TELKOM INDONESIA PERSERO-ADR (TLK) Stock Fundamental Analysis
NYSE:TLK - New York Stock Exchange, Inc. - US7156841063 - ADR - Currency: USD
Overall TLK gets a fundamental rating of 6 out of 10. We evaluated TLK against 31 industry peers in the Diversified Telecommunication Services industry. While TLK has a great profitability rating, there are some minor concerns on its financial health. TLK is not valued too expensively and it also shows a decent growth rate. Finally TLK also has an excellent dividend rating. This makes TLK very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year TLK was profitable.
TLK had a positive operating cash flow in the past year.
In the past 5 years TLK has always been profitable.
Each year in the past 5 years TLK had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.89%, TLK belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
TLK has a Return On Equity of 16.64%. This is amongst the best in the industry. TLK outperforms 83.87% of its industry peers.
TLK has a Return On Invested Capital of 14.33%. This is amongst the best in the industry. TLK outperforms 96.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TLK is significantly above the industry average of 5.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 16.64% | ||
| ROIC | 14.33% |
ROA(3y)8%
ROA(5y)8.27%
ROE(3y)16.93%
ROE(5y)18.29%
ROIC(3y)15.68%
ROIC(5y)16.3%
1.3 Margins
TLK's Profit Margin of 15.77% is amongst the best of the industry. TLK outperforms 90.32% of its industry peers.
TLK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 28.45%, TLK belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
TLK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 67.94%, TLK belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
In the last couple of years the Gross Margin of TLK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.45% | ||
| PM (TTM) | 15.77% | ||
| GM | 67.94% |
OM growth 3Y-2.59%
OM growth 5Y-1.91%
PM growth 3Y-3.02%
PM growth 5Y2.75%
GM growth 3Y-0.88%
GM growth 5Y0.85%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TLK is creating some value.
The number of shares outstanding for TLK remains at a similar level compared to 1 year ago.
The number of shares outstanding for TLK remains at a similar level compared to 5 years ago.
Compared to 1 year ago, TLK has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.49 indicates that TLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
TLK's Altman-Z score of 2.49 is amongst the best of the industry. TLK outperforms 93.55% of its industry peers.
The Debt to FCF ratio of TLK is 2.16, which is a good value as it means it would take TLK, 2.16 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TLK (2.16) is better than 90.32% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that TLK is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.39, TLK is doing good in the industry, outperforming 77.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.53
WACC9.39%
2.3 Liquidity
TLK has a Current Ratio of 0.82. This is a bad value and indicates that TLK is not financially healthy enough and could expect problems in meeting its short term obligations.
TLK has a worse Current ratio (0.82) than 70.97% of its industry peers.
TLK has a Quick Ratio of 0.82. This is a bad value and indicates that TLK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.81, TLK is doing worse than 70.97% of the companies in the same industry.
TLK does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
TLK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.71%.
TLK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.85% yearly.
The Revenue has been growing slightly by 0.50% in the past year.
Measured over the past years, TLK shows a small growth in Revenue. The Revenue has been growing by 2.04% on average per year.
EPS 1Y (TTM)-3.71%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%18.07%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-0.61%
3.2 Future
The Earnings Per Share is expected to grow by 6.52% on average over the next years.
The Revenue is expected to grow by 2.38% on average over the next years.
EPS Next Y8.34%
EPS Next 2Y6.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.13%
Revenue Next 2Y2.77%
Revenue Next 3Y2.38%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.26, which indicates a very decent valuation of TLK.
TLK's Price/Earnings ratio is a bit cheaper when compared to the industry. TLK is cheaper than 74.19% of the companies in the same industry.
TLK is valuated cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.36, which indicates a very decent valuation of TLK.
Based on the Price/Forward Earnings ratio, TLK is valued cheaper than 87.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TLK to the average of the S&P500 Index (21.65), we can say TLK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
TLK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TLK is cheaper than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TLK may justify a higher PE ratio.
PEG (NY)1.35
PEG (5Y)2.32
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.00%, TLK is a good candidate for dividend investing.
TLK's Dividend Yield is rather good when compared to the industry average which is at 5.14. TLK pays more dividend than 87.10% of the companies in the same industry.
TLK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7% |
5.2 History
The dividend of TLK has a limited annual growth rate of 1.73%.
TLK has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of TLK decreased in the last 3 years.
Dividend Growth(5Y)1.73%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TLK pays out 74.77% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TLK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP74.77%
EPS Next 2Y6.52%
EPS Next 3YN/A
15.88
+0.25 (+1.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners25.66%
Inst Owner Change0.02%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap15.73B
Analysts80
Price Target15.88 (0%)
Short Float %0.43%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7% |
Yearly Dividend1.06
Dividend Growth(5Y)1.73%
DP74.77%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.46%
Min EPS beat(2)-9.34%
Max EPS beat(2)4.43%
EPS beat(4)1
Avg EPS beat(4)-7.62%
Min EPS beat(4)-13.73%
Max EPS beat(4)4.43%
EPS beat(8)2
Avg EPS beat(8)-9.79%
EPS beat(12)2
Avg EPS beat(12)-14.01%
EPS beat(16)4
Avg EPS beat(16)-10.45%
Revenue beat(2)0
Avg Revenue beat(2)-4.88%
Min Revenue beat(2)-5.41%
Max Revenue beat(2)-4.35%
Revenue beat(4)0
Avg Revenue beat(4)-4.41%
Min Revenue beat(4)-5.41%
Max Revenue beat(4)-2.89%
Revenue beat(8)0
Avg Revenue beat(8)-5.39%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.65%
PT rev (3m)-5.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 10.36 | ||
| P/S | 1.77 | ||
| P/FCF | 7.46 | ||
| P/OCF | 4.31 | ||
| P/B | 1.87 | ||
| P/tB | 2 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.41
EY8.88%
EPS(NY)1.53
Fwd EY9.65%
FCF(TTM)2.13
FCFY13.41%
OCF(TTM)3.68
OCFY23.2%
SpS8.97
BVpS8.5
TBVpS7.93
PEG (NY)1.35
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 16.64% | ||
| ROCE | 19.14% | ||
| ROIC | 14.33% | ||
| ROICexc | 16.86% | ||
| ROICexgc | 17.7% | ||
| OM | 28.45% | ||
| PM (TTM) | 15.77% | ||
| GM | 67.94% | ||
| FCFM | 23.73% |
ROA(3y)8%
ROA(5y)8.27%
ROE(3y)16.93%
ROE(5y)18.29%
ROIC(3y)15.68%
ROIC(5y)16.3%
ROICexc(3y)18.4%
ROICexc(5y)19.71%
ROICexgc(3y)19.29%
ROICexgc(5y)20.65%
ROCE(3y)20.82%
ROCE(5y)21.63%
ROICexcg growth 3Y-4.94%
ROICexcg growth 5Y-4.99%
ROICexc growth 3Y-5.1%
ROICexc growth 5Y-5.09%
OM growth 3Y-2.59%
OM growth 5Y-1.91%
PM growth 3Y-3.02%
PM growth 5Y2.75%
GM growth 3Y-0.88%
GM growth 5Y0.85%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.16 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 17.34% | ||
| Interest Coverage | -8.06 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 150.51% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.49 |
F-Score6
WACC9.39%
ROIC/WACC1.53
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)21.24%
Cap/Sales(5y)21.22%
Profit Quality(3y)148.17%
Profit Quality(5y)154.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.71%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%18.07%
EPS Next Y8.34%
EPS Next 2Y6.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.5%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-0.61%
Revenue Next Year2.13%
Revenue Next 2Y2.77%
Revenue Next 3Y2.38%
Revenue Next 5YN/A
EBIT growth 1Y-5.54%
EBIT growth 3Y-1.08%
EBIT growth 5Y0.09%
EBIT Next Year84.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.93%
FCF growth 3Y-2.7%
FCF growth 5Y12.52%
OCF growth 1Y1.68%
OCF growth 3Y-3.41%
OCF growth 5Y2.31%