TELKOM INDONESIA PERSERO-ADR (TLK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TLK - US7156841063 - ADR
20.78 USD
-0.62 (-2.9%)
20.78 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TLK. TLK was compared to 37 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.
In the past year TLK had a positive cash flow from operations.
In the past 5 years TLK has always been profitable.
TLK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TLK has a better Return On Assets (7.45%) than 86.49% of its industry peers.
The Return On Equity of TLK (15.87%) is better than 75.68% of its industry peers.
The Return On Invested Capital of TLK (13.76%) is better than 94.59% 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 6.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 15.87% | ||
| ROIC | 13.76% |
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 has a Profit Margin of 14.76%. This is amongst the best in the industry. TLK outperforms 81.08% of its industry peers.
In the last couple of years the Profit Margin of TLK has grown nicely.
TLK has a Operating Margin of 26.54%. This is amongst the best in the industry. TLK outperforms 91.89% of its industry peers.
TLK's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 66.72%, TLK belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
TLK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.54% | ||
| PM (TTM) | 14.76% | ||
| GM | 66.72% |
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) well above the Cost of Capital (WACC), TLK is creating value.
The number of shares outstanding for TLK remains at a similar level compared to 1 year ago.
TLK has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, TLK has a worse debt to assets ratio.
2.2 Solvency
TLK has an Altman-Z score of 2.80. This is not the best score and indicates that TLK is in the grey zone with still only limited risk for bankruptcy at the moment.
TLK has a better Altman-Z score (2.80) than 86.49% of its industry peers.
TLK has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as TLK would need 2.17 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.17, TLK belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that TLK is not too dependend on debt financing.
TLK has a better Debt to Equity ratio (0.37) than 83.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 2.8 |
ROIC/WACC2.39
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.77 indicates that TLK may have some problems paying its short term obligations.
TLK's Current ratio of 0.77 is on the low side compared to the rest of the industry. TLK is outperformed by 78.38% of its industry peers.
TLK has a Quick Ratio of 0.77. This is a bad value and indicates that TLK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TLK (0.76) is worse than 78.38% of its industry peers.
The current and quick ratio evaluation for TLK is rather negative, while it does have 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 | 0.77 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
TLK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.30%.
The Earnings Per Share has been growing slightly by 4.85% on average over the past years.
TLK shows a decrease in Revenue. In the last year, the revenue decreased by -1.89%.
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)-4.3%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%-18.69%
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-0.85%
3.2 Future
TLK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.91% yearly.
Based on estimates for the next years, TLK will show a small growth in Revenue. The Revenue will grow by 1.29% on average per year.
EPS Next Y-4.1%
EPS Next 2Y1.32%
EPS Next 3Y2.91%
EPS Next 5YN/A
Revenue Next Year-1.84%
Revenue Next 2Y0.57%
Revenue Next 3Y1.29%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TLK is valuated correctly with a Price/Earnings ratio of 15.98.
Compared to the rest of the industry, the Price/Earnings ratio of TLK indicates a somewhat cheap valuation: TLK is cheaper than 75.68% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TLK to the average of the S&P500 Index (27.19), we can say TLK is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.30, which indicates a correct valuation of TLK.
Based on the Price/Forward Earnings ratio, TLK is valued a bit cheaper than 72.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, TLK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TLK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.71 | ||
| 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)3.3
EPS Next 2Y1.32%
EPS Next 3Y2.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.02%, TLK is a good candidate for dividend investing.
TLK's Dividend Yield is rather good when compared to the industry average which is at 2.37. TLK pays more dividend than 86.49% of the companies in the same industry.
TLK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
5.2 History
The dividend of TLK has a limited annual growth rate of 1.73%.
TLK has been paying a dividend for at least 10 years, so it has a reliable track record.
TLK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.73%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
96.73% of the earnings are spent on dividend by TLK. This is not a sustainable payout ratio.
The dividend of TLK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP96.73%
EPS Next 2Y1.32%
EPS Next 3Y2.91%
20.78
-0.62 (-2.9%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.66%
Inst Owner Change-0.05%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap20.59B
Revenue(TTM)147.37T
Net Income(TTM)21.76T
Analysts81.67
Price Target21.32 (2.6%)
Short Float %0.79%
Short Ratio6.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
Yearly Dividend1.06
Dividend Growth(5Y)1.73%
DP96.73%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.49%
Min EPS beat(2)-13.55%
Max EPS beat(2)-11.44%
EPS beat(4)2
Avg EPS beat(4)-4.55%
Min EPS beat(4)-13.55%
Max EPS beat(4)4.43%
EPS beat(8)2
Avg EPS beat(8)-10.23%
EPS beat(12)3
Avg EPS beat(12)-11%
EPS beat(16)3
Avg EPS beat(16)-12.61%
Revenue beat(2)0
Avg Revenue beat(2)-5.83%
Min Revenue beat(2)-6.03%
Max Revenue beat(2)-5.63%
Revenue beat(4)0
Avg Revenue beat(4)-5.25%
Min Revenue beat(4)-6.03%
Max Revenue beat(4)-4.35%
Revenue beat(8)0
Avg Revenue beat(8)-5.38%
Revenue beat(12)0
Avg Revenue beat(12)-5.73%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.68%
PT rev (3m)10.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 14.3 | ||
| P/S | 2.36 | ||
| P/FCF | 9.71 | ||
| P/OCF | 5.32 | ||
| P/B | 2.53 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.3
EY6.26%
EPS(NY)1.45
Fwd EY7%
FCF(TTM)2.14
FCFY10.29%
OCF(TTM)3.91
OCFY18.8%
SpS8.82
BVpS8.21
TBVpS7.66
PEG (NY)N/A
PEG (5Y)3.3
Graham Number15.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 15.87% | ||
| ROCE | 18.09% | ||
| ROIC | 13.76% | ||
| ROICexc | 16.17% | ||
| ROICexgc | 17% | ||
| OM | 26.54% | ||
| PM (TTM) | 14.76% | ||
| GM | 66.72% | ||
| FCFM | 24.24% |
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%
ROICexgc growth 3Y-4.94%
ROICexgc 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-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 20.03% | ||
| Interest Coverage | -7.12 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 164.2% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.8 |
F-Score5
WACC5.75%
ROIC/WACC2.39
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)23.42%
Cap/Sales(5y)22.53%
Profit Quality(3y)133.95%
Profit Quality(5y)145.96%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.3%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%-18.69%
EPS Next Y-4.1%
EPS Next 2Y1.32%
EPS Next 3Y2.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.89%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-0.85%
Revenue Next Year-1.84%
Revenue Next 2Y0.57%
Revenue Next 3Y1.29%
Revenue Next 5YN/A
EBIT growth 1Y-8.86%
EBIT growth 3Y-1.08%
EBIT growth 5Y0.09%
EBIT Next Year72.17%
EBIT Next 3Y22.63%
EBIT Next 5YN/A
FCF growth 1Y16.58%
FCF growth 3Y-6.16%
FCF growth 5Y10.11%
OCF growth 1Y-0.02%
OCF growth 3Y-3.41%
OCF growth 5Y2.31%
TELKOM INDONESIA PERSERO-ADR / TLK FAQ
What is the ChartMill fundamental rating of TELKOM INDONESIA PERSERO-ADR (TLK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TLK.
Can you provide the valuation status for TELKOM INDONESIA PERSERO-ADR?
ChartMill assigns a valuation rating of 4 / 10 to TELKOM INDONESIA PERSERO-ADR (TLK). This can be considered as Fairly Valued.
Can you provide the profitability details for TELKOM INDONESIA PERSERO-ADR?
TELKOM INDONESIA PERSERO-ADR (TLK) has a profitability rating of 8 / 10.
Can you provide the financial health for TLK stock?
The financial health rating of TELKOM INDONESIA PERSERO-ADR (TLK) is 6 / 10.
Is the dividend of TELKOM INDONESIA PERSERO-ADR sustainable?
The dividend rating of TELKOM INDONESIA PERSERO-ADR (TLK) is 6 / 10 and the dividend payout ratio is 96.73%.