Signify NV (LIGHT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Signify NV

Alfen NV

Why is Signify NV ?

High Management Efficiency with a high ROCE of 16.32%

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -1.44% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -1.44% over the last 5 years

INTEREST(9M) At EUR 92.00 MM has Grown at -13.21 %
NET SALES(Q) Lowest at EUR 1,468 MM
PBDIT(Q) Lowest at EUR 172 MM.

With ROE of 14.70%, it has a Very Attractive valuation with a 1.14 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.70%, its profits have fallen by -5.6%
At the current price, the company has a high dividend yield of 676.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.70% returns in the last 1 year, the stock has also underperformed Netherlands AEX in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Signify NV should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Signify NV for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Signify NV

-5.4%

-0.57

32.55%

Netherlands AEX

5.05%

0.38

14.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.44%

EBIT Growth (5y)

0.37%

EBIT to Interest (avg)

7.09

Debt to EBITDA (avg)

1.08

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.51

Tax Ratio

14.35%

Dividend Payout Ratio

60.03%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

16.32%

ROE (avg)

17.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.14

EV to EBIT

8.12

EV to EBITDA

5.52

EV to Capital Employed

1.09

EV to Sales

0.69

PEG Ratio

Dividend Yield

676.50%

ROCE (Latest)

13.47%

ROE (Latest)

14.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Signify NV

Net Sales - Quarterly

At EUR 1,468 MM has Grown at -12.51 %

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (EUR MM)

Profit After Tax (PAT) - Quarterly

At EUR 81 MM has Grown at -7.9 %

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (EUR MM)

Profit Before Tax less Other Income (PBT) - Quarterly

At EUR 73 MM has Grown at -17.98 %

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (EUR MM)

Cash and Cash Equivalents - Half Yearly

Highest at EUR 1,403.00 MM

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents (EUR MM)

Dividend Payout Ratio (DPR) - Annually

Highest at 96.17 %

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Signify NV

Interest - Nine Monthly

At EUR 92.00 MM has Grown at -13.21 %

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Net Sales - Quarterly

Lowest at EUR 1,468 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (EUR MM)

Operating Profit (PBDIT) - Quarterly

Lowest at EUR 172 MM.

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (EUR MM)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at EUR 73 MM.

in the last five periods

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (EUR MM)

Earnings per Share (EPS) - Quarterly

Lowest at EUR 0.00

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)