PLDT (PHI) AI Stock Analysis

140 Followers

Top Page

PLDT

(NYSE:PHI)

76Outperform

PLDT's solid financial performance, driven by revenue growth and profitability improvements, forms the cornerstone of its strength. While technical indicators show neutral momentum, the undervalued status of the stock with a strong dividend yield enhances its appeal. Recent earnings calls underscore strategic advancements but also highlight revenue challenges in core income. Overall, the stock presents a balanced opportunity with moderate growth potential.

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

Market Cap

$4.88B

Dividend Yield5.36%

Average Volume (3M)73.17K

Price to Earnings (P/E)9.2

Beta (1Y)0.33

Revenue Growth-0.91%

EPS Growth11.25%

CountryUS

Employees14,904

SectorCommunication Services

Sector Strength83

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.75

Shares Outstanding216,055,770

10 Day Avg. Volume56,107

30 Day Avg. Volume73,167

Financial Highlights & Ratios

PEG Ratio0.42

Price to Book (P/B)2.38

Price to Sales (P/S)0.00

P/FCF Ratio30.44

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 Price23.24

Price Trends

50DMA

23.02

Positive

100DMA

22.67

Positive

200DMA

23.65

Negative

Market Momentum

MACD

0.18

Positive

RSI

50.13

Neutral

STOCH

37.97

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 23.24 is below the 20-day moving average (MA) of 23.41, above the 50-day MA of 23.02, and below the 200-day MA of 23.65, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 37.97 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	81 Outperform	$15.96B	15.76	7.95%	3.95%	-5.69%	-0.05%
TLK	76 Outperform	$16.46B	11.08	16.28%	5.05%	-5.14%	-7.47%
PHI	76 Outperform	$4.88B	9.21	28.10%	5.36%	-0.91%	11.25%
SKM	73 Outperform	$7.91B	8.72	11.08%	5.38%	-2.34%	12.31%
KT	70 Outperform	$9.03B	21.03	3.81%	3.12%	-4.85%	-43.88%
TEF	64 Neutral	$27.94B	―	-0.55%	4.83%	1.18%	―
Sector *	60 Neutral	$14.09B	6.89	-3.35%	3.69%	2.42%	-36.25%

* Communication Services Sector Average

Performance Comparison

PHI

PLDT

23.24

-0.76

-3.17%

19.33

5.73

42.13%

TLK

PT Telekomunikasi Indonesia Tbk

16.58

-2.07

-11.10%

SKM

Sk Telecom

20.54

-0.68

-3.20%

VIV

Telefonica Brasil

9.81

1.36

16.09%

TEF

Telefonica

4.91

0.70

16.63%

PLDT Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q1-2025)

% Change Since: -0.26%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted positive growth in revenue, EBITDA, and key segments like Home, ICT, and Maya, alongside strategic digital infrastructure advancements with VITRO Santa Rosa and the Asia Direct Cable. However, challenges such as a decline in Telco Core income and mobile revenues, coupled with enterprise segment pressures, present areas of concern.

Q1-2025 Updates

Positive Updates

Revenue and EBITDA Growth

PLDT's revenue reached PHP 53.4 billion, up 2% from last year. EBITDA grew by 2% to PHP 27.9 billion, driven by strength in fiber and ICT segments.

Home Segment Success

Home revenue rose by 4% year-on-year to PHP 15.2 billion, mainly driven by a 7% increase in fiber revenues. Fiber accounts for 97% of Home revenues, up from 92% last year.

ICT Segment Growth

ICT revenues grew 16% year-on-year to PHP 2.2 billion, now accounting for over 22% of enterprise revenues, up from 19% a year ago.

5G Adoption and Data Traffic

5G data traffic surged 81% year-on-year, and 5G device adoption grew by 60% quarter-on-quarter, pointing towards improved monetization and growth.

Maya's Profitability

Maya achieved positive net income for the first time, contributing PHP 127 million, driven by robust loan growth, deposits, and increased payment volume.

VITRO Santa Rosa and Asia Direct Cable

The inauguration of VITRO Santa Rosa, the first AI-ready hyperscale data center in the Philippines, and the Asia Direct Cable enhance PLDT's competitive edge.

Negative Updates

Telco Core Income Decline

Telco Core income was recorded at PHP 8.8 billion, down 6% year-on-year, due to increased depreciation and financing costs.

Mobile Revenue Decline

Mobile revenues were down slightly at PHP 21.3 billion due to lower packet Wi-Fi usage and adjusted prepaid packages.

Enterprise Segment Challenges

Enterprise revenue remained steady with some drag from POGO-related revenue pressures, expected to persist until Q3.

Company Guidance

In the first quarter of 2025, PLDT reported a gross revenue of PHP 53.4 billion, marking a 2% increase year-on-year, while EBITDA also grew by 2% to PHP 27.9 billion, driven by strong performance in the fiber and ICT segments. Despite these gains, Telco Core income fell by 6% to PHP 8.8 billion due to increased depreciation and financing costs linked to network infrastructure investments. The Home segment saw a 4% revenue rise to PHP 15.2 billion, with fiber accounting for 97% of these revenues. In the Enterprise segment, ICT revenue grew 16% year-on-year, now comprising over 22% of enterprise revenues. Mobile revenues, however, decreased slightly to PHP 21.3 billion, attributed to a shift from packet Wi-Fi to smartphone data usage. PLDT's CapEx was reported at PHP 10.8 billion for the quarter, with a net debt-to-EBITDA ratio of 2.48x. The company's strategic initiatives include expanding its fiber footprint, leveraging emerging technologies, and pursuing asset monetization and disciplined capital allocation.

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.