PLDT Inc. Sponsored ADR (PHI)

FairStock Score: 67/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a patient value investor, and PLDT is a business I can understand: it sells mobile, broadband, fixed-line, and digital services in the Philippines. That can be a durable franchise because telecom networks are expensive to replicate and customers need connectivity. But a moat is only as good as the returns it produces. At the 2026-10-13 close of $18.78, FairStock calculates a P/E of 9.25, P/B of 1.92, dividend yield of 8.57%, and beta of 0.28. The latest reported quarter, fiscal Q2 2026, had revenue of $55.5B, net income of $7.6B, and a 13.65% margin—profitable, but not growing fast. The supplied growth figures show revenue growth of 2.10% and profit growth of -13.98%, so the trend is weak, though the period is not named in the data. More troubling, FairStock shows ROE at 22.45% but ROCE at only 5.61%, while debt-to-equity is 2.67 and the Altman Z-Score is 0.09. That suggests reported returns may be leveraged and the balance sheet is stretched. The Piotroski F-Score of 6/9 is middling. The 8.57% dividend yield is attractive, but I would demand that it be covered by durable cash flow. FairStock's Graham Number of $168.19 and FCF yield of 978% are so far from the ADR price that I suspect unit or currency mismatches; I would not underwrite on them. This is a cheap-looking, income-heavy telecom with a real franchise but high financial risk. I would wait for evidence that profit stabilizes and debt falls before calling it a classic value opportunity.

In plain English: PLDT is a big Philippine phone and internet company. It sells mobile, broadband, and business data services. In the latest reported quarter, fiscal Q2 2026, it earned $7.6B of net income on $55.5B of revenue, so the business is profitable, but it carries a lot of debt and its profits have been under pressure. At $18.78, the shares look cheap compared with those earnings and pay an 8.57% dividend, but the weak profit trend and heavy debt mean the low price may not be a free lunch.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer