TELKOM INDONESIA PERSERO-ADR (TLK) Stock Fundamental Analysis
NYSE:TLK - New York Stock Exchange, Inc. - US7156841063 - ADR - Currency: USD
TLK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 on the other hand it scores bad on growth.
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.
In the past 5 years TLK always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.97%, TLK belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
The Return On Equity of TLK (16.75%) is better than 90.00% of its industry peers.
TLK has a better Return On Invested Capital (15.07%) than 96.67% of its industry peers.
TLK had an Average Return On Invested Capital over the past 3 years of 16.05%. This is significantly above the industry average of 5.65%.
| 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.
In the last couple of years the Profit Margin of TLK has grown nicely.
TLK has a better Operating Margin (28.57%) than 96.67% of its industry peers.
In the last couple of years the Operating Margin of TLK has remained more or less at the same level.
TLK has a better Gross Margin (68.26%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of TLK has grown nicely.
| 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
TLK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TLK has about the same amount of shares outstanding.
Compared to 5 years ago, TLK has about the same amount of shares outstanding.
Compared to 1 year ago, TLK has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.60 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 2.60. 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.
TLK has a Debt to FCF ratio of 2.13. This is amongst the best in the industry. TLK outperforms 86.67% of its industry peers.
TLK has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
TLK's Debt to Equity ratio of 0.37 is fine compared to the rest of the industry. TLK outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.59
WACC9.46%
2.3 Liquidity
A Current Ratio of 0.70 indicates that TLK may have some problems paying its short term obligations.
TLK's Current ratio of 0.70 is on the low side compared to the rest of the industry. TLK is outperformed by 83.33% of its industry peers.
A Quick Ratio of 0.69 indicates that TLK may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, TLK is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
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.
Looking at the last year, TLK shows a small growth in Revenue. The Revenue has grown by 0.35% in the last 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 4.57% on average over the next years.
TLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.21% yearly.
EPS Next Y3%
EPS Next 2Y4.77%
EPS Next 3Y4.57%
EPS Next 5YN/A
Revenue Next Year-0.05%
Revenue Next 2Y1.56%
Revenue Next 3Y2.21%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TLK is valuated correctly with a Price/Earnings ratio of 12.06.
Based on the Price/Earnings ratio, TLK is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
TLK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.58.
With a Price/Forward Earnings ratio of 10.16, the valuation of TLK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TLK is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.47, TLK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TLK is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.96 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TLK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.02
PEG (5Y)1.89
EPS Next 2Y4.77%
EPS Next 3Y4.57%
5. Dividend
5.1 Amount
TLK has a Yearly Dividend Yield of 6.59%, which is a nice return.
Compared to an average industry Dividend Yield of 5.32, TLK pays a better dividend. On top of this TLK pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, TLK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
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
77.78% of the earnings are spent on dividend by TLK. This is not a sustainable payout ratio.
DP77.78%
EPS Next 2Y4.77%
EPS Next 3Y4.57%
TELKOM INDONESIA PERSERO-ADR
NYSE:TLK (1/27/2025, 11:37:25 AM)
17.13
+0.08 (+0.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners20.9%
Inst Owner Change0.46%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap16.97B
Analysts81.6
Price Target16.07 (-6.19%)
Short Float %0.46%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
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)-8.12%
PT rev (3m)-20.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 10.16 | ||
| P/S | 1.82 | ||
| P/FCF | 7.96 | ||
| P/OCF | 4.3 | ||
| P/B | 2.02 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.42
EY8.29%
EPS(NY)1.69
Fwd EY9.84%
FCF(TTM)2.15
FCFY12.56%
OCF(TTM)3.99
OCFY23.28%
SpS9.39
BVpS8.49
TBVpS7.92
PEG (NY)4.02
PEG (5Y)1.89
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 | 2.6 |
F-Score5
WACC9.46%
ROIC/WACC1.59
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 Y3%
EPS Next 2Y4.77%
EPS Next 3Y4.57%
EPS Next 5YN/A
Revenue 1Y (TTM)0.35%
Revenue growth 3Y3.02%
Revenue growth 5Y2.67%
Sales Q2Q%-2.21%
Revenue Next Year-0.05%
Revenue Next 2Y1.56%
Revenue Next 3Y2.21%
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%