PCCW (PCCWY) AI Stock Analysis

PCCW

(Other OTC:PCCWY)

Select Model

Rating:49.2Neutral

Price Target:$6.00▼(-2.47% Downside)

Action:reiterated

Date:08/20/26

The overall score is driven primarily by a solid but risky financial profile: PCCW generates strong, recurring operating and free cash flow on top of steady revenue and healthy cash-based margins, yet weak net profitability and a heavily leveraged, negative-equity balance sheet create substantial financial risk. Technical signals currently lean mildly bearish, with the share price trading below key moving averages and momentum indicators pointing to a neutral-to-oversold setup rather than a clear recovery trend. Valuation appears modestly unattractive given the deeply negative P/E and only moderate dividend yield, suggesting that investors are paying up despite limited near-term earnings support.

Positive Factors

Operating ProfitabilitySteady mid-teen EBIT margins and EBITDA margins near 30% show that the core operating businesses retain meaningful profitability despite only modest revenue expansion. This operating resilience can support reinvestment and service continuity over the next several quarters, although it does not eliminate below-the-line losses.

Negative Factors

Negative Equity and LeverageVery high debt combined with negative equity materially weakens financial flexibility and increases refinancing risk. The capital structure may constrain investment choices, make the company more sensitive to financing conditions, and leave less balance-sheet capacity to absorb operating setbacks over the next several quarters.

PCCW (PCCWY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $4.76B
Dividend Yield: 7.81%
Average Volume (3M): 932
Price to Earnings (P/E): -456.9
Beta (1Y): 0.10
Revenue Growth: 6.80%
EPS Growth: 70.58%
Country: US
Employees: 14,600
Sector: Communication Services
Sector Strength: 60
Industry: Telecommunications Services

PCCW Business Overview & Revenue Model

Company Description

PCCW Limited, established in 1925 and headquartered in Quarry Bay, Hong Kong, delivers a broad spectrum of telecommunication and related services to customers in Hong Kong, mainland China, Singapore, and various international markets. The company's c...

PCCW Financial Statement Overview

Summary

Revenue has grown steadily at a low single‑digit rate and cash-based operating earnings remain healthy in the low‑30% of revenue, supported by consistently strong operating cash flow in the 10–13 billion range and generally improving free cash flow. However, weak net profitability with small losses in recent years and a highly leveraged, now negative-equity balance sheet materially elevate financial risk, keeping overall financial performance only slightly below mid-range.

Income Statement

48Neutral

Balance Sheet

25Negative

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.49B	40.18B	37.56B	36.35B	36.06B	35.45B
Gross Profit	14.75B	10.99B	18.43B	18.23B	18.15B	17.73B
EBITDA	13.33B	13.21B	12.95B	11.28B	12.40B	11.26B
Net Income	208.36M	-26.95M	-66.00M	-236.00M	393.00M	1.26B
Balance Sheet
Total Assets	108.64B	105.40B	98.76B	94.56B	95.06B	94.22B
Cash, Cash Equivalents and Short-Term Investments	4.06B	3.88B	3.02B	3.13B	3.13B	5.04B
Total Debt	68.56B	61.53B	53.94B	54.19B	51.65B	49.22B
Total Liabilities	105.38B	103.85B	87.24B	84.86B	82.30B	78.74B
Stockholders Equity	934.00M	-1.97B	7.49B	2.48B	11.44B	14.36B
Cash Flow
Free Cash Flow	8.02B	7.73B	8.46B	5.32B	3.43B	1.78B
Operating Cash Flow	10.09B	9.80B	10.63B	13.35B	10.34B	9.70B
Investing Cash Flow	-7.74B	-8.14B	-7.70B	-7.46B	-6.01B	-7.62B
Financing Cash Flow	-612.71M	-1.37B	-3.26B	-6.27B	-5.83B	-1.57B

PCCW Technical Analysis

Technical Analysis SentimentNegative

Last Price6.15

Price Trends

50DMA6.57Negative

100DMA6.76Negative

200DMA6.91Negative

Market Momentum

MACD-0.10Positive

RSI42.91Neutral

STOCH30.48Neutral

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 6.15 is below the 20-day moving average (MA) of 6.46, below the 50-day MA of 6.57, and below the 200-day MA of 6.91, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 30.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCCWY.

PCCW Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

PCCWY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEO	76Outperform	$4.90B	10.30	9.66%	2.92%	33.24%	―
TIMB	73Outperform	$8.43B	10.65	17.54%	7.83%	13.99%	29.93%
PHI	72Outperform	$3.82B	9.20	22.35%	8.53%	-1.72%	-18.30%
KT	66Neutral	$8.33B	8.28	7.21%	4.82%	5.40%	39.37%
TKC	66Neutral	$3.93B	10.21	7.05%	4.77%	16.11%	2.15%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PCCWY	49Neutral	$4.94B	-456.88	-40.50%	7.81%	6.80%	70.58%

* Communication Services Sector Average

Performance Comparison

PCCWY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
PCCWY	Pccw Limited	6.15	-0.50	-7.45%
KT	KT Corporation	17.36	-1.13	-6.11%
PHI	PLDT, Inc.	17.79	-0.58	-3.18%
TEO	Telecom Argentina Stet - France Telecom	10.54	-1.19	-10.18%
TIMB	Tim S.A.	17.73	-3.72	-17.33%
TKC	Turkcell Iletisim Hizmetleri As	4.62	-1.07	-18.83%

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 06, 2026

PCCW AI Stock Analysis