PCCW (PCCWY) AI Stock Analysis

• Market Cap: $5.52B
• Dividend Yield: 7.06%
• Average Volume (3M): 3.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: 4.66%
• EPS Growth: 36.62%
• Country: US
• Employees: 14,600
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.07
• Shares Outstanding: 774,106,300
• 10 Day Avg. Volume: 1,264
• 30 Day Avg. Volume: 3,311
• PEG Ratio: 15.00
• Price to Book (P/B): 4.81
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 4.26
• Enterprise Value/Market Cap: 2.51
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 0.74
• Enterprise Value/Ebitda: 1.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: $7.00 ▲(3.86% Upside)

PCCW's overall stock score is primarily influenced by its financial performance and technical analysis. The company's operational efficiency and strong cash flow are positive, but profitability challenges and high leverage are significant concerns. The technical indicators suggest limited momentum, and the valuation is impacted by a negative P/E ratio, though the high dividend yield provides some appeal.

PCCW Business Overview & Revenue Model

Company Description

PCCW Limited (PCCWY) is a leading telecommunications and multimedia company based in Hong Kong. It operates primarily in the telecommunications sector, offering a wide range of services including fixed-line and mobile telecommunications, broadband internet, media, and IT solutions. PCCW is known for its flagship product, HKT, which provides comprehensive telecom services, and Now TV, a popular subscription-based television service. The company also engages in various technology and digital solutions, catering to both residential and business customers.

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, indicated by a high debt-to-equity ratio of 7.20.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.78B	37.56B	36.35B	36.06B	35.45B	35.98B
Gross Profit	18.61B	18.43B	18.23B	18.15B	17.73B	16.80B
EBITDA	7.76B	11.22B	11.28B	12.38B	11.86B	11.11B
Net Income	-51.00M	-66.00M	-236.00M	393.00M	1.26B	-1.02B
Balance Sheet
Total Assets	101.17B	98.76B	94.56B	95.06B	94.22B	97.84B
Cash, Cash Equivalents and Short-Term Investments	3.14B	3.02B	3.13B	3.13B	5.04B	5.20B
Total Debt	59.25B	53.94B	54.19B	51.65B	49.22B	60.56B
Total Liabilities	93.77B	87.24B	84.86B	82.30B	78.74B	84.28B
Stockholders Equity	4.23B	7.49B	2.48B	11.44B	14.36B	9.93B
Cash Flow
Free Cash Flow	9.12B	8.46B	5.32B	3.43B	1.78B	5.57B
Operating Cash Flow	11.29B	10.63B	13.35B	10.34B	9.70B	12.70B
Investing Cash Flow	-8.04B	-7.70B	-7.46B	-6.01B	-7.62B	-7.54B
Financing Cash Flow	-3.38B	-3.26B	-6.27B	-5.83B	-1.57B	-6.47B

PCCW Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 6.74 is below the 20-day moving average (MA) of 6.77, below the 50-day MA of 6.79, and above the 200-day MA of 6.36, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 41.03 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
TKC	―	$5.23B	11.89	7.38%	5.39%	19.25%	5.69%
VIV	―	$20.70B	20.46	8.20%	4.77%	-6.51%	-0.21%
KT	―	$8.44B	14.24	5.22%	3.14%	-1.56%	-18.33%
PHI	―	$4.09B	7.49	27.07%	8.86%	0.35%	19.08%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PCCWY	―	$5.52B	―	―	7.06%	4.66%	36.62%
TEO	―	$4.86B	-332.52	-0.27%	1.85%	3.89%	-107.44%

PCCW Corporate Events

PCCW Limited Reports Strong Growth in H1 2025

PCCW Limited, a Hong Kong-based company, operates in the telecommunications and media sectors, offering services such as video streaming, free TV broadcasting, and telecommunications through its subsidiary HKT Limited. The company is known for its diverse content offerings and strategic partnerships across Southeast Asia and beyond.