Koninklijke Philips Operating Margin vs. Current Valuation
| PHG Stock | USD 27.15 0.24 0.89% |
Koninklijke Philips Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.27 | 0.4099 |
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For Koninklijke Philips profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Koninklijke Philips to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Koninklijke Philips NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Koninklijke Philips's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Koninklijke Philips NV over time as well as its relative position and ranking within its peers.
Koninklijke |
Is Health Care Equipment & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Koninklijke Philips. If investors know Koninklijke will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Koninklijke Philips listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.069 | Earnings Share (0.51) | Revenue Per Share 19.75 | Quarterly Revenue Growth (0.02) | Return On Assets 0.0136 |
The market value of Koninklijke Philips is measured differently than its book value, which is the value of Koninklijke that is recorded on the company's balance sheet. Investors also form their own opinion of Koninklijke Philips' value that differs from its market value or its book value, called intrinsic value, which is Koninklijke Philips' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Koninklijke Philips' market value can be influenced by many factors that don't directly affect Koninklijke Philips' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Koninklijke Philips' value and its price as these two are different measures arrived at by different means. Investors typically determine if Koninklijke Philips is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Koninklijke Philips' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Koninklijke Philips Current Valuation vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Koninklijke Philips's current stock value. Our valuation model uses many indicators to compare Koninklijke Philips value to that of its competitors to determine the firm's financial worth. Koninklijke Philips NV is rated below average in operating margin category among its peers. It is rated below average in current valuation category among its peers reporting about 413,760,348,316 of Current Valuation per Operating Margin. At this time, Koninklijke Philips' Operating Profit Margin is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Koninklijke Philips by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Koninklijke Current Valuation vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Koninklijke Philips |
| = | 0.08 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Koninklijke Philips |
| = | 31.94 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Koninklijke Current Valuation vs Competition
Koninklijke Philips NV is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is at this time estimated at about 877.99 Billion. Koninklijke Philips holds roughly 31.94 Billion in current valuation claiming about 4% of equities under Health Care industry.
Koninklijke Philips Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Koninklijke Philips, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Koninklijke Philips will eventually generate negative long term returns. The profitability progress is the general direction of Koninklijke Philips' change in net profit over the period of time. It can combine multiple indicators of Koninklijke Philips, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 879 M | 835 M | |
| Operating Income | -115 M | -109.2 M | |
| Income Before Tax | -527 M | -500.6 M | |
| Total Other Income Expense Net | -412 M | -391.4 M | |
| Net Loss | -466 M | -442.7 M | |
| Income Tax Expense | -73 M | -69.3 M | |
| Net Loss | -1.4 B | -1.4 B | |
| Net Loss | -454 M | -431.3 M | |
| Interest Income | 46 M | 43.7 M | |
| Net Interest Income | -266 M | -279.3 M | |
| Change To Netincome | 1.5 B | 1.6 B | |
| Net Loss | (0.50) | (0.47) | |
| Income Quality | (4.58) | (4.35) | |
| Net Income Per E B T | 0.88 | 1.40 |
Koninklijke Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Koninklijke Philips. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Koninklijke Philips position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Koninklijke Philips' important profitability drivers and their relationship over time.
Use Koninklijke Philips in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Koninklijke Philips position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Koninklijke Philips will appreciate offsetting losses from the drop in the long position's value.Koninklijke Philips Pair Trading
Koninklijke Philips NV Pair Trading Analysis
The ability to find closely correlated positions to Koninklijke Philips could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Koninklijke Philips when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Koninklijke Philips - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Koninklijke Philips NV to buy it.
The correlation of Koninklijke Philips is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Koninklijke Philips moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Koninklijke Philips moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Koninklijke Philips can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Koninklijke Philips position
In addition to having Koninklijke Philips in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Koninklijke Philips' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Koninklijke Philips at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Koninklijke Philips' income statement, its balance sheet, and the statement of cash flows.