Koninklijke Philips N.V. (PHG) Shares: Cheap or Risky?


Koninklijke Philips N.V. (NYSE:PHG) saw a downside of -2.03% to close Tuesday at $16.91 after subtracting -$0.35 on the day. The 5-day average trading volume is 2,808,620 shares of the company’s common stock. It has gained $17.32 in the past week and touched a new high 2 times within the past 5 days. An average of 2,762,355 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,025,232.

PHG’s 1-month performance is 20.61% or $2.00 on its low of $14.63 reached on 12/28/22. The company’s shares have touched a 52-week low of $11.75 and high of $34.93, with the stock’s rally to the 52-week high happening on 01/13/23. YTD, PHG has achieved 12.81% or $1.92 and has reached a new high 7 times. However, the current price is down -51.59% from the 52-week high price.

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Valuation Metrics

PHG stock has a beta of 0.85. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.78 while the price-to-book (PB) in the most recent quarter is 0.96, with the price to cash flow ratio at 4.62.

As well, the company’s long term debt to equity for the quarter ending December 30 was 0.48, while the total debt to equity was 0.58.. In terms of profitability, the gross margin trailing 12 months is 39.70%. The trailing 12-month EBITDA margin is 10.79% while for the period ending December 30, Koninklijke Philips N.V.’s operating margin was -8.90%. The firm’s gross profit as reported stood at $8.48 billion against revenue of $20.3 billion.

Earnings Surprise

For the quarterly period ending December 30 this year, Koninklijke Philips N.V.’s cash and short-term investments amounted to $202.72 million. Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 64.24% to $3.72 billion, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected PHG to announce $1.37 per share in earnings in its latest quarter, but it posted $0.65, representing a -52.60% surprise.

Let’s look briefly at Koninklijke Philips N.V. (PHG) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 59.81% to suggest the stock is trending Neutral, with historical volatility in this time period at 39.86%.

The stock’s 5-day moving average is $16.64, reflecting a +1.38% or $0.23 change from its current price. PHG is currently trading +16.86% above its 20-day SMA, +1.87% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +33.36% and SMA200 by-44.74%.

Stochastic %K and %D was 78.15% and 70.30% and the average true range (ATR) pointed at 0.50. The RSI (14) points at 60.37%, while the 14-day stochastic is at 70.67% with the period’s ATR at 0.49. The stock’s 9-day MACD Oscillator is pointing at 0.09 and 0.27 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Koninklijke Philips N.V. (NYSE: PHG), UBS downgraded it to a Sell rating. They previously had a Neutral rating on the stock. Analysts offering their rating for PHG stock have a consensus rating for the stock as Hold. Currently, 5 brokerage advisors rate PHG as a “sell,”, while 6 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 1 rates the stock as overweight while 2 have offered a “buy” rating.

What is PHG’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $11.74 and a high of $32.49, with their median price target at $16.25. Looking at these predictions, the average price target given by analysts is for Koninklijke Philips N.V. (PHG) stock is $16.73.


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