Royal Philips (PHG) Moving On Heavy Volume In The Pre-Market Hours

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Royal Philips ( PHG) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Royal Philips as such a stock due to the following factors:

  • PHG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.0 million.
  • PHG traded 128,200 shares today in the pre-market hours as of 8:27 AM, representing 11.3% of its average daily volume.

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More details on PHG:

Koninklijke Philips N.V. engages in healthcare, consumer lifestyle, and lighting businesses worldwide. The stock currently has a dividend yield of 2.8%. PHG has a PE ratio of 16. Currently there is 1 analyst that rates Royal Philips a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Royal Philips has been 1.2 million shares per day over the past 30 days. Royal Philips has a market cap of $25.0 billion and is part of the consumer goods sector and consumer durables industry. Shares are down 7.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Royal Philips as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • Net operating cash flow has increased to -$206.23 million or 37.88% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.69%.
  • 44.93% is the gross profit margin for KONINKLIJKE PHILIPS NV which we consider to be strong. Regardless of PHG's high profit margin, it has managed to decrease from the same period last year.
  • The share price of KONINKLIJKE PHILIPS NV has not done very well: it is down 13.00% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Industrial Conglomerates industry and the overall market, KONINKLIJKE PHILIPS NV's return on equity significantly trails that of both the industry average and the S&P 500.

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