Philips: A Household Brand Trading Below Its Sum-Of-The-Parts Valuation
- A sum-of-the-parts analysis shows 25% upside potential.
- Philips is a self-help story with cost reduction programs progressing on target.
- An upcoming spin-off in early 2015 acts as a near-term catalyst.
- Solid A3/A- credit rating, consistently growing dividend payouts, and a good track record of share buybacks are the qualities long-term investors seek out.
- Savvy value investment firm Dodge & Cox has a sizable position in Philips.