Koninklijke Philips (PHG) AI Stock Analysis

• Market Cap: $25.67B
• Dividend Yield: 3.32%
• Average Volume (3M): 887.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -0.76%
• EPS Growth: -55.03%
• Country: US
• Employees: 67,247
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.41
• Shares Outstanding: 962,920,100
• 10 Day Avg. Volume: 697,755
• 30 Day Avg. Volume: 887,416
• PEG Ratio: -0.61
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 25.56
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.91
• Enterprise Value/Gross Profit: 4.39
• Enterprise Value/Ebitda: 14.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $27.00 ▼(-5.16% Downside)

Koninklijke Philips faces significant financial challenges with declining revenues and net losses, impacting its valuation negatively. However, strong order intake growth and improvements in EBITDA margin and cash flow from the earnings call provide a balanced outlook. Technical indicators suggest a bearish trend, adding to the cautious sentiment.

Koninklijke Philips Business Overview & Revenue Model

Company Description

Koninklijke 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 Money

Philips 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 Financial Statement Overview

Summary

Koninklijke Philips is experiencing financial difficulties with declining revenues and net losses. Despite a stable balance sheet and positive cash flows, profitability and equity are under pressure. The company shows potential for recovery with operational improvements and revenue growth.

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	17.78B	18.02B	18.17B	17.83B	17.16B	17.31B
Gross Profit	7.73B	7.77B	7.45B	7.19B	7.17B	7.91B
EBITDA	2.33B	1.85B	1.04B	115.00M	2.00B	2.75B
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	7.29B	7.34B	6.05B	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	-552.83M	1.35B	1.94B	-648.45M	1.46B	2.15B
Operating Cash Flow	-267.95M	1.70B	2.31B	-181.82M	1.93B	2.64B
Investing Cash Flow	-558.76M	-633.87M	-553.53M	-1.58B	-317.95M	-1.27B
Financing Cash Flow	427.48M	-536.52M	-916.79M	525.49M	-2.77B	483.00M

Koninklijke Philips Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHG, the sentiment is Negative. The current price of 28.47 is above the 20-day moving average (MA) of 28.04, above the 50-day MA of 27.94, and above the 200-day MA of 25.71, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 36.60 is Neutral, neither overbought nor oversold. The STOCH value of 5.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHG.

Koninklijke Philips Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSX	79 Outperform	$143.81B	51.67	12.66%	―	21.62%	54.80%
ABT	77 Outperform	$219.36B	15.82	30.62%	1.90%	6.37%	142.39%
SYK	70 Outperform	$139.29B	47.83	14.04%	0.93%	10.95%	-18.32%
DXCM	69 Neutral	$23.30B	32.52	30.63%	―	14.21%	5.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PHG	50 Neutral	$25.67B	―	―	3.32%	-0.76%	-55.03%
SSKN	41 Neutral	$9.66M	-0.61	-207.19%	―	-5.19%	-0.81%

Koninklijke Philips Corporate Events

Philips Reports Strong Q3 2025 Results with Robust Order Growth

On November 4, 2025, Koninklijke Philips N.V. reported its third-quarter results, highlighting an 8% growth in comparable order intake and a 3% increase in comparable sales, amounting to EUR 4.3 billion. The company achieved an adjusted EBITA margin of 12.3%, with a free cash flow of EUR 172 million. Philips emphasized its commitment to patient safety and quality, alongside its strategic focus on AI-powered innovations and long-term partnerships. The company also launched several new products and signed significant partnerships, enhancing its market position and operational efficiency. Philips reiterated its full-year 2025 outlook, expecting margins at the upper end of the range, despite navigating challenges such as tariffs and macroeconomic uncertainties.