PCCW (PCCWY) AI Stock Analysis

• Market Cap: $5.33B
• Dividend Yield: 6.55%
• Average Volume (3M): 915.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: 4.66%
• EPS Growth: 36.62%
• Country: US
• Employees: 14,600
• Sector: Communication Services
• Sector Strength: 80
• Industry: Telecommunications Services
• EPS (TTM): -0.07
• Shares Outstanding: 774,106,300
• 10 Day Avg. Volume: 1,161
• 30 Day Avg. Volume: 915
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.50
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 0.90
• Enterprise Value/Ebitda: 1.75
• 1Y Price Target: $7.00
• Price Target Upside: -6.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: $8.00 ▲(6.67% Upside)

PCCW's overall stock score is primarily influenced by its strong technical analysis, indicating positive market momentum. However, financial performance is mixed, with strong cash flow but high leverage and a net loss. Valuation is weak due to a negative P/E ratio, though the high dividend yield offers some compensation.

PCCW Business Overview & Revenue Model

Company Description

PCCW Limited (PCCWY) is a prominent Hong Kong-based investment holding company that operates in the telecommunications, media, IT solutions, property development, and other businesses. It is well-known for its flagship subsidiary, HKT Limited, which provides a comprehensive range of telecommunications services in Hong Kong, including local telephony, broadband internet, mobile services, and international telecommunications. Additionally, PCCW is involved in media and entertainment through its ownership of Now TV, a leading pay-TV service in Hong Kong, and Viu, a pan-regional over-the-top (OTT) video service. The company also extends its reach into the IT sector through PCCW Solutions, which offers IT services and solutions across various industries.

How the Company Makes Money

PCCW 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.56B	36.35B	36.06B	38.65B	38.05B
Gross Profit	18.43B	18.23B	18.15B	17.39B	17.55B
EBITDA	11.22B	11.28B	12.38B	11.86B	11.11B
Net Income	-66.00M	-236.00M	393.00M	2.85B	649.00M
Balance Sheet
Total Assets	98.76B	94.56B	95.06B	94.22B	97.84B
Cash, Cash Equivalents and Short-Term Investments	3.02B	2.71B	3.13B	5.04B	4.62B
Total Debt	53.94B	54.19B	51.65B	49.22B	60.56B
Total Liabilities	87.24B	84.86B	82.30B	78.74B	84.28B
Stockholders Equity	7.49B	2.48B	11.44B	14.36B	9.93B
Cash Flow
Free Cash Flow	8.46B	5.32B	3.43B	1.78B	5.57B
Operating Cash Flow	10.63B	13.35B	10.34B	9.70B	12.70B
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 Price: 7.50
• 50DMA: Positive
• 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 PCCWY, the sentiment is Positive. The current price of 7.5 is above the 20-day moving average (MA) of 7.33, above the 50-day MA of 6.96, and above the 200-day MA of 6.01, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.19 is Neutral, neither overbought nor oversold. The STOCH value of 51.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCCWY.

PCCW Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLK	80 Outperform	$18.40B	12.60	17.71%	5.62%	-5.13%	-5.90%
TKC	77 Outperform	$5.01B	11.75	6.74%	5.68%	14.09%	-11.43%
PHI	74 Outperform	$4.99B	9.21	28.10%	7.46%	-0.91%	11.25%
SKM	69 Neutral	$8.65B	12.80	11.08%	4.49%	-4.13%	4.96%
TEO	64 Neutral	$4.12B	20.66	3.99%	2.24%	-12.77%	40.80%
PCCWY	61 Neutral	$5.33B	―	-14.61%	6.55%	4.66%	36.62%
Sector *	61 Neutral	$41.49B	-2.82	-10.67%	3.99%	2.71%	-43.89%