Philips Electronics

Documents

080902 Philips - wrap-up one-on-one August 2008

Wrap-up company visit.

091127 Philips Electronics - 50% of sales from emerging markets in 5 years

50% of sales from emerging markets in 5 years.

080118 Philips Electronics - a successful makeover or not?

A Successful Makeover Or Not?

080502 Philips Electronics - better safe than sorry

Philips: better safe than sorry.

100125 Philips Electronics - marked sales growth in emerging markets

The company's Q4/FY results showed that on one hand it had significantly reduced its cost base, much more than foreseen, and on the other achieved marked comparable sales growth in emerging markets. Although Philips requires another 3 years to arrive at its financial target, an operating profit margin of 10% (09FY: 6.4%), the gap will be sharply narrowed in the current fiscal year.

We are upbeat on the short-term. In addition, the long-term growth drivers are still in place. Particularly the company's focus on emerging markets continues to make us enthusiastic. The company will benefit from its strong presents in these fast-growing markets more than most of the other established Western European/American companies. Philips is eager to conquer a strong market presence in these markets where, in general, profitability is higher.

We remain optimistic on Philips Electronics and expect its outperformance - of 28.4% since the publication of our note in July - to continue.

100915 Philips Electronics - vision 2015; a worst case scenario

Philips announced its Vision 2015 strategic plan which did not contain major surprises. The company refreshed its targets for sales growth and EBITA-margin. A new target was set for sales from emerging markets, though we consider it to be a conservative one. It leaves ample room for large acquisitions. However, if Philips does not want to miss out for a second time on ROIC it cannot pay the hefty multiples for its future transactions as it did in the past. Although we had hoped for a bit more aggressive targets by 2015, we reiterate our positive stance for the company. It is a well-balanced set of targets that offers ample room to continue to show outperformance.

110201 Philips Electronics - ROIC and emerging markets presence undervalued

For the moment we attach limited weight to the disappointing comparable sales growth Philips recorded in the final quarter of 2010. We put more weight to its strong position in high growth market, its strong ROIC and its low valuation multiple. These ingredients should lift the shares price to much higher levels which should result in an outperformance.

Disclaimer

This publication has been prepared by the Idea-Driven Equities Analyses company B.V. (hereafter; the IDEA!) solely for information purposes to its clients.
It is not intended as an offer or solicitation for the purchase or sale of any financial instrument.
No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, except with respect to information concerning the IDEA! and affiliates, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in the report.
Any investments referred to herein may involve significant risk, are not necessarily available in all jurisdictions, may be illiquid and may not be suitable for all investors. This report has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Investors should, without relying solely on this report, make their own independent investment decisions and, if necessary, seek professional advice. The value of, or income from, any investments referred to herein may fluctuate because of changes in interest rates or exchange rates, securities prices or market indices, operational or financial conditions of companies or other factors. Past performance is not indicative of future results.
Neither the IDEA! nor any of its officers or employees accept any liability for any direct or consequential loss arising from any use of this publication or its contents.
The IDEA! is a research boutique, offering its services to a select group of professional investors only and has no investment banking relationships with companies mentioned in this report.
This report may not be reproduced or redistributed, in whole or in part, by any person for any purpose without the prior written permission of the IDEA! and the IDEA! accepts no liability whatsoever for the actions of others in this respect.
The distribution of this document in certain jurisdictions may be restricted by law, and recipients into whose possession this comes should inform themselves about, and observe, any such restrictions.
In the United Kingdom this report is only intended for distribution to, and is only directed at, (i) persons who have professional experience in matters relating to investments, (ii) persons who fall within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) and (iii) persons to whom it may otherwise lawfully be distributed and any investment or investment activity to which it relates is available only to such persons. This report should not be distributed or passed on, directly or indirectly, to any other person in the United Kingdom and any other person should not rely or act on it.
This report is distributed in the United States of America solely to "major institutional investors" as defined in Rule 15a-6 (U.S. Securities Exchange Act of 1934) and may not be furnished to any other person in the United States. Each U.S. recipient by its acceptance hereof warrants that it is a "major institutional investor" as defined, understands the risks involved in dealing in securities or any financial instrument and shall not distribute nor provide this report, or any part thereof, to any other person.
Investors outside the United States and United Kingdom are encouraged to contact their local regulatory authorities to determine whether any restrictions apply to their ability to purchase investments to which this report refers.
The use of this website is governed by and shall be construed in accordance with Dutch law. As such, this product has been prepared for professional investors only as described in art. 1.1 WFT.
By using our website and/or downloading any products from this website, the user declares to qualify as such and to accept the terms of use of this website as well as the contents of this disclaimer.

Your Cart

Your cart is empty

All prices are subject to
19% VAT.

Latest Reports