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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.31
PHG's Cash to Debt is ranked lower than
80% of the 2161 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.39 vs. PHG: 0.31 )
Ranked among companies with meaningful Cash to Debt only.
PHG' s 10-Year Cash to Debt Range
Min: 0.1  Med: 0.67 Max: N/A
Current: 0.31
Equity to Asset 0.36
PHG's Equity to Asset is ranked lower than
82% of the 2070 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.58 vs. PHG: 0.36 )
Ranked among companies with meaningful Equity to Asset only.
PHG' s 10-Year Equity to Asset Range
Min: 0.25  Med: 0.47 Max: 0.61
Current: 0.36
0.25
0.61
Interest Coverage 1.17
PHG's Interest Coverage is ranked lower than
96% of the 1258 Companies
in the Global Consumer Electronics industry.

( Industry Median: 339.33 vs. PHG: 1.17 )
Ranked among companies with meaningful Interest Coverage only.
PHG' s 10-Year Interest Coverage Range
Min: 0.04  Med: 3.67 Max: 16.06
Current: 1.17
0.04
16.06
F-Score: 5
Z-Score: 1.85
M-Score: -2.49
WACC vs ROIC
13.36%
2.23%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 4/10

vs
industry
vs
history
Operating margin (%) 1.83
PHG's Operating margin (%) is ranked lower than
61% of the 2156 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.40 vs. PHG: 1.83 )
Ranked among companies with meaningful Operating margin (%) only.
PHG' s 10-Year Operating margin (%) Range
Min: -4.24  Med: 4.33 Max: 11.31
Current: 1.83
-4.24
11.31
Net-margin (%) 1.73
PHG's Net-margin (%) is ranked lower than
59% of the 2156 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.81 vs. PHG: 1.73 )
Ranked among companies with meaningful Net-margin (%) only.
PHG' s 10-Year Net-margin (%) Range
Min: -10.07  Med: 4.57 Max: 25.36
Current: 1.73
-10.07
25.36
ROE (%) 3.42
PHG's ROE (%) is ranked lower than
60% of the 2130 Companies
in the Global Consumer Electronics industry.

( Industry Median: 5.82 vs. PHG: 3.42 )
Ranked among companies with meaningful ROE (%) only.
PHG' s 10-Year ROE (%) Range
Min: -19.8  Med: 9.76 Max: 52.62
Current: 3.42
-19.8
52.62
ROA (%) 1.35
PHG's ROA (%) is ranked lower than
62% of the 2175 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.00 vs. PHG: 1.35 )
Ranked among companies with meaningful ROA (%) only.
PHG' s 10-Year ROA (%) Range
Min: -9.06  Med: 4.20 Max: 28.1
Current: 1.35
-9.06
28.1
ROC (Joel Greenblatt) (%) 12.91
PHG's ROC (Joel Greenblatt) (%) is ranked higher than
59% of the 2170 Companies
in the Global Consumer Electronics industry.

( Industry Median: 9.16 vs. PHG: 12.91 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
PHG' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -35.64  Med: 33.16 Max: 107.3
Current: 12.91
-35.64
107.3
Revenue Growth (3Y)(%) -0.60
PHG's Revenue Growth (3Y)(%) is ranked lower than
59% of the 1451 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.80 vs. PHG: -0.60 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
PHG' s 10-Year Revenue Growth (3Y)(%) Range
Min: -8.6  Med: -0.20 Max: 9.3
Current: -0.6
-8.6
9.3
EBITDA Growth (3Y)(%) 12.60
PHG's EBITDA Growth (3Y)(%) is ranked higher than
68% of the 1160 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.60 vs. PHG: 12.60 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
PHG' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -68.9  Med: 7.30 Max: 143
Current: 12.6
-68.9
143
» PHG's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

PHG Guru Trades in Q2 2014

Jim Simons 393,055 sh (+125.99%)
NWQ Managers 78,450 sh (+17.18%)
Manning & Napier Advisors, Inc 111,868 sh (+10.14%)
Mason Hawkins 15,816,052 sh (+4.11%)
Dodge & Cox 14,013,807 sh (+0.68%)
» More
Q3 2014

PHG Guru Trades in Q3 2014

David Dreman 1,044 sh (New)
Jim Simons 1,121,038 sh (+185.21%)
Mason Hawkins 18,486,808 sh (+16.89%)
NWQ Managers 85,450 sh (+8.92%)
Manning & Napier Advisors, Inc 113,997 sh (+1.90%)
Dodge & Cox 13,597,307 sh (-2.97%)
» More
Q4 2014

PHG Guru Trades in Q4 2014

Louis Moore Bacon 14,888 sh (New)
NWQ Managers 173,630 sh (+103.19%)
Manning & Napier Advisors, Inc 119,133 sh (+4.51%)
Dodge & Cox 13,143,445 sh (unchged)
David Dreman Sold Out
Mason Hawkins 18,289,110 sh (-1.07%)
Dodge & Cox 13,143,445 sh (-3.34%)
Jim Simons 228,290 sh (-79.64%)
» More
Q1 2015

PHG Guru Trades in Q1 2015

NWQ Managers 174,910 sh (+0.74%)
Louis Moore Bacon Sold Out
Jim Simons Sold Out
Manning & Napier Advisors, Inc 118,211 sh (-0.77%)
Dodge & Cox 12,711,146 sh (-3.29%)
Mason Hawkins 16,942,193 sh (-7.36%)
» More
» Details

Insider Trades

Latest Guru Trades with PHG

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Guru Investment Theses on Royal Philips NV

Mason Hawkins Comments on Royal Philips NV - Feb 11, 2015

Philips (PHG) fell 18% in the year and 8% in the fourth quarter. The company faced a number of short-term challenges including a one-time pension payment, a temporary suspension of production at its Cleveland, OH-based medical imaging plant, slower emerging market demand, and foreign exchange headwinds. Currency translation from euros into U.S. dollars accounted for approximately half of the price decline. The stock price does not reflect the ongoing transformation of the company under CEO Frans Van Houten who has substantially improved operating margins and focused the company over his 3+ year tenure. Philips’ discounted share price provided management the opportunity to execute another massive €1.5 billion share repurchase. In 2014 Philips announced plans to sell or spin off its Lumiled and auto lighting businesses and to split into two companies: Lighting Solutions and HealthTech, which will be comprised of the current Healthcare and Consumer Lifestyle businesses. We applaud the split. The “conglomerate discount” should disappear as each business stands on its own and is easier to compare to more pure-play peers that trade at higher multiples. Separate reporting will commence in January 2015, and the split is expected to happen by 2016.

From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.

Check out Mason Hawkins latest stock trades

Top Ranked Articles about Royal Philips NV

Mason Hawkins Comments on Royal Philips NV
Philips (PHG) fell 18% in the year and 8% in the fourth quarter. The company faced a number of short-term challenges including a one-time pension payment, a temporary suspension of production at its Cleveland, OH-based medical imaging plant, slower emerging market demand, and foreign exchange headwinds. Currency translation from euros into U.S. dollars accounted for approximately half of the price decline. The stock price does not reflect the ongoing transformation of the company under CEO Frans Van Houten who has substantially improved operating margins and focused the company over his 3+ year tenure. Philips’ discounted share price provided management the opportunity to execute another massive €1.5 billion share repurchase. In 2014 Philips announced plans to sell or spin off its Lumiled and auto lighting businesses and to split into two companies: Lighting Solutions and HealthTech, which will be comprised of the current Healthcare and Consumer Lifestyle businesses. We applaud the split. The “conglomerate discount” should disappear as each business stands on its own and is easier to compare to more pure-play peers that trade Read more...
Longleaf Partners Fund Comments on Royal Philips NV
Philips (XAMS:PHIA, PHG) declined 7% in the second quarter and 11% YTD. Foreign currency headwinds impacted reported sales, although comparable revenue was flat. Net debt increased as free cash flow (FCF, excess cash from operations) went to a one-time pension payment and share buybacks. A temporary suspension of production at a U.S. healthcare plant also impacted FCF. Management reaffirmed expectations for a “challenging” 2014, comprised of improved results at Consumer and Lighting but a continued drag from Healthcare. Management previously delivered on every aspect of 2013 targets and remains committed to 100-200 additional basis points (1 to 2%) of margin improvement by 2016. At quarter-end, the company announced plans to merge the LED and automotive lighting units into a standalone company with €1.4 billion in revenue and will explore strategic options for outside investment. This advances management’s “Accelerate” plan to concentrate Philips around Health and Wellness and fundamentally increase shareholder value. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 56.59
PHG's P/E(ttm) is ranked lower than
80% of the 1533 Companies
in the Global Consumer Electronics industry.

( Industry Median: 18.50 vs. PHG: 56.59 )
Ranked among companies with meaningful P/E(ttm) only.
PHG' s 10-Year P/E(ttm) Range
Min: 4.04  Med: 13.97 Max: 152.13
Current: 56.59
4.04
152.13
Forward P/E 15.50
PHG's Forward P/E is ranked higher than
50% of the 702 Companies
in the Global Consumer Electronics industry.

( Industry Median: 15.58 vs. PHG: 15.50 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 147.10
PHG's PE(NRI) is ranked lower than
91% of the 1526 Companies
in the Global Consumer Electronics industry.

( Industry Median: 18.30 vs. PHG: 147.10 )
Ranked among companies with meaningful PE(NRI) only.
PHG' s 10-Year PE(NRI) Range
Min: 3.71  Med: 14.19 Max: 618.33
Current: 147.1
3.71
618.33
P/B 1.89
PHG's P/B is ranked lower than
58% of the 2122 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.55 vs. PHG: 1.89 )
Ranked among companies with meaningful P/B only.
PHG' s 10-Year P/B Range
Min: 0.63  Med: 1.48 Max: 2.35
Current: 1.89
0.63
2.35
P/S 0.98
PHG's P/S is ranked lower than
51% of the 2213 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.96 vs. PHG: 0.98 )
Ranked among companies with meaningful P/S only.
PHG' s 10-Year P/S Range
Min: 0.43  Med: 0.93 Max: 1.46
Current: 0.98
0.43
1.46
PFCF 30.06
PHG's PFCF is ranked lower than
65% of the 1124 Companies
in the Global Consumer Electronics industry.

( Industry Median: 18.13 vs. PHG: 30.06 )
Ranked among companies with meaningful PFCF only.
PHG' s 10-Year PFCF Range
Min: 8.97  Med: 25.95 Max: 332.44
Current: 30.06
8.97
332.44
POCF 16.82
PHG's POCF is ranked lower than
58% of the 1495 Companies
in the Global Consumer Electronics industry.

( Industry Median: 14.09 vs. PHG: 16.82 )
Ranked among companies with meaningful POCF only.
PHG' s 10-Year POCF Range
Min: 5.7  Med: 14.34 Max: 39.89
Current: 16.82
5.7
39.89
EV-to-EBIT 48.99
PHG's EV-to-EBIT is ranked lower than
80% of the 1555 Companies
in the Global Consumer Electronics industry.

( Industry Median: 14.03 vs. PHG: 48.99 )
Ranked among companies with meaningful EV-to-EBIT only.
PHG' s 10-Year EV-to-EBIT Range
Min: -105.5  Med: 19.70 Max: 288.9
Current: 48.99
-105.5
288.9
Shiller P/E 53.89
PHG's Shiller P/E is ranked lower than
76% of the 820 Companies
in the Global Consumer Electronics industry.

( Industry Median: 23.86 vs. PHG: 53.89 )
Ranked among companies with meaningful Shiller P/E only.
PHG' s 10-Year Shiller P/E Range
Min: 4.25  Med: 15.05 Max: 179.86
Current: 53.89
4.25
179.86
Current Ratio 1.24
PHG's Current Ratio is ranked lower than
81% of the 2091 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.97 vs. PHG: 1.24 )
Ranked among companies with meaningful Current Ratio only.
PHG' s 10-Year Current Ratio Range
Min: 1.03  Med: 1.38 Max: 20.59
Current: 1.24
1.03
20.59
Quick Ratio 0.87
PHG's Quick Ratio is ranked lower than
80% of the 2091 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.46 vs. PHG: 0.87 )
Ranked among companies with meaningful Quick Ratio only.
PHG' s 10-Year Quick Ratio Range
Min: 0.64  Med: 0.96 Max: 12.79
Current: 0.87
0.64
12.79
Days Inventory 99.58
PHG's Days Inventory is ranked lower than
68% of the 2116 Companies
in the Global Consumer Electronics industry.

( Industry Median: 71.74 vs. PHG: 99.58 )
Ranked among companies with meaningful Days Inventory only.
PHG' s 10-Year Days Inventory Range
Min: 56.19  Med: 69.34 Max: 98.11
Current: 99.58
56.19
98.11
Days Sales Outstanding 84.62
PHG's Days Sales Outstanding is ranked lower than
62% of the 1857 Companies
in the Global Consumer Electronics industry.

( Industry Median: 71.63 vs. PHG: 84.62 )
Ranked among companies with meaningful Days Sales Outstanding only.
PHG' s 10-Year Days Sales Outstanding Range
Min: 52.02  Med: 59.87 Max: 76.38
Current: 84.62
52.02
76.38

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.46
PHG's Dividend Yield is ranked higher than
98% of the 1881 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.89 vs. PHG: 3.46 )
Ranked among companies with meaningful Dividend Yield only.
PHG' s 10-Year Dividend Yield Range
Min: 1.42  Med: 2.90 Max: 6.02
Current: 3.46
1.42
6.02
Dividend Payout 3.26
PHG's Dividend Payout is ranked higher than
84% of the 1277 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.36 vs. PHG: 3.26 )
Ranked among companies with meaningful Dividend Payout only.
PHG' s 10-Year Dividend Payout Range
Min: 0.75  Med: 3.36 Max: 36
Current: 3.26
0.75
36
Dividend growth (3y) -100.00
PHG's Dividend growth (3y) is ranked lower than
86% of the 612 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.60 vs. PHG: -100.00 )
Ranked among companies with meaningful Dividend growth (3y) only.
PHG' s 10-Year Dividend growth (3y) Range
Min: 0  Med: -7.80 Max: 18.6
Current: -100
0
18.6
Yield on cost (5-Year) 3.46
PHG's Yield on cost (5-Year) is ranked higher than
97% of the 1926 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.98 vs. PHG: 3.46 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
PHG' s 10-Year Yield on cost (5-Year) Range
Min: 1.42  Med: 2.90 Max: 6.02
Current: 3.46
1.42
6.02
Share Buyback Rate 1.20
PHG's Share Buyback Rate is ranked higher than
83% of the 1075 Companies
in the Global Consumer Electronics industry.

( Industry Median: -1.40 vs. PHG: 1.20 )
Ranked among companies with meaningful Share Buyback Rate only.
PHG' s 10-Year Share Buyback Rate Range
Min: 7.7  Med: 1.20 Max: -9.7
Current: 1.2

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 1.20
PHG's Price/Projected FCF is ranked higher than
50% of the 899 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.30 vs. PHG: 1.20 )
Ranked among companies with meaningful Price/Projected FCF only.
PHG' s 10-Year Price/Projected FCF Range
Min: 0.48  Med: 1.21 Max: 2.42
Current: 1.2
0.48
2.42
Price/Median PS Value 0.96
PHG's Price/Median PS Value is ranked higher than
57% of the 2085 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.17 vs. PHG: 0.96 )
Ranked among companies with meaningful Price/Median PS Value only.
PHG' s 10-Year Price/Median PS Value Range
Min: 0.45  Med: 1.01 Max: 1.94
Current: 0.96
0.45
1.94
Earnings Yield (Greenblatt) (%) 2.01
PHG's Earnings Yield (Greenblatt) (%) is ranked lower than
58% of the 2150 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.80 vs. PHG: 2.01 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
PHG' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 0.3  Med: 4.80 Max: 11.2
Current: 2.01
0.3
11.2
Forward Rate of Return (Yacktman) (%) -0.31
PHG's Forward Rate of Return (Yacktman) (%) is ranked lower than
61% of the 822 Companies
in the Global Consumer Electronics industry.

( Industry Median: 4.77 vs. PHG: -0.31 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
PHG' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -18  Med: 15.70 Max: 90.6
Current: -0.31
-18
90.6

Business Description

Industry: Computer Hardware » Consumer Electronics
Compare:TOSYY, LPL, SNE, HAR, WHR » details
Traded in other countries:0LNG.UK, PHIA.Netherlands, PHG.Argentina, PHI1.Germany, PHI.Switzerland, PHIA.Germany, PHGFF.USA, PHIA.Italy,
Royal Philips NV is a diversified technology company which manufactures consumer electronics, appliances & equipments for healthcare, lighting and consumer well-being industry. The Company's activities are organized on a sector basis, with each operating sector - Healthcare, Consumer Lifestyle and Lighting. Healthcare business was organized around four strategic business groups: Imaging Systems, Patient Care & Clinical Informatics, Home Healthcare Solutions and Customer Services. The Consumer Lifestyle sector is focused on value creation through category leadership and operational excellence. Consumer Lifestyle sector consisted of the following areas of business: Health & Wellness: mother and childcare, oral healthcare, pain management, Personal Care: male grooming, beauty, and Domestic Appliances: kitchen appliances, coffee, garment care, floor care, air purification. Philips Lighting is engaged in the development, manufacture and application of innovative, energy-efficient lighting products, systems and services that improve people's lives. Philips' IP portfolio currently consists of approximately 13,200 patent families, 2,680 trademark families, 3,930 design families, and 2,150 domain name families. Philips filed approximately 1,550 patent applications in 2013, with a focus on the growth areas in health and well-being. The Company and its subsidiaries are subject to environmental laws and regulations.
» More Articles for PHG

Headlines

Articles On GuruFocus.com
Logitech Unveils Its Latest Tech Marvel - MX Master Wireless Mouse Mar 30 2015 
Mason Hawkins Comments on Royal Philips NV Feb 11 2015 
Gabelli Raises Stakes in Three Companies in First Two Weeks of New Year Jan 20 2015 
SmartHome Ventures Expands PEQ's Device Ecosystem to Support Nest and Philips hue Dec 02 2014 
Philips: Brighter Future with LED Lights Market Oct 29 2014 
PDC Provides Litigation Update Oct 15 2014 
Guru Stocks at 52-Week Lows: HMC, MFG, PHG, S, HSY Sep 02 2014 
Weekly 52-Week Highs Highlight: TV, PHG, WLK, PSO Aug 25 2014 
Longleaf Partners Fund Comments on Royal Philips NV Jul 24 2014 
A French Company Being Taken Over by a U.S. Rival Apr 25 2014 

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