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1. Company Snapshot

1.a. Company Description

Signify N.V. provides lighting products, systems, and services in Europe, the Americas, and internationally.The company operates through Digital Solutions, Digital Products, and Conventional Products segments.It offers light-emitting diode (LED) and conventional luminaires, systems, and services for various market segments comprising offices, commercial buildings, shops, hospitality, industry, agriculture, and outdoor environments.


The company also provides various LED lamps, including spots, bulbs, and tubes for the professional and consumer channels; and LED electronic components, such as LED drivers and modules to original equipment manufacturers (OEMs) for professional luminaire applications in the retail, office, industry, and outdoor segments, as well as develops and sells connected lighting systems and luminaires.In addition, it produces and sells lamps based on non-LED based technologies, which comprise high intensity discharge lamps, TL, compact fluorescent, halogen, incandescent, electronic ballast and drivers, and specialty lighting products for residential and professional applications; and digital projection lamps and drivers to the OEM market and replacement market.The company was formerly known as Philips Lighting N.V. and changed its name to Signify N.V. in May 2018.


Signify N.V. was founded in 1891 and is headquartered in Eindhoven, the Netherlands.

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1.b. Last Insights on LIGHT

Signify N.V. faced challenges in recent months, driven by a decline in sales and earnings miss. The company's full-year 2025 sales were €5.8 billion, with a 3.4% decline in comparable sales growth (CSG). Adjusted EBITA margin decreased to 8.9% from 9.9% in FY 2024. A recent earnings miss of 17% led to analyst forecast revisions. Despite this, the company focuses on strong cash flow, sustainability achievements, and strategic cost-saving measures. Signify also completed a share repurchase program, buying back 7.1 million shares for €150 million.

1.c. Company Highlights

2. Signify's Mixed Performance in 2025

Signify reported a mixed financial performance for the full year 2025, with nominal sales declining by 9.9% to EUR 1.49 billion, mainly due to a negative currency impact of 4.7%. On a comparable basis, sales declined by 5.2%, reflecting continued weakness in OEM, Professional Europe, and the China Consumer business. The adjusted EBITA margin was 8.9%, and the company delivered strong free cash flow of 7.6% of sales. The EPS for the year came in at 0.4753, below analyst estimates of 0.797.

Publication Date: Feb -14

📋 Highlights
  • Free Cash Flow Resilience: Generated 7.6% free cash flow of sales due to working capital discipline.
  • Connected Lighting Momentum: Represented 36% of total sales with strong growth across Professional and Consumer segments.
  • Cost Reduction Program: EUR 180 million savings target announced, impacting 900 roles globally by 2027.
  • Consumer Business Growth: Achieved 1.4% comparable sales growth in 2025, driven by connected product momentum.
  • Professional Business Mix: U.S. growth offset European weakness; adjusted EBITA margin dipped 40 bps to 8.9%.

Segment Performance

In the Professional business, comparable sales decreased by 1.4%, with growth in the U.S. offset by weakness in Europe. The adjusted EBITA margin decreased by 40 bps to 8.9%, mainly reflecting price and volume pressure in the European business. The Consumer business saw comparable sales increase by 1.4%, driven by strong connected sales throughout the year. However, the adjusted margin decreased by 50 bps to 10.6% mainly due to higher commercial investments.

Valuation Metrics

Signify's current valuation metrics indicate a relatively low P/E Ratio of 9.53, a P/B Ratio of 0.91, and a Dividend Yield of 7.74%. The EV/EBITDA ratio stands at 5.16, suggesting a moderate valuation. With an ROE of 9.25% and an ROIC of 6.8%, the company is generating reasonable returns on equity and invested capital.

Guidance and Outlook

For 2026, Signify expects an adjusted EBITA margin in the range of 7.5% to 8.5% and anticipates a soft start to the year with headwinds persisting in the first half. Analysts estimate revenue growth of 1.0% for next year. The company is implementing a EUR 180 million cost reduction program, which is expected to deliver the majority of savings in 2026, with the full benefit realized in 2027.

Cost Reduction and Restructuring

The cost savings program will involve headcount reductions, as well as other efficiency measures, such as redeployment of resources and automation. A.C. Tempelman mentioned that 25% of the savings will be in countries where there is a consultation process, and they will work with staff councils to carefully implement these changes. The program is expected to impact 900 roles worldwide.

Strategy and Portfolio Review

Signify is undergoing a strategy and portfolio review, which is expected to be completed by the Capital Markets Day in June 2026. The company is focusing on areas with growth potential, such as geographies, value chains, and product markets. The review is expected to provide clarity on where the company wants to invest and grow, as well as what parts of the business are opportunities for harvesting or divestment.

3. NewsRoom

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Signify share repurchase periodic update

Mar -09

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Digital Twin Stadium Lighting Industry Report 2026-2035: A $3.22 Billion Market by 2030 with Samsung, Panasonic, Eaton, Wipro Lighting, Signify, ams OSRAM Leading

Mar -02

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Signify share repurchase periodic update

Mar -02

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Assessing Signify (ENXTAM:LIGHT) Valuation After Recent Share Price Weakness

Feb -27

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Signify proposes changes to its Supervisory Board

Feb -24

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Signify share repurchase periodic update

Feb -23

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Europe LED Lighting Market Share Analysis, Trends and Forecasts (2026-2031) Featuring Signify, Zumtobel Group, Osram Licht (ams-Osram), Schreder, Fagerhult Group and More

Feb -19

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Signify starts share repurchase program of up to 725,000 shares to cover performance share plans

Feb -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.15%)

6. Segments

Digital Solutions

Expected Growth: 2.5%

Signify N.V.'s Digital Solutions segment growth of 2.5% is driven by increasing demand for smart lighting and IoT-based solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, such as Li-Fi technology, and its ability to provide energy-efficient solutions are contributing to its growth.

Digital Products

Expected Growth: 1.8%

Signify N.V.'s 1.8% growth in digital products is driven by increasing adoption of smart lighting solutions, rising demand for energy-efficient products, and expanding presence in emerging markets. Additionally, the company's strategic partnerships and investments in IoT and Li-Fi technologies are contributing to its growth momentum.

Conventional Products

Expected Growth: 1.2%

Signify N.V.'s Conventional Products segment growth of 1.2% is driven by increasing demand for energy-efficient lighting solutions, government regulations and incentives promoting sustainable lighting, and rising consumer awareness of environmental issues. Additionally, the company's strong brand presence, expanding distribution channels, and continuous product innovation also contribute to the segment's growth.

Other

Expected Growth: 0.8%

Signify N.V.'s 0.8 growth in 'Other' segment is driven by increasing demand for smart lighting solutions, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on innovation, cost savings initiatives, and effective pricing strategies have contributed to this growth.

7. Detailed Products

Luminaires

Lighting fixtures that combine lamps with other components to provide a complete lighting solution

Lamps

Light sources that produce light through electricity, including LED, halogen, and compact fluorescent lamps

Lighting Controls

Systems that control and manage lighting systems, including sensors, switches, and dimmers

Horticulture Lighting

Specialized lighting solutions for plant growth and cultivation, including LED grow lights and greenhouse lighting

Li-Fi

Light-based communication technology that enables high-speed internet connectivity through light

Solar Lighting

Solar-powered lighting solutions for off-grid and grid-connected applications

Connected Lighting

Internet of Things (IoT) enabled lighting systems that can be controlled and monitored remotely

8. Signify N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Signify N.V. operates in the lighting industry, where there are limited substitutes for lighting products. However, the increasing adoption of energy-efficient lighting solutions and the growing popularity of smart lighting systems may pose a moderate threat of substitutes.

Bargaining Power Of Customers

Signify N.V. has a diverse customer base, including professional customers, consumers, and OEMs. The company's strong brand portfolio and wide range of products reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Signify N.V. relies on a network of suppliers for components and materials. While the company has a diversified supplier base, the concentration of suppliers in certain regions and the increasing demand for certain materials may lead to moderate bargaining power of suppliers.

Threat Of New Entrants

The lighting industry has high barriers to entry, including significant capital investments, technological expertise, and established distribution networks. These barriers make it challenging for new entrants to compete with established players like Signify N.V.

Intensity Of Rivalry

The lighting industry is highly competitive, with several established players competing for market share. Signify N.V. faces intense competition from companies like Philips Lighting, Osram, and LEDVANCE, which may lead to pricing pressures and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.18%
Debt Cost 7.49%
Equity Weight 55.82%
Equity Cost 10.13%
WACC 8.96%
Leverage 79.16%

11. Quality Control: Signify N.V. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Signify

A-Score: 5.8/10

Value: 8.7

Growth: 3.4

Quality: 5.5

Yield: 9.4

Momentum: 3.0

Volatility: 5.0

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NKT

A-Score: 5.4/10

Value: 7.8

Growth: 7.4

Quality: 4.6

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

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Nexans

A-Score: 5.3/10

Value: 6.6

Growth: 6.8

Quality: 5.3

Yield: 3.1

Momentum: 7.0

Volatility: 3.0

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Prysmian

A-Score: 5.2/10

Value: 3.9

Growth: 7.3

Quality: 5.2

Yield: 2.5

Momentum: 8.5

Volatility: 4.0

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nVent Electric

A-Score: 4.5/10

Value: 1.5

Growth: 5.8

Quality: 6.7

Yield: 2.5

Momentum: 8.0

Volatility: 2.3

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Landis+Gyr

A-Score: 3.5/10

Value: 6.7

Growth: 0.4

Quality: 2.5

Yield: 5.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.57$

Current Price

18.57$

Potential

-0.00%

Expected Cash-Flows