PLDT Inc. Sponsored ADR (PHI)

FairStock Score: 67/100 — STEADY

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 24.7% demonstrating efficient capital deployment
• Attractive 7.6% dividend yield providing steady income returns
• Established organization with 14,304 employees providing operational scale

Concerns

• High leverage at 2.80x debt-to-equity increases financial risk and interest expense burden
• Revenue declining at 1.4% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

PLDT Inc. Sponsored ADR is a small-cap communication services company valued at $4.6 billion. Revenue stands at $218.4 billion. From a quality standpoint, PLDT shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.1 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 9.1x, with offers a 88% margin of safety vs Graham Number of $175. Growth dynamics show revenue growing at -1.4% and profit growth of 16.6%. The 7.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 67/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates PLDT's consistent 25% ROE at just 9x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 2.8x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer