PLDT (PHI) AI Stock Analysis

• Market Cap: $4.96B
• Dividend Yield: 0.31%
• Average Volume (3M): 71.15K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.37
• Revenue Growth: -0.91%
• EPS Growth: 11.25%
• Country: US
• Employees: 14,904
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): 0.75
• Shares Outstanding: 216,055,770
• 10 Day Avg. Volume: 57,982
• 30 Day Avg. Volume: 71,149
• PEG Ratio: -3.58
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $25.00
• Price Target Upside: 8.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $24.50 ▲(6.15%Upside)

PLDT's solid financial performance and undervaluation drive its overall stock score. The company shows strong profitability and operational efficiency with a robust dividend yield. While technical analysis indicates neutral momentum, positive earnings call highlights and strategic initiatives boost the outlook. However, high leverage and declining segments pose risks that need to be monitored.

PLDT Business Overview & Revenue Model

Company Description

PLDT 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 Money

PLDT Inc. generates revenue through a diversified portfolio of telecommunications and digital services. The company's primary revenue streams include wireless services, which encompass mobile voice and data plans for individual and business customers, and fixed-line services, offering landline telephone and broadband internet services. Additionally, PLDT earns from its enterprise solutions, which provide managed data and IT services, cloud services, and cybersecurity products to businesses. The company also benefits from partnerships with other telecom operators and digital service providers, expanding its reach and enhancing service offerings. PLDT's investments in digital financial services, such as mobile payments and online remittances, further contribute to its revenue, tapping into the growing demand for fintech solutions in the region.

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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	114.34B	108.83B	105.43B	99.54B	93.00B
Net Income	32.31B	26.61B	10.48B	26.37B	24.28B
Balance Sheet
Total Assets	623.27B	609.52B	624.16B	626.33B	575.85B
Cash, Cash Equivalents and Short-Term Investments	11.00B	17.09B	25.80B	33.42B	48.57B
Total Debt	335.62B	302.34B	292.01B	274.24B	242.79B
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: Positive
• Last Price: 23.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHI, the sentiment is Positive. The current price of 23.08 is above the 20-day moving average (MA) of 22.19, above the 50-day MA of 22.28, and above the 200-day MA of 22.69, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 64.59 is Neutral, neither overbought nor oversold. The STOCH value of 92.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHI.

PLDT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLK	79 Outperform	$17.24B	11.90	16.28%	0.34%	-5.14%	-7.47%
VIV	77 Outperform	$18.09B	17.83	7.95%	0.40%	-5.69%	-0.05%
PHI	74 Outperform	$4.96B	9.18	28.10%	0.31%	-0.91%	11.25%
KT	71 Outperform	$10.08B	22.93	3.81%	0.16%	-4.85%	-43.88%
SKM	69 Neutral	$8.56B	9.71	11.08%	0.22%	-4.13%	4.96%
TEF	59 Neutral	$30.64B	―	-0.55%	1.01%	-2.29%	-182.68%
Sector *	58 Neutral	kr14.52B	5.09	19.17%	3.61%	-8.59%	7.48%