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PCCW

OTCPK:PCWL.F
Snowflake Description

Mediocre balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PCWL.F
OTCPK
HK$35B
Market Cap
  1. Home
  2. US
  3. Telecom
Company description

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland China, Macau, Taiwan, China, and internationally. The last earnings update was 105 days ago. More info.


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PCWL.F Share Price and Events
7 Day Returns
0%
OTCPK:PCWL.F
-1.5%
US Telecom
0.8%
US Market
1 Year Returns
0.8%
OTCPK:PCWL.F
6.1%
US Telecom
4.8%
US Market
PCWL.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PCCW (PCWL.F) 0% -2.1% -4.7% 0.8% -19.3% -8.1%
US Telecom -1.5% 1.4% 1.1% 6.1% -13.3% -4.2%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • PCWL.F underperformed the Telecom industry which returned 6.1% over the past year.
  • PCWL.F underperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
PCWL.F
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PCCW to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PCCW.

OTCPK:PCWL.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:PCWL.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6.7%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.35
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.352 (1 + (1- 25%) (155.67%))
0.841
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.841 * 6.65%)
8.32%

Discounted Cash Flow Calculation for OTCPK:PCWL.F using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for PCCW is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:PCWL.F DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.32%)
2020 9,354.00 Analyst x1 8,635.56
2021 12,771.74 Est @ 36.54% 10,885.19
2022 16,142.90 Est @ 26.4% 12,701.65
2023 19,257.80 Est @ 19.3% 13,988.73
2024 22,016.69 Est @ 14.33% 14,764.42
2025 24,404.89 Est @ 10.85% 15,108.95
2026 26,457.85 Est @ 8.41% 15,121.85
2027 28,232.49 Est @ 6.71% 14,896.79
2028 29,789.29 Est @ 5.51% 14,510.97
2029 31,183.12 Est @ 4.68% 14,023.25
Present value of next 10 years cash flows HK$134,637.36
OTCPK:PCWL.F DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$31,183.12 × (1 + 2.73%) ÷ (8.32% – 2.73%)
HK$573,106.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$573,106.59 ÷ (1 + 8.32%)10
HK$257,729.75
OTCPK:PCWL.F Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$134,637.36 + HK$257,729.75
HK$392,367.12
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$392,367.12 / 7,712.80
HK$50.87
OTCPK:PCWL.F Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:PCWL.F represents 0.12527x of SEHK:8
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.12527x
Value per Share
(Listing Adjusted, USD)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 50.87 x 0.12527
$6.37
Value per share (USD) From above. $6.37
Current discount Discount to share price of $0.57
= -1 x ($0.57 - $6.37) / $6.37
91.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price PCCW is available for.
Intrinsic value
>50%
Share price is $0.57 vs Future cash flow value of $6.37
Current Discount Checks
For PCCW to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PCCW's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PCCW's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:PCWL.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.12
SEHK:8 Share Price ** SEHK (2019-07-15) in HKD HK$4.55
United States of America Telecom Industry PE Ratio Median Figure of 17 Publicly-Listed Telecom Companies 14.77x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PCCW.

OTCPK:PCWL.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:8 Share Price ÷ EPS (both in HKD)

= 4.55 ÷ 0.12

39.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does PCCW's expected growth come at a high price?
Raw Data
OTCPK:PCWL.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 39.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
13.5%per year
United States of America Telecom Industry PEG Ratio Median Figure of 8 Publicly-Listed Telecom Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

OTCPK:PCWL.F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 39.11x ÷ 13.5%

2.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PCCW is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PCCW's assets?
Raw Data
OTCPK:PCWL.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$2.22
SEHK:8 Share Price * SEHK (2019-07-15) in HKD HK$4.55
United States of America Telecom Industry PB Ratio Median Figure of 30 Publicly-Listed Telecom Companies 1.5x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
OTCPK:PCWL.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:8 Share Price ÷ Book Value per Share (both in HKD)

= 4.55 ÷ 2.22

2.05x

* Primary Listing of PCCW.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PCCW is overvalued based on assets compared to the US Telecom industry average.
X
Value checks
We assess PCCW's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. PCCW has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PCCW expected to grow at an attractive rate?
  • PCCW's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • PCCW's earnings growth is positive but not above the United States of America market average.
  • PCCW's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:PCWL.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:PCWL.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 13.5%
OTCPK:PCWL.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 2.3%
United States of America Telecom Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
United States of America Telecom Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:PCWL.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:PCWL.F Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 41,438 1,334 3
2020-12-31 41,338 11,548 1,096 6
2019-12-31 40,569 7,273 960 6
OTCPK:PCWL.F Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 38,850 6,545 897
2018-09-30 38,723 7,279 949
2018-06-30 38,814 9,560 2,351
2018-03-31 37,932 10,712 2,299
2017-12-31 36,832 10,316 895
2017-09-30 36,824 11,182 1,148
2017-06-30 37,070 11,045 1,263
2017-03-31 37,727 10,499 1,657
2016-12-31 38,384 9,953 2,051
2016-09-30 39,070 10,429 2,072
2016-06-30 39,756 10,904 2,093
2016-03-31 39,535 11,711 2,194

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PCCW's earnings are expected to grow by 13.5% yearly, however this is not considered high growth (20% yearly).
  • PCCW's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:PCWL.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from PCCW Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:PCWL.F Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.18 0.21 0.11 4.00
2020-12-31 0.15 0.19 0.09 6.00
2019-12-31 0.13 0.16 0.09 6.00
OTCPK:PCWL.F Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.12
2018-09-30 0.12
2018-06-30 0.30
2018-03-31 0.30
2017-12-31 0.12
2017-09-30 0.15
2017-06-30 0.16
2017-03-31 0.22
2016-12-31 0.27
2016-09-30 0.27
2016-06-30 0.28
2016-03-31 0.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • PCCW is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess PCCW's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PCCW has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has PCCW performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PCCW's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 exceeds its 5-year average (0.2% vs -14.4%)
  • PCCW's earnings growth has exceeded the US Telecom industry average in the past year (0.2% vs -18.4%).
Earnings and Revenue History
PCCW's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PCCW Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:PCWL.F Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 38,850.00 897.00 12,970.00
2018-09-30 38,723.00 948.50 12,949.50
2018-06-30 38,814.00 2,351.00 14,392.00
2018-03-31 37,932.00 2,298.50 14,357.00
2017-12-31 36,832.00 895.00 12,859.00
2017-09-30 36,823.50 1,148.00 13,897.50
2017-06-30 37,070.00 1,263.00 14,229.00
2017-03-31 37,727.00 1,657.00 14,671.50
2016-12-31 38,384.00 2,051.00 15,114.00
2016-09-30 39,070.00 2,072.00 14,980.00
2016-06-30 39,756.00 2,093.00 14,846.00
2016-03-31 39,535.00 2,194.00 14,681.50
2015-12-31 39,314.00 2,295.00 14,517.00
2015-09-30 38,004.50 2,808.50 14,940.50
2015-06-30 36,695.00 3,322.00 15,364.00
2015-03-31 34,986.00 3,316.00 14,727.50
2014-12-31 33,277.00 3,310.00 14,091.00
2014-09-30 30,972.00 2,698.50 12,782.50
2014-06-30 28,667.00 2,087.00 11,474.00
2014-03-31 27,992.00 1,986.00 11,104.50
2013-12-31 27,317.00 1,885.00 10,735.00
2013-09-30 27,021.50 1,783.00 10,622.50
2013-06-30 26,726.00 1,681.00 10,510.00
2013-03-31 26,022.00 1,671.00 10,330.00
2012-12-31 25,318.00 1,661.00 10,150.00
2012-09-30 24,838.00 1,641.00 9,902.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • PCCW has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • PCCW used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.
  • PCCW's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PCCW's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PCCW has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is PCCW's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PCCW's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of PCCW's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PCCW Company Filings, last reported 6 months ago.

OTCPK:PCWL.F Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 19,609.00 50,149.00 7,361.00
2018-09-30 19,609.00 50,149.00 7,361.00
2018-06-30 19,947.00 48,755.00 9,412.00
2018-03-31 19,947.00 48,755.00 9,412.00
2017-12-31 21,892.00 47,488.00 13,346.00
2017-09-30 23,205.00 47,488.00 13,346.00
2017-06-30 22,249.00 46,767.00 13,282.00
2017-03-31 22,249.00 46,767.00 13,282.00
2016-12-31 14,776.00 45,686.00 5,204.00
2016-09-30 14,776.00 45,686.00 5,204.00
2016-06-30 14,012.00 43,567.00 5,643.00
2016-03-31 14,012.00 43,567.00 5,643.00
2015-12-31 13,342.00 42,555.00 7,504.00
2015-09-30 13,342.00 42,555.00 7,504.00
2015-06-30 12,599.00 42,697.00 6,917.00
2015-03-31 12,599.00 42,697.00 6,917.00
2014-12-31 12,369.00 41,534.00 7,943.00
2014-09-30 12,369.00 41,534.00 7,943.00
2014-06-30 9,048.00 49,496.00 8,571.00
2014-03-31 9,048.00 49,496.00 8,571.00
2013-12-31 8,633.00 29,786.00 5,514.00
2013-09-30 8,633.00 29,786.00 5,514.00
2013-06-30 7,955.00 31,114.00 7,755.00
2013-03-31 7,955.00 31,114.00 7,755.00
2012-12-31 8,138.00 26,522.00 4,553.00
2012-09-30 8,317.00 26,522.00 4,553.00
  • PCCW's level of debt (255.7%) 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 (347.4% vs 255.7% today).
  • Debt is not well covered by operating cash flow (13.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).
X
Financial health checks
We assess PCCW's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PCCW has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.87%
Current annual income from PCCW dividends. Estimated to be 7.03% next year.
If you bought $2,000 of PCCW shares you are expected to receive $137 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • PCCW's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • PCCW's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:PCWL.F Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Telecom Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 5.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:PCWL.F Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.32 5.00
2020-12-31 0.32 7.00
2019-12-31 0.32 6.00
OTCPK:PCWL.F Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.312 6.721
2018-08-07 0.301 6.733
2018-02-07 0.298 6.499
2017-08-10 0.287 6.512
2017-02-14 0.283 6.289
2016-03-23 0.250 5.107
2015-02-11 0.202 4.406
2014-08-29 0.208 4.087
2014-05-21 0.202 4.381
2013-03-26 0.191 5.263
2012-08-10 0.157 4.808
2012-03-26 0.159 5.490
2012-02-28 0.159 5.391
2011-08-12 0.155 5.404
2011-03-22 0.153 4.790
2010-09-13 0.102 3.217
2010-08-13 0.102 3.855
2010-03-09 0.133 5.793
2009-09-21 0.000 0.000
2009-08-20 0.000 0.000
2009-04-23 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PCCW has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but PCCW only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of PCCW's earnings are paid to the shareholders as a dividend.
  • 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 (0.7x coverage).
X
Income/ dividend checks
We assess PCCW's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PCCW afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PCCW has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
BG Srinivas Gangaiah
COMPENSATION HK$28,080,000
AGE 58
TENURE AS CEO 5 years
CEO Bio

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 years with Infosys Group. He served as the President of Infosys Ltd. from January 3, 2014 to June 10, 2014. Mr. Gangaiah focused on global markets and was also responsible for Financial services, Insurance, Manufacturing, Engineering Services, Energy & Communications, Infosys Public Services, Infosys Lodestone, Strategic Global Sourcing, Marketing and Alliances. He served as Head of Europe and Global Head of Financial Services and Insurance of Infosys Ltd. Mr. Gangaiah served as the Global Head of Manufacturing and Engineering Business of Infosys Ltd., since February 3, 2012. He served as Senior Vice President of Manufacturing Product Engineering, Product Lifecycle and Engineering Solutions business units at Infosys Ltd. and Senior Vice President of Manufacturing, Engineering and Product Lifecycle and Engineering Solutions at Infosys Ltd. Mr. Gangaiah served as Senior Vice President, Head of Manufacturing, Product Engineering, Product life cycle, Engineering solutions at Infosys Ltd. He served as Senior Vice President of Manufacturing and Head of European operations of Infosys. He also set up the Enterprise Solutions practice in Infosys. He led corporate process and systems for ABB. He worked for 14 years with Asea Brown Boveri Group, where he held several leadership positions. He served as Chairman of the board of Infosys Lodestone. He served as the Chairperson at Infosys Technologies (Australia) Pty. Limited until June 10, 2014. Mr. Gangaiah has been Non-Executive Director at HKT Management Limited, manager of HKT Trust and HKT Limited since August 5, 2014. He served as a Whole-Time Director of Infosys Ltd. from June 11, 2011 to June 10, 2014. He served as a member of the board of Infosys Sweden. He also served on the Board of Infosys BPO. He has participated in executive programs at Wharton Business School, US and Indian Institute of Management Ahmedabad (IIMA), India. He has been on the panel of judges for the European Business Awards (EBA) for three consecutive years and is a frequent speaker at academic institutions such as INSEAD and Saïd Business School, Oxford. Mr. Gangaiah holds a B.E., in Mechanical Engineering from Visveswaraiah College of Engineering, Bangalore University.

CEO Compensation
  • BG Srinivas's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • BG Srinivas's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the PCCW management team in years:

12.2
Average Tenure
60
Average Age
  • The average tenure for the PCCW management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Richard Li

TITLE
Chairman
COMPENSATION
HK$40K
AGE
52

BG Srinivas Gangaiah

TITLE
Group MD & Executive Director
COMPENSATION
HK$28M
AGE
58
TENURE
5 yrs

Susanna Hui

TITLE
Group CFO & Executive Director
COMPENSATION
HK$30M
AGE
54
TENURE
12.3 yrs

Paul Berriman

TITLE
Chief Technology Officer of Technology Strategy & Development
AGE
62
TENURE
12.2 yrs

Marco Wong

TITLE
Head of M&A

Bernadette Mak Lomas

TITLE
Group General Counsel & Company Secretary
TENURE
2.9 yrs

Chi-Keung Chan

TITLE
Head of Group Communications

Florence Chow

TITLE
Head of Group Human Resources

Robert Lee

TITLE
Executive Director
AGE
67

Stephen Loh

TITLE
Executive Vice President of now Business News Channel & now NEWS Channel
AGE
63
TENURE
14 yrs
Board of Directors Tenure

Average tenure and age of the PCCW board of directors in years:

8.4
Average Tenure
57
Average Age
  • The tenure for the PCCW board of directors is about average.
Board of Directors

BG Srinivas Gangaiah

TITLE
Group MD & Executive Director
COMPENSATION
HK$28M
AGE
58
TENURE
5 yrs

Fushen Li

TITLE
Deputy Chairman
COMPENSATION
HK$470K
AGE
57
TENURE
0.8 yrs

Richard Li

TITLE
Chairman
COMPENSATION
HK$40K
AGE
52
TENURE
19.9 yrs

Susanna Hui

TITLE
Group CFO & Executive Director
COMPENSATION
HK$30M
AGE
54
TENURE
9.2 yrs

Robert Lee

TITLE
Executive Director
AGE
67
TENURE
16.8 yrs

Aman Mehta

TITLE
Independent Non-Executive Director
COMPENSATION
HK$1M
AGE
73
TENURE
15.4 yrs

Frances Waikwun Wong

TITLE
Independent Non Executive Director
COMPENSATION
HK$590K
AGE
57
TENURE
7.3 yrs

Edmund Tse

TITLE
Non-Executive Director
COMPENSATION
HK$240K
AGE
81
TENURE
9.8 yrs

David Wei

TITLE
Non-Executive Director
COMPENSATION
HK$240K
AGE
49
TENURE
7.7 yrs

Bryce Wayne Lee

TITLE
Independent Non-Executive Director
COMPENSATION
HK$770K
AGE
54
TENURE
7.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Apr 19 Sell Srinivas Gangaiah Individual 11. Apr 19 11. Apr 19 -800,000 $0.60 $-480,605
15. Apr 19 Sell Srinivas Gangaiah Individual 12. Apr 19 12. Apr 19 -1,422,004 $0.60 $-859,863
X
Management checks
We assess PCCW's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PCCW has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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 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 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. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, content for various media, and outsourced call center and data center services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products; supply of broadband Internet access solutions and Web services; provision of data services; and software development, systems integration, consulting, and informatization activities; the provision of computer and IP/IT related value-added services to business customers; property investment, development, management, and leasing, as well as hotel management activities; and ski operations. Additionally, the company offers entertainment over-the-top platform; multi-platform digital music services; and digital, IT and business process outsourcing, cloud computing, hosting, managed, e-commerce, and IoT solutions. PCCW Limited was incorporated in 1979 and is headquartered in Quarry Bay, Hong Kong.

Details
Name: PCCW Limited
PCWL.F
Exchange: OTCPK
Founded: 1979
HK$4,483,808,483
7,712,800,990
Website: http://www.pccw.com
Address: PCCW Limited
PCCW Tower,
41st Floor,
Quarry Bay,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 8 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 03. Jan 1995
OTCPK PCWL.F Ordinary Shares Pink Sheets LLC US USD 03. Jan 1995
DB TH3B Ordinary Shares Deutsche Boerse AG DE EUR 03. Jan 1995
SHSC 8 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 03. Jan 1995
SZSC 8 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 03. Jan 1995
OTCPK PCCW.Y SPONS ADR NEW Pink Sheets LLC US USD 22. Aug 2000
Number of employees
Current staff
Staff numbers
23,600
PCCW employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 23:53
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/06/28
Last earnings filing: 2019/04/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.