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Royal KPN NV (KKPNY)
OTHER OTC:KKPNY
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Royal KPN
(OTC:KKPNY)
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Rating:69Neutral
Price Target:
$5.00
▲(5.04% Upside)
Royal KPN's overall stock score reflects solid financial performance and a cautiously optimistic earnings outlook. While the company shows strong profitability and operational efficiency, high leverage and declining free cash flow growth are concerns. Technical indicators suggest moderate strength, but potential overbought conditions. The valuation is fair, with a reasonable P/E ratio and dividend yield.
Royal KPN (KKPNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.69B
Dividend Yield3.75%
Average Volume (3M)653.11K
Price to Earnings (P/E)20.6
Beta (1Y)0.13
Revenue Growth4.33%
EPS Growth0.83%
CountryUS
Employees9,718
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.07
Shares Outstanding3,888,930,400
10 Day Avg. Volume238,618
30 Day Avg. Volume653,113
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)4.17
Price to Sales (P/S)2.63
P/FCF Ratio15.52
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue4.88
Enterprise Value/Gross Profit7.93
Enterprise Value/Ebitda10.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Royal KPN Business Overview & Revenue Model
Company DescriptionRoyal KPN N.V. (KKPNY) is a leading telecommunications and IT service provider based in the Netherlands. The company operates primarily in the mobile and fixed-line telecommunications sectors, offering a range of services including voice, data, broadband, and television services. KPN serves both consumer and business segments, delivering solutions that encompass connectivity, cloud services, and cybersecurity, while also focusing on innovation and digital transformation.
How the Company Makes MoneyRoyal KPN generates revenue through multiple key streams, primarily from its mobile and fixed-line services. The mobile segment includes subscription-based services, prepaid plans, and mobile data offerings, while the fixed-line segment encompasses broadband internet, landline telephony, and digital television services. Additionally, KPN earns revenue from its business solutions division, which provides tailored IT and communications services to corporate clients. Partnerships with technology providers and other telecom companies enhance its service offerings and market reach. Factors contributing to its earnings include a strong customer base, competitive pricing, and investments in network infrastructure to improve service quality and expand coverage.
Royal KPN Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there was notable growth in service revenues, EBITDA, and fiber expansion, there were challenges such as slowed consumer revenue growth, price pressure in B2B mobile, and declines in specific business areas like Tailored Solutions.Q3-2025 Updates
Positive Updates
Service Revenue Growth
Group service revenues increased by 1.7% year-on-year, with growth seen across all segments, including consumer, business, and wholesale.
EBITDA and Free Cash Flow Improvements
EBITDA grew by 2.3% on a comparable basis, and free cash flow is up by 12% year-to-date, driven by EBITDA growth.
Fiber Expansion
KPN expanded its fiber footprint by passing 74,000 homes and connected 82,000 homes in the third quarter, bringing fiber coverage close to 80%.
Successful Consumer and Business Segments
Consumer service revenues grew due to fiber and mobile growth, and business service revenues increased by 1.4%, driven by SME and LCE segments.
Net Promoter Score Improvement
The Net Promoter Score (NPS) rose to +17 during the quarter, indicating increased customer satisfaction.
Negative Updates
Slowed Consumer Revenue Growth
Consumer revenue growth slowed to 1.1% due to promotional activity and ARPU decline in the no-frills mobile segment.
Price Pressure in B2B Mobile
Ongoing price pressure in the B2B mobile segment, especially in LCE, leading to some revenue decline.
Tailored Solutions Revenue Decline
Tailored Solutions service revenues decreased by 2.5%, reflecting a focus on value steering.
Wholesale Copper Line Losses
Wholesale copper line losses continued due to brand switching and migration issues.
Company Guidance
During KPN's third-quarter earnings call, CEO Joost Farwerck and CFO Chris Figee presented a comprehensive overview of the company's financial performance and strategic outlook. Key metrics highlighted included a 1.7% increase in group service revenues, driven by growth across all segments, and a 2.3% rise in EBITDA on a comparable basis. Free cash flow rebounded with a 12% increase year-to-date, attributed to EBITDA growth. KPN's fiber footprint expanded with 74,000 homes passed and 82,000 homes connected, aiming for 80% coverage of Dutch households. In the consumer segment, service revenues grew, supported by a Net Promoter Score of +15 year-to-date, and a quarter score of +17. The B2B segment saw a 1.4% increase in service revenues, with SME service revenues up 3.3% and LCE service revenues growing by 1%. Wholesale service revenues rose by 5.2%, driven by international sponsored roaming. Figee emphasized a 4.4% growth in adjusted EBITDA after leases, with free cash flow up 12% year-to-date. The company reiterated its midterm 337 ambitions, aiming for a 3% annual growth in service revenues and EBITDA, and a 7% increase in free cash flow over the strategic period. KPN's leverage ratio stood at 2.5x, with expectations to reduce to 2.4x by year-end, supported by increased free cash flow generation. The company is set to update its strategy on November 5, 2025.Royal KPN Financial Statement Overview
Summary
Royal KPN demonstrates solid financial performance with stable revenue growth and strong profitability margins. However, high leverage and declining free cash flow growth present potential risks. The company maintains strong operational efficiency, but cost management and debt levels should be monitored closely to sustain financial health.Income Statement
Royal KPN's income statement shows a stable revenue growth rate of 1.44% in the TTM period, with a solid gross profit margin of 57.34%. The net profit margin is healthy at 14.44%, indicating efficient cost management. However, the gross profit margin has decreased from previous periods, suggesting potential cost pressures. The EBIT and EBITDA margins remain strong, reflecting robust operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.06, indicating significant leverage, which could pose financial risks. However, the return on equity is strong at 22.96%, demonstrating effective use of equity to generate profits. The equity ratio stands at 27.34%, suggesting a moderate reliance on equity financing.65
Positive
Cash Flow
Cash flow analysis shows a decline in free cash flow growth by 2.89% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is robust at 1.67, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.55 suggests adequate cash flow to support net income.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.75B | 5.60B | 5.44B | 5.32B | 5.27B | 5.28B |
| Gross Profit | 3.54B | 4.09B | 2.92B | 4.08B | 2.79B | 4.00B |
| EBITDA | 2.63B | 2.60B | 2.56B | 2.19B | 3.31B | 2.06B |
| Net Income | 878.00M | 848.00M | 844.00M | 760.00M | 1.29B | 560.00M |
Balance Sheet | ||||||
| Total Assets | 12.42B | 12.55B | 12.25B | 11.96B | 12.74B | 12.08B |
| Cash, Cash Equivalents and Short-Term Investments | 374.00M | 802.00M | 828.00M | 527.00M | 1.11B | 867.00M |
| Total Debt | 7.00B | 7.10B | 6.79B | 7.28B | 7.62B | 7.93B |
| Total Liabilities | 8.98B | 9.01B | 8.69B | 8.31B | 9.51B | 9.46B |
| Stockholders Equity | 3.40B | 3.53B | 3.56B | 3.65B | 3.23B | 2.62B |
Cash Flow | ||||||
| Free Cash Flow | 1.04B | 950.00M | 993.00M | 982.00M | 908.00M | 479.00M |
| Operating Cash Flow | 1.96B | 2.26B | 2.24B | 2.19B | 2.13B | 2.04B |
| Investing Cash Flow | -558.00M | -1.44B | -1.43B | -1.08B | -1.21B | -1.54B |
| Financing Cash Flow | -4.04B | -769.00M | -606.00M | -1.50B | -717.00M | -670.00M |
Royal KPN Technical Analysis
Positive
4.76
Price Trends
4.74
Positive
4.71
Positive
4.38
Positive
Market Momentum
<0.01
Negative
53.85
Neutral
71.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KKPNY, the sentiment is Positive. The current price of 4.76 is above the 20-day moving average (MA) of 4.68, above the 50-day MA of 4.74, and above the 200-day MA of 4.38, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 71.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KKPNY.
Royal KPN Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $11.34B | 17.96 | 13.78% | 6.21% | -7.99% | 2.16% | |
| ― | $20.70B | 20.46 | 8.20% | 4.73% | -6.51% | -0.21% | |
| ― | $20.27B | 14.28 | 17.71% | 6.40% | -5.13% | -5.90% | |
| ― | $18.69B | 20.56 | 33.12% | 3.75% | 4.33% | 0.83% | |
| ― | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
| ― | $30.02B | -11.93 | -3.55% | 6.21% | -4.73% | -251.31% | |
| ― | $29.52B | -6.84 | -7.17% | 4.16% | 0.89% | -494.16% |
* Communication Services Sector Average
KKPNY
Royal KPN
4.76
0.90
23.32%
TLK
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20.49
3.27
18.99%
VIV
Telefonica Brasil
12.83
4.25
49.53%
TEF
Telefonica
5.27
0.85
19.23%
TIMB
TIM
23.50
10.45
80.08%
VOD
Vodafone
12.24
3.40
38.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.