TELKOM INDONESIA PERSERO-ADR (TLK) Stock Fundamental Analysis
NYSE:TLK - New York Stock Exchange, Inc. - US7156841063 - ADR - Currency: USD
Taking everything into account, TLK scores 6 out of 10 in our fundamental rating. TLK was compared to 31 industry peers in the Diversified Telecommunication Services industry. While TLK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TLK has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TLK was profitable.
TLK had a positive operating cash flow in the past year.
TLK had positive earnings in each of the past 5 years.
Each year in the past 5 years TLK had a positive operating cash flow.
1.2 Ratios
TLK has a Return On Assets of 7.97%. This is amongst the best in the industry. TLK outperforms 93.33% of its industry peers.
With an excellent Return On Equity value of 16.75%, TLK belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
TLK has a better Return On Invested Capital (15.07%) than 96.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TLK is significantly above the industry average of 5.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.97% | ||
| ROE | 16.75% | ||
| ROIC | 15.07% |
ROA(3y)8.34%
ROA(5y)8.38%
ROE(3y)18.17%
ROE(5y)18.71%
ROIC(3y)16.05%
ROIC(5y)17.07%
1.3 Margins
Looking at the Profit Margin, with a value of 15.14%, TLK belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
TLK's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.57%, TLK belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
TLK's Operating Margin has been stable in the last couple of years.
TLK has a Gross Margin of 68.26%. This is in the better half of the industry: TLK outperforms 80.00% of its industry peers.
TLK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.57% | ||
| PM (TTM) | 15.14% | ||
| GM | 68.26% |
OM growth 3Y-1.78%
OM growth 5Y0.42%
PM growth 3Y2.59%
PM growth 5Y3.61%
GM growth 3Y-0.75%
GM growth 5Y1.79%
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.
Compared to 1 year ago, TLK has about the same amount of shares outstanding.
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 2.51 indicates that TLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
TLK has a Altman-Z score of 2.51. This is amongst the best in the industry. TLK outperforms 93.33% of its industry peers.
TLK has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as TLK would need 2.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.13, TLK belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
TLK has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.37, TLK belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.6
WACC9.41%
2.3 Liquidity
TLK has a Current Ratio of 0.70. 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 Current ratio, with a value of 0.70, TLK is doing worse than 73.33% of the companies in the same industry.
TLK has a Quick Ratio of 0.70. 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 0.69, TLK is doing worse than 73.33% 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 | 0.7 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for TLK have decreased by -3.95% in the last year.
Measured over the past 5 years, TLK shows a small growth in Earnings Per Share. The EPS has been growing by 6.37% on average per year.
The Revenue has been growing slightly by 0.35% in the past year.
Measured over the past years, TLK shows a small growth in Revenue. The Revenue has been growing by 2.67% on average per year.
EPS 1Y (TTM)-3.95%
EPS 3Y5.69%
EPS 5Y6.37%
EPS Q2Q%-12.3%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y3.02%
Revenue growth 5Y2.67%
Sales Q2Q%-2.21%
3.2 Future
The Earnings Per Share is expected to grow by 3.47% on average over the next years.
The Revenue is expected to grow by 2.17% on average over the next years.
EPS Next Y-0.23%
EPS Next 2Y2.73%
EPS Next 3Y3.47%
EPS Next 5YN/A
Revenue Next Year-0.33%
Revenue Next 2Y1.42%
Revenue Next 3Y2.17%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.13 indicates a reasonable valuation of TLK.
80.00% of the companies in the same industry are more expensive than TLK, based on the Price/Earnings ratio.
TLK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.36.
With a Price/Forward Earnings ratio of 9.74, the valuation of TLK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TLK is valued cheaper than 93.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.65. TLK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TLK is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The excellent profitability rating of TLK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.75
EPS Next 2Y2.73%
EPS Next 3Y3.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.69%, TLK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.81, TLK pays a better dividend. On top of this TLK pays more dividend than 90.00% of the companies listed in the same industry.
TLK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
5.2 History
The dividend of TLK decreases each year by -0.01%.
TLK has paid a dividend for at least 10 years, which is a reliable track record.
TLK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.01%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TLK pays out 77.78% of its income as dividend. This is not a sustainable payout ratio.
DP77.78%
EPS Next 2Y2.73%
EPS Next 3Y3.47%
15.58
+0.16 (+1.04%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners25.66%
Inst Owner Change-94.34%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap15.43B
Analysts81.6
Price Target17.74 (13.86%)
Short Float %0.5%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
Yearly Dividend167.6
Dividend Growth(5Y)-0.01%
DP77.78%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.6%
Min EPS beat(2)-11.85%
Max EPS beat(2)-9.34%
EPS beat(4)0
Avg EPS beat(4)-15.92%
Min EPS beat(4)-28.76%
Max EPS beat(4)-9.34%
EPS beat(8)1
Avg EPS beat(8)-14.22%
EPS beat(12)1
Avg EPS beat(12)-15.3%
EPS beat(16)3
Avg EPS beat(16)-11.02%
Revenue beat(2)0
Avg Revenue beat(2)-4.15%
Min Revenue beat(2)-5.41%
Max Revenue beat(2)-2.89%
Revenue beat(4)0
Avg Revenue beat(4)-5.51%
Min Revenue beat(4)-8.78%
Max Revenue beat(4)-2.89%
Revenue beat(8)0
Avg Revenue beat(8)-5.98%
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)10.41%
PT rev (3m)1.69%
EPS NQ rev (1m)-1.39%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)-3.14%
EPS NY rev (3m)-3.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 9.74 | ||
| P/S | 1.68 | ||
| P/FCF | 7.33 | ||
| P/OCF | 3.96 | ||
| P/B | 1.86 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.4
EY8.99%
EPS(NY)1.6
Fwd EY10.27%
FCF(TTM)2.12
FCFY13.64%
OCF(TTM)3.94
OCFY25.27%
SpS9.27
BVpS8.38
TBVpS7.82
PEG (NY)N/A
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.97% | ||
| ROE | 16.75% | ||
| ROCE | 20.42% | ||
| ROIC | 15.07% | ||
| ROICexc | 17.2% | ||
| ROICexgc | 18.05% | ||
| OM | 28.57% | ||
| PM (TTM) | 15.14% | ||
| GM | 68.26% | ||
| FCFM | 22.91% |
ROA(3y)8.34%
ROA(5y)8.38%
ROE(3y)18.17%
ROE(5y)18.71%
ROIC(3y)16.05%
ROIC(5y)17.07%
ROICexc(3y)19.07%
ROICexc(5y)20.41%
ROICexgc(3y)19.96%
ROICexgc(5y)21.36%
ROCE(3y)21.5%
ROCE(5y)23.02%
ROICexcg growth 3Y-8.25%
ROICexcg growth 5Y-2.54%
ROICexc growth 3Y-8.17%
ROICexc growth 5Y-2.75%
OM growth 3Y-1.78%
OM growth 5Y0.42%
PM growth 3Y2.59%
PM growth 5Y3.61%
GM growth 3Y-0.75%
GM growth 5Y1.79%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 19.54% | ||
| Interest Coverage | -8.41 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 151.32% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.51 |
F-Score5
WACC9.41%
ROIC/WACC1.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)22.37%
Cap/Sales(5y)22.95%
Profit Quality(3y)150.02%
Profit Quality(5y)145.53%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.95%
EPS 3Y5.69%
EPS 5Y6.37%
EPS Q2Q%-12.3%
EPS Next Y-0.23%
EPS Next 2Y2.73%
EPS Next 3Y3.47%
EPS Next 5YN/A
Revenue 1Y (TTM)0.35%
Revenue growth 3Y3.02%
Revenue growth 5Y2.67%
Sales Q2Q%-2.21%
Revenue Next Year-0.33%
Revenue Next 2Y1.42%
Revenue Next 3Y2.17%
Revenue Next 5YN/A
EBIT growth 1Y-7.67%
EBIT growth 3Y1.19%
EBIT growth 5Y3.1%
EBIT Next Year62.89%
EBIT Next 3Y20.71%
EBIT Next 5YN/A
FCF growth 1Y-2.96%
FCF growth 3Y-8.96%
FCF growth 5Y14.33%
OCF growth 1Y-6.58%
OCF growth 3Y-2.48%
OCF growth 5Y5.81%