Globe Telecom (GTMEY) AI Stock Analysis

• Market Cap: $4.19B
• Dividend Yield: 3.67%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.10
• Revenue Growth: -3.96%
• EPS Growth: 2.91%
• Country: US
• Employees: 6,510
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 0.79
• Shares Outstanding: 144,468,520
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 16.13
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.57
• 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: 17.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $31.00 ▲(6.93%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 demonstrates a strong financial position with consistent revenue and gross profit margins. The company manages operations efficiently, but high leverage and slightly declining net profit margins could pose future risks. Improving free cash flow and stable operating performance offer positive signs for future growth.

Income Statement

Globe Telecom has shown a stable revenue trend over the past years with a slight increase in Total Revenue from 2023 to 2024. The gross profit margin remains strong, indicating efficient management of production costs. However, the net profit margin has slightly decreased due to a lower net income in 2024 compared to previous years, suggesting pressure on profitability. EBIT and EBITDA margins are robust, reflecting effective cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which could pose risks if not managed carefully. The return on equity (ROE) is moderate, implying fair profitability relative to shareholder equity. The equity ratio indicates a stable financial structure, although the increasing liabilities over the years might require attention.

Cash Flow

The cash flow statement shows a healthy growth in operating cash flow, signaling solid operational performance. The Free Cash Flow has significantly improved in 2024, which is a positive trend. The operating cash flow to net income ratio remains strong, suggesting good cash conversion. However, capital expenditures are high, affecting the overall free cash flow in previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	179.03B	180.59B	180.16B	175.04B	167.75B	160.52B
Gross Profit	161.15B	162.54B	160.58B	154.93B	148.49B	143.11B
EBITDA	96.14B	94.76B	91.36B	79.30B	77.11B	78.27B
Net Income	24.47B	24.30B	24.51B	34.56B	23.65B	18.58B
Balance Sheet
Total Assets	635.46B	633.64B	611.63B	555.68B	458.46B	339.78B
Cash, Cash Equivalents and Short-Term Investments	18.73B	21.35B	16.65B	18.03B	24.24B	19.51B
Total Debt	360.41B	365.57B	338.68B	287.44B	229.93B	169.32B
Total Liabilities	464.15B	465.86B	451.70B	403.14B	344.06B	256.98B
Stockholders Equity	171.25B	167.75B	159.87B	152.19B	114.10B	82.57B
Cash Flow
Free Cash Flow	27.74B	28.59B	9.82B	-38.49B	-27.67B	4.86B
Operating Cash Flow	78.65B	84.78B	80.45B	62.88B	65.14B	65.16B
Investing Cash Flow	-28.17B	-30.75B	-54.48B	-71.58B	-96.56B	-61.57B
Financing Cash Flow	-53.56B	-49.46B	-27.56B	2.20B	36.06B	8.49B

Globe Telecom Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 28.99 is below the 20-day moving average (MA) of 30.40, below the 50-day MA of 32.21, and below the 200-day MA of 36.26, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 33.65 is Neutral, neither overbought nor oversold. The STOCH value of 2.15 is Positive, 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	$5.29B	12.45	6.74%	3.96%	14.09%	-11.43%
PHI	71 Outperform	$4.72B	8.77	28.10%	7.42%	-0.91%	11.25%
TIGO	71 Outperform	$6.37B	17.86	10.19%	8.10%	-1.52%	4874.58%
GTMEY	64 Neutral	$4.19B	10.46	17.57%	3.67%	-3.96%	2.91%
Sector *	61 Neutral	$40.40B	-0.91	-12.15%	3.89%	2.03%	-69.70%
USM	57 Neutral	$5.47B	―	-0.84%	―	-4.11%	-163.81%
TEO	55 Neutral	$3.88B	18.47	3.99%	―	-12.77%	40.80%