
10 Day Avg. Volume633,497
30 Day Avg. Volume658,743
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)1.90
Price to Sales (P/S)1.27
P/FCF Ratio25.56
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue1.72
Enterprise Value/Gross Profit3.92
Enterprise Value/Ebitda13.93
Forecast
1Y Price Target
$29.00Price Target Upside3.57% Upside
Rating ConsensusHold
Number of Analyst Covering0
Koninklijke Philips Business Overview & Revenue Model
Company DescriptionKoninklijke Philips N.V. (PHG) is a leading global health technology company based in the Netherlands, dedicated to improving people’s health and well-being through meaningful innovation. Philips operates primarily in the sectors of healthcare, consumer lifestyle, and lighting solutions, focusing on diagnostic imaging, image-guided therapy, patient monitoring, and personal health products. Its core offerings include advanced medical devices, health informatics, and a range of consumer products designed to enhance everyday life and health management.
How the Company Makes MoneyPhilips generates revenue through diverse streams across its three main sectors: healthcare, consumer lifestyle, and lighting. The healthcare division is the largest contributor, offering products such as imaging systems, patient monitoring solutions, and healthcare informatics that are sold to hospitals and healthcare providers. The consumer lifestyle segment includes personal health products like electric toothbrushes and kitchen appliances, which are marketed directly to consumers and through retail partnerships. The lighting division, although transitioning towards LED and connected lighting solutions, continues to provide revenue through traditional products. Key revenue streams also come from long-term service contracts, software subscriptions, and partnerships with healthcare institutions, enhancing customer loyalty and recurring revenue. Philips' strategic alliances with organizations, such as healthcare providers and technology firms, further bolster its market position and revenue potential.
Koninklijke Philips Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook, with strong order intake growth and improvements in adjusted EBITA margin driven by innovation and productivity measures. However, challenges such as the decline in Connected Care sales, subdued performance in China, and the impact of tariffs were noted. Despite these challenges, the Company has increased its adjusted EBITA margin and free cash flow outlook, indicating confidence in its ongoing strategies.Q2-2025 Updates
Positive Updates
Order Intake Growth
Order intake grew 6% in Q2, building on 9% growth from the previous year, with sustained double-digit growth in North America and strong performance across growth geographies.
Adjusted EBITA Margin Improvement
Adjusted EBITA margin increased by 130 basis points to 12.4% in Q2, driven by productivity measures, improved gross margin from innovation, favorable mix effect, and improved operational efficiency.
Strong Performance in Personal Health
All three businesses within Personal Health grew, driven by strong traction from new innovations and enhancements to core products, supported by targeted investments. This was partially offset by a decline in China.
Supply Chain Reliability Improvement
Service levels reached an all-time high of 86% in Q2, an improvement of more than 10 percentage points year-on-year.
Innovation in Image-Guided Therapy
A multiyear nationwide agreement with the Indonesian Ministry of Health will expand access to image-guided therapy using the Azurion platform, highlighting Philips' leadership in minimally invasive procedures.
Negative Updates
Decline in Connected Care
Comparable sales in Connected Care declined 1% in Q2, mainly due to a low single-digit decline in Monitoring, following a high 2-year comparison base.
Challenges in China
China continued to lag due to subdued consumer sentiment, impacting Personal Health. The Company maintains a cautious view on China in its full-year outlook.
Impact of Tariffs
The tariff landscape remains dynamic, with an estimated net impact for 2025 of between EUR 150 million and EUR 200 million, affecting adjusted EBITA margin projections.
Company Guidance
During the second quarter of 2025, Philips reported a range of positive metrics, showcasing robust performance and strategic advancements. Order intake grew by 6%, building on a 9% increase from the previous year, while comparable sales rose by 1%, driven by strong performance in Personal Health. The company achieved a 130 basis point expansion in margins to 12.4%, attributed to innovation and productivity measures. Philips reiterated its full-year comparable sales growth outlook of 1% to 3% and raised its adjusted EBITA margin range to 11.3% to 11.8%, incorporating recent tariff developments. Additionally, Philips expects full-year free cash flow to range between EUR 0.2 billion and EUR 0.4 billion, assuming current tariff levels persist. The company highlighted strong double-digit order intake growth in North America, substantial contributions from Diagnosis & Treatment and Connected Care segments, and successful new innovations, particularly in Image-Guided Therapy and Precision Diagnosis.Koninklijke Philips Financial Statement Overview
Summary
Koninklijke Philips faces profitability challenges with declining revenues and net losses, though operational improvements have led to some signs of stabilization. The balance sheet remains stable, but the equity position is under pressure. Positive cash flows indicate resilience, highlighting the need for enhanced earnings quality.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.45
Neutral
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.50
Neutral
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.86B | 18.02B | 18.17B | 17.83B | 17.16B | 19.54B |
| Gross Profit | 7.83B | 7.77B | 7.45B | 7.19B | 7.17B | 8.78B |
| EBITDA | 2.21B | 1.92B | 1.04B | 115.00M | 2.00B | 2.75B |
| Net Income | 162.00M | -702.00M | -466.00M | -1.61B | 3.32B | 1.19B |
Balance Sheet | ||||||
| Total Assets | 26.38B | 28.98B | 29.41B | 30.69B | 30.96B | 27.71B |
| Cash, Cash Equivalents and Short-Term Investments | 1.82B | 2.40B | 1.87B | 1.18B | 2.31B | 3.23B |
| Total Debt | 8.43B | 7.49B | 7.29B | 8.20B | 6.98B | 6.93B |
| Total Liabilities | 15.97B | 16.93B | 17.34B | 17.41B | 16.49B | 15.81B |
| Stockholders Equity | 10.38B | 12.01B | 12.03B | 13.25B | 14.44B | 11.87B |
Cash Flow | ||||||
| Free Cash Flow | 279.00M | 893.00M | 1.49B | -979.00M | 866.00M | 2.15B |
| Operating Cash Flow | 1.10B | 1.57B | 2.14B | -173.00M | 1.63B | 2.64B |
| Investing Cash Flow | -382.00M | -573.00M | -636.00M | -1.49B | -3.67B | -1.27B |
| Financing Cash Flow | 498.00M | -496.00M | -848.00M | 500.00M | -2.35B | 483.00M |
Koninklijke Philips Technical Analysis
Positive
28.00
Price Trends
27.40
Positive
25.57
Positive
25.22
Positive
Market Momentum
0.04
Positive
56.50
Neutral
79.92
Neutral
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 28 is above the 20-day moving average (MA) of 27.79, above the 50-day MA of 27.40, and above the 200-day MA of 25.22, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 79.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHG.
Koninklijke Philips Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $234.25B | 16.83 | 31.01% | 1.72% | 5.85% | 152.28% | |
75 Outperform | $141.64B | 49.03 | 14.25% | 0.91% | 11.36% | -15.66% | |
75 Outperform | $144.20B | 57.92 | 11.71% | ― | 21.45% | 36.19% | |
71 Outperform | $26.29B | 46.94 | 22.83% | ― | 9.30% | -14.95% | |
56 Neutral | $26.61B | ― | -7.10% | 3.16% | -0.76% | -55.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $11.12M | ― | -235.41% | ― | 0.36% | -17.20% |
* Healthcare Sector Average
PHG
Koninklijke Philips
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-2.83
-9.18%
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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.