PLDT Inc (PHI, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $5.78 billion, with a current stock price of $26.75. Over the past week, the stock has experienced a significant 17.08% gain, and looking at the past three months, the gain extends to 18.84%. When compared to the GF Value of $27.9, which was previously $27.64, PLDT Inc is currently considered fairly valued, whereas it was previously seen as modestly undervalued. This shift in valuation suggests that the stock price is aligning more closely with the company's intrinsic value.
Introduction to PLDT Inc
PLDT Inc, a leader in the telecommunication services industry, is the premier telecommunications carrier in the Philippines. The company boasts an extensive fixed-line network and commands a significant presence in the wireless market, holding more than half of the market share. Ownership is international, with First Pacific from Hong Kong holding approximately 26%, and two subsidiaries of Nippon Telegraph and Telephone collectively owning around 21%. This global interest in PLDT Inc underscores its strategic importance in the telecommunications sector.
Assessing PLDT Inc's Profitability
PLDT Inc's Profitability Rank is a robust 8 out of 10, indicating a strong position within the industry. The company's operating margin is an impressive 11.83%, which is better than 58.33% of 384 companies in the same sector. Its ROE (Return on Equity) stands at 9.65%, surpassing 58.62% of its peers. The ROA (Return on Assets) at 1.73% and ROIC (Return on Invested Capital) at 2.87% also demonstrate the company's ability to generate profits relative to its assets and invested capital, respectively. Notably, PLDT Inc has maintained profitability for the past 10 years, a feat better than 99.73% of 374 companies in the industry.
Growth Trajectory of PLDT Inc
The company's Growth Rank is an impressive 7 out of 10. PLDT Inc has shown a 3-Year Revenue Growth Rate per Share of 6.70%, outperforming 62.37% of 372 companies. Its 5-Year Revenue Growth Rate per Share is 5.50%, which is better than 65.5% of 342 companies. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 2.91%, which is more favorable than 54.37% of 103 companies. The 3-Year EPS without NRI Growth Rate is 6.80%, and the 5-Year EPS without NRI Growth Rate is 3.00%, indicating a steady increase in earnings per share over time. The future EPS Growth Rate for the next 3 to 5 years is projected at 1.00%, which, while modest, still outperforms 23.81% of 42 companies in the industry.
Notable Shareholders in PLDT Inc
Among the notable shareholders of PLDT Inc is Jim Simons (Trades, Portfolio), who holds 2,628,957 shares, accounting for 1.22% of the company. The presence of such prominent investors can often be a sign of confidence in the company's future prospects and management.
Competitive Landscape
In the competitive telecommunication services industry, PLDT Inc stands out with its market cap of $5.78 billion. Its closest competitors include Globe Telecom Inc (PHS:GLO, Financial) with a market cap of $4.55 billion, Converge Information And Communications Technology Solutions Inc (PHS:CNVRG, Financial) valued at $1.16 billion, and Dito CME Holdings Corp (PHS:DITO, Financial) with a market cap of $776.396 million. PLDT Inc's market leadership is evident when compared to these competitors, highlighting its strong position within the industry.
Conclusion
In summary, PLDT Inc's recent stock performance reflects a company that is fairly valued and aligns with its intrinsic value. The company's strong market position and consistent profitability, coupled with steady growth prospects, make it an attractive option for investors. With notable shareholders like Jim Simons (Trades, Portfolio) holding stakes in the company and a competitive edge over its closest rivals, PLDT Inc is well-positioned to maintain its leadership in the telecommunications sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
