OTCPK:GTME.F

Stock Analysis Report

Executive Summary

Globe Telecom, Inc. provides telecommunications services to consumers, small and medium-sized businesses, and corporate clients in the Philippines.

Snowflake

Fundamentals

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

How has Globe Telecom's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:GTME.F

-0.4%

US Wireless Telecom

0.8%

US Market


1 Year Return

-4.8%

OTCPK:GTME.F

6.5%

US Wireless Telecom

1.9%

US Market

GTME.F underperformed the Wireless Telecom industry which returned 6.3% over the past year.

GTME.F underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

GTME.FIndustryMarket
7 Day0%-0.4%0.8%
30 Day-10.8%1.4%3.4%
90 Day-10.9%-3.6%2.1%
1 Year-4.8%-4.8%7.7%6.5%4.2%1.9%
3 Year-8.0%-8.0%37.7%32.3%46.7%37.2%
5 Year-7.1%-7.1%38.4%24.7%62.3%44.5%

Price Volatility Vs. Market

How volatile is Globe Telecom's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Globe Telecom undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Globe Telecom's share price is below the future cash flow value, and at a moderate discount (> 20%).

Globe Telecom's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Globe Telecom is good value based on earnings compared to the US Wireless Telecom industry average.

Globe Telecom is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Globe Telecom earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Globe Telecom is overvalued based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is Globe Telecom expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Globe Telecom's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Globe Telecom's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Globe Telecom's revenue growth is positive but not above the United States of America market average.

Globe Telecom's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Globe Telecom's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Globe Telecom is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Globe Telecom performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Globe Telecom's year on year earnings growth rate has been positive over the past 5 years.

Globe Telecom's 1-year earnings growth exceeds its 5-year average (23% vs 7.6%)

Globe Telecom's earnings growth has exceeded the US Wireless Telecom industry average in the past year (23% vs 7.7%).


Return on Equity

Whilst Globe Telecom has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Globe Telecom used its assets more efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Globe Telecom has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Globe Telecom's financial position?


Financial Position Analysis

Globe Telecom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Globe Telecom's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Globe Telecom's level of debt (167.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (154.8% vs 167.5% today).

Debt is well covered by operating cash flow (47.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

What is Globe Telecom's current dividend yield, its reliability and sustainability?

5.03%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Globe Telecom's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Globe Telecom's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

What is the CEO of Globe Telecom's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Ernest Lawrence Cu (58yo)

10.4yrs

Tenure

0

Mr. Ernest Lawrence L. Cu is a Venture Partner at Amasia. He serves as Advisor of Tembusu ICT Fund I at Tembusu Partners Pte Ltd. Mr. Cu has been Chief Executive Officer and President of Globe Telecom, Inc ...


Management Age and Tenure

3.8yrs

Average Tenure

56yo

Average Age

The tenure for the Globe Telecom management team is about average.


Board Age and Tenure

7.4yrs

Average Tenure

60yo

Average Age

The tenure for the Globe Telecom board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Sell₱182,21319 Mar 19
Ernest Lawrence Cu
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max Price₱36.68
Sell₱72,85126 Feb 19
Ernest Lawrence Cu
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max Price₱36.58
Sell₱107,99026 Feb 19
Ernest Lawrence Cu
EntityIndividual
Role
Chief Executive Officer
President
Shares3,000
Max Price₱36.68
Sell₱197,86624 Jan 19
Ernest Lawrence Cu
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max Price₱39.73

Ownership Breakdown


Management Team

  • Ernest Lawrence Cu (58yo)

    President

    • Tenure: 10.4yrs
  • Jose Fajardo

    Director of Investors Relations

    • Tenure: 0yrs
  • Gil Genio (59yo)

    Chief Technology & Information Officer and Chief Strategy Officer

    • Tenure: 3.8yrs
  • Robert Wiggins (66yo)

    Chief Technical Advisor

    • Tenure: 0yrs
  • Rebecca Eclipse (56yo)

    Chief Customer Experience Officer & Head of the Office of Strategy Management

    • Tenure: 0yrs
  • Renato Jiao (63yo)

    Chief Human Resource Officer

    • Tenure: 0yrs
  • Vicente Froilan Castelo (54yo)

    General Counsel and Head of the Corporate & Legal Services Group

    • Tenure: 8.4yrs
  • Marisalve Ciocson-Co (48yo)

    Chief Compliance Officer

    • Tenure: 2.4yrs
  • Rosemarie Maniego-Eala (48yo)

    CFO, Treasurer & Chief Risk Officer

    • Tenure: 2.8yrs
  • Maria Sy-Manalang (43yo)

    Chief Information Officer

    • Tenure: 3.8yrs

Board Members

  • Romeo Bernardo (65yo)

    Non Executive Director

    • Tenure: 18yrs
    • Compensation: ₱2.40m
  • Ernest Lawrence Cu (58yo)

    President

    • Tenure: 10.4yrs
  • Jose Fajardo

    Director of Investors Relations

    • Tenure: 0yrs
  • Delfin Lazaro (72yo)

    Non-Executive Director

    • Tenure: 18yrs
    • Compensation: ₱1.80m
  • Phaik Saw (64yo)

    Non-Executive Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₱2.30m
  • Fernando Zobel de Ayala (57yo)

    Co-Vice Chairman

    • Tenure: 0yrs
    • Compensation: ₱2.00m
  • Jaime Zobel de Ayala (60yo)

    Chairman

    • Tenure: 22.8yrs
    • Compensation: ₱1.90m
  • Rex Maria Mendoza (56yo)

    Lead Independent Director

    • Tenure: 1.4yrs
    • Compensation: ₱2.30m
  • Vic Noel (62yo)

    Non-Executive Independent Director

    • Tenure: 1.4yrs
    • Compensation: ₱1.40m
  • Arthur Lang (47yo)

    Co-Vice Chairman

    • Tenure: 2.4yrs
    • Compensation: ₱2.30m

Company Information

Globe Telecom, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Globe Telecom, Inc.
  • Ticker: GTME.F
  • Exchange: OTCPK
  • Founded: 1935
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₱262.405b
  • Listing Market Cap: ₱5.028b
  • Shares outstanding: 133.20m
  • Website: https://www.globe.com.ph

Number of Employees


Location

  • Globe Telecom, Inc.
  • The Globe Tower
  • 27th Floor
  • Taguig
  • 1634
  • Philippines

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GTME.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
GLOPSE (Philippines Stock Exchange)YesCommon StockPHPHPJan 1992
GTME.YOTCPK (Pink Sheets LLC)UNSPON ADRUSUSDJan 2009
GLOPPPSE (Philippines Stock Exchange)PFD PHP50 SER'A'PHPHPAug 2014

Biography

Globe Telecom, Inc. provides telecommunications services to consumers, small and medium-sized businesses, and corporate clients in the Philippines. The company operates through Mobile Communications Servic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:48
End of Day Share Price2019/08/30 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.