Globe Telecom (GTMEY) AI Stock Analysis

• Market Cap: $3.93B
• Dividend Yield: 4.51%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.19
• Revenue Growth: -3.09%
• EPS Growth: -18.75%
• Country: US
• Employees: 6,510
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.61
• Shares Outstanding: 144,468,520
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -3.42
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 9.34
• Enterprise Value/Market Cap: 180.38
• Enterprise Value/Revenue: 3.97
• Enterprise Value/Gross Profit: 6.50
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $31.00 ▲(12.73% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by financial performance: stable revenue and solid operating profitability are offset by margin compression and heightened balance-sheet leverage after the 2025 debt increase. Valuation is supportive with a modest P/E and a solid dividend yield, while technicals are mildly positive but not strongly trending.

Positive Factors

Diversified digital and telecom services

Globe’s multi-service business model—mobile, fixed broadband, fixed-line and digital payments (GCash)—creates multiple recurring revenue streams and cross-sell opportunities. This diversification supports steady cash generation, reduces dependence on any single product, and underpins durable customer retention in a mature market.

Strong operating cash flow generation

Consistently robust operating cash flow provides the company funding for network investment, service expansion, and some shareholder returns. Reliable OCF over time supports capital expenditure cycles and refinancing needs, enhancing resilience despite episodic FCF volatility.

Stable revenue base with modest growth

Globe operates in a mature telecom market where steady, low-single-digit revenue growth and high recurring subscription revenue provide predictability. This stability enables multi-year planning for network upgrades and digital initiatives, preserving long-term earnings power despite cyclical pressures.

Negative Factors

Elevated leverage after 2025 debt increase

The sharp increase in debt reduces financial flexibility and raises refinancing and interest-rate risk. Higher leverage constrains capacity for organic or inorganic investment, heightens vulnerability to macro shocks, and could prioritise debt servicing over growth or shareholder distributions for multiple quarters.

Sustained margin compression

A multi-year decline in net margins signals structural pressure on profitability—likely from higher operating costs, competition on pricing, or rising depreciation/finance costs. If persistent, margin erosion can limit reinvestment capacity and weaken long-term return on equity even with stable revenues.

Volatile free cash flow

Material swings in free cash flow reflect capital intensity and timing of investments, which complicates sustained debt paydown and dividend planning. Even with strong OCF, FCF variability can force deferment of strategic projects or put pressure on liquidity during downturns, affecting long-term strategy execution.

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 several key streams, primarily from its mobile services, which include voice, SMS, and data plans. The company operates on a subscription model, charging customers monthly fees for various service packages. Additionally, Globe earns income from its fixed-line and broadband services, catering to both residential and business sectors. Another significant revenue source is its digital solutions, particularly through GCash, a mobile wallet service that facilitates payments and financial transactions. Globe also partners with various content providers and businesses, enabling revenue-sharing agreements that further bolster its earnings. The company's focus on expanding its digital ecosystem and enhancing customer experience through innovative offerings contributes to its overall financial performance.

Globe Telecom Financial Statement Overview

Summary

Stable, mature revenue base and solid operating profitability, but profitability has weakened versus the 2022 peak with noticeable margin compression. Balance sheet risk is the main drag due to elevated leverage and a sharp debt increase in 2025, while operating cash flow is strong but free cash flow has been volatile.

Income Statement

Revenue has been broadly stable with modest growth (about 0%–4% most years; 2025 up ~2.7%), which is typical for a mature telecom. Profitability remains solid with strong gross and EBITDA margins, but earnings power has softened versus the 2022 peak: net margin declined from ~19.7% (2022) to ~13.1% (2025) and EBIT margin also trended lower. Overall, the business looks consistently profitable, but margin compression is a key watch item.

Balance Sheet

Leverage is elevated: debt has risen materially (to ~535B in 2025 from ~366B in 2024), and based on 2024/2023 figures the debt load is roughly a little over 2x equity, which limits financial flexibility. Equity has grown over time, and returns on equity were healthy in 2021–2024 (mid-teens to low-20s), but the sharp 2025 debt increase increases refinancing/interest-rate risk and reduces balance sheet headroom.

Cash Flow

The company generates strong operating cash flow (roughly 63B–85B annually), supporting ongoing investment needs. However, free cash flow has been volatile, including meaningfully negative years (2021–2022) followed by recovery (2023–2025), and 2025 free cash flow declined (~-1.8% vs. 2024). This profile suggests cash generation is real, but capital intensity and/or spending cycles can pressure cash available for debt reduction and shareholder returns.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	182.25B	183.06B	179.68B	176.65B	174.24B
Gross Profit	111.36B	113.59B	112.91B	110.09B	111.59B
EBITDA	88.79B	87.16B	80.84B	77.39B	76.78B
Net Income	23.79B	24.64B	24.45B	34.88B	24.46B
Balance Sheet
Total Assets	655.66B	633.64B	611.63B	555.68B	458.46B
Cash, Cash Equivalents and Short-Term Investments	25.02B	21.35B	16.65B	18.03B	24.24B
Total Debt	535.45B	365.57B	338.68B	287.44B	229.93B
Total Liabilities	511.19B	465.86B	451.70B	403.14B	344.06B
Stockholders Equity	144.42B	167.75B	159.87B	152.19B	114.10B
Cash Flow
Free Cash Flow	21.04B	28.59B	9.82B	-38.49B	-27.67B
Operating Cash Flow	68.14B	84.78B	80.45B	62.88B	65.14B
Investing Cash Flow	-37.95B	-30.75B	-54.48B	-71.58B	-96.56B
Financing Cash Flow	-26.04B	-49.46B	-27.56B	2.20B	36.06B

Globe Telecom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 27.5 is below the 20-day moving average (MA) of 28.28, below the 50-day MA of 27.94, and above the 200-day MA of 27.46, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 32.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GTMEY.

Globe Telecom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLK	75 Outperform	$17.81B	16.17	15.56%	6.14%	-5.21%	-7.45%
TKC	72 Outperform	$5.34B	11.51	7.24%	5.57%	19.02%	9.26%
GTMEY	66 Neutral	$3.93B	8.26	14.06%	4.51%	-3.09%	-18.75%
PHI	64 Neutral	$4.70B	9.02	24.66%	7.78%	0.59%	8.86%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TEO	60 Neutral	$5.14B	-36.64	-2.67%	0.40%	15.38%	-292.52%
AD	60 Neutral	$4.02B	15.83	8.13%	42.91%	-25.64%	―