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Koninklijke Philips (PHG)
NYSE:PHG
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Koninklijke Philips
(NYSE:PHG)
Rating:48Neutral
Price Target:
$23.50
▲( 1.86% Upside)
Koninklijke Philips (PHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.56B
Dividend YieldN/A
Average Volume (3M)1.02M
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth-0.76%
EPS Growth-55.03%
CountryUS
Employees67,247
SectorHealthcare
Sector Strength43
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.28
Shares Outstanding939,939,400
10 Day Avg. Volume1,167,120
30 Day Avg. Volume1,018,303
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)1.70
Price to Sales (P/S)0.00
P/FCF Ratio-995.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.00Price Target Upside12.70% Upside
Rating ConsensusHold
Number of Analyst Covering1
Koninklijke Philips Business Overview & Revenue Model
Company DescriptionKoninklijke 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 MoneyPhilips generates revenue primarily through the sale of its innovative health technology products and services. The Diagnosis & Treatment segment contributes significantly to the company's earnings, offering advanced imaging systems, ultrasound, and healthcare informatics solutions to healthcare providers. The Connected Care segment provides patient monitoring and analytics services, while the Personal Health segment offers consumer health products such as oral care, grooming, and mother and child care products. Philips also engages in strategic partnerships and collaborations with hospitals, healthcare systems, and research institutions to enhance its product offerings and expand its market reach, further driving revenue growth.
Koninklijke Philips Financial Statement Overview
Summary
Koninklijke Philips is experiencing financial challenges with declining revenues and net losses. Despite a stable balance sheet and positive cash flows, profitability and equity positions are under pressure. The company needs to restore revenue growth and improve cost efficiencies for better shareholder value.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 | ||||
| 17.98B | 18.02B | 18.17B | 17.83B | 17.16B | 19.54B | Gross Profit |
| 7.81B | 7.77B | 7.45B | 7.19B | 7.17B | 8.78B | EBIT |
| 1.51B | 529.00M | -115.00M | -116.00M | 553.00M | 1.54B | EBITDA |
| 2.10B | 1.92B | 1.04B | 115.00M | 2.00B | 2.75B | Net Income Common Stockholders |
| 373.00M | -702.00M | -466.00M | -1.62B | 612.00M | 1.19B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.20B | 2.40B | 1.87B | 1.18B | 2.31B | 3.23B | Total Assets |
| 27.17B | 28.98B | 29.41B | 30.69B | 30.96B | 27.71B | Total Debt |
| 7.57B | 7.49B | 7.61B | 8.20B | 6.98B | 6.93B | Net Debt |
| 6.38B | 5.09B | 5.74B | 7.03B | 4.68B | 3.71B | 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 | 2.78B | Investing Cash Flow |
| -320.00M | -573.00M | -636.00M | -1.49B | -3.67B | -1.32B | Financing Cash Flow |
| 425.00M | -496.00M | -848.00M | 500.00M | -2.35B | 483.00M |
Koninklijke Philips Technical Analysis
Negative
23.07
Price Trends
23.92
Negative
24.82
Negative
26.40
Negative
Market Momentum
-0.08
Positive
41.99
Neutral
6.53
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 23.07 is below the 20-day moving average (MA) of 24.01, below the 50-day MA of 23.92, and below the 200-day MA of 26.40, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 6.53 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
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $235.23B | 17.54 | 30.66% | 1.71% | 5.00% | 139.98% | |
78 Outperform | $157.62B | 76.67 | 9.65% | ― | 19.35% | 14.31% | |
78 Outperform | $144.57B | 51.05 | 14.26% | 0.86% | 10.76% | -15.22% | |
71 Outperform | $45.66B | 50.85 | 16.73% | ― | -9.84% | -35.77% | |
53 Neutral | $5.14B | 3.06 | -43.57% | 2.81% | 16.81% | -0.12% | |
48 Neutral | $22.56B | ― | -7.10% | ― | -0.76% | -55.03% | |
48 Neutral | $10.05M | ― | -151.23% | ― | 3.30% | 31.84% |
* Healthcare Sector Average
Performance Comparison
PHG
Koninklijke Philips
23.07
-2.64
-10.27%
ABT
Abbott Laboratories
131.50
29.32
28.69%
BSX
Boston Scientific
104.50
30.12
40.49%
EW
Edwards Lifesciences
74.79
-12.67
-14.49%
SSKN
Strata Skin Sciences
2.47
-1.23
-33.24%
SYK
Stryker
378.28
51.18
15.65%
Koninklijke Philips Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -7.24%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call indicated a mixed sentiment. Philips demonstrated strong innovation impact and resilience in EBITA margin, despite significant headwinds from tariffs and challenges in the Chinese market. The company is actively working on mitigation strategies, but uncertainties related to tariffs and market dynamics in China pose ongoing risks.Q1-2025 Updates
Positive Updates
Order Intake Growth Despite Challenges
Order intake grew despite a double-digit decline in China, driven by double-digit order intake growth in North America and strength in Diagnosis & Treatment.
Strong Innovation Impact
More than 50% of sales are fueled by AI-driven innovations from new and upgraded products launched in the last three years, showcasing the power of Philips' innovation strategy.
Resilient Adjusted EBITA Margin
Adjusted EBITA margin delivery was resilient at 8.6% despite lower sales, driven by productivity measures and innovation.
Improved Free Cash Flow Excluding Settlement
Excluding the €1 billion Respironics settlement payment, free cash flow increased by €270 million year-on-year, driven by higher earnings and lower working capital outflows.
Negative Updates
China Market Challenges
Sales in China faced a double-digit decline across all segments due to subdued consumer sentiment and inventory destocking in Personal Health.
Tariff Impact on Financial Outlook
The impact of announced tariffs is estimated at €250 million to €300 million net, leading to a reduction in adjusted EBITA margin guidance to 10.8% to 11.3% from 11.8% to 12.3%.
Negative Free Cash Flow After Settlement
Free cash flow was an outflow of €1.1 billion, primarily due to a €1 billion payment related to the Respironics recall-related settlements in the US.
Flat to Declining Sales in Q2
Guidance indicates that Q2 sales may remain flat or slightly decline compared to Q1, impacted by ongoing challenges in China and tariff effects.
Company Guidance
During the first-quarter 2025 earnings call, Royal Philips provided guidance that highlighted a continued expectation of 1% to 3% in comparable sales growth for the full year. The company projected an adjusted EBITA margin of 10.8% to 11.3%, reflecting a 100 basis points adjustment due to tariffs, net of significant mitigation actions. Free cash flow is anticipated to be slightly positive, considering a €1 billion outflow related to the Respironics settlement. Order intake showed a 4% increase in the quarter, driven by strong growth in Diagnosis & Treatment and robust double-digit growth in North America. Despite a double-digit decline in China, the momentum from innovations and productivity measures helped improve gross margins and maintain resilience in adjusted EBITA margin. Philips emphasized its proactive measures to counter tariffs, including optimizing supply chains, selective pricing, and leveraging partnerships, while maintaining a strong focus on innovation and operational efficiency to support sustainable growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.