Globe Telecom (GTMEY) AI Stock Analysis

• Market Cap: $4.15B
• Dividend Yield: 3.68%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.12
• Revenue Growth: -3.96%
• EPS Growth: 2.91%
• Country: US
• Employees: 6,510
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): 0.79
• Shares Outstanding: 144,468,520
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 16.20
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $34.00
• Price Target Upside: 17.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $31.00 ▲(7.42%Upside)

Globe Telecom's strong financial performance is offset by bearish technical indicators and high leverage. While the stock appears undervalued with a low P/E ratio, weak market momentum and concerns about financial stability due to high debt levels affect the overall score.

Globe Telecom Business Overview & Revenue Model

Company Description

Globe Telecom, Inc. provides telecommunications services to individual customers, small and medium-sized businesses, and corporate and enterprise clients in the Philippines. The company operates through Mobile Communications Services and Wireline Communication Services segments. It offers digital wireless communications services under the Globe Postpaid and Prepaid, and Touch Mobile brands; long distance communication or carrier services; broadband, as well as wireline voice and data communication services; and electronic payment and remittance services under the GCash brand. The company provides value-added services, such as inbound and outbound short messaging, content downloading, mobile commerce, and other add-on services. It also provides human capital management, business process, shared service support, Information technology and electronic, software development, IT system integration and consultancy, and advertising services. In addition, the company offers marketing and distribution; data management; data center management; capital investment funds management; warehouse and logistics services; and support and shared services, as well as specific solutions for various industries. Globe Telecom, Inc. was incorporated in 1935 and is headquartered in Taguig, the Philippines.

How the Company Makes Money

Globe Telecom makes money primarily through its mobile services, which include voice calls, SMS, and mobile data plans. These services are offered under various postpaid and prepaid plans catering to different customer needs. The company also generates significant revenue from its broadband services, offering home internet solutions. Additionally, Globe Telecom leverages its digital platforms and solutions to drive revenue growth, including mobile applications and partnerships with content providers to offer value-added services. Key revenue streams include individual consumer subscriptions, enterprise solutions for businesses, and partnerships with global technology and content firms to enhance service offerings and customer engagement.

Globe Telecom Financial Statement Overview

Summary

Globe Telecom exhibits strong profitability with high gross and net profit margins, efficient cost management, and solid operational performance. However, the high debt-to-equity ratio raises concerns about financial stability, despite strong return on equity and stable cash flows.

Income Statement

Globe Telecom demonstrates robust profitability with consistent gross profit margins around 90% in the TTM period, indicating efficient cost management. The TTM net profit margin is healthy at approximately 13.67%, though it slightly declined from the previous year. Revenue growth has been modest, indicating stable market position but limited expansion. The EBIT and EBITDA margins are strong, suggesting solid operational performance.

Balance Sheet

The company maintains a high debt-to-equity ratio of 2.10 in the TTM period, reflecting significant leverage which could pose financial risks if not managed carefully. However, the return on equity is strong at 14.29%, indicating efficient use of equity capital. The equity ratio of 26.95% suggests a balanced asset structure, though slightly lower than optimal.

Cash Flow

Globe Telecom has a stable cash flow with a positive operating cash flow to net income ratio of approximately 3.21 in the TTM period, showcasing robust cash generation capabilities. Free cash flow has grown slightly, indicating improved financial flexibility, but the free cash flow to net income ratio is only 1.13, suggesting limited surplus cash after investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	180.59B	180.16B	175.04B	167.75B	160.52B
Gross Profit	162.54B	160.58B	154.93B	148.49B	143.11B
EBITDA	94.76B	91.36B	79.30B	77.11B	78.27B
Net Income	24.30B	24.51B	34.56B	23.65B	18.58B
Balance Sheet
Total Assets	633.64B	611.63B	555.68B	458.46B	339.78B
Cash, Cash Equivalents and Short-Term Investments	21.35B	16.65B	18.03B	24.24B	19.51B
Total Debt	365.57B	338.68B	287.44B	229.93B	169.32B
Total Liabilities	465.86B	451.70B	403.14B	344.06B	256.98B
Stockholders Equity	167.75B	159.87B	152.19B	114.10B	82.57B
Cash Flow
Free Cash Flow	28.59B	9.82B	-38.49B	-27.67B	4.86B
Operating Cash Flow	84.78B	80.45B	62.88B	65.14B	65.16B
Investing Cash Flow	-30.75B	-54.48B	-71.58B	-96.56B	-61.57B
Financing Cash Flow	-49.46B	-27.56B	2.20B	36.06B	8.49B

Globe Telecom Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTMEY, the sentiment is Negative. The current price of 28.86 is below the 20-day moving average (MA) of 29.85, below the 50-day MA of 31.81, and below the 200-day MA of 36.05, indicating a bearish trend. The MACD of -0.74 indicates Negative momentum. The RSI at 35.79 is Neutral, neither overbought nor oversold. The STOCH value of 21.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTMEY.

Globe Telecom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	77 Outperform	$5.01B	11.93	6.74%	4.13%	14.09%	-11.43%
TIGO	74 Outperform	$6.71B	18.81	10.19%	7.69%	-1.52%	4874.58%
PHI	71 Outperform	$4.66B	8.53	28.10%	7.63%	-0.91%	11.25%
GTMEY	64 Neutral	$4.15B	10.44	17.57%	3.68%	-3.96%	2.91%
Sector *	61 Neutral	$41.05B	-1.44	-12.05%	3.94%	2.10%	-69.66%
TEO	58 Neutral	$3.78B	19.34	3.99%	―	-12.77%	40.80%
USM	57 Neutral	$5.92B	―	-0.84%	―	-4.11%	-163.81%