Royal KPN NV (KPN) AI Stock Analysis

• Market Cap: €15.12B
• Dividend Yield: 4.37%
• Average Volume (3M): 11.61M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.14
• Revenue Growth: 3.02%
• EPS Growth: 2.26%
• Country: NL
• Employees: 9,718
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 0.22
• Shares Outstanding: 3,888,930,400
• 10 Day Avg. Volume: 10,133,878
• 30 Day Avg. Volume: 11,610,367
• PEG Ratio: N/A
• Price to Book (P/B): 4.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.56
• 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: €4.12
• Price Target Upside: 5.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Royal KPN NV has a sound financial position with strong profitability, though high leverage is a concern. The technical analysis shows mixed signals with some positive trends, and the valuation is moderate. Despite these factors, the stable financial performance supports a somewhat favorable stock score.

Royal KPN NV Business Overview & Revenue Model

Company Description

Royal KPN NV (KPN) is a leading telecommunications and information technology service provider headquartered in the Netherlands. The company offers a wide range of services, including mobile and fixed-line telephony, broadband internet, and television services to both consumer and business markets. KPN is committed to providing reliable and innovative connectivity solutions, leveraging its robust network infrastructure to deliver high-quality services across the country.

How the Company Makes Money

KPN generates revenue primarily through its telecommunications services. The company's key revenue streams include subscription fees from mobile and fixed-line telephony, internet services, and digital television packages. KPN also earns revenue from business solutions, such as cloud services, data center services, and IT consulting, which cater to enterprise clients looking for integrated communication and IT solutions. Additionally, KPN benefits from strategic partnerships and collaborations with technology companies and other service providers, enhancing its service offerings and market reach. The company's strong focus on network upgrades and digital transformation initiatives further supports its revenue growth and market position.

Royal KPN NV Financial Statement Overview

Summary

Royal KPN NV has a stable financial profile with strong profitability and cash generation. Revenue growth is steady, and margins are robust, but the company operates with high leverage which slightly offsets the positive aspects.

Income Statement

Royal KPN NV has shown steady revenue growth over the years, with a 3.02% increase from 2023 to 2024. The company maintains a strong gross profit margin at approximately 72.97% and a healthy net profit margin at 15.13% in 2024. EBIT and EBITDA margins are also robust at 24.84% and 46.44% respectively, indicating efficient operational performance. However, the growth rates are modest, and net income has seen minor fluctuations over the years.

Balance Sheet

The balance sheet of Royal KPN NV reflects a moderate debt-to-equity ratio of 2.01, indicating significant leverage. The return on equity is strong at 24.01%, suggesting effective use of equity to generate profits. The equity ratio stands at 28.15%, showing a relatively balanced capital structure. Despite the high leverage, the company has been able to maintain stable equity levels.

Cash Flow

The cash flow statement reveals consistent free cash flow generation, though the free cash flow growth was negative at -4.33% from 2023 to 2024. The operating cash flow to net income ratio is 2.67, highlighting strong cash generation capabilities relative to net income. However, the free cash flow to net income ratio is 1.12, indicating limited free cash flow relative to net income growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.60B	5.44B	5.31B	5.27B	5.28B
	Gross Profit
4.09B	2.92B	2.84B	4.09B	4.00B
	EBIT
1.39B	1.34B	1.25B	1.03B	912.00M
	EBITDA
2.60B	2.56B	2.19B	3.29B	2.40B
	Net Income Common Stockholders
848.00M	844.00M	760.00M	1.29B	560.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
802.00M	828.00M	527.00M	1.11B	867.00M
	Total Assets
12.55B	12.25B	11.96B	12.74B	12.08B
	Total Debt
7.10B	6.79B	6.29B	7.62B	7.44B
	Net Debt
6.43B	6.18B	5.89B	6.82B	6.84B
	Total Liabilities
9.01B	8.69B	8.31B	9.51B	9.46B
	Stockholders Equity
3.53B	3.56B	3.65B	3.23B	2.62B
Cash Flow		Free Cash Flow
950.00M	993.00M	982.00M	908.00M	479.00M
	Operating Cash Flow
2.26B	2.24B	2.19B	2.13B	2.04B
	Investing Cash Flow
-1.44B	-1.43B	-1.08B	-1.21B	-1.54B
	Financing Cash Flow
-769.00M	-606.00M	-1.50B	-717.00M	-670.00M

Royal KPN NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:KPN, the sentiment is Neutral. The current price of 3.9 is below the 20-day moving average (MA) of 3.99, above the 50-day MA of 3.81, and above the 200-day MA of 3.59, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 48.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:KPN.

Royal KPN NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRX	69 Neutral	$99.75B	15.64	18.12%	0.21%	13.77%	―
KPN	67 Neutral	€15.12B	17.90	33.20%	4.37%	3.02%	2.26%
Sector *	60 Neutral	$13.88B	7.03	-2.76%	3.71%	2.20%	-43.04%