PHILIPS ELECTRONICS N.V. ADRs $33 - New York symbol PHG

PHILIPS ELECTRONICS N.V. ADRs $33 (New York symbol PHG; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 913.9 million; Market cap: $30.2 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.0%; TSINetwork Rating: Average; www.philips.com) gets 43% of its revenue by making health care products, such as X-ray and magnetic resonance imaging (MRI) scanners. It also makes lighting (37% of revenue) and consumer electronics, such as appliances (20%).

In the quarter ended June 30, 2013, revenue rose 1.5%, to 5.65 billion euros from 5.57 billion euros a year earlier (1 euro = $1.40 Canadian). Philips earned 317 million euros, or 0.35 euros per ADR (each American Depositary Receipt represents one Philips common share). That’s up sharply from 102 million euros, or 0.11 euros per ADR, a year ago.

If you exclude restructuring costs and other unusual items, gross profits as a percentage of revenue improved to 9.4% from 7.3%.

The stock has risen 25% since the start of the year. It now trades at a high but still reasonable 19.1 times the $1.73 a share that Philips will likely earn in 2013.

Philips is a buy.

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