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PCCW Limited (PCCWY)
OTHER OTC:PCCWY
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PCCW (PCCWY) AI Stock Analysis

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PCCW

(OTC:PCCWY)

Rating:63Neutral
Price Target:
$7.50
▲(0.94%Upside)
PCCW's overall stock score reflects a mix of strengths and challenges. The company's strong cash flow management and operational efficiency are positive, but profitability issues and high leverage are significant concerns. Technical indicators are favorable, suggesting potential upward momentum. However, the negative P/E ratio highlights ongoing profitability challenges, partially offset by a high dividend yield.

PCCW (PCCWY) vs. SPDR S&P 500 ETF (SPY)

PCCW Business Overview & Revenue Model

Company DescriptionPCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. The company's services include local telephony, local data and broadband, mobile, international telecommunications, and satellite-based and network-based telecommunications services; and outsourcing, consulting, and contact center services. It also provides technical support, electronics and communications engineering, and products and solutions, as well as free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; and sells mobile handsets and accessories. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, and media content services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products and services; supply of broadband internet access solutions and web services; provision of data services; software development, systems integration, consulting, and informatization activities; computer facilities management; the provision of computer and IP/IT related value-added services to business customers; and operates customer loyalty program and online merchandise sales. Additionally, the company offers IT and business process outsourcing, fintech, e-Commerce, big data analytics, managed, digital, cloud, and IoT solutions. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.
How the Company Makes MoneyPCCW Limited generates revenue through multiple key channels. Its telecommunications segment, primarily through HKT Limited, is a significant revenue source, offering fixed-line services, broadband internet, mobile communications, and other related services. The media and entertainment division contributes to earnings through subscription fees and advertising revenue from its pay-TV service, Now TV, and its OTT platform, Viu. Additionally, PCCW Solutions provides IT services that include systems integration, application development, and managed services, further adding to the company's revenue. Property development and management also play a role in PCCW's earnings, though to a lesser extent compared to its primary sectors. Moreover, strategic partnerships and collaborations in each sector enhance PCCW's market position and contribute to its financial performance.

PCCW Financial Statement Overview

Summary
PCCW demonstrates operational efficiency and strong cash flow management, with a significant free cash flow growth of 58.95%. However, the company faces challenges with profitability due to a net loss and high leverage, as indicated by a high debt-to-equity ratio of 7.20. The revenue growth of 3.33% is positive, but the negative net profit margin and low equity ratio are concerning.
Income Statement
65
Positive
PCCW's income statement shows a mixed performance. The company has experienced a modest revenue growth of 3.33% from 2023 to 2024, indicating a positive trend. However, the net profit margin is negative due to a net loss in 2024, which raises concerns about profitability. The gross profit margin remains strong at 49.06%, and the EBITDA margin is healthy at 29.88%, suggesting operational efficiency despite the net loss.
Balance Sheet
55
Neutral
The balance sheet presents a challenging picture with a high debt-to-equity ratio of 7.20, indicating significant leverage. The equity ratio is low at 7.58%, reflecting limited equity compared to total assets. Return on equity is negative due to the net loss, which is a concern. The high leverage poses a risk, but the company's substantial asset base provides some stability.
Cash Flow
70
Positive
PCCW's cash flow statement is relatively strong, with a significant free cash flow growth of 58.95% from 2023 to 2024. The operating cash flow to net income ratio is not meaningful due to the net loss, but the company has a robust free cash flow to net income ratio, indicating good cash generation capabilities. This suggests that despite profitability challenges, the company maintains solid cash flow management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue37.56B36.35B36.06B38.65B38.05B
Gross Profit18.43B18.23B18.15B17.39B17.55B
EBITDA11.22B11.28B12.38B11.86B11.11B
Net Income-66.00M-236.00M393.00M2.85B649.00M
Balance Sheet
Total Assets98.76B94.56B95.06B94.22B97.84B
Cash, Cash Equivalents and Short-Term Investments3.02B2.71B3.13B5.04B4.62B
Total Debt53.94B54.19B51.65B49.22B60.56B
Total Liabilities87.24B84.86B82.30B78.74B84.28B
Stockholders Equity7.49B2.48B11.44B14.36B9.93B
Cash Flow
Free Cash Flow8.46B5.32B3.43B1.78B5.57B
Operating Cash Flow10.63B13.35B10.34B9.70B12.70B
Investing Cash Flow-7.70B-7.46B-6.01B-7.62B-7.54B
Financing Cash Flow-3.26B-6.27B-5.83B-1.57B-6.47B

PCCW Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.43
Price Trends
50DMA
6.79
Positive
100DMA
6.31
Positive
200DMA
5.89
Positive
Market Momentum
MACD
0.21
Negative
RSI
59.02
Neutral
STOCH
62.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCCWY, the sentiment is Positive. The current price of 7.43 is above the 20-day moving average (MA) of 7.02, above the 50-day MA of 6.79, and above the 200-day MA of 5.89, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 59.02 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCCWY.

PCCW Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TLTLK
79
Outperform
$16.10B11.5116.28%6.12%-5.14%-7.47%
TKTKC
77
Outperform
$4.99B11.916.74%4.14%14.09%-11.43%
PHPHI
74
Outperform
$4.65B8.7628.10%7.50%-0.91%11.25%
SKSKM
69
Neutral
$8.52B9.6111.08%4.64%-4.13%4.96%
63
Neutral
$5.65B-14.61%10.00%3.67%36.38%
TETEO
58
Neutral
$3.88B19.023.99%-12.77%40.80%
55
Neutral
AU$3.57B16.80-1.37%3.11%4.07%-17.03%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PCCWY
PCCW
7.43
2.74
58.42%
TLK
PT Telekomunikasi Indonesia Tbk
16.94
-1.75
-9.36%
PHI
PLDT
22.01
-2.43
-9.94%
SKM
Sk Telecom
22.15
0.68
3.17%
TEO
Telecom Argentina
8.94
2.48
38.39%
TKC
Turkcell Iletisim
5.77
-2.02
-25.93%
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 03, 2025