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Philips Introduces New Imaging and Treatment Planning Solutions

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Price movement

Koninklijke Philips (PHG) has a market cap of $28.0 billion. It fell 1.1% to close at $29.44 per share on September 26. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.2%, 1.5%, and 19.7%, respectively, on the same day. PHG is trading 1.3% above its 20-day moving average, 5.3% above its 50-day moving average, and 12.9% above its 200-day moving average.

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Related ETFs and peers

The Vanguard FTSE Europe ETF (VGK) invests 0.30% of its holdings in Philips. The ETF tracks the FTSE Developed Europe Index, a market cap–weighted index of European securities. The YTD price movement of VGK was -0.02% on September 26.

The Vanguard FTSE Developed Markets ETF (VEA) invests 0.18% of its holdings in Philips. The ETF tracks a market cap–weighted index of large- and mid-cap stocks from developed markets outside the United States, dynamically transitioning to include small caps and Canadian stocks.

The market cap of Philips’ competitors are as follows:

  • General Electric Company (GE) — $264.7 billion
  • Hologic (HOLX) — $10.5 billion

Latest news on Philips

In a press release on September 26, 2016, Philips reported, “Royal Philips (PHG) today announced its latest integrated imaging and treatment planning solutions for radiation oncology that will be featured at the American Society for Therapeutic Radiology and Oncology’s (ASTRO) 58th Annual Meeting in Boston. Designed to fit the unique needs of radiation oncology clinicians and patients, these solutions have been developed to put more control in the hands of the clinician, with the intent to improve workflow and operational efficiencies, drive procedure accuracy and ultimately improve care.”

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Performance of Koninklijke Philips in 2Q16

Philips reported 2Q16 sales of 5.9 billion euros, or about $6.5 billion, a fall of 1.7% from the sales of 6.0 billion euros, or about $6.6 billion, in 2Q15. Sales from the Personal Health and Connected Care & Health Informatics segments rose 3.6% and 2.4%, respectively. Sales from the Diagnosis & Treatment, HealthTech Other, and Lighting segments fell 3.0%, 10.3%, and 6.1%, respectively, between 2Q15 and 2Q16.

The company’s gross profit margin and income from operations rose 1.7% and 7.7%, respectively, between 2Q15 and 2Q16. Its net income and EPS (earnings per share) rose to 431.0 million euros (about $473.6 million) and 0.46 euros (almost $0.51), respectively, in 2Q16, compared with 274.0 million euros (about $301.4 million) and 0.30 euros (about $0.33), respectively, in 2Q15.

Philips’ cash and cash equivalents and inventories rose 9.1% and 6.5%, respectively, between 4Q15 and 2Q16. Its current ratio and long-term debt-to-equity ratio rose to 1.5x and 0.80x, respectively, in 2Q16, compared with 1.3x and 0.78x, respectively, in 4Q15. Next, we’ll look at Thor Industries (THO).

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