Koninklijke Philips N.V. NY Registry Shares (PHG)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear the glasses of Graham and Buffett: I want a durable business, honest accounting, and a price that leaves room for error. Philips is a 63,670-employee health technology company with Diagnosis & Treatment, Connected Care, and Personal Health segments. The latest reported quarter, fiscal Q2 2026, showed $4.4 billion of revenue and $384.0 million of net income, an 8.81% margin. That is a real profit, and trailing free cash flow of $1.6 billion gives a 6.1% FCF yield against the $26.2 billion market cap. The 4.10% dividend yield is attractive, and beta of 0.91 suggests the stock has not been especially volatile. But the quality clues are mixed. FairStock's return metrics show ROE of 10.15% and ROCE of only 4.07%, which is not the hallmark of a high-return moat. Debt/equity is 0.65, and the Altman Z-Score of 1.52 suggests some financial risk. FairStock's Piotroski F-Score is 6/9, so the financials are not clearly deteriorating, but not pristine either. Valuation at the 2026-10-13 close of $24.89 gives a P/E of 19.00 and P/B of 1.83. The Graham Number is $18.58, meaning the price carries a negative 33.96% margin of safety by that conservative measure. EV/EBITDA is 10.57, and PEG is 0.32, which hints that profit growth may be catching up, but the long-term growth record is not in the provided filed results. FairStock cannot assign a Lynch category because there are zero years of filed annual results needed for its rule. I would want more evidence that ROCE can improve and that revenue growth is not stalled before calling this a bargain.

In plain English: Philips is a health technology company that makes medical imaging, monitoring, and personal health products. The business is profitable and produces cash, but the profit it earns on the money invested in the business looks modest and revenue is not growing quickly. At the recent share price, the shares look a little expensive versus several simple value measures, though the dividend and free cash flow offer some support.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer