Koninklijke Philips (PHG) AI Stock Analysis

• Market Cap: $26.76B
• Dividend Yield: 3.13%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -0.76%
• EPS Growth: -55.03%
• Country: US
• Employees: 67,247
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Devices
• EPS (TTM): 0.41
• Shares Outstanding: 962,920,100
• 10 Day Avg. Volume: 779,257
• 30 Day Avg. Volume: 1,090,096
• 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: 1.15
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 3.92
• Enterprise Value/Ebitda: 13.93
• 1Y Price Target: $30.30
• Price Target Upside: 6.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $29.00 ▲(2.33% 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 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 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.

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	17.86B	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

• Technical Analysis Sentiment: Positive
• Last Price: 28.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 28.34 is above the 20-day moving average (MA) of 27.01, above the 50-day MA of 25.23, and above the 200-day MA of 24.92, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 69.17 is Neutral, neither overbought nor oversold. The STOCH value of 87.10 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
ABT	79 Outperform	$230.77B	16.58	31.01%	1.75%	5.85%	152.28%
EW	78 Outperform	$48.04B	55.86	15.71%	―	-5.23%	-39.83%
BSX	74 Outperform	$157.32B	63.19	11.71%	―	21.45%	36.19%
SYK	72 Outperform	$150.71B	52.16	14.25%	0.84%	11.36%	-15.66%
PHG	56 Neutral	$26.76B	―	-7.10%	3.13%	-0.76%	-55.03%
Sector *	51 Neutral	$7.89B	-0.12	-39.89%	2.16%	21.38%	-1.56%
SSKN	44 Neutral	$7.30M	―	-235.41%	―	0.36%	-17.20%