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Globe Telecom (GTMEY)
:GTMEY
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Globe Telecom (GTMEY) AI Stock Analysis

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Globe Telecom

(OTC:GTMEY)

Rating:64Neutral
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 (GTMEY) vs. SPDR S&P 500 ETF (SPY)

Globe Telecom Business Overview & Revenue Model

Company DescriptionGlobe 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 MoneyGlobe 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
85
Very Positive
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
78
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue180.59B180.16B175.04B167.75B160.52B
Gross Profit162.54B160.58B154.93B148.49B143.11B
EBITDA94.76B91.36B79.30B77.11B78.27B
Net Income24.30B24.51B34.56B23.65B18.58B
Balance Sheet
Total Assets633.64B611.63B555.68B458.46B339.78B
Cash, Cash Equivalents and Short-Term Investments21.35B16.65B18.03B24.24B19.51B
Total Debt365.57B338.68B287.44B229.93B169.32B
Total Liabilities465.86B451.70B403.14B344.06B256.98B
Stockholders Equity167.75B159.87B152.19B114.10B82.57B
Cash Flow
Free Cash Flow28.59B9.82B-38.49B-27.67B4.86B
Operating Cash Flow84.78B80.45B62.88B65.14B65.16B
Investing Cash Flow-30.75B-54.48B-71.58B-96.56B-61.57B
Financing Cash Flow-49.46B-27.56B2.20B36.06B8.49B

Globe Telecom Technical Analysis

Technical Analysis Sentiment
Negative
Last Price28.86
Price Trends
50DMA
31.81
Negative
100DMA
34.50
Negative
200DMA
36.05
Negative
Market Momentum
MACD
-0.74
Negative
RSI
35.79
Neutral
STOCH
21.82
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TKTKC
77
Outperform
$5.01B11.936.74%4.13%14.09%-11.43%
74
Outperform
$6.71B18.8110.19%7.69%-1.52%4874.58%
PHPHI
71
Outperform
$4.66B8.5328.10%7.63%-0.91%11.25%
64
Neutral
$4.15B10.4417.57%3.68%-3.96%2.91%
61
Neutral
$41.05B-1.44-12.05%3.94%2.10%-69.66%
TETEO
58
Neutral
$3.78B19.343.99%-12.77%40.80%
USUSM
57
Neutral
$5.92B-0.84%-4.11%-163.81%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GTMEY
Globe Telecom
28.86
-5.47
-15.93%
PHI
PLDT
21.64
-3.08
-12.46%
TEO
Telecom Argentina
8.92
2.33
35.36%
TKC
Turkcell Iletisim
5.78
-2.00
-25.71%
USM
United States Cellular
68.98
11.44
19.88%
TIGO
Millicom International Cellular SA
38.89
15.84
68.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025