PLDT Inc. (TEL) Stock Analysis
PLDT Inc. (TEL), formerly Philippine Long Distance Telephone Company, was incorporated on November 28, 1928 following the merger of four telephone companies under US ownership, namely, Philippine Telephone and Telegraph Company, Cebu Telephone and Telegraph Company, Panay Telephone and Telegraph Company, and Negros Telephone and Telegraph Company.
In 1967, effective control of TEL was sold by General Telephone and Electronics Corporation to a group of Filipino businessmen.
On July 29, 2016, the Securities and Exchange Commission approved the change in corporate name to the present one.
TEL is a telecommunications service provider in the Philippines with its business activities categorized into three units: wireless, fixed line, and others.
The Company’s services are marketed under the “Smart”, “TNT”, and “Sun Cellular” brands.
TEL’s subsidiaries include:
- Smart Communications, Inc.
- ACeS Philippines Cellular Satellite Corporation
- ABM Global Solutions, Inc.
- Bonifacio Communications Corporation
- Digital Telecommunications Philippines, Inc.
- ePLDT, Inc.
TEL’s common shares are listed and traded on the PSE, while the Company’s American Depositary Shares are listed and traded on the NYSE in the US.
On May 30, 2016, TEL announced the approval of its Board for TEL to acquire 50% of the equity interest of the telecommunications business of San Miguel Corporation held through Vega Telecom, Inc. (Vega Telecom), with Globe Telecom, Inc. acquiring the remaining 50% interest.
The Board of TEL also approved the acquisition by TEL of 50% equity interest in the telecommunications businesses of New Century Telecoms, Inc. and eTelco, Inc. Vega Telecom owns controlling interests in Bell Telecommunication Philippines, Inc.; Eastern Telecommunications Philippines, Inc.; Cobaltpoint Telecommunication, Inc. (formerly Extelcom); Tori Spectrum Telecommunication, Inc. (formerly Wi-Tribe); and Hi-Frequency Telecommunication, Inc.
Sector Details:
- Sector: Services
- Subsector: Telecommunications
source: PSE Edge
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Value Screen Scorecard
Stocks are scored based on Profitability & Growth, Financial Health, Quality, Dividends and Valuation. Each criterion in the list is scored based on financial data for a total of 100 points. Stocks are ranked from 1 to 5, 1 being the highest.
Read this post to get more information on how the value scorecard works.
Scoring Criteria:
- Rank # 1: Extremely good company
- Rank # 2: Good company
- Rank # 3: Average company
- Rank # 4: Needs further study and research to identify the company's weaknesses
- Rank # 5: Risky company
Value Scorecard (2-14-2017 3Q2016)
Piotroski F-Score
The Piotroski F-Score is a financial metric model that's helpful in spotting turnaround businesses. For more information, you may read about it here.
Scoring Criteria:
- 7 to 9 points: Wonderful business
- 5 to 6 points: Average business
- 1 to 4 points: Weak business
Piotroski F-Score (2-14-2017 3Q2016)
Altman Z-Score
The Altman Z-Score is a bankruptcy prediction model that's helpful in spotting low quality companies. More information about it can be found in this post here.
Scoring Criteria:
- Z > 2.99; “SAFE” Zone (Healthy business)
- Z < 1.81; “DISTRESS” Zone (Troubled business)
- 1.81 > Z > 2.99; “GREY” Zone (Warrants more investigation)
Altman Z-Score (2-14-2017 3Q2016)
Estimated Growth Rates
Estimated growth rates are calculated using exponential chart trend line formula.
Estimated Growth Rates (3Q2016)
Intrinsic Value Calculations
The figures and all other variables used in order to get the intrinsic value are listed in detail below for reference purposes so that cross-checking can be made to verify the values obtained.
Intrinsic Value Calculations (2-14-2017 3Q2016)
Valuations By Top Leading Brokers
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Ouch! So painful to see the grades in black & white like this. Good thing I’m long on TEL…
And with TEL expected to announce their FY16 results next month, I’m curious to see how their 4Q16 figures will affect their Value Scorecard. Looking forward to that update.
As always, keep up the good work!
TEL needs to improve services to again gain control of the market share or attract new subscribers through aggressive innovation.
LINK: http://www.bworldonline.com/content.php?section=Corporate&title=pldt-ties-up-with-huawei-to-roll-out-5g-by-2020&id=140665