PLDT (PHI) AI Stock Analysis

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PLDT

(NYSE:PHI)

76Outperform

PLDT's overall stock score reflects strong financial performance and attractive valuation, bolstered by consistent revenue growth and profitability. Technical analysis provides a neutral outlook, but the positive earnings call sentiment and achievements in fintech and sustainability further enhance the score. Challenges remain with legacy revenue decline and fiber broadband growth, warranting monitoring.

PLDT (PHI) vs. S&P 500 (SPY)

Market Cap

$4.51B

Dividend Yield5.87%

Average Volume (3M)83.11K

Price to Earnings (P/E)8.0

Beta (1Y)0.34

Revenue Growth-0.15%

EPS Growth17.96%

CountryUS

Employees14,904

SectorCommunication Services

Sector Strength98

IndustryTelecommunications Services

Share Statistics

EPS (TTM)2.61

Shares Outstanding216,055,770

10 Day Avg. Volume98,303

30 Day Avg. Volume83,106

Financial Highlights & Ratios

PEG Ratio0.44

Price to Book (P/B)N/A

Price to Sales (P/S)1.30

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

PLDT Business Overview & Revenue Model

Company DescriptionPLDT Inc. provides telecommunications and digital services in the Philippines. It operates through three segments: Wireless, Fixed Line, and Others. The company offers cellular mobile, Internet broadband distribution, operations support, software development, and satellite information and messaging services; and sells Wi-Fi access equipment. It also provides fixed line telecommunications services; business infrastructure and solutions; intelligent data processing and implementation, and data analytics insight generation services; and information and communications infrastructure for Internet-based services, e-commerce, customer relationship management, and information technology (IT) related services. In addition, the company offers managed IT outsourcing, Internet-based purchasing, IT consulting and professional, bills printing and other related value-added, and air transportation services; distributes Filipino channels and content services; and provides full-services customer rewards and loyalty programs. Further, it engages in the sale of mobile handsets, broadband data routers, tablets, and accessories, as well as provides domestic leased lines and alternative messaging solutions, such as over-the-top services, social media, and messenger application. As of December 31, 2021, it had 71,221,952 mobile broadband subscribers; 3,619,372 fixed line subscribers; and 2.8 million broadband subscribers. The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016. PLDT Inc. was incorporated in 1928 and is headquartered in Makati City, the Philippines.

How the Company Makes MoneyPLDT makes money primarily through its telecommunications services, which include mobile and fixed-line services. The Wireless segment generates revenue from voice, text messaging, and data services offered to prepaid and postpaid mobile subscribers. The Fixed Line segment earns revenue by providing voice services, data connectivity, broadband internet, and digital solutions to residential, commercial, and enterprise clients. Additionally, PLDT benefits from partnerships with international telecom providers for roaming and interconnection services. The company also gains revenue from its digital platforms and enterprise solutions that cater to the evolving needs of businesses in the digital age.

PLDT Financial Statement Overview

Summary

PLDT shows strong financial health with consistent revenue growth and improving profitability. Leverage has increased, but the balance sheet remains stable. Significant improvement in cash flow generation is noted, though careful management of debt levels is recommended.

Income Statement

Very Positive

PLDT's income statement shows a solid revenue growth trend with a 2.78% increase from 2023 to 2024, following consistent annual growth from previous years. The Gross Profit Margin remains robust, indicating efficient cost management. However, the lack of EBIT in 2024 is concerning, although EBITDA remains strong, suggesting non-operational costs may have impacted EBIT. Net Profit Margin increased from 12.61% in 2023 to 14.90% in 2024, reflecting improved profitability.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a moderate Debt-to-Equity Ratio, although it has increased over the years, indicating rising leverage. Stockholders' Equity has improved to 115.42 billion in 2024 from 105.22 billion in 2023, which is a positive sign. However, the Equity Ratio is slightly low, suggesting high reliance on debt financing. The Return on Equity (ROE) improved, showing efficient use of equity capital.

Cash Flow

Positive

Cash flow analysis reveals a recovery in Free Cash Flow with significant growth of 83.42% from 2023 to 2024, indicating improved cash generation capacity. Operating Cash Flow remains strong, and its ratio to Net Income shows robust operational efficiency. However, the Free Cash Flow to Net Income Ratio suggests limited cash available after capital expenditures, posing a potential risk if not managed carefully.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
216.83B	210.95B	205.25B	193.26B	181.00B
	Gross Profit
189.10B	155.17B	184.62B	176.22B	166.56B
	EBIT
0.00	101.16B	6.71B	49.26B	49.56B
	EBITDA
114.34B	108.83B	105.43B	99.54B	93.00B
	Net Income Common Stockholders
32.31B	26.61B	10.48B	26.37B	24.28B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.00B	17.09B	25.80B	33.42B	48.57B
	Total Assets
623.27B	609.52B	624.16B	626.33B	575.85B
	Total Debt
335.62B	302.34B	292.01B	274.24B	242.79B
	Net Debt
325.61B	286.17B	266.80B	250.34B	202.55B
	Total Liabilities
506.54B	499.13B	510.20B	498.86B	456.18B
	Stockholders Equity
115.42B	105.22B	108.73B	123.22B	115.41B
Cash Flow		Free Cash Flow
13.45B	7.33B	-19.35B	-10.58B	11.01B
	Operating Cash Flow
81.73B	85.77B	76.20B	91.81B	87.52B
	Investing Cash Flow
-65.70B	-55.12B	-33.01B	-103.48B	-74.35B
	Financing Cash Flow
-22.33B	-39.42B	-42.30B	-4.90B	3.70B

PLDT Technical Analysis

Technical Analysis Sentiment

Negative

Last Price22.24

Price Trends

50DMA

22.79

Negative

100DMA

22.29

Negative

200DMA

23.76

Negative

Market Momentum

MACD

-0.25

Positive

RSI

44.45

Neutral

STOCH

20.37

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHI, the sentiment is Negative. The current price of 22.24 is below the 20-day moving average (MA) of 22.52, below the 50-day MA of 22.79, and below the 200-day MA of 23.76, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 20.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHI.

PLDT Risk Analysis

PLDT disclosed 29 risk factors in its most recent earnings report. PLDT reported the most risks in the “Macro & Political” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

PLDT Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	77 Outperform	$14.11B	13.78	7.95%	2.94%	-0.47%	1.69%
PHI	76 Outperform	$4.51B	7.96	29.05%	5.87%	-0.15%	17.96%
TLK	73 Outperform	$14.03B	9.41	16.61%	6.10%	-2.99%	-7.36%
KT	70 Outperform	$8.02B	24.41	3.02%	6.11%	-3.60%	-51.54%
SKM	69 Neutral	$8.00B	8.95	11.19%	5.41%	-2.34%	12.31%
TEF	64 Neutral	$25.51B	―	<0.01%	5.43%	1.18%	―
Sector *	58 Neutral	$27.01B	3.11	-10.53%	4.44%	2.30%	-43.13%

* Communication Services Sector Average

Performance Comparison

PHI

PLDT

22.24

-0.88

-3.81%

17.22

4.04

30.65%

TLK

PT Telekomunikasi Indonesia Tbk

14.41

-5.77

-28.59%

SKM

Sk Telecom

21.34

0.46

2.20%

VIV

Telefonica Brasil

8.63

-0.71

-7.60%

TEF

Telefonica

4.46

0.42

10.40%

PLDT Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -3.47% | Next Earnings Date: May 1, 2025

Earnings Call Sentiment Positive

The earnings call reflected a generally positive outlook with consistent revenue growth, strong EBITDA improvements, and significant achievements in the fintech and sustainability areas. However, challenges remain with legacy revenue decline and slower Fiber broadband growth compared to industry averages.

Highlights

Consistent Revenue Growth

Service revenue grew 2% year-on-year to PHP 194.7 billion, driven by Fiber, Mobile data, and Enterprise ICT. Gross revenue rose by 3% to PHP 208.4 billion.

Strong EBITDA Improvement

EBITDA expanded by 4% to PHP 108.5 billion, with an EBITDA margin of 52%, indicating strong operational efficiency.

Enterprise ICT Growth

Enterprise revenues grew 3% to PHP 48.4 billion, with ICT services being the fastest-growing segment, up 15%.

Fintech Milestones

Maya Innovations posted its first profitable month in December 2024. Maya Bank has been profitable since September 2024.

Sustainability Achievements

PLDT's S&P Corporate Sustainability Assessment score rose 14 points to 72, making it the highest among Philippine corporates.

Lowlights

Legacy Revenue Decline

Legacy revenues continue to decline, affecting overall revenue growth, though moderation is expected as customers migrate to new segments.

Subscriber Cleanup Impact

Prepaid Mobile subscriber losses occurred due to a year-end cleanup.

Challenges in Fiber Broadband Growth

Despite improvements, Fiber broadband growth was slower than industry average, with net additions decreasing from 100,000 in Q3 to 40,000 in Q4.

Company Guidance

In the 2024 fiscal year, PLDT reported a stable financial performance with significant growth across various segments. The company's service revenue increased by 2% year-on-year to PHP 194.7 billion, driven by Fiber, Mobile Data, and Enterprise ICT, with overall gross revenue rising by 3% to PHP 208.4 billion. EBITDA grew by 4% to PHP 108.5 billion, maintaining a strong margin of 52%. The Individual Mobile Data segment saw a 5% increase, while Home Fiber and Corporate data and ICT services experienced growth of 6% and 5%, respectively. PLDT's Telco Core income rose by 2% to PHP 35.1 billion, and the company continued its asset monetization strategy, including tower sales and planned copper asset sales. The CapEx for 2024 was PHP 78.2 billion, with a reduced intensity of 38%, and the guidance for 2025 is set between PHP 68 billion and PHP 73 billion. PLDT's financial stability is underscored by a net debt-to-EBITDA ratio of 2.52 times and retained investment-grade ratings. The company's fintech arm, Maya, achieved a positive net income in December 2024, marking a significant milestone.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.