Globe Telecom (GTMEY) AI Stock Analysis

• Market Cap: $3.84B
• Dividend Yield: 3.99%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.10
• Revenue Growth: -2.78%
• EPS Growth: -12.30%
• Country: US
• Employees: 6,510
• Sector: Communication Services
• Sector Strength: 96
• Industry: Telecommunications Services
• EPS (TTM): 0.63
• Shares Outstanding: 144,468,520
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.90
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.07
• Enterprise Value/Ebitda: 0.12
• 1Y Price Target: $32.00
• Price Target Upside: 20.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: $32.00 ▲(20.39% Upside)

Globe Telecom's overall stock score reflects its strong financial performance, particularly in profitability and cash flow generation, despite challenges with revenue growth and high leverage. The technical analysis suggests a neutral trend with potential for upward movement, while the valuation indicates the stock is reasonably priced with an attractive dividend yield.

Positive Factors

Profitability

High profitability margins indicate effective cost management and pricing power, contributing to sustainable financial health and competitive positioning.

Cash Flow Generation

Strong cash flow generation enhances Globe Telecom's ability to invest in growth opportunities, pay down debt, and return capital to shareholders.

Operational Efficiency

Efficient operations allow Globe Telecom to maintain profitability even in challenging market conditions, supporting long-term sustainability.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can hinder the company's ability to expand its market share and invest in new initiatives, impacting future growth prospects.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to respond to market changes and invest in growth.

Earnings Conversion

Low conversion of earnings to free cash flow may limit the company's ability to fund operations and growth without increasing debt, affecting long-term financial stability.

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 generates revenue through multiple key streams, primarily from its mobile services, which include prepaid and postpaid subscriptions, as well as mobile data usage. The company's broadband and fixed-line services also contribute significantly to its earnings, targeting residential and business customers with various internet solutions. Additionally, Globe has expanded its revenue model to include digital services, such as mobile wallets and e-commerce platforms, capitalizing on the growing demand for online transactions. Strategic partnerships with global technology firms enhance Globe's service offerings and drive additional revenue through bundled services. The company's ability to innovate and adapt to market trends, alongside its investments in network infrastructure, plays a crucial role in sustaining its revenue growth.

Globe Telecom Financial Statement Overview

Summary

Globe Telecom demonstrates strong profitability and operational efficiency, with robust margins and positive cash flow growth. However, the company faces challenges with declining revenue growth and high leverage, which could impact financial stability if not addressed.

Income Statement

Globe Telecom shows strong profitability with a consistent gross profit margin around 90% and a net profit margin of approximately 13.7% in TTM. However, the revenue growth rate has declined by 0.47% in the TTM, indicating a potential challenge in maintaining revenue momentum. EBIT and EBITDA margins remain robust, reflecting operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 2.10 in TTM, suggesting significant leverage, which could pose risks if not managed properly. Return on equity is healthy at 15.19%, indicating effective use of equity to generate profits. The equity ratio stands at 26.85%, showing a moderate level of equity financing.

Cash Flow

Free cash flow growth is positive at 12.95% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.67, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio is 0.35, indicating that a significant portion of earnings is not translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	178.19B	180.59B	180.16B	175.04B	167.75B	160.52B
Gross Profit	160.59B	162.54B	160.58B	154.93B	148.49B	143.11B
EBITDA	93.89B	94.76B	91.36B	79.30B	77.11B	78.27B
Net Income	22.19B	24.30B	24.51B	34.56B	23.65B	18.58B
Balance Sheet
Total Assets	642.72B	633.64B	611.63B	555.68B	458.46B	339.78B
Cash, Cash Equivalents and Short-Term Investments	19.32B	21.35B	16.65B	18.03B	24.24B	19.51B
Total Debt	372.68B	365.57B	338.68B	287.44B	229.93B	169.32B
Total Liabilities	470.09B	465.86B	451.70B	403.14B	344.06B	256.98B
Stockholders Equity	172.58B	167.75B	159.87B	152.19B	114.10B	82.57B
Cash Flow
Free Cash Flow	31.33B	28.59B	9.82B	-38.49B	-27.67B	4.86B
Operating Cash Flow	78.04B	84.78B	80.45B	62.88B	65.14B	65.16B
Investing Cash Flow	-32.81B	-30.75B	-54.48B	-71.58B	-96.56B	-61.57B
Financing Cash Flow	-44.10B	-49.46B	-27.56B	2.20B	36.06B	8.49B

Globe Telecom Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 26.58 is below the 20-day moving average (MA) of 27.95, below the 50-day MA of 28.67, and below the 200-day MA of 33.75, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 34.36 is Neutral, neither overbought nor oversold. The STOCH value of 24.24 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	81 Outperform	$4.69B	10.88	7.38%	5.85%	19.25%	5.69%
TLK	74 Outperform	$18.96B	13.38	17.71%	6.76%	-5.13%	-5.90%
PHI	70 Neutral	$4.25B	7.50	27.07%	8.58%	0.35%	19.08%
GTMEY	70 Neutral	$3.84B	10.67	15.91%	3.99%	-2.78%	-12.30%
AD	61 Neutral	$4.43B	―	-0.54%	44.83%	-3.65%	-134.04%
Sector *	60 Neutral	$47.27B	4.45	-11.27%	4.14%	1.88%	-40.90%
TEO	51 Neutral	$3.24B	22.47	-0.27%	2.74%	3.89%	-107.44%