| Ticker | Company name | Industry | Market Cap in Bln |
Dividend Yield | Stock price | Currency |
|---|---|---|---|---|---|---|
| PHIA | Royal Philips N.V. | Technology | 40.12 | 1.94 | 43.89 | EUR |
Company's Past Performance
Dividend
The history of dividend payments is an important consideration. The longer a company pays dividends the higher are chances it will continue doing so in the future. A history of regular dividend increases shows how much management is committed to consistent dividend policy. It also shows the company’s financial capability to conduct a consistent dividend policy. Once increased, dividends should be supported in the future. So, one can expect that they are increased in a prudent and responsible way. Look for companies with longer periods of dividend increases. Companies with a higher dividend growth and a longer history of growth are preferable within the industry since it shows that the company is well run and future consistent dividend increases are more likely. Dividend cuts in the past should be considered as red flags. Over time share price usually reflects dividend growth. So, check for consistency of price growth with dividend growth.
5 years average dividend growth: 1.22 %
Dividend yield
The company’s dividend yield should not be too low. If it is, a stock as a dividend payer is less useful for an income investor. However a the dividend yield should not be too high as well. Too high yields usually are an indication that the price of a stock is very low and probably the company is in trouble. Consider stocks with dividend yields of 8% per annum or higher to be too risky for your portfolio of stocks. Look for a dividend yield that is slightly higher than the industry average.
5 years average dividend yield: 12.16 %
PayOut Ratio
Payout ratio (POR), dividend per share divided by earnings per share, shows how sustainable the dividend payments are. Many companies target a certain payout ratio in their dividend policy. Look for stable payout ratios over longer periods of time. Payout ratios within the range of 40% to 60% are preferable. The ones above 80% are too high for the majority of industries. It means that almost all earnings of the company are paid out in dividends and there is less scope for future business development and subsequent dividend increases. A Payout ratio below 40% usually means quite low dividend income for the investor. When earnings per share are zero or negative, the value of payout ratio is not shown on the graph.
5 years average payout ratio: 69.56 %
Sales
Sales growth rate can differ substantially amongst industries. Regardless of the industry, look for consistent smooth growth over years. Smaller companies usually grow faster than larger ones. As in the case of earnings, look for a double digit year on year grow of sales for small, medium companies and single digit growth for larger ones. Evaluate how resistant company’s sales are relative to business cycles by checking how the company behaved in the past during economic downturns. Look for companies with sales growth above that of other companies in its industry. Pay special attention to the sales growth in the latest quarters. Look for any anomaly in data and find out the reason for it.
5 years average sales growth: -1.85 %
Earnings Per Share
The History of earnings per share (EPS) growth and its future projections allow to evaluate how sustainable dividend growth will be since dividends are paid out of earnings. Look for faster growth (double digit percentage growth year on year) in earnings per share for smaller companies and slower growth (single digit percentage) for larger ones. Earnings should grow faster or in line with the company’s sales. Compare earnings growth with that of peers. Look for earnings growth in line or above that of other companies in the industry. Pay close attention to the earnings dynamic in the latest quarters. Are the earnings growing or falling? Look for anomalies in earnings figures and decide whether they will repeat in the future.
5 years average EPS growth: 23.45 %
Profit Margin
Profit margin (PM) or net profits divided by sales, shows what part of sales are attributable to earnings. Look for companies with stable profit margin which is above that of other companies in its industry. Look for a stable or uptrend development of profit margin in the latest quarters.
5 years average profit margin: 6.26 %
Return On Equity
Return on equity (ROE) or net profit of the company divided by shareholder equity, shows what return is achieved on shareholders’ money. Look for a company with a stable return on equity over time and higher than that of other companies in its sector. Also check that it is not down in the latest quarters.
5 years average ROE: 10.25 %
Debt To Equity
Debt to equity ratio (D/E) shows how much debt the company is using relative to the shareholders equity. The level of indebtedness differs by the industry. Look for less indebted companies, for companies with debt to equity ratio below that of peers. Look for any significant changes in debt and check the reasons for that change.
5 years average D/E ratio: 130.76 %
Cash Flow Per Share
Dividends are (mostly) paid out of cash. Cash flow per share (C/F) is earnings per share plus depreciation per share. Look for a company that has steady and consistent cash flow numbers. Look for cash flow per share that is higher than dividend, because it means that the company has enough cash to pay dividend.
Price
Share price fluctuations are much higher than those of earnings or dividends. Over longer term price of share should reflect dividend growth. So, check how much price growth follows dividend growth. Also check for price up trend in the last 3-4 quarters.
P/E
Price to earnings (P/E), or a share price divided by earnings per share, is widely used measurement of a company‘s stock performance. If we compare current price to earnings ratio to the average historical one, a high current price to earnings ratio, in most cases, means that a stock is over-valued and a low one that a stock is under-valued. When earnings per share are zero or negative, the value of price to earnings ratio is not shown on the graph.
5 years average p/e: 12.63 %
Company Profile
Royal Philips NV is a technology company, which engages in the healthcare, lighting, and consumer well-being markets. It operates through the following segments: Healthcare, Consumer Lifestyle, Lighting, and Innovation, Group and Services. The Healthcare segment offers imaging systems, patient care and clinical informatics, home healthcare solutions, and customer services. The Consumer Lifestyle segment involves health and wellness, personal care, domestic appliances, television, audio and video multimedia, and accessories. The Lighting segment includes lamps, consumer and professional luminaires, lighting systems and controls, automotive lighting, packaged light-emitting diodes (LEDs), and LED solutions. The Innovation, Group and Services segment provides operating sectors with support through shared service centers. The company was founded by Anton Frederik Philips and Gerard Leonard Frederik Philips in 1891 and is headquartered in Amsterdam, Netherlands.