Investing in Philips
That is why the well-known Philips brand is one of the most traded stocks on the stock exchange in the European and U.S. markets. So, is it a good choice to invest in Philips?
To find out, you need to analyze everything about this company, from its advantages, disadvantages and key information to stock market data such as how much a Philips share is worth. And that’s what we bring to you below.
What is Philips?
Royal Philips is a company of Dutch origin, founded in 1891. This company is dedicated to the manufacture of technological products for a wide range of areas including: electronics, lighting, healthcare and lifestyle.
The also called Koninklijke Philips NV, is recognized worldwide for its great trajectory and the quality of its products, being these used by the consumer in areas of health, personal hygiene, household tools, lamps and lighting, and electronic products that improve the lifestyle and provide a different experience to the user.
The company aims to offer its consumers innovation through technology, using it to their advantage to improve the quality of life and facilitate customer tasks. In addition, buying from Philips is to contribute to the care of the environment since its products are completely ecological.
Philips works in an organized way on the invention of its products with two groups:
- Philips Health: personal and baby care products, household items, electronics, lighting, and more.
- Philips Health Systems: healthcare equipment such as x-ray, ultrasound and other hospital support technology products.
Philips was listed on Euronext N V and also on the STOXX Europe 50 and is considered one of the best valued stocks in recent years. Philips is also listed on Nasdaq under the acronym RYLPF.
Buying shares in Philips could be an excellent opportunity to enter the stock market. Its sales have increased in recent years, having that for 2019 its revenues were €19.48 million in total, which shows an increase compared to previous years such as 2018.
By 2020, sales started to decline, reaching 246 million euros for the first quarter due to the situation propagated by COVID-19. However, thanks to its subdivision dedicated to hospital equipment and healthcare, profits increased to 341 million euros with an EBITDA of 770 million euros in this last quarter.
There is no doubt that despite COVID-19, the company is maintaining stable revenues and, therefore, listing Philips shares on the stock exchange is profitable.
Buying Philips shares: Advantages
- It is listed on the main stock exchanges. As mentioned above, Philips shares are listed on the Amsterdam and New York stock exchanges, which has made it very popular with the shareholder public.
- Philips means innovation. When you buy a Philips share, you bet on innovation and the brand is constantly creating new products for the areas in which it works. In addition, it has a research laboratory called Eindhoven which is considered the largest in the world.
- Increased sales in 2020. People took interest in the brand’s products that are specifically for the home. The most prominent are coffee makers, air fryers, fans, air purifiers, among others. This generated an increase in sales in the last two quarters of the year.
- Philips stock and its accessible price. As of today, the price of Philips stock is €43.04, a completely accessible amount for new investors and for those already opting for this company.
- The value of Philips stock is estimated to increase. Experts say that the price of Philips stocks are on the rise by 2021 due to increased sales in this past quarter in the variety of its health and home products.
Buying Philips shares: Disadvantages
- Competition. It is no secret that Philips has strong competitors in the technology, lighting and healthcare equipment sectors. Some of them are: Samsung, Siemens, Osram, Electrolux and Ericsson. This could gradually affect the company’s revenues and the profitability of a Philips share.
How to buy Philips shares
There are several alternatives for buying Philips shares, one of which is by using an online broker. Although there are a number of options from these platforms, the safest and most recommended is eToro. Below we will show you step by step how to buy Philips with eToro:
- Create an account by filling out the form provided by eToro with your personal information.
- Verify the account by depositing the minimum amount to continue or include your credit card information.
- Log in and enter the name of Philips in the search engine. You can also search for the company by its acronym according to the stock exchange of your choice.
- It will show you the company’s statistics, the value of its shares and its profitability up and down.
- Click on ”Buy” and enter the number of Philips shares you wish to purchase.
- Choose the price you prefer (the one proposed by the market or a limited one in which you can decide the value) and click on invest.
- Wait a few minutes and then check your portfolio to verify that you have the Philips shares.
- Before choosing to invest in Philips, it is important to understand the advantages and disadvantages of the company. By analyzing the company’s information and stock data in detail, you can be more confident that it is the right stock for you.
- Constantly consult the statistics of the Philips shares and their price. This way you will know when it is convenient to buy the shares and when to sell.
- The best way to learn how to invest in Philips is to consult with experts in the stock market. By consulting with these professionals, you can buy wisely and learn more about the stock market.