Globe Telecom (GTMEY) AI Stock Analysis

• Market Cap: $3.82B
• Dividend Yield: 4.62%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.15
• 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: 150.81
• Enterprise Value/Revenue: 3.25
• Enterprise Value/Gross Profit: 3.59
• Enterprise Value/Ebitda: 8.11
• 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: $30.00 ▲(9.53% Upside)

Globe Telecom's overall stock score is driven by a solid valuation with a low P/E ratio and attractive dividend yield. Technical analysis shows positive momentum, but financial performance is weighed down by declining revenue and high leverage, posing financial risks.

Positive Factors

Strong Gross Profit Margins

High gross profit margins indicate efficient cost management, allowing Globe Telecom to maintain profitability despite revenue challenges.

Digital Solutions Growth

The growth of digital solutions like GCash positions Globe Telecom well in the expanding digital payments market, enhancing long-term revenue potential.

Diverse Revenue Streams

A diversified revenue model reduces reliance on any single segment, providing stability and resilience against market fluctuations.

Negative Factors

High Leverage

Substantial leverage increases financial risk, potentially limiting Globe Telecom's ability to invest in growth and weather economic downturns.

Declining Revenue

Significant revenue decline poses a challenge to sustaining long-term growth, impacting the company's market position and financial health.

Decreasing Free Cash Flow

Reduced free cash flow limits Globe Telecom's ability to fund new investments and service debt, potentially hindering future growth opportunities.

Globe Telecom Business Overview & Revenue Model

Company Description

Globe Telecom, Inc. (GTMEY) is a leading telecommunications company based in the Philippines, providing a wide range of communication and digital services to its customers. Founded in 1935, the company operates primarily in the telecommunications sector, offering mobile, fixed-line, and broadband services. Globe Telecom also engages in digital solutions, including mobile payments, e-commerce, and various value-added services, aiming to enhance connectivity and digital adoption across the nation.

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

Globe Telecom shows strong gross profit margins but faces challenges with declining revenue and profitability. The high leverage poses financial risks, and the decrease in free cash flow growth could constrain future financial flexibility.

Income Statement

Globe Telecom's income statement shows a strong gross profit margin of over 90% in the TTM, indicating efficient cost management. However, the net profit margin has declined to 9.16% from 13.46% in the previous year, reflecting reduced profitability. The revenue growth rate is negative at -42.3% in the TTM, signaling a significant decline in sales, which is a concern for future revenue stability.

Balance Sheet

The balance sheet reveals a very high debt-to-equity ratio of 153.98 in the TTM, indicating substantial leverage and potential financial risk. The return on equity has decreased to 13.04% from 14.49% in the previous year, suggesting reduced efficiency in generating returns for shareholders. The equity ratio is low, highlighting a reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -31.63% in the TTM, which could impact future investments and debt servicing. The operating cash flow to net income ratio is 0.46, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.38, suggesting some capacity to cover net income with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	177.43B	180.59B	180.16B	175.04B	167.75B	160.52B
Gross Profit	160.61B	162.54B	160.58B	154.93B	148.49B	143.11B
EBITDA	71.08B	94.76B	91.36B	79.30B	77.11B	78.27B
Net Income	16.26B	24.30B	24.51B	34.56B	23.65B	18.58B
Balance Sheet
Total Assets	11.28B	633.64B	611.63B	555.68B	458.46B	339.78B
Cash, Cash Equivalents and Short-Term Investments	476.43M	21.35B	16.65B	18.03B	24.24B	19.51B
Total Debt	381.96B	365.57B	338.68B	287.44B	229.93B	169.32B
Total Liabilities	482.36B	465.86B	451.70B	403.14B	344.06B	256.98B
Stockholders Equity	2.48B	167.75B	159.87B	152.19B	114.10B	82.57B
Cash Flow
Free Cash Flow	21.42B	28.59B	9.82B	-38.49B	-27.67B	4.86B
Operating Cash Flow	55.69B	84.78B	80.45B	62.88B	65.14B	65.16B
Investing Cash Flow	-32.68B	-30.75B	-54.48B	-71.58B	-96.56B	-61.57B
Financing Cash Flow	-25.48B	-49.46B	-27.56B	2.20B	36.06B	8.49B

Globe Telecom Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.39
• 50DMA: Positive
• 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 27.39 is above the 20-day moving average (MA) of 26.97, above the 50-day MA of 25.98, and below the 200-day MA of 29.76, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 45.32 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
PHI	77 Outperform	$4.62B	8.92	25.22%	7.89%	0.59%	8.86%
TLK	75 Outperform	$20.23B	15.47	15.54%	6.16%	-5.21%	-7.45%
TKC	74 Outperform	$5.16B	12.53	7.60%	5.49%	19.02%	9.26%
AD	70 Outperform	$4.48B	17.73	4.11%	44.35%	-25.64%	―
GTMEY	66 Neutral	$3.82B	10.92	15.91%	4.62%	-3.09%	-18.75%
TEO	61 Neutral	$5.27B	-33.09	-2.95%	0.40%	15.38%	-292.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%