PCCW Limited Fundamental Analysis (HKSE: 0008.HK)
PCCW Limited Fundamental Analysis (HKSE: 0008.HK)
PCCW Limited (HKSE: 0008.HK) shows moderate financial fundamentals with a PE ratio of -486.24, profit margin of 0.50%, and ROE of -6.77%. The company generates $41.6B in annual revenue with moderate year-over-year growth of 7.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 197.3/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze 0008.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0008.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0008.HK trades at attractive valuation levels.
Growth Score
Excellent0008.HK delivers strong and consistent growth momentum.
Financial Health Score
Moderate0008.HK shows balanced financial health with some risks.
Profitability Score
Weak0008.HK struggles to sustain strong margins.
Key Financial Metrics
Is 0008.HK Expensive or Cheap?
P/E Ratio
0008.HK trades at -486.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0008.HK's PEG of -5.79 indicates potential undervaluation.
Price to Book
The market values PCCW Limited at -9.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.10 times EBITDA. This is generally considered low.
How Well Does 0008.HK Make Money?
Net Profit Margin
For every $100 in sales, PCCW Limited keeps $0.50 as profit after all expenses.
Operating Margin
Core operations generate 12.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.77 in profit for every $100 of shareholder equity.
ROA
PCCW Limited generates $0.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PCCW Limited produces operating cash flow of $10.11B, showing steady but balanced cash generation.
Free Cash Flow
PCCW Limited produces free cash flow of $2.68B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.35 in free cash annually.
FCF Yield
0008.HK converts 6.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-486.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
-9.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-17.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 0008.HK Stacks Against Its Sector Peers
| Metric | 0008.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -486.24 | 18.98 | Better (Cheaper) |
| ROE | -6.77% | 611.00% | Weak |
| Net Margin | 0.50% | 914.00% | Weak |
| Debt/Equity | -17.31 | -0.43 (disorted) | Distorted |
| Current Ratio | 0.57 | 1.89 | Weak Liquidity |
| ROA | 0.19% | 269.00% | Weak |
0008.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PCCW Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.60%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
97.36%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-22.87%
Industry Style: Growth, Technology, Streaming
Declining