OTCPK:PCWL.F

Stock Analysis Report

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Executive Summary

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Japan, and internationally. More Details


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


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

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


Market Performance


7 Day Return

0.8%

PCWL.F

-2.5%

US Telecom

-5.3%

US Market


1 Year Return

4.1%

PCWL.F

-18.3%

US Telecom

10.4%

US Market

Return vs Industry: PCWL.F exceeded the US Telecom industry which returned -18.8% over the past year.

Return vs Market: PCWL.F underperformed the US Market which returned 12% over the past year.


Shareholder returns

PCWL.FIndustryMarket
7 Day0.8%-2.5%-5.3%
30 Day1.7%-4.7%-2.1%
90 Day10.9%-5.0%1.7%
1 Year11.6%4.1%-14.0%-18.3%12.9%10.4%
3 Year21.6%13.5%11.6%-4.4%34.3%25.4%
5 Year20.0%12.0%19.6%-7.4%73.7%54.3%

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PCWL.F ($0.61) is trading below our estimate of fair value ($2.91)

Significantly Below Fair Value: PCWL.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PCWL.F is unprofitable, so we can't compare its PE Ratio to the US Telecom industry average.

PE vs Market: PCWL.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PCWL.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PCWL.F is overvalued based on its PB Ratio (2.8x) compared to the US Telecom industry average (1.1x).


Next Steps

Future Growth

How is PCCW forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

54.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCWL.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: PCWL.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PCWL.F's is expected to become profitable in the next 3 years.

Revenue vs Market: PCWL.F's revenue (0.8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: PCWL.F's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PCWL.F's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

  • Explore growth companies in the Telecom industry.

Past Performance

How has PCCW performed over the past 5 years?

-37.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCWL.F is currently unprofitable.

Growing Profit Margin: PCWL.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PCWL.F is unprofitable, and losses have increased over the past 5 years at a rate of 37.4% per year.

Accelerating Growth: Unable to compare PCWL.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PCWL.F is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (9.7%).


Return on Equity

High ROE: PCWL.F has a negative Return on Equity (13.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is PCCW's financial position?


Financial Position Analysis

Short Term Liabilities: PCWL.F's short term assets (HK$18.4B) exceed its short term liabilities (HK$17.6B).

Long Term Liabilities: PCWL.F's short term assets (HK$18.4B) do not cover its long term liabilities (HK$65.1B).


Debt to Equity History and Analysis

Debt Level: PCWL.F's debt to equity ratio (381.8%) is considered high.

Reducing Debt: PCWL.F's debt to equity ratio has increased from 338.4% to 381.8% over the past 5 years.

Debt Coverage: PCWL.F's debt is well covered by operating cash flow (21.9%).

Interest Coverage: PCWL.F is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

6.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PCWL.F's dividend (6.91%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: PCWL.F's dividend (6.91%) is in the top 25% of dividend payers in the US market (4.78%)


Stability and Growth of Payments

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

Growing Dividend: PCWL.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: PCWL.F is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

BG Srinivas Gangaiah (59 yo)

6.25yrs

Tenure

HK$26,550,000

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

Compensation vs Market: BG Srinivas's total compensation ($USD3.42M) is below average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: BG Srinivas's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Tzar Kai Li
Chairman21.17yrsHK$40.00k5.99%
HK$ 277.8m
Srinivas Gangaiah
Group MD & Executive Director6.25yrsHK$26.55m0.029%
HK$ 1.3m
Hon Hing Hui
Group CFO & Executive Director10.42yrsHK$33.92m0.094%
HK$ 4.4m
Paul Berriman
Chief Technology Officer of Technology Strategy & Development13.42yrsno datano data
Marco Wong
Head of M&Ano datano datano data
Bernadette Mak Lomas
Group General Counsel & Company Secretary4.17yrsno datano data
Chi-Keung Chan
Head of Group Communicationsno datano datano data
Hester Shum
Group Chief Human Resources Officer1.25yrsno datano data
Chi Hong Lee
Executive Director18yrsno data0.013%
HK$ 597.0k
Chan Loh
Executive Vice President of now Business News Channel & now NEWS Channel15.25yrsno datano data
Janice Lee
Managing Director of PCCW Media Groupno datano datano data
Ramez Younan
Managing Director of PCCW Solutions5.58yrsno datano data

6.3yrs

Average Tenure

59yo

Average Age

Experienced Management: PCWL.F's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tzar Kai Li
Chairman21.17yrsHK$40.00k5.99%
HK$ 277.8m
Srinivas Gangaiah
Group MD & Executive Director6.25yrsHK$26.55m0.029%
HK$ 1.3m
Hon Hing Hui
Group CFO & Executive Director10.42yrsHK$33.92m0.094%
HK$ 4.4m
Chi Hong Lee
Executive Director18yrsno data0.013%
HK$ 597.0k
David Chance
Independent Non-Executive Director6.83yrsHK$900.00kno data
Sze-Wing Tse
Non-Executive Director11yrsHK$250.00k0.0048%
HK$ 220.8k
Aman Mehta
Independent Non-Executive Director16.58yrsHK$1.53mno data
Fushen Li
Deputy Chairman2yrsHK$500.00kno data
Zhe Wei
Non-Executive Director8.83yrsHK$250.00kno data
Lars Eric Rodert
Independent Non-Executive Director7.83yrsHK$780.00kno data
Bryce Wayne Lee
Independent Non-Executive Director8.42yrsHK$650.00kno data
Waikwun Wong
Independent Non Executive Director8.58yrsHK$620.00kno data

8.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: PCWL.F's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PCWL.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: PCCW Limited
  • Ticker: PCWL.F
  • Exchange: OTCPK
  • Founded: 1925
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$35.971b
  • Listing Market Cap: HK$4.638b
  • 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 and other parts of China, Japan, and internationally. The company’s services include local telephony, local data and bro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:32
End of Day Share Price2020/10/29 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.