Rankings Pharma & medtech Philips
Philips
67
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Respironics (consent decree)−5
- ROIC−4
- Quality of growth−3
Strengths
- Productivity and gross margin+2
- Personal Health+1
How the score is built
From 100 to 67, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 25.54 EUR
- Median analyst target
- 26.00 EUR
- Upside to median
- +1.8%
- Analysts
- 20
- Target range
- 21.00 – 35.00 EUR
- 52-week change
- +7%
- P/E (trailing)
- 22.4
- Forward P/E
- 15.1
- PEG
- 2.78
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 4 findings−10 of −30
- −3Quality of growthRevenue is EUR 17.7bn TTM vs 17.2bn in 2021 and 18.2bn in 2023 – five years without real growth; comparable order intake fell 1% in Q2 2026, and Diagnosis & Treatment and Connected Care grew only 2%.
- −4ROICROIC 7.7% is only now in line with WACC (7.6%) after −0.9%, 2.2% and −36.8% in 2022–24 (impairments and Respironics provisions); no documented period with returns above the cost of capital.
- −2Margin vs peersUnderlying adjusted margin about 12.2% in Q2 excluding the tariff refund – below Siemens Healthineers (about 14% operating margin, Imaging 26.5%) and GE HealthCare; operating margin 9.8% TTM.
- −1Capital allocation (dilution)The share count has risen 3.7% in a year, because the dividend (unchanged at EUR 0.85 since 2021) is largely paid in shares; only EUR 354m was paid in cash TTM, and there are no buybacks.
Price
Today's multiples against the company's own history and its peers. · 3 findings−3 of −35
- −1Multiples vs own historyForward P/E 13.5 vs 13.1–16.3 in 2021–25 (at the low end); EV/EBITDA 10.4 vs 14.2–23.5, but the history is distorted by years with depressed EBITDA.
- −1PeersForward P/E 13.5 vs Siemens Healthineers' 17.0; the discount matches the lower margin and the Respironics risk – no real mispricing.
- −1Absolute price levelEV/EBIT 15.7 and EV of EUR 26.9bn incl. 5.7bn of net debt; adjusted for the tariff refund, FCF guidance is about EUR 1.3–1.5bn, i.e. an FCF yield of around 6.5% rather than the 9.4% the TTM figure shows.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−10 of −35
- −5Respironics (consent decree)Five years after the recall of 15m CPAP/BPAP devices, Philips Respironics still does not sell new sleep apnoea devices in the US; sales only resume once the requirements of the consent decree with the FDA/DOJ are met.
- −2China and Diagnosis & TreatmentThe stock fell about 9% on the Q2 report despite beating expectations because of a cautious China outlook, cost inflation and tariffs in Diagnosis & Treatment; UBS downgraded to Hold and cut its target from EUR 32.5 to 24.
- −2Quality of earningsQ2 operating profit of EUR 609m included EUR 186m in refund of US tariffs (4.2pp on the margin), and the raising of full-year guidance for margin and FCF is due solely to the refund, while sales guidance (3–4.5%) is unchanged.
- −1
Plus
Only documented strengths. · 2 findings+3 of +15
- +2Productivity and gross marginThe gross margin has been lifted from 40.4% (2022) to 45.9% TTM; productivity savings of EUR 132m in Q2 and a new EUR 1.5bn programme for 2026–28.
- +1Personal HealthPersonal Health grew 8% comparable in Q2 with a 23.0% adjusted EBITA margin (incl. tariff refund).
Caveats
What the score does not capture, or where the data is weak.
The forward P/E and analysts' EPS are adjusted (EUR 1.56 in 2025 vs reported 0.93). Q2 figures and the raised 2026 guidance (adjusted EBITA margin 13.5–14.0%, FCF EUR 1.5–1.7bn) are lifted by a one-off refund of US tariffs of EUR 186m (about 1 percentage point on the full-year margin); TTM FCF (1.99bn) and P/FCF of 10.7 are therefore flattered. The share count has risen 3.7% in a year because the dividend is largely paid in shares (only EUR 354m of cash dividends TTM) – checked against the cash flow. Exor owns about a sixth of the shares. Any remaining US investigations (DOJ) and lawsuits over Respironics, and insider trading, have not been examined in detail. Q3 report at the end of October.
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