Converge Information and Communications Technology Solutions Future Growth

Future criteria checks 2/6

Converge Information and Communications Technology Solutions is forecast to grow earnings and revenue by 7.3% and 7.9% per annum respectively. EPS is expected to grow by 5.7% per annum. Return on equity is forecast to be 16.3% in 3 years.

Key information

7.3%

Earnings growth rate

5.7%

EPS growth rate

Telecom earnings growth	13.1%
Revenue growth rate	7.9%
Future return on equity	16.3%
Analyst coverage	Good
Last updated	13 Nov 2024

Recent future growth updates

Recent updates

Earnings and Revenue Growth Forecasts

PSE:CNVRG - Analysts future estimates and past financials data (PHP Millions)
Date	Revenue	Earnings	Free Cash Flow	Cash from Op	Avg. No. Analysts
12/31/2026	47,464	12,410	11,678	23,361	6
12/31/2025	43,317	11,400	8,285	22,003	8
12/31/2024	40,256	10,287	5,364	20,503	3
9/30/2024	39,049	10,941	11,237	22,425	N/A
6/30/2024	37,516	10,106	12,378	22,740	N/A
3/31/2024	36,257	9,476	8,772	17,274	N/A
12/31/2023	35,359	9,097	8,773	17,629	N/A
9/30/2023	35,463	7,700	5,962	13,539	N/A
6/30/2023	35,004	7,773	1,932	12,773	N/A
3/31/2023	34,590	7,641	-1,848	14,759	N/A
12/31/2022	33,696	7,439	-7,587	11,605	N/A
9/30/2022	32,129	8,067	-10,008	10,151	N/A
6/30/2022	30,751	7,857	-11,072	7,932	N/A
3/31/2022	28,679	7,579	-13,777	7,438	N/A
12/31/2021	26,479	7,158	-11,601	7,648	N/A
9/30/2021	23,806	6,396	-12,170	9,229	N/A
6/30/2021	20,944	5,381	-11,013	9,892	N/A
3/31/2021	18,178	4,363	-5,205	8,259	N/A
12/31/2020	15,652	3,388	-6,972	7,299	N/A
9/30/2020	13,423	2,430	-7,371	4,211	N/A
6/30/2020	11,687	2,008	-6,892	1,516	N/A
3/31/2020	10,189	1,714	-8,148	1,953	N/A
12/31/2019	9,139	1,960	-5,597	1,685	N/A
1/1/2019	5,055	1,257	-2,057	2,032	N/A
12/31/2017	2,940	1,231	N/A	1,430	N/A
12/31/2016	1,894	574	N/A	475	N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNVRG's forecast earnings growth (7.3% per year) is above the savings rate (5.3%).

Earnings vs Market: CNVRG's earnings (7.3% per year) are forecast to grow slower than the PH market (12.1% per year).

High Growth Earnings: CNVRG's earnings are forecast to grow, but not significantly.

Revenue vs Market: CNVRG's revenue (7.9% per year) is forecast to grow faster than the PH market (7.6% per year).

High Growth Revenue: CNVRG's revenue (7.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CNVRG's Return on Equity is forecast to be low in 3 years time (16.3%).

Converge Information and Communications Technology Solutions Future Growth

Future criteria checks 2/6

Key information

Recent future growth updates

Price target increased by 14% to ₱16.29

Price target decreased by 9.9% to ₱17.07

Consensus EPS estimates fall by 17%

Price target decreased by 7.7% to ₱20.27

Price target decreased to ₱23.45

Price target decreased to ₱26.46

Recent updates

Third quarter 2024 earnings released: EPS: ₱0.40 (vs ₱0.29 in 3Q 2023)

Converge Information and Communications Technology Solutions, Inc. Announces Resignation of Maria Grace De Jesus as Assistant Corporate Secretary, Effective October 5, 2024

Converge Information and Communications Technology Solutions, Inc. Approves Dividend Policy

Price target increased by 14% to ₱16.29

Converge Information and Communications Technology Solutions, Inc. Approves Special Cash Dividend, Payable on October 10, 2024

Converge Rules Out Sky Acquisition

Investor sentiment improves as stock rises 17%

Second quarter 2024 earnings released: EPS: ₱0.38 (vs ₱0.29 in 2Q 2023)

First quarter 2024 earnings released: EPS: ₱0.35 (vs ₱0.30 in 1Q 2023)

Converge Information and Communications Technology Solutions, Inc. Appoints Mr. Robert Leo A. Yu as CFO

Insufficient new directors

Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind

Full year 2023 earnings released: EPS: ₱1.25 (vs ₱1.01 in FY 2022)

Converge Information and Communications Technology Solutions, Inc., Annual General Meeting, May 31, 2024

Converge Information and Communications Technology Solutions, Inc. Announces Management Changes

Investor sentiment improves as stock rises 16%

Converge Information and Communications Technology Solutions, Inc. Announces Resignation of Ulysses C. Naguit as Executive Vice President and Chief Information Officer, Effective on December 31, 2023

Third quarter 2023 earnings released: EPS: ₱0.29 (vs ₱0.30 in 3Q 2022)

Investor sentiment deteriorates as stock falls 16%

Now 22% undervalued after recent price drop

Converge Information and Communications Technology Solutions, Inc. Announces Resignation of Ronald G. Brusola as Chief Technology Officer

Second quarter 2023 earnings released: EPS: ₱0.29 (vs ₱0.27 in 2Q 2022)

Now 22% undervalued after recent price drop

Insufficient new directors

Converge Information and Communications Technology Solutions, Inc. Announces Directorate Appointments

Price target decreased by 9.9% to ₱17.07

First quarter 2023 earnings released: EPS: ₱0.30 (vs ₱0.26 in 1Q 2022)

Full year 2022 earnings: EPS misses analyst expectations

Consensus EPS estimates fall by 17%

Price target decreased by 7.7% to ₱20.27

Investor sentiment deteriorated over the past week

Investor sentiment improved over the past week

Less than half of directors are independent

Price target decreased to ₱23.45

Investor sentiment deteriorated over the past week

Price target decreased to ₱26.46

Converge Information and Communications Technology Solutions, Inc. (PSE:CNVRG) announces an Equity Buyback for PHP 1,500 million worth of its shares.

Consensus forecasts updated

Chief Strategy Officer recently bought ₱2.7m worth of stock

Consensus EPS estimates fall by 18%

Second quarter 2022 earnings released: EPS: ₱0.27 (vs ₱0.23 in 2Q 2021)

Converge Information and Communications Technology Solutions, Inc. to Report First Half, 2022 Results on Aug 11, 2022

Investor sentiment improved over the past week

Chief Strategy Officer recently bought ₱196k worth of stock

Chief Strategy Officer recently bought ₱103k worth of stock

Converge Information and Communications Technology Solutions, Inc. Appoints Paulo Martin G. Santos as Chief Network Transformation Officer

Converge Information and Communications Technology Solutions, Inc. (PSE:CNVRG) announces an Equity Buyback for PHP 6,500 million worth of its shares.

Now 24% undervalued after recent price drop

First quarter 2022 earnings: Revenues and EPS in line with analyst expectations

Now 21% undervalued after recent price drop

Less than half of directors are independent

Full year 2021 earnings: EPS exceeds analyst expectations

Now 22% undervalued after recent price drop

Now 21% undervalued after recent price drop

Price target increased to ₱34.61

Price target increased to ₱34.61

Price target increased to ₱33.88

Third quarter 2021 earnings released

Price target increased to ₱31.35

Price target increased to ₱31.89

Investor sentiment improved over the past week

Chief Information Officer recently bought ₱114k worth of stock

Chief Information Officer recently bought ₱87k worth of stock

Chief Operating Officer recently sold ₱1.4m worth of stock

Converge Information and Communications Technology Solutions, Inc.(PSE:CNVRG) dropped from Philippines PSE Composite Index

Second quarter 2021 earnings released: EPS ₱0.23 (vs ₱0.099 in 2Q 2020)

Investor sentiment improved over the past week

Converge Information and Communications Technology Solutions, Inc. (PSE:CNVRG) entered into a deed of absolute sale of shares of agreement to acquire 60% stake in Asia Netcom Philippines Corporation from Digital Telecommunications Phils Inc. for $2.6 million.

Converge Information and Communications Technology Solutions, Inc. (PSE:CNVRG) entered into a deed of absolute sale of shares to acquire 40% stake in Digitel Crossing Inc. from Digital Telecommunications Phils Inc. for $4.8 million.