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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.'s recent performance was positively driven by its Q3 sales of EUR 1.4 billion and operational profitability of 9.7%. The company's installed base of connected light points increased to 160 million, and it remains on track to meet its sustainability program commitments. Share repurchases continued, with 431,235 shares bought back in July-August and an additional 187,376 shares in September. A 22% EPS beat was recorded, although this was accompanied by a 9.9% share decline. (Source: Signify's Q3 report and share repurchase updates)

1.c. Company Highlights

2. Signify's Q3 2025 Earnings: Softness in Professional and OEM Businesses

Signify reported nominal sales of EUR 1.407 billion, down 8.4% year-over-year, with a negative currency effect of 4.5% mainly due to the depreciation of the U.S. dollar. Comparable sales declined by 3.9%, and excluding the conventional business, the decline was 2.7%. The adjusted EBITA margin decreased by 80 basis points to 9.7%. Net income came in at EUR 76 million, and EPS was 0.4387, missing estimates of 0.642. Free cash flow was EUR 71 million.

Publication Date: Oct -25

📋 Highlights
  • Revenue Decline:: Nominal sales fell 8.4% to €1.407B, with comparable sales down 3.9% (excluding conventional: -2.7%).
  • Consumer Growth Outperforms:: Consumer business sales declined 1.1% but achieved a 150-bps EBITA margin expansion to 9.1% (€27M EBITA).
  • Regional Demand Weakness:: Professional business faced softness in key European markets (France, Netherlands, UK) and a slower-than-expected US demand.
  • Connected Lighting Momentum:: Installed base of connected light points rose to €160M (vs. €136M prior year), driven by strong Hue portfolio expansion.
  • Margin Pressure and Guidance:: Adjusted EBITA margin contracted 80 bps to 9.7%, with full-year comparable sales guidance revised to -2.5% to -3%.

Segment Performance

The Professional business saw continued softness in important European countries and a softer-than-anticipated U.S. market, partly compensated by the growth of connected sales and a strong performance in agricultural lighting. The Consumer business grew in all major markets, with a strong performance in India, driven by the expansion of the Hue portfolio. The OEM business saw a further weakening of market demand, especially in Europe, while the Conventional business performed in line with expectations, reflecting the ongoing structural decline.

Guidance Update

Signify updated its guidance for the full year 2025, expecting comparable sales growth of minus 2.5% to minus 3% for the year, driven by softer-than-expected volumes in the U.S. and OEM businesses. The company expects free cash flow to land at around 7% of sales. As Zeljko Kosanovic mentioned, "We need to manage price pressure, continue to win in the connected and the specialty lighting, and close efficiency gaps."

Valuation

Signify's current P/E Ratio is 7.62, indicating that the stock is relatively undervalued. The Dividend Yield is 7.39%, which is attractive for income investors. The EV/EBITDA ratio is 5.05, suggesting that the company's enterprise value is reasonable compared to its EBITDA. With analysts estimating next year's revenue growth at -0.6%, the current valuation metrics suggest that the market has already priced in some of the challenges the company is facing.

Outlook

Signify will review its strategy and provide clarity on its portfolio, growth opportunities, and capital allocation at the Capital Markets Day in June next year. The company is committed to sustainable growth and will maintain strict control and capital disciplines to enhance its profitability and cash flow.

3. NewsRoom

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Signify completes cancellation of 5.8 million shares

Dec -03

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Signify completes share repurchase program

Dec -01

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Xinhua Silk Road: Shanghai's Minhang District showcases industrial strength at CIIE

Nov -28

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Hydroponics Market Competitive Landscape Report 2025: Company Analysis, Recent Developments, Strategy, Sustainability, Product Launch, Key Persons and Revenue

Nov -26

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Signify share repurchase period update

Nov -24

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Signify share repurchase period update

Nov -17

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Signify share repurchase period update

Nov -10

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Saudi Arabia Lighting Growth Analysis Report 2025-2034: Market Accelerates as Vision 2030 Spurs IoT-Enabled Solutions, Led by Signify, Al Nasser, National Lighting Co & HEBA Lighting

Nov -06

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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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A-Score: 5.8/10

Value: 8.5

Growth: 3.4

Quality: 5.5

Yield: 9.4

Momentum: 4.0

Volatility: 4.3

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Prysmian

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NKT

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Quality: 5.3

Yield: 0.0

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A-Score: 4.3/10

Value: 1.4

Growth: 5.4

Quality: 6.6

Yield: 2.5

Momentum: 7.5

Volatility: 2.7

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Landis+Gyr

A-Score: 3.9/10

Value: 6.5

Growth: 0.4

Quality: 3.7

Yield: 5.6

Momentum: 2.5

Volatility: 4.7

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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

20.06$

Current Price

20.06$

Potential

-0.00%

Expected Cash-Flows