Signify NV (LIGHT) AI Stock Analysis

• Market Cap: €2.43B
• Dividend Yield: 8.19%
• Average Volume (3M): 457.51K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.19
• Revenue Growth: -8.38%
• EPS Growth: 61.19%
• Country: NL
• Employees: 34,619
• Sector: Industrials
• Sector Strength: 64
• Industry: Industrial Goods
• EPS (TTM): 2.60
• Shares Outstanding: 128,344,240
• 10 Day Avg. Volume: 374,545
• 30 Day Avg. Volume: 457,507
• PEG Ratio: 0.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €25.33
• Price Target Upside: 33.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Signify NV's overall stock score reflects a strong financial foundation, with zero debt and solid cash flow management. The company faces growth challenges due to declining revenue but compensates with efficient cost management. Technical analysis suggests bearish momentum, but the attractive valuation with a low P/E ratio and high dividend yield offers potential upside for value-oriented investors.

Positive Factors

Analyst Upgrade

Signify has been upgraded to Buy from Neutral, with a price objective increased to €29 from €25.

Growth Outlook

The recovery in construction markets is expected to drive organic growth and a re-rating in the stock.

Operational Efficiency

Signify is positioned to capture operating leverage with multi-year restructuring programs and cost savings initiatives.

Negative Factors

Earnings Guidance

Signify will miss its EBITA margin guidance for FY24 and there is risk of continued consensus.

EBITA Margin Miss

Excluding a one-off item in the OEM business EBITA margin, the 3Q24 group EBITA miss would have been -3%.

Signify NV Business Overview & Revenue Model

Company Description

Signify NV is a leading company in the lighting industry, specializing in the development, manufacture, and sale of innovative lighting products and systems. Headquartered in Eindhoven, Netherlands, Signify operates globally, providing energy-efficient lighting solutions across various sectors including residential, commercial, and industrial. The company is well-known for its Philips-branded lighting products, which encompass LED lighting, conventional lamps, and connected lighting systems, catering to a broad range of applications from homes to smart cities.

How the Company Makes Money

Signify NV generates revenue primarily through the sale of its lighting products and solutions. The company's key revenue streams include LED products, which are increasingly popular due to their energy efficiency and long lifespan, and conventional lighting products, which still hold significant market share in various regions. Additionally, Signify is capitalizing on the growing demand for smart lighting systems and Internet of Things (IoT) applications by offering connected lighting solutions for smart homes, offices, and outdoor environments. The company also engages in strategic partnerships with major tech firms and collaborates with city governments to implement smart city lighting projects. These partnerships and projects enhance its market presence and contribute significantly to its earnings by providing integrated, scalable lighting solutions that meet the evolving needs of global markets.

Signify NV Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.28B	6.14B	6.70B	7.51B	6.86B	6.50B
	Gross Profit
2.74B	2.44B	2.56B	2.73B	2.67B	2.50B
	EBIT
744.00M	477.00M	369.00M	528.00M	514.00M	416.00M
	EBITDA
1.16B	773.00M	590.00M	1.04B	827.00M	718.00M
	Net Income Common Stockholders
589.00M	328.00M	203.00M	523.00M	397.00M	325.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
633.00M	633.00M	1.16B	676.00M	852.00M	1.03B
	Total Assets
7.50B	7.50B	8.00B	8.29B	8.26B	7.71B
	Total Debt
0.00	0.00	2.23B	2.03B	2.01B	2.31B
	Net Debt
-633.00M	-633.00M	1.07B	1.36B	1.16B	1.27B
	Total Liabilities
4.24B	4.24B	5.06B	5.22B	5.66B	5.39B
	Stockholders Equity
3.16B	3.16B	2.82B	2.92B	2.46B	2.19B
Cash Flow		Free Cash Flow
79.00M	415.00M	586.00M	244.00M	586.00M	792.00M
	Operating Cash Flow
196.00M	514.00M	696.00M	376.00M	704.00M	891.00M
	Investing Cash Flow
-228.00M	-72.00M	-115.00M	-256.00M	-91.00M	-1.38B
	Financing Cash Flow
-588.00M	-970.00M	-67.00M	-295.00M	-876.00M	757.00M

Signify NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:LIGHT, the sentiment is Neutral. The current price of 19.03 is above the 20-day moving average (MA) of 18.74, below the 50-day MA of 20.04, and below the 200-day MA of 21.29, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 78.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:LIGHT.

Signify NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEDAP	72 Outperform	€385.30M	21.10	21.92%	5.38%	-4.12%	-14.85%
FUR	71 Outperform	€1.44B	5.19	18.89%	3.78%	4.03%	8.35%
LIGHT	70 Outperform	€2.43B	7.32	10.97%	8.19%	-8.38%	61.19%
TWEKA	65 Neutral	€1.48B	14.06	11.59%	4.85%	-7.30%	-36.81%
Sector *	63 Neutral	$4.26B	11.28	5.43%	215.24%	4.12%	-8.73%
ARCAD	61 Neutral	€4.06B	16.67	21.16%	2.11%	-0.17%	51.55%
AALB	55 Neutral	€3.10B	17.30	7.15%	4.11%	-5.28%	-43.29%