Globe Telecom (GTMEY) AI Stock Analysis

• Market Cap: $3.66B
• Dividend Yield: 4.49%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.14
• Revenue Growth: -3.09%
• EPS Growth: -18.75%
• Country: US
• Employees: 6,510
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.63
• Shares Outstanding: 144,468,520
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -8.04
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 9.86
• Enterprise Value/Market Cap: 3.04
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.07
• Enterprise Value/Ebitda: 0.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $30.00 ▲(10.58% Upside)

Globe Telecom's strong financial performance, characterized by profitability and operational efficiency, is a key strength. The stock's valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, technical indicators suggest potential overbought conditions, and high leverage poses a risk if not managed effectively.

Positive Factors

Cash Generation

Positive free cash flow growth indicates improved cash generation, which enhances financial flexibility and supports future investments.

Profitability

Strong profitability with high margins reflects operational efficiency and the ability to maintain competitive pricing and cost control.

Operational Efficiency

Robust EBIT and EBITDA margins demonstrate effective management and operational efficiency, supporting long-term profitability.

Negative Factors

Revenue Growth Decline

Declining revenue growth suggests challenges in expanding market share or product adoption, potentially impacting future earnings.

High Leverage

Significant leverage poses risks to financial stability, as it could limit flexibility and increase vulnerability to economic downturns.

Earnings Conversion

A low free cash flow to net income ratio indicates that a substantial portion of earnings is not translating into cash, which could affect liquidity.

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, challenges include 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: Positive
• Last Price: 27.13
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 27.13 is above the 20-day moving average (MA) of 26.01, above the 50-day MA of 25.75, and below the 200-day MA of 30.66, indicating a neutral trend. The MACD of 0.53 indicates Negative momentum. The RSI at 60.31 is Neutral, neither overbought nor oversold. The STOCH value of 36.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTMEY.

Globe Telecom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHI	77 Outperform	$4.78B	9.47	25.22%	7.43%	0.59%	8.86%
TLK	75 Outperform	$22.14B	16.57	15.54%	5.75%	-5.21%	-7.45%
TKC	74 Outperform	$5.00B	11.43	7.60%	5.75%	19.02%	9.26%
GTMEY	68 Neutral	$3.66B	10.15	15.91%	4.49%	-3.09%	-18.75%
TEO	61 Neutral	$5.38B	―	-2.95%	1.65%	15.38%	-292.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AD	60 Neutral	$4.22B	-160.26	4.11%	47.83%	-25.64%	―