Is there a new start for Koninklijke Philips?

Koninklijke Philips current daily volatility is 1.62 percent, with beta of 0.33 and alpha of -0.06 over Russell 2000 . We found thirty-five available fundamentals for Koninklijke Philips which can be compared to its peers in the industry. To make sure the equity is not overpriced, please verify all Koninklijke Philips N V NY Reg fundamentals including its Current Ratio, Total Asset and the relationship between Cash and Equivalents and Earnings Per Share . Given that Koninklijke Philips has Price to Book of 3.02 , we recommend you check Koninklijke Philips last-minute market performance to make sure the company can sustain itself down the road. Use Koninklijke Philips to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of Koninklijke Philips to be traded at $47.73 in 30 days.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

This firm has 5.74 B in debt with debt to equity (D/E) ratio of 48.7 . This implies that the organisation may be unable to create cash to meet all of its financial commitments. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about $0.65 per share. The book value of the company was at this time reported as 14.39. The company last dividend was issued on 2019-05-13. Koninklijke Philips had 4:1 split on 2000-08-01.
Koninklijke Philips financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Koninklijke Philips, including all of Koninklijke Philips's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Koninklijke Philips assets, the company is considered highly leveraged. Understanding the composition and structure of overall Koninklijke Philips debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Koninklijke Total Liabilities

Koninklijke Philips liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Koninklijke Philips has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Koninklijke Philips balance sheet include debt obligations and money owed to different Koninklijke Philips vendors, workers, and loan providers. Below is the chart of Koninklijke short long-term liabilities accounts currently reported on its balance sheet.
You can use Koninklijke Philips NV financial leverage analysis tool to get a better grip on understanding its financial position

How important is Koninklijke Philips's Liquidity

Koninklijke Philips financial leverage refers to using borrowed capital as a funding source to finance Koninklijke Philips NV ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Koninklijke Philips financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Koninklijke Philips' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Koninklijke Philips' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Koninklijke Philips's total debt and its cash.

What is the case for Koninklijke Philips Investors

The small decline in market price for the last few months may encourage investors to take a closer look at the firm as it closed today at a share price of 45.31 on 0 in trading volume. The company management did not add much value to Koninklijke Philips investors in October. However, diversifying your holdings with Koninklijke Philips or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.6204. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Koninklijke Philips maintains market capitalization of 39.06 b. Koninklijke Philips is trading at 45.46 which is 0.11 percent up. Day high is 45.565. Koninklijke Philips Tangible Assets Book Value per Share is increasing over the last 4 years. Also, Koninklijke Philips Net Cash Flow from Investing is increasing over the last 4 years.
 2009 2013 2018 2019 (projected)
Interest Expense 264,000,000  435,000,000  391,500,000  370,684,211 
Gross Profit 8,553,000,000  8,729,000,000  7,856,100,000  8,630,000,000 
All things considered, our ongoing buy/sell recommendation on the firm is Strong Hold. We believe Koninklijke Philips is undervalued with low chance of distress for the next two years.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Koninklijke Philips NV. Please refer to our Terms of Use for any information regarding our disclosure principles.

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