TELKOM INDONESIA PERSERO-ADR (TLK) Stock Fundamental Analysis
USA - NYSE:TLK - US7156841063 - ADR
20.05 USD
+0.15 (+0.75%)
20.05 USD
0 (0%)
TLK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 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 valued correctly, 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's Return On Assets of 7.78% is amongst the best of the industry. TLK outperforms 91.43% of its industry peers.
TLK has a better Return On Equity (17.30%) than 88.57% of its industry peers.
TLK has a Return On Invested Capital of 14.39%. This is amongst the best in the industry. TLK outperforms 94.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TLK is significantly above the industry average of 6.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 17.3% | ||
| ROIC | 14.39% |
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
With an excellent Profit Margin value of 15.48%, TLK belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
TLK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 27.43%, TLK belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
In the last couple of years the Operating Margin of TLK has declined.
Looking at the Gross Margin, with a value of 66.80%, TLK belongs to the top of the industry, outperforming 82.86% 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 | 27.43% | ||
| PM (TTM) | 15.48% | ||
| GM | 66.8% |
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.
TLK has about the same amout of shares outstanding than it did 1 year ago.
TLK has about the same amout of shares outstanding than it did 5 years ago.
TLK has a worse debt/assets ratio than last year.
2.2 Solvency
TLK has an Altman-Z score of 2.60. 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.
Looking at the Altman-Z score, with a value of 2.60, TLK belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Debt to FCF ratio of TLK is 2.38, which is a good value as it means it would take TLK, 2.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.38, TLK belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that TLK is not too dependend on debt financing.
The Debt to Equity ratio of TLK (0.43) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | 2.6 |
ROIC/WACC2.5
WACC5.75%
2.3 Liquidity
TLK has a Current Ratio of 0.71. 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 0.71, TLK is doing worse than 82.86% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that TLK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.70, TLK is doing worse than 82.86% 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 | 0.71 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
TLK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.97%.
TLK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.85% yearly.
Looking at the last year, TLK shows a decrease in Revenue. The Revenue has decreased by -2.22% in the last year.
TLK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.04% yearly.
EPS 1Y (TTM)-2.97%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%-9.51%
Revenue 1Y (TTM)-2.22%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-3.96%
3.2 Future
TLK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.76% yearly.
TLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.56% yearly.
EPS Next Y0.25%
EPS Next 2Y2.83%
EPS Next 3Y3.76%
EPS Next 5YN/A
Revenue Next Year-1.14%
Revenue Next 2Y0.9%
Revenue Next 3Y1.56%
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.
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
The Price/Earnings ratio is 14.22, which indicates a correct valuation of TLK.
TLK's Price/Earnings ratio is rather cheap when compared to the industry. TLK is cheaper than 82.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of TLK to the average of the S&P500 Index (27.20), we can say TLK is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.03, TLK is valued correctly.
Based on the Price/Forward Earnings ratio, TLK is valued cheaper than 82.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. TLK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TLK is valued a bit cheaper than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.16 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TLK does not grow enough to justify the current Price/Earnings ratio.
TLK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)56.45
PEG (5Y)2.93
EPS Next 2Y2.83%
EPS Next 3Y3.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.00%, TLK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.03, TLK pays a bit more dividend than its industry peers.
TLK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
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
92.06% 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.
DP92.06%
EPS Next 2Y2.83%
EPS Next 3Y3.76%
20.05
+0.15 (+0.75%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.77%
Inst Owner Change0.41%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap19.86B
Analysts79.2
Price Target19.45 (-2.99%)
Short Float %0.66%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
Yearly Dividend1.09
Dividend Growth(5Y)1.73%
DP92.06%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.54%
Min EPS beat(2)-11.44%
Max EPS beat(2)2.35%
EPS beat(4)2
Avg EPS beat(4)-3.5%
Min EPS beat(4)-11.44%
Max EPS beat(4)4.43%
EPS beat(8)3
Avg EPS beat(8)-8.26%
EPS beat(12)3
Avg EPS beat(12)-14.5%
EPS beat(16)3
Avg EPS beat(16)-11.88%
Revenue beat(2)0
Avg Revenue beat(2)-5.5%
Min Revenue beat(2)-6.03%
Max Revenue beat(2)-4.98%
Revenue beat(4)0
Avg Revenue beat(4)-5.19%
Min Revenue beat(4)-6.03%
Max Revenue beat(4)-4.35%
Revenue beat(8)0
Avg Revenue beat(8)-5.17%
Revenue beat(12)0
Avg Revenue beat(12)-5.96%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.58%
PT rev (3m)11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)-7.47%
EPS NY rev (3m)-7.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.65%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 13.03 | ||
| P/S | 2.21 | ||
| P/FCF | 9.16 | ||
| P/OCF | 5.05 | ||
| P/B | 2.47 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.41
EY7.03%
EPS(NY)1.54
Fwd EY7.67%
FCF(TTM)2.19
FCFY10.92%
OCF(TTM)3.97
OCFY19.79%
SpS9.09
BVpS8.13
TBVpS7.55
PEG (NY)56.45
PEG (5Y)2.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 17.3% | ||
| ROCE | 19.4% | ||
| ROIC | 14.39% | ||
| ROICexc | 17.06% | ||
| ROICexgc | 17.96% | ||
| OM | 27.43% | ||
| PM (TTM) | 15.48% | ||
| GM | 66.8% | ||
| FCFM | 24.09% |
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-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.38 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 19.58% | ||
| Interest Coverage | -7.35 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 155.6% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.6 |
F-Score5
WACC5.75%
ROIC/WACC2.5
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)-2.97%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%-9.51%
EPS Next Y0.25%
EPS Next 2Y2.83%
EPS Next 3Y3.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.22%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-3.96%
Revenue Next Year-1.14%
Revenue Next 2Y0.9%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y-9.48%
EBIT growth 3Y-1.08%
EBIT growth 5Y0.09%
EBIT Next Year78.13%
EBIT Next 3Y23.06%
EBIT Next 5YN/A
FCF growth 1Y16.34%
FCF growth 3Y-6.16%
FCF growth 5Y10.11%
OCF growth 1Y0.71%
OCF growth 3Y-3.41%
OCF growth 5Y2.31%