OTCPK:PCCW.Y

Stock Analysis Report

Executive Summary

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland China, Macau, Taiwan, China, and internationally.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.0%

PCCW.Y

-1.0%

US Telecom

-0.6%

US Market


1 Year Return

-0.4%

PCCW.Y

7.1%

US Telecom

0.6%

US Market

PCCW.Y underperformed the Telecom industry which returned 7% over the past year.

PCCW.Y underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

PCCW.YIndustryMarket
7 Day2.0%-1.0%-0.6%
30 Day-0.5%5.7%2.2%
90 Day-1.1%8.9%1.1%
1 Year4.1%-0.4%12.8%7.1%2.9%0.6%
3 Year6.6%-9.0%14.6%-2.1%44.6%35.2%
5 Year9.0%-14.1%34.9%4.0%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is PCCW 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

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

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


Price Based on Earnings

PCCW is overvalued based on earnings compared to the US Telecom industry average.

PCCW is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

PCCW is poor value based on expected growth next year.


Price Based on Value of Assets

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


Next Steps

Future Growth

How is PCCW expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PCCW's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).

PCCW's earnings are expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).

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

PCCW's earnings growth is expected to exceed the United States of America market average.

PCCW's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

PCCW is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has PCCW performed over the past 5 years?

-27.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PCCW's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

PCCW's 1-year earnings growth is negative, it can't be compared to the 5-year average.

PCCW's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

PCCW has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

PCCW used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

PCCW's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is PCCW's financial position?


Financial Position Analysis

PCCW is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

PCCW's level of debt (283.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (543.9% vs 283.4% today).

Debt is not well covered by operating cash flow (17%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

7.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

PCCW's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

PCCW's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

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

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.5x coverage).


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

BG Srinivas Gangaiah (58yo)

5.2yrs

Tenure

HK$28,080,000

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

BG Srinivas's remuneration is lower than average for companies of similar size in United States of America.

BG Srinivas's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

8.8yrs

Average Tenure

60yo

Average Age

The average tenure for the PCCW management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.6yrs

Average Tenure

57yo

Average Age

The tenure for the PCCW board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Richard Li (52yo)

    Chairman

    • Tenure: 20.1yrs
    • Compensation: HK$40.00k
  • Robert Lee (67yo)

    Executive Director

    • Tenure: 17yrs
  • Paul Berriman (62yo)

    Chief Technology Officer of Technology Strategy & Development

    • Tenure: 12.3yrs
  • Susanna Hui (54yo)

    Group CFO & Executive Director

    • Tenure: 9.3yrs
    • Compensation: HK$29.93m
  • Stephen Loh (63yo)

    Executive Vice President of now Business News Channel & now NEWS Channel

    • Tenure: 14.2yrs
  • BG Srinivas Gangaiah (58yo)

    Group MD & Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$28.08m
  • Chi-Keung Chan

    Head of Group Communications

    • Tenure: 0yrs
  • Bernadette Mak Lomas

    Group General Counsel & Company Secretary

    • Tenure: 3.1yrs
  • Marco Wong

    Head of M&A

    • Tenure: 0yrs
  • Hester Shum

    Group Chief Human Resources Officer

    • Tenure: 0.2yrs

Board Members

  • Richard Li (52yo)

    Chairman

    • Tenure: 20.1yrs
    • Compensation: HK$40.00k
  • Edmund Tse (81yo)

    Non-Executive Director

    • Tenure: 10yrs
    • Compensation: HK$240.00k
  • Robert Lee (67yo)

    Executive Director

    • Tenure: 17yrs
  • Aman Mehta (73yo)

    Independent Non-Executive Director

    • Tenure: 15.6yrs
    • Compensation: HK$1.48m
  • Fushen Li (57yo)

    Deputy Chairman

    • Tenure: 1yrs
    • Compensation: HK$470.00k
  • Susanna Hui (54yo)

    Group CFO & Executive Director

    • Tenure: 9.3yrs
    • Compensation: HK$29.93m
  • David Wei (49yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: HK$240.00k
  • BG Srinivas Gangaiah (58yo)

    Group MD & Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$28.08m
  • Bryce Wayne Lee (54yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: HK$770.00k
  • Frances Waikwun Wong (57yo)

    Independent Non Executive Director

    • Tenure: 7.5yrs
    • Compensation: HK$590.00k

Company Information

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


Key Information

  • Name: PCCW Limited
  • Ticker: PCCW.Y
  • Exchange: OTCPK
  • Founded: 1979
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$33.875b
  • Listing Market Cap: HK$4.321b
  • Shares outstanding: 7.72b
  • Website: https://www.pccw.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCWL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1995
8SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1995
TH3BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1995
8SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1995
8SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1995
PCCW.YOTCPK (Pink Sheets LLC)SPONS ADR NEWUSUSDAug 2000

Biography

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland China, Macau, Taiwan, China, and internationally. The company’s services include local telephony, local data and broadba ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:41
End of Day Share Price2019/09/20 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.