PCCW (PCCWY) AI Stock Analysis

• Market Cap: $5.29B
• Dividend Yield: 6.71%
• Average Volume (3M): 1.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: 4.66%
• EPS Growth: 36.62%
• Country: US
• Employees: 14,600
• Sector: Communication Services
• Sector Strength: 92
• Industry: Telecommunications Services
• EPS (TTM): -0.07
• Shares Outstanding: 774,106,300
• 10 Day Avg. Volume: 854
• 30 Day Avg. Volume: 1,295
• 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: 2.51
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 0.90
• Enterprise Value/Ebitda: 1.75
• 1Y Price Target: $7.00
• Price Target Upside: 3.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: $7.00 ▲(3.24% Upside)

PCCW's overall stock score reflects strong cash flow management and an attractive dividend yield, but is weighed down by profitability challenges and high leverage. The technical indicators suggest a bearish trend, further impacting the score.

PCCW Business Overview & Revenue Model

Company Description

PCCW 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 Money

PCCW generates revenue through multiple streams, primarily from its telecommunications services, which include mobile and fixed-line voice services, broadband internet access, and digital TV subscriptions. The mobile segment is bolstered by a significant customer base, providing steady monthly subscription fees. PCCW's broadband services also contribute substantially, as they have a strong market presence in Hong Kong. Additionally, the company earns revenue from its media segment, particularly through advertising and subscription fees from Now TV. Other revenue sources include IT solutions and cloud services for enterprise clients. Key partnerships with technology providers and content creators enhance its offerings and market competitiveness, further driving revenue growth.

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: Negative
• Last Price: 6.78
• 50DMA: Negative
• 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 Negative. The current price of 6.78 is below the 20-day moving average (MA) of 7.04, below the 50-day MA of 7.01, and above the 200-day MA of 6.06, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 33.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCCWY.

PCCW Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	81 Outperform	$5.31B	12.10	7.38%	5.24%	19.25%	5.69%
TLK	74 Outperform	$19.74B	13.84	17.71%	6.58%	-5.13%	-5.90%
PHI	70 Neutral	$4.63B	8.92	27.07%	7.08%	0.35%	19.08%
SKM	67 Neutral	$8.40B	11.90	8.49%	4.48%	-4.74%	-16.57%
Sector *	60 Neutral	$44.05B	4.50	-12.81%	4.08%	1.86%	-43.08%
PCCWY	56 Neutral	$5.29B	―	-14.61%	6.71%	4.66%	36.62%
TEO	56 Neutral	$3.82B	22.47	-0.27%	2.29%	3.89%	-107.44%