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PCCWSEHK:8 Stock Report

Market Cap

HK$31.0b

7D

-0.2%

1Y

-19.3%

Updated

17 Oct, 2021

Data

Company Financials +
8 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends4/6

8 Overview

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Japan, and internationally.

PCCW Competitors

China Telecom

SEHK:728

HK$438.5b

China Unicom (Hong Kong)

SEHK:762

HK$123.6b

Comcast

NasdaqGS:CMCS.A

US$247.9b

Chunghwa Telecom

TWSE:2412

NT$861.1b

Price History & Performance

Summary of all time highs, changes and price drops for PCCW
Historical stock prices
Current Share PriceHK$4.01
52 Week HighHK$3.92
52 Week LowHK$5.06
Beta0.44
1 Month Change0%
3 Month Change-0.99%
1 Year Change-19.32%
3 Year Change-11.67%
5 Year Change-14.68%
Change since IPO129.14%

Recent News & Updates

Sep 16
PCCW (HKG:8) Has No Shortage Of Debt

PCCW (HKG:8) Has No Shortage Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

8HK TelecomHK Market
7D-0.2%2.2%1.1%
1Y-19.3%-4.5%5.3%

Return vs Industry: 8 underperformed the Hong Kong Telecom industry which returned -4.5% over the past year.

Return vs Market: 8 underperformed the Hong Kong Market which returned 5.3% over the past year.

Price Volatility

Is 8's price volatile compared to industry and market?
8 volatility
8 Beta0.44
Industry Beta0.57
Market Beta1

Stable Share Price: 8 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 8's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192522,000BG Srinivas Gangaiahhttps://www.pccw.com

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Japan, and internationally. The company’s services include local telephony, local data and broadband, mobile and international telecommunications, and satellite-based and network-based telecommunications services; and outsourcing, consulting, and contact center services. It also provides technical support, electronics and communications engineering, and products and solutions, as well as free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; and sells mobile handsets and accessories.

PCCW Fundamentals Summary

How do PCCW's earnings and revenue compare to its market cap?
8 fundamental statistics
Market CapHK$30.97b
Earnings (TTM)-HK$751.00m
Revenue (TTM)HK$38.12b

0.8x

P/S Ratio

-41.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8 income statement (TTM)
RevenueHK$38.12b
Cost of RevenueHK$20.62b
Gross ProfitHK$17.50b
ExpensesHK$18.25b
Earnings-HK$751.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.097
Gross Margin45.90%
Net Profit Margin-1.97%
Debt/Equity Ratio356.6%

How did 8 perform over the long term?

See historical performance and comparison

Dividends

8.1%

Current Dividend Yield

-333%

Payout Ratio

Valuation

Is PCCW undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8 (HK$4.01) is trading below our estimate of fair value (HK$65.23)

Significantly Below Fair Value: 8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Telecom industry average.

PE vs Market: 8 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8 is overvalued based on its PB Ratio (2.3x) compared to the HK Telecom industry average (1x).


Future Growth

How is PCCW forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 8 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 8's is expected to become profitable in the next 3 years.

Revenue vs Market: 8's revenue (3.7% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 8's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8's Return on Equity is forecast to be low in 3 years time (11.6%).


Past Performance

How has PCCW performed over the past 5 years?

-54.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8 is currently unprofitable.

Growing Profit Margin: 8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8 is unprofitable, and losses have increased over the past 5 years at a rate of 54.6% per year.

Accelerating Growth: Unable to compare 8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8 is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (17.2%).


Return on Equity

High ROE: 8 has a negative Return on Equity (4.7%), as it is currently unprofitable.


Financial Health

How is PCCW's financial position?


Financial Position Analysis

Short Term Liabilities: 8's short term assets (HK$20.2B) exceed its short term liabilities (HK$20.0B).

Long Term Liabilities: 8's short term assets (HK$20.2B) do not cover its long term liabilities (HK$65.9B).


Debt to Equity History and Analysis

Debt Level: 8's debt to equity ratio (356.6%) is considered high.

Reducing Debt: 8's debt to equity ratio has increased from 310.9% to 356.6% over the past 5 years.

Debt Coverage: 8's debt is not well covered by operating cash flow (18.2%).

Interest Coverage: 8's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

What is PCCW current dividend yield, its reliability and sustainability?

8.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8's dividend (8.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 8's dividend (8.07%) is in the top 25% of dividend payers in the Hong Kong market (6.78%)


Stability and Growth of Payments

Stable Dividend: 8's dividends per share have been stable in the past 10 years.

Growing Dividend: 8's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 8 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

BG Srinivas Gangaiah (60 yo)

7.25yrs

Tenure

HK$22,260,000

Compensation

Mr. Srinivas Bangalore Gangaiah, BG Srinivas, has been Group Managing Director and Executive Director of PCCW Limited since July 14, 2014. Prior to joining PCCW, Mr. Gangaiah has worked for the last 15 yea...


CEO Compensation Analysis

Compensation vs Market: BG Srinivas's total compensation ($USD2.86M) is above average for companies of similar size in the Hong Kong market ($USD689.07K).

Compensation vs Earnings: BG Srinivas's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 8's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: 8's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PCCW Limited's employee growth, exchange listings and data sources


Key Information

  • Name: PCCW Limited
  • Ticker: 8
  • Exchange: SEHK
  • Founded: 1925
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$30.974b
  • Shares outstanding: 7.72b
  • Website: https://www.pccw.com

Number of Employees


Location

  • PCCW Limited
  • PCCW Tower
  • 41st Floor
  • Quarry Bay
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 10:09
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.