TELKOM INDONESIA PERSERO-ADR (TLK) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TLK • US7156841063
21.1687 USD
+0.32 (+1.53%)
Last: Jan 30, 2026, 10:14 AM
We assign a fundamental rating of 5 out of 10 to TLK. TLK was compared to 36 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
- TLK had positive earnings in the past year.
- 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 7.45%, TLK belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- TLK has a better Return On Equity (15.87%) than 72.22% of its industry peers.
- TLK has a Return On Invested Capital of 13.76%. This is amongst the best in the industry. TLK outperforms 94.44% 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 6.71%.
| 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's Profit Margin of 14.76% is fine compared to the rest of the industry. TLK outperforms 77.78% of its industry peers.
- TLK's Profit Margin has improved in the last couple of years.
- TLK has a better Operating Margin (26.54%) than 91.67% of its industry peers.
- In the last couple of years the Operating Margin of TLK has declined.
- Looking at the Gross Margin, with a value of 66.72%, TLK is in the better half of the industry, outperforming 77.78% 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TLK is creating value.
- The number of shares outstanding for TLK remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, TLK has about the same amount of shares outstanding.
- TLK has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.79 indicates that TLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TLK has a better Altman-Z score (2.79) than 86.11% of its industry peers.
- The Debt to FCF ratio of TLK is 2.17, which is a good value as it means it would take TLK, 2.17 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.17, TLK belongs to the top of the industry, outperforming 91.67% 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.
- The Debt to Equity ratio of TLK (0.37) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 2.79 |
ROIC/WACC2.39
WACC5.75%
2.3 Liquidity
- TLK has a Current 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.
- TLK has a worse Current ratio (0.77) than 80.56% of its industry peers.
- A Quick Ratio of 0.76 indicates that TLK may have some problems paying its short term obligations.
- TLK has a Quick ratio of 0.76. This is amonst the worse of the industry: TLK underperforms 80.56% 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%.
- 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 -1.89% in the last year.
- The Revenue has been growing slightly by 2.04% on average over the past years.
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
- The Earnings Per Share is expected to grow by 3.11% on average over the next years.
- 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-4.57%
EPS Next 2Y1.55%
EPS Next 3Y3.11%
EPS Next 5YN/A
Revenue Next Year-1.84%
Revenue Next 2Y0.57%
Revenue Next 3Y1.29%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 16.16, TLK is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of TLK indicates a somewhat cheap valuation: TLK is cheaper than 75.00% of the companies listed in the same industry.
- TLK is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 14.43, the valuation of TLK can be described as correct.
- 72.22% of the companies in the same industry are more expensive than TLK, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. TLK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 14.43 |
4.2 Price Multiples
- The rest of the industry has a similar Price/Free Cash Flow ratio as TLK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.85 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- TLK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.33
EPS Next 2Y1.55%
EPS Next 3Y3.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.68%, TLK is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.29, TLK pays a better dividend. On top of this TLK pays more dividend than 86.11% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
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.
- 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
- TLK pays out 96.73% of its income as dividend. This is not a sustainable payout ratio.
- TLK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP96.73%
EPS Next 2Y1.55%
EPS Next 3Y3.11%
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%.