Koninklijke Philips -- The Essentials

Koninklijke Philips has moved 2.7% so far today on a volume of 4,892,129, compared to its average of 3,262,957. In contrast, the S&P 500 index moved 0.3%.

Over the last 52 weeks, the stock moved -60.4%, with a high of $38.77 and a low of $11.75. During this time, the stock lagged the S&P 500 index by -40.2%. Koninklijke Philips N.V. operates as a health technology company in North America and internationally. The large-cap Healthcare company has 79,097 full time employees and is based in Amsterdam, Netherlands. Koninklijke Philips has not offered any dividends in the last year.

Snapshot of the Company's Consistently strong gross margins and A steady stream of strong cash flows:

2018-12-31 2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $18,121 $19,481 $19,535 $17,156
Revenue Growth n/a 7.5% 0.3% -12.2%
Gross Margins 47.2% 45.56% 44.95% 41.78%
Gross Margins Growth n/a -3.47% -1.34% -7.05%
Operating Margins 9.13% 8.58% 8.62% 3.63%
Operating Margins Growth n/a -6.02% 0.47% -57.89%
Free Cash Flow (MM) $937 $1,018 $1,835 $866
FCF Growth n/a 8.64% 80.26% -52.81%
Net Debt / EBITDA 0.96 0.88 0.55 1.4

Basic Valuation Metrics Show Koninklijke philips Is Undervalued:

Compared to the Healthcare sector's average of 13.21, Koninklijke Philips has a trailing twelve month price to earnings (P/E) ratio of 33.8 and, based on its Eps guidance of 0.92, an expected P/E ratio of 16.2. The firm's price to earnings growth (PEG) is 2.83, which indicates that it is overvalued in terms of its expected rate of earnings growth. . Koninklijke Philips's price to book (P/B) ratio is 0.9 compared to its sector average of 4.07.

As of the date of publication, the company is trading 15.8% above their fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:

√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 0.44 * 16.635) = $12.83

There is Mixed market sentiment About Koninklijke Philips:

2 analysts are following Koninklijke Philips and have set target prices ranging from $14.6 to $43.2 per share. On average, they have given the company a rating of hold. At today's prices, PHG is trading -48.58% away from its average analyst target price of $28.9 per share, implying an analyst consensus of strong upside potential for the stock.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.