Skip to Content

Koninklijke Philips NV ADR PHG

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Philips Delivers Good Second Quarter Aided by Easy Comparable Figures; Maintaining FVE

Javier Correonero Equity Analyst

Analyst Note

| Javier Correonero |

Narrow-moat Philips recorded 9% organic sales growth during the quarter, driven by strong demand in the majority of its product segments, but also helped by easy comparable figures during the second quarter of 2020, which was especially weak. This brought overall revenue to EUR 4.23 billion with growth coming from all the divisions except connected care, which saw a 16% decline year over year, explained by the triple-digit growth in respiratory devices during the second quarter of 2020. Both revenue and EBITA were aligned with company-provided consensus. We are maintaining our fair value estimate.

Read Full Analysis

Company Profile

Business Description

Philips is a diversified global healthcare company operating in three segments: diagnosis and treatment, connected care, and personal health. About 44% of the company's revenue comes from the diagnosis and treatment segment, which features imaging systems, ultrasound equipment, image-guided therapy solutions and healthcare informatics. The connected care segment (24% of revenue) encompasses monitoring and analytics systems for hospitals and sleep and respiratory care devices, whereas the personal health business (remainder of revenue) includes electric toothbrushes and men's grooming and personal-care products. In 2020, Philips generated EUR 19.5 billion of sales and had 80,000 employees in over 100 countries.

Contact
Philips Center, Amstelplein 2
Amsterdam, 1096 BC, Netherlands
T +31 205977777
Sector Healthcare
Industry Diagnostics & Research
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 77,084

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.