Intrinsiqq
Koninklijke Philips N.V. ADR logoKoninklijke Philips N.V. ADRPHG
$25.74+0.98%
Koninklijke Philips N.V. ADR logo

Koninklijke Philips N.V. ADR

PHG

$25.74

+$0.25 (+0.98%)

⊜ Compare
ProfitabilityThin marginsGrowthDecliningCash FlowHealthy conversionValuationFairly valued
What stands out

Operating margin is thin at 8.12%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.

What's changing

Revenue declined 16.2% YoY. The question is whether this is cyclical or a structural shift.

What deserves caution

Free cash flow declined 52% versus the prior year, cash generation momentum has weakened. Net debt of €5.02B represents 10.0x FCF, leverage limits flexibility.

Valuation context

19.6x earnings, 13.7x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.

Price History

-9.1%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap€22.16B
EPS€1.17
P/E19.55
P/FCF13.74
EV/EBITDA9.14
FCF Yield7.3%
Div. Yield3.78%
Net Debt/FCF3.1x
52-Week Range
$23.81$32.91

Profitability & Returns

Revenue (TTM)

€17.66B

▼ -16.2% YoY

Net Income (TTM)

€1.12B

▲ +208.8% YoY

Op. Margin

9.89%

▲ +5.3pp YoY

ROIC

5.27%

▲ +3.9pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

€1.61B

▼ -52.2% YoY

Op. Cash Flow (TTM)

€2.28B

▼ -45.0% YoY

Net Debt

€5.02B

Cash & Equiv.

€2.79B

3Y CAGR: +0.0%

Continue Research

Is Koninklijke Philips N.V. ADR (PHG) overvalued?

At a P/E of 19.6 and a price-to-free-cash-flow of 13.7, Koninklijke Philips N.V. ADR (PHG) trades below a two-stage DCF intrinsic value of about €51.31 per share, so at €25.74 the stock looks undervalued (99.3% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Koninklijke Philips N.V. ADR scores 45/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 3.8%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Koninklijke Philips N.V. ADR's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about €51.31 per share for PHG, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around €38.48. At today's €25.74, that puts the stock about 99.3% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Koninklijke Philips N.V. ADR a high-quality business?+

Koninklijke Philips N.V. ADR scores 45 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 9.9% operating margin and a 5.3% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Koninklijke Philips N.V. ADR (PHG) pay a dividend, and how much?+

Yes, Koninklijke Philips N.V. ADR pays a regular dividend of about €0.86 per share per year (typically in quarterly installments), a yield of roughly 3.8% at the current price. That is a payout ratio of about 75.0% of earnings, so the dividend is covered, with less cushion. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For PHG's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Koninklijke Philips N.V. ADR a good stock to buy right now?+

That depends on valuation and quality together, not either alone. PHG currently trades below its estimated intrinsic value and scores 45/100 on quality (mixed). It also yields about 3.8%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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