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PLDT, Inc. (PHI)
NYSE:PHI
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PLDT (PHI) AI Stock Analysis

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PHI

PLDT

(NYSE:PHI)

Rating:70Neutral
Price Target:
$22.00
▲(12.88% Upside)
PLDT's strong financial performance and attractive valuation are offset by bearish technical indicators and challenges in legacy services. The earnings call provided a balanced view with growth in key areas but highlighted regulatory risks.

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

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 generates revenue primarily through its telecommunications services, which include mobile, fixed-line, and broadband offerings. Key revenue streams consist of mobile data usage, which is driven by the increasing demand for internet connectivity and digital services, as well as fixed-line services, including landline subscriptions and broadband internet. PLDT also earns income from its enterprise solutions, offering a variety of services to businesses such as data connectivity, cloud solutions, and managed services. Significant partnerships with global technology providers enhance its service offerings and drive further revenue. Additionally, PLDT benefits from strategic investments in infrastructure, including fiber optics and mobile network expansion, which help capture a larger market share and improve service delivery.

PLDT Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted PLDT's stable core results and growth in key segments like fiber, ICT, and data centers, alongside a significant financial turnaround for Maya. However, challenges in legacy services, enterprise revenues, and regulatory uncertainties balance these achievements.
Q2-2025 Updates
Positive Updates
Stable Core Results
PLDT delivered stable core results with EBITDA reaching PHP 55.5 billion, up 3% from last year, and a steady EBITDA margin of 52%.
Fiber Revenue Growth
Home revenues grew 4% year-on-year to PHP 13.4 billion, led by strong fiber demand. Fiber revenues reached PHP 29.5 billion, up 7% versus last year.
ICT and Data Center Expansion
ICT revenues grew 15% year-on-year to PHP 3.2 billion, with data center colocation revenues up 36% and cybersecurity services expanding by 24%.
AI-Ready Data Center
VITRO Santa Rosa, the country's first operational AI-ready hyperscale facility, was inaugurated, positioning PLDT to support AI computing and innovation.
Maya's Financial Turnaround
Maya achieved its first profitable semester with core earnings of PHP 406 million, marking a PHP 1.1 billion improvement from a loss last year.
5G Adoption and Traffic Growth
5G traffic surged 84% year-on-year with 5G devices now making up 17% of the customer base, up from 11% a year ago.
Negative Updates
Decline in Legacy Services
Individual revenues decreased by 1% year-on-year to PHP 42.3 billion due to continued drag from legacy services.
Enterprise Revenue Decline
Enterprise revenues were slightly lower at PHP 23.5 billion, down 1% due to declines in legacy businesses and delays in public sector deal closures.
Challenges in Mobile Segment
Mobile data revenues were stable but showed softness, partly due to weaker legacy offerings and competitive pressures.
Regulatory Uncertainties
Concerns about the Konektadong Pinoy Bill's potential impact on telcos, with PLDT considering constitutional challenges if it becomes law.
Company Guidance
In the first half of 2025, PLDT's financial and operational performance demonstrated resilience with a slight increase in service revenues, reaching PHP 97.1 billion, and EBITDA growing by 3% to PHP 55.5 billion, maintaining a margin of 52%. The company reported a stable core income of PHP 17.6 billion, with Maya contributing PHP 406 million, marking its first profitable semester. The Home segment saw a 4% revenue increase to PHP 30.4 billion, driven by a 7% rise in fiber revenues. The Enterprise segment experienced a slight decline, but ICT revenues grew by 15% to PHP 3.2 billion. Mobile data remained stable, comprising 89% of the Individual segment's revenues. PLDT's CapEx guidance for the year was reduced to PHP 63 billion due to favorable pricing, with a focus on network expansion and AI infrastructure, while the net debt-to-EBITDA ratio stood at 2.57x. The Board declared an interim cash dividend of PHP 0.48 per share, aligning with the company's 60% payout policy.

PLDT Financial Statement Overview

Summary
PLDT demonstrates solid financial performance with strong profitability and operational efficiency. The income statement shows good margins, though revenue growth is modest. The balance sheet indicates high leverage, posing financial risks, but this is mitigated by a strong return on equity. Cash flows are healthy, with significant free cash flow growth and strong cash conversion metrics.
Income Statement
79
Positive
PLDT's income statement shows a strong gross profit margin of 86.77% in TTM, indicating efficient cost management relative to revenue. The net profit margin is healthy at 14.47%, showcasing profitability. However, the revenue growth has been modest at 0.49% from the previous year, suggesting stable but limited growth. The EBIT margin is strong at 30.52%, and the EBITDA margin is robust at 49.02%, reflecting good operational efficiency.
Balance Sheet
68
Positive
The balance sheet reflects a high debt-to-equity ratio of 2.92, pointing to significant leverage which poses a risk in terms of financial stability. Return on equity is solid at 27.29%, indicating efficient use of equity capital to generate profits. The equity ratio of 18.42% suggests a moderate reliance on equity financing compared to total assets.
Cash Flow
75
Positive
The cash flow statement shows positive free cash flow growth of 37.79%, signaling improving cash generation. The operating cash flow to net income ratio of 2.62 indicates strong cash flow relative to reported net income, and the free cash flow to net income ratio of 0.59 reflects a decent conversion of profits into free cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue216.83B210.95B205.25B193.26B181.00B
Gross Profit189.10B155.17B184.62B176.22B166.56B
EBITDA114.34B108.83B105.43B99.54B93.00B
Net Income32.31B26.61B10.48B26.37B24.28B
Balance Sheet
Total Assets623.27B609.52B624.16B626.33B575.85B
Cash, Cash Equivalents and Short-Term Investments11.00B17.09B25.80B33.42B48.57B
Total Debt335.62B302.34B292.01B274.24B242.79B
Total Liabilities506.54B499.13B510.20B498.86B456.18B
Stockholders Equity115.42B105.22B108.73B123.22B115.41B
Cash Flow
Free Cash Flow13.45B7.33B-19.35B-10.58B11.01B
Operating Cash Flow81.73B85.77B76.20B91.81B87.52B
Investing Cash Flow-65.70B-55.12B-33.01B-103.48B-74.35B
Financing Cash Flow-22.33B-39.42B-42.30B-4.90B3.70B

PLDT Technical Analysis

Technical Analysis Sentiment
Negative
Last Price19.49
Price Trends
50DMA
21.66
Negative
100DMA
21.90
Negative
200DMA
21.80
Negative
Market Momentum
MACD
-0.66
Positive
RSI
30.71
Neutral
STOCH
6.29
Positive
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 19.49 is below the 20-day moving average (MA) of 21.41, below the 50-day MA of 21.66, and below the 200-day MA of 21.80, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 30.71 is Neutral, neither overbought nor oversold. The STOCH value of 6.29 is Positive, 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$18.99B13.2817.71%6.69%-5.13%-5.90%
72
Outperform
$9.17B14.875.22%2.98%-1.22%-17.07%
72
Outperform
$19.83B19.508.20%4.27%-6.51%-0.21%
70
Neutral
$4.33B7.4627.07%8.53%0.35%19.08%
67
Neutral
$8.37B11.608.49%4.58%-4.74%-16.57%
60
Neutral
$46.29B4.07-13.12%4.12%1.85%-42.71%
60
Neutral
$30.16B-3.55%6.68%-4.73%-251.31%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PHI
PLDT
19.49
-5.45
-21.85%
KT
KT
20.28
4.93
32.12%
TLK
PT Telekomunikasi Indonesia Tbk
19.42
0.90
4.86%
SKM
Sk Telecom
21.83
-1.95
-8.20%
VIV
Telefonica Brasil
12.47
3.15
33.80%
TEF
Telefonica
5.34
0.90
20.27%
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: Aug 28, 2025