OTCPK:GTME.Y

Stock Analysis Report

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Executive Summary

Globe Telecom, Inc. provides telecommunications services to individual customers, small and medium-sized businesses, and corporate and enterprise clients in the Philippines. More Details


Snowflake Analysis

Acceptable track record second-rate dividend payer.


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

Stable Share Price: GTME.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

GTME.Y

-1.6%

US Wireless Telecom

-1.9%

US Market


1 Year Return

19.9%

GTME.Y

30.1%

US Wireless Telecom

13.1%

US Market

Return vs Industry: GTME.Y underperformed the US Wireless Telecom industry which returned 30.1% over the past year.

Return vs Market: GTME.Y exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

GTME.YIndustryMarket
7 Day0%-1.6%-1.9%
30 Day-1.5%-3.4%-2.9%
90 Day-2.9%1.1%8.2%
1 Year23.6%19.9%30.6%30.1%15.7%13.1%
3 Year17.0%7.1%53.9%50.3%38.4%29.1%
5 Yearn/a125.3%114.7%89.3%68.0%

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 compared to its fair value and its price relative to the market?

13.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GTME.Y ($41.97) is trading above our estimate of fair value ($29.02)

Significantly Below Fair Value: GTME.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GTME.Y is good value based on its PE Ratio (13.2x) compared to the US Wireless Telecom industry average (22.9x).

PE vs Market: GTME.Y is good value based on its PE Ratio (13.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: GTME.Y is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: GTME.Y is overvalued based on its PB Ratio (3.4x) compared to the US Wireless Telecom industry average (2.3x).


Next Steps

Future Growth

How is Globe Telecom forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GTME.Y's forecast earnings growth (3.8% per year) is above the savings rate (2.2%).

Earnings vs Market: GTME.Y's earnings (3.8% per year) are forecast to grow slower than the US market (23% per year).

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

Revenue vs Market: GTME.Y's revenue (6.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: GTME.Y's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GTME.Y's Return on Equity is forecast to be high in 3 years time (23.8%)


Next Steps

Past Performance

How has Globe Telecom performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GTME.Y has high quality earnings.

Growing Profit Margin: GTME.Y's current net profit margins (12.9%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: GTME.Y's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: GTME.Y's earnings growth over the past year (4.8%) is below its 5-year average (8% per year).

Earnings vs Industry: GTME.Y earnings growth over the past year (4.8%) underperformed the Wireless Telecom industry 14.3%.


Return on Equity

High ROE: Whilst GTME.Y's Return on Equity (25.5%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Globe Telecom's financial position?


Financial Position Analysis

Short Term Liabilities: GTME.Y's short term assets (PHP75.7B) do not cover its short term liabilities (PHP93.3B).

Long Term Liabilities: GTME.Y's short term assets (PHP75.7B) do not cover its long term liabilities (PHP146.4B).


Debt to Equity History and Analysis

Debt Level: GTME.Y's debt to equity ratio (176%) is considered high.

Reducing Debt: GTME.Y's debt to equity ratio has increased from 119.7% to 176% over the past 5 years.

Debt Coverage: GTME.Y's debt is well covered by operating cash flow (42%).

Interest Coverage: GTME.Y's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Next Steps

Dividend

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

4.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GTME.Y's dividend (4.73%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: GTME.Y's dividend (4.73%) is low compared to the top 25% of dividend payers in the US market (4.89%).


Stability and Growth of Payments

Stable Dividend: GTME.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: GTME.Y's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.3%), GTME.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GTME.Y's dividends in 3 years are forecast to be covered by earnings (62.2% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Ernest Lawrence Cu (59 yo)

11.42yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Ernest Lawrence Cu
President11.42yrsno data0.12%
PHP 6.9m
Rosemarie Maniego-Eala
CFO, Treasurer & Chief Risk Officer3.75yrsno data0.013%
PHP 741.7k
Gil Genio
Chief Technology & Information Officer and Chief Strategy Officer4.83yrsno data0.085%
PHP 4.9m
Carlomagno Malana
Chief Information Officer0.67yrno data0.000090%
PHP 5.2k
Jose Fajardo
Director of Investors Relationsno datano datano data
Vicente Froilan Castelo
General Counsel and Head of the Corporate & Legal Services Group9.42yrsno data0.0070%
PHP 404.3k
Marisalve Ciocson-Co
Senior VP of Law & Compliance3.42yrsno data0.0056%
PHP 321.7k
Renato Jiao
Chief Human Resource Officerno datano data0.016%
PHP 925.4k
Robert Wiggins
Chief Technical Advisorno datano datano data
Rebecca Eclipse
Chief Customer Experience Officer & Head of the Office of Strategy Managementno datano data0.030%
PHP 1.7m
Alberto de Larrazabal
Chief Commercial Officerno datano data0.023%
PHP 1.3m
Robert Tan
Chief Technical Adviser & Consultant9.75yrsno datano data

4.8yrs

Average Tenure

59.5yo

Average Age

Experienced Management: GTME.Y's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ernest Lawrence Cu
President11.42yrsno data0.12%
PHP 6.9m
Romeo Bernardo
Non Executive Director19yrs₱2.60m0.0017%
PHP 99.4k
Delfin Lazaro
Non-Executive Director23.67yrs₱1.90m0%
PHP 0
Phaik Saw
Non-Executive Independent Director5.42yrs₱2.70mno data
Fernando Zobel de Ayala
Co-Vice Chairmanno data₱1.80m0%
PHP 0
Jaime Augusto-Miranda de Ayala
Chairman23.75yrs₱2.30m0%
PHP 0
Jose Teodoro Limcaoco
Non-Executive Director4.42yrs₱2.90m0%
PHP 0
Rex Maria Mendoza
Lead Independent Director2.42yrs₱2.90mno data
Cirilo Noel
Non-Executive Independent Director2.42yrs₱3.00mno data
Tao Yih Lang
Co-Vice Chairman3.42yrs₱2.60m0%
PHP 0
Samba Natarajan
Non-Executive Director5.42yrs₱1.80m0%
PHP 0

5.4yrs

Average Tenure

59yo

Average Age

Experienced Board: GTME.Y's board of directors are considered experienced (5.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Globe Telecom, Inc.
  • Ticker: GTME.Y
  • Exchange: OTCPK
  • Founded: 1935
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₱280.209b
  • Listing Market Cap: ₱5.776b
  • Shares outstanding: 133.43m
  • Website: https://www.globe.com.ph

Number of Employees


Location

  • Globe Telecom, Inc.
  • The Globe Tower
  • 32nd Street corner
  • 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 individual customers, small and medium-sized businesses, and corporate and enterprise clients in the Philippines. The company operates through Mo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 06:12
End of Day Share Price2020/09/11 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.