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Koninklijke Philips N.V. (AMS:PHIA): The Best Of Both Worlds

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of Koninklijke Philips N.V. (AMS:PHIA), there's is a financially-healthy , dividend-paying company with a great history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Koninklijke Philips here.

Proven track record with adequate balance sheet and pays a dividend

In the previous year, PHIA has ramped up its bottom line by 67%, with its latest earnings level surpassing its average level over the last five years. Not only did PHIA outperformed its past performance, its growth also exceeded the Medical Equipment industry expansion, which generated a 7.8% earnings growth. This is what investors like to see! PHIA's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that PHIA has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. PHIA appears to have made good use of debt, producing operating cash levels of 0.37x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

ENXTAM:PHIA Income Statement, August 19th 2019

For those seeking income streams from their portfolio, PHIA is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.0%.

ENXTAM:PHIA Historical Dividend Yield, August 19th 2019

Next Steps:

For Koninklijke Philips, I've put together three essential factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for PHIA’s future growth? Take a look at our free research report of analyst consensus for PHIA’s outlook.
  2. Valuation: What is PHIA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PHIA is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PHIA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.