# Koninklijke Philips NV (PHIA.AS)

Canonical: https://gigainvestors.com/s/PHIA.AS

Analysis as of: 2026-10-16T07:34:32.433Z. Financial observations: FY1996–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 22.72 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 3

- Operating margin variation: 1.16×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.09×

- FY2018: 0.09×

- FY2019: 0.08×

- FY2020: 0.06×

- FY2021: 0.03×

- FY2022: -0.09×

- FY2023: -0.01×

- FY2024: 0.03×

- FY2025: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 14.9%

- ROIC, second-lowest year: -1.1%

- Typical minus recent gross margin: 1.0 pp

- Typical gross margin (annual median): 44.1%

- Recent gross margin (lower of latest and 3-year median): 43.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 7.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 20.9%

- FY2017: 16.1%

- FY2018: 23.9%

- FY2019: 16.1%

- FY2020: 13.8%

- FY2021: 6.5%

- FY2022: -12.0%

- FY2023: -1.1%

- FY2024: 5.1%

- FY2025: 18.0%

### economics: pass

- Owner earnings / net income, 5-yr: 2.55×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 3.7B

- Net income, five-year total: EUR 1.4B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.8 pp

- Working capital / revenue, change between three-year averages: 4.7 pp

- Working capital / revenue, final three-year average: 29.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.01×

- FY2022: 0.64×

- FY2023: 0.04×

- FY2024: 0.29×

- FY2025: 1.74×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 20.9% vs 5.1%

- Per-share earnings: 1.52 to -0.50 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: 1.1%

- Market cap gain: EUR -2.6B

- Cumulative retained earnings: EUR -4.7B

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 1.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: EUR -2.02

- Per-share value, starting three-year median: EUR 1.52

- Per-share value, ending three-year median: EUR -0.50

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 2.9%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: EUR 4.9B

- Cumulative net income, 10 years: EUR 8.0B

- ROIC, first three-year median: 20.9%

- ROIC, last three-year median: 5.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 1.52

- FY2017: EUR 1.71

- FY2018: EUR 1.15

- FY2019: EUR 1.27

- FY2020: EUR 1.30

- FY2021: EUR 3.71

- FY2022: EUR -1.82

- FY2023: EUR -0.50

- FY2024: EUR -0.75

- FY2025: EUR 0.93

### accounting: pass

- Sloan accruals: -1.0%

- Receivables to sales index (DSRI): 0.88×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 12.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.31×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.08×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.4%

- FY2017: -0.8%

- FY2018: -2.7%

- FY2019: -3.2%

- FY2020: -5.7%

- FY2021: 5.5%

- FY2022: -4.7%

- FY2023: -8.8%

- FY2024: -7.8%

- FY2025: -1.0%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 40% since Oct 2021 · "The company did, however, trim its profit guidance due to tariffs." (finance.yahoo.com, May 2025) · sales -1%

Story as of 2026-10-16T10:00:01.143Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -1%; source https://filings.xbrl.org/H1FJE8H61JGM1JSGM897/2025-12-31/ESEF/NL/0/phia-2025-12-31-1-en/reports/phia-2025-12-31-1-en.xhtml; observed 2026-03-04.

- FY2016: EUR 25B 

- FY2017: EUR 18B 

- FY2018: EUR 18B 

- FY2019: EUR 19B 

- FY2020: EUR 20B 

- FY2021: EUR 17B 

- FY2022: EUR 18B 

- FY2023: EUR 18B 

- FY2024: EUR 18B 

- FY2025: EUR 18B 

### Gross margin · FY2025

gross margin 45.2%; source https://filings.xbrl.org/H1FJE8H61JGM1JSGM897/2025-12-31/ESEF/NL/0/phia-2025-12-31-1-en/reports/phia-2025-12-31-1-en.xhtml; observed 2026-03-04.

- FY2016: 43.3% 

- FY2017: 46.0% 

- FY2018: 47.2% 

- FY2019: 45.6% 

- FY2020: 45.0% 

- FY2021: 41.8% 

- FY2022: 40.4% 

- FY2023: 41.0% 

- FY2024: 43.1% 

- FY2025: 45.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical devices; annual sales are EUR 17.8 billion.

- Source: https://filings.xbrl.org/H1FJE8H61JGM1JSGM897/2025-12-31/ESEF/NL/0/phia-2025-12-31-1-en/reports/phia-2025-12-31-1-en.xhtml (filed 2026-03-04); FY2025: revenue 17834000000; grossProfit 8058000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PHIA.AS: Koninklijke Philips N.V. operates as a health technology company in North America, the Greater China, and internationally. It operates through Diagnosis & Treatment, Connected Care, and Personal Health segments. The company provides diagnostic imaging solutions, includes ultrasound business unit, magnetic resonance imaging, computed tomography, and diagnostic x-ray; Image Guided Therapy, including image guided therapy systems and image guided therapy devices. It also offers monitoring, enterprise informatics, and sleep and respiratory care, as well as personal health. Koninklijke Philips N.V. has strategic alliance with WellSpan Health to advanced imaging and diagnostics technology products and platforms. The company was formerly known as Koninklijke Philips Electronics N.V. and changed its name to Koninklijke Philips N.V. in May 2013. Koninklijke Philips N.V. was founded in 1891 and is headquartered in Amsterdam, the Netherlands.

### Why customers stay

Margins ranged from 41% to 45.2% during 2023–25; it earns 14.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2023: grossProfit / revenue = 41%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2024: grossProfit / revenue = 43.1%.

- Source: https://filings.xbrl.org/H1FJE8H61JGM1JSGM897/2025-12-31/ESEF/NL/0/phia-2025-12-31-1-en/reports/phia-2025-12-31-1-en.xhtml (filed 2026-03-04); FY2025: grossProfit / revenue = 45.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); 10-year return on capital observations [[2016,0.2093304284275239],[2017,0.16080037854404283],[2018,0.23850103041290865],[2019,0.16093085989634848],[2020,0.13785321491125987],[2021,0.06525073746312685],[2022,-0.12044171901485691],[2023,-0.011400426653281465],[2024,0.05123677544330204],[2025,0.17985127347361055]]; median 0.14932679672765137. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 40% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/H1FJE8H61JGM1JSGM897/2025-12-31/ESEF/NL/0/phia-2025-12-31-1-en/reports/phia-2025-12-31-1-en.xhtml (filed 2026-03-04); Gross margin observations: [[2021,0.417813010025647],[2022,0.4035451842710495],[2023,0.4099289999449612]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2016: growth capex 0; upkeep 869000000; owner earnings 1555000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2017: growth capex 0; upkeep 859000000; owner earnings 1823000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2018: growth capex 0; upkeep 843000000; owner earnings 1205000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2019: growth capex 38000000; upkeep 975000000; owner earnings 891800000. Growth capex / owner earnings = 0.04261045077371608.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2020: growth capex 0; upkeep 942000000; owner earnings 1167000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2021: growth capex 0; upkeep 763000000; owner earnings 3365000000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/H1FJE8H61JGM1JSGM897/2025-12-31/ESEF/NL/0/phia-2025-12-31-1-en/reports/phia-2025-12-31-1-en.xhtml (filed 2026-03-04); FY2025: growth capex 0; upkeep 269000000; owner earnings 1559200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); Dividend observations: [[2016,330000000],[2017,384000000],[2018,401000000],[2019,453000000],[2020,1000000],[2021,482000000],[2022,412000000],[2023,2000000],[2024,1000000],[2025,328000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 19% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PHIA.AS SharesStats.PercentInsiders = 18.979 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.2 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); Closing price 22.72 EUR; reporting-to-trading FX 1; FY2025 annual sales per share 18.46334145689989; price multiple 1.230546488729393. FY2025 cash earnings/share 1.6142223841874122. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-11: EUR 24.62 per share

- 2016-12: EUR 26.31 per share

- 2017-01: EUR 24.62 per share

- 2017-02: EUR 25.89 per share

- 2017-03: EUR 27.33 per share

- 2017-04: EUR 28.87 per share

- 2017-05: EUR 28.54 per share

- 2017-06: EUR 28.21 per share

- 2017-07: EUR 29.38 per share

- 2017-08: EUR 28.83 per share

- 2017-09: EUR 31.69 per share

- 2017-10: EUR 31.71 per share

- 2017-11: EUR 29.60 per share

- 2017-12: EUR 28.61 per share

- 2018-01: EUR 29.81 per share

- 2018-02: EUR 28.60 per share

- 2018-03: EUR 28.27 per share

- 2018-04: EUR 31.94 per share

- 2018-05: EUR 31.77 per share

- 2018-06: EUR 33.05 per share

- 2018-07: EUR 34.06 per share

- 2018-08: EUR 34.82 per share

- 2018-09: EUR 35.59 per share

- 2018-10: EUR 29.87 per share

- 2018-11: EUR 30.16 per share

- 2018-12: EUR 28.06 per share

- 2019-01: EUR 31.17 per share

- 2019-02: EUR 31.75 per share

- 2019-03: EUR 32.95 per share

- 2019-04: EUR 34.44 per share

- 2019-05: EUR 32.16 per share

- 2019-06: EUR 34.64 per share

- 2019-07: EUR 38.54 per share

- 2019-08: EUR 38.91 per share

- 2019-09: EUR 38.56 per share

- 2019-10: EUR 35.63 per share

- 2019-11: EUR 38.23 per share

- 2019-12: EUR 39.48 per share

- 2020-01: EUR 37.56 per share

- 2020-02: EUR 35.13 per share

- 2020-03: EUR 33.49 per share

- 2020-04: EUR 36.03 per share

- 2020-05: EUR 37.01 per share

- 2020-06: EUR 38.43 per share

- 2020-07: EUR 40.63 per share

- 2020-08: EUR 36.69 per share

- 2020-09: EUR 37.21 per share

- 2020-10: EUR 36.91 per share

- 2020-11: EUR 40.13 per share

- 2020-12: EUR 40.52 per share

- 2021-01: EUR 41.61 per share

- 2021-02: EUR 41.61 per share

- 2021-03: EUR 45.05 per share

- 2021-04: EUR 43.39 per share

- 2021-05: EUR 42.60 per share

- 2021-06: EUR 38.68 per share

- 2021-07: EUR 36.00 per share

- 2021-08: EUR 36.14 per share

- 2021-09: EUR 35.49 per share

- 2021-10: EUR 37.70 per share

- 2021-11: EUR 28.87 per share

- 2021-12: EUR 30.33 per share

- 2022-01: EUR 27.20 per share

- 2022-02: EUR 28.08 per share

- 2022-03: EUR 25.67 per share

- 2022-04: EUR 23.14 per share

- 2022-05: EUR 22.21 per share

- 2022-06: EUR 19.03 per share

- 2022-07: EUR 18.66 per share

- 2022-08: EUR 15.41 per share

- 2022-09: EUR 14.81 per share

- 2022-10: EUR 11.86 per share

- 2022-11: EUR 13.14 per share

- 2022-12: EUR 12.96 per share

- 2023-01: EUR 14.64 per share

- 2023-02: EUR 14.30 per share

- 2023-03: EUR 15.58 per share

- 2023-04: EUR 17.67 per share

- 2023-05: EUR 17.06 per share

- 2023-06: EUR 19.15 per share

- 2023-07: EUR 18.28 per share

- 2023-08: EUR 20.11 per share

- 2023-09: EUR 18.34 per share

- 2023-10: EUR 17.31 per share

- 2023-11: EUR 18.15 per share

- 2023-12: EUR 20.39 per share

- 2024-01: EUR 19.12 per share

- 2024-02: EUR 17.89 per share

- 2024-03: EUR 17.99 per share

- 2024-04: EUR 24.42 per share

- 2024-05: EUR 24.88 per share

- 2024-06: EUR 23.59 per share

- 2024-07: EUR 26.08 per share

- 2024-08: EUR 27.21 per share

- 2024-09: EUR 29.42 per share

- 2024-10: EUR 24.12 per share

- 2024-11: EUR 25.79 per share

- 2024-12: EUR 24.40 per share

- 2025-01: EUR 26.68 per share

- 2025-02: EUR 25.08 per share

- 2025-03: EUR 23.37 per share

- 2025-04: EUR 22.31 per share

- 2025-05: EUR 20.25 per share

- 2025-06: EUR 20.41 per share

- 2025-07: EUR 23.10 per share

- 2025-08: EUR 23.55 per share

- 2025-09: EUR 23.04 per share

- 2025-10: EUR 23.74 per share

- 2025-11: EUR 24.26 per share

- 2025-12: EUR 23.24 per share

- 2026-01: EUR 24.13 per share

- 2026-02: EUR 27.08 per share

- 2026-03: EUR 23.34 per share

- 2026-04: EUR 22.39 per share

- 2026-05: EUR 22.87 per share

- 2026-06: EUR 23.76 per share

- 2026-07: EUR 22.74 per share

- 2026-08: EUR 22.91 per share

- 2026-09: EUR 21.62 per share

- 2026-10: EUR 22.22 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 13.29 per share, central EUR 14.84 per share, high EUR 16.90 per share

- FY2017: low EUR 14.39 per share, central EUR 16.14 per share, high EUR 18.48 per share

- FY2018: low EUR 15.07 per share, central EUR 16.90 per share, high EUR 19.32 per share

- FY2019: low EUR 15.79 per share, central EUR 17.81 per share, high EUR 20.50 per share

- FY2020: low EUR 17.90 per share, central EUR 19.94 per share, high EUR 22.65 per share

- FY2021: low EUR 16.14 per share, central EUR 18.06 per share, high EUR 20.62 per share

- FY2022: low EUR 14.12 per share, central EUR 15.94 per share, high EUR 18.36 per share

- FY2023: low EUR 11.43 per share, central EUR 12.78 per share, high EUR 14.58 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/H1FJE8H61JGM1JSGM897/2025-12-31/ESEF/NL/0/phia-2025-12-31-1-en/reports/phia-2025-12-31-1-en.xhtml); period 2025-12-31, filed 2026-03-04.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.