SECTOR: [PASS] KPN is neither a technology nor financial Company, and therefore this methodology is applicable.
SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. KPN's sales of €5 702 million, based on 2019 sales, pass this test, but sales are decreasing year to year.
CURRENT RATIO: [FAIL] Current assets €1 953 divided by short-term debt €2 634 = 0.5 which is under Graham's limit of 2.
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [FAIL] Long term debt is €7 132 and Net Current Assets are minus €1 681.
LONG-TERM EPS GROWTH: [FAIL] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. EPS for KPN have decreased since 2003 and therefore the company fails this criterion. It has also lost money during the past 5 years.
Earnings Yield: [FAIL] Graham likes to see 7% or higher. 6% fails this test.
Graham Number value: [FAIL] The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. KPN has a Graham number of √(15 x €0,14 EPS x €0,60 Book Value) = €1,4
Dividend: € 0,13/€2,3 = 5,6%
Conclusion 2016: KPN is not a growing, money-making machine. The stock price and debt are too high for the Defensive Investor.
Conclusion 2017 at EUR 3 per share: Copy / paste 2016
Conclusion 2018 at EUR 2,4 per share: Unchanged
Conclusion 2019: (June 2020) at Euro 2,3 per share: Unchanged