Financial Performance and Market Viability of Globe Telecom, Inc.: An Integrated Fundamental–Technical Analysis

Abstract

This study provides an integrated evaluation of Globe Telecom, Inc. (PSE: GLO) by combining fundamental and technical analyses to assess its financial performance, market valuation, and investment viability within the Philippine telecommunications sector. Drawing on publicly available financial statements and market data from 2020–2025, with performance indicators current as of April 30, 2025, the research situates Globe’s trajectory amid regulatory reforms, intensified competition, and digital ecosystem convergence through its fintech subsidiary GCash.  Results of the fundamental analysis show sustained quarterly revenues averaging ₱45 billion in 2024, underscoring the resilience of telecommunications demand. However, profitability declined as net margins fell below 10 percent, while return on equity and earnings per share softened after 2022. Leverage remained high (debt-to-equity = 2.78; current ratio = 0.62), signaling limited liquidity and elevated refinancing risk. Dividend payouts of ₱25 per share maintained a 5.15 percent yield, but sustainability appears constrained without margin recovery.  The technical analysis corroborates a bearish market sentiment: Relative Strength Index (RSI = 24.47) indicated oversold conditions, Moving Average Convergence Divergence (MACD) registered persistent negative momentum, and Bollinger Bands revealed widening volatility near lower support levels. These patterns suggest investor caution and the absence of confirmed reversal signals.  Synthesizing both perspectives, Globe emerges as a resilient yet pressured operator—anchored by strong brand equity and fintech integration but challenged by declining profitability and high debt exposure. The study issues a neutral investment recommendation, advising investors to hold existing positions while awaiting improved financial metrics and positive technical confirmations. For management, the analysis highlights the need for cost discipline, deleveraging, and monetization of GCash; for policymakers, it underscores the importance of regulatory stability to sustain telecom investment.