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 33 industry peers in the Diversified Telecommunication Services industry. TLK has an excellent profitability rating, but there are some minor concerns on its financial health. TLK is valued quite cheap, while showing a decent growth score. This is a good combination! TLK also has an excellent dividend rating. These ratings would make TLK suitable for value and dividend investing!
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.
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 7.89%. This is amongst the best in the industry. TLK outperforms 87.88% of its industry peers.
TLK's Return On Equity of 16.64% is amongst the best of the industry. TLK outperforms 81.82% of its industry peers.
TLK's Return On Invested Capital of 14.33% is amongst the best of the industry. TLK outperforms 93.94% 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 6.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 16.64% | ||
| ROIC | 14.33% |
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 15.77%. This is amongst the best in the industry. TLK outperforms 90.91% of its industry peers.
In the last couple of years the Profit Margin of TLK has grown nicely.
Looking at the Operating Margin, with a value of 28.45%, TLK belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
TLK's Operating Margin has declined in the last couple of years.
The Gross Margin of TLK (67.94%) is better than 81.82% of its industry peers.
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 | 28.45% | ||
| PM (TTM) | 15.77% | ||
| GM | 67.94% |
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 just above the Cost of Capital (WACC), so TLK is still creating some value.
TLK has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TLK remains at a similar level compared to 5 years ago.
TLK has a worse debt/assets ratio than last year.
2.2 Solvency
TLK has an Altman-Z score of 2.49. 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.
The Altman-Z score of TLK (2.49) is better than 90.91% of its industry peers.
The Debt to FCF ratio of TLK is 2.16, which is a good value as it means it would take TLK, 2.16 years of fcf income to pay off all of its debts.
TLK's Debt to FCF ratio of 2.16 is amongst the best of the industry. TLK outperforms 87.88% of its industry peers.
TLK has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.39, TLK is doing good in the industry, outperforming 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.53
WACC9.38%
2.3 Liquidity
A Current Ratio of 0.82 indicates that TLK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, TLK is doing worse than 72.73% of the companies in the same industry.
TLK has a Quick Ratio of 0.82. 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 Quick ratio of 0.81. This is in the lower half of the industry: TLK underperforms 72.73% of its industry peers.
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 | 0.82 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
TLK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.71%.
The Earnings Per Share has been growing slightly by 4.85% on average over the past years.
The Revenue has been growing slightly by 0.50% in the past year.
The Revenue has been growing slightly by 2.04% on average over the past years.
EPS 1Y (TTM)-3.71%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%18.07%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-0.61%
3.2 Future
TLK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.52% yearly.
TLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.38% yearly.
EPS Next Y8.34%
EPS Next 2Y6.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.13%
Revenue Next 2Y2.77%
Revenue Next 3Y2.38%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 11.21, the valuation of TLK can be described as very reasonable.
Based on the Price/Earnings ratio, TLK is valued cheaply inside the industry as 81.82% 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 28.18.
TLK is valuated reasonably with a Price/Forward Earnings ratio of 10.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TLK indicates a rather cheap valuation: TLK is cheaper than 87.88% of the companies listed in the same industry.
TLK is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
TLK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TLK is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.44 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TLK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TLK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.34
PEG (5Y)2.31
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.76%, TLK is a good candidate for dividend investing.
TLK's Dividend Yield is rather good when compared to the industry average which is at 5.12. TLK pays more dividend than 87.88% of the companies in the same industry.
TLK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
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
74.77% 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.
DP74.77%
EPS Next 2Y6.52%
EPS Next 3YN/A
NYSE:TLK (5/5/2025, 10:59:06 AM)
16.26
+0.24 (+1.5%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners25.66%
Inst Owner Change-0.63%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap16.11B
Analysts78.46
Price Target15.88 (-2.34%)
Short Float %0.57%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
Yearly Dividend1.09
Dividend Growth(5Y)1.73%
DP74.77%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.46%
Min EPS beat(2)-9.34%
Max EPS beat(2)4.43%
EPS beat(4)1
Avg EPS beat(4)-7.62%
Min EPS beat(4)-13.73%
Max EPS beat(4)4.43%
EPS beat(8)2
Avg EPS beat(8)-9.79%
EPS beat(12)2
Avg EPS beat(12)-14.01%
EPS beat(16)4
Avg EPS beat(16)-10.45%
Revenue beat(2)0
Avg Revenue beat(2)-4.88%
Min Revenue beat(2)-5.41%
Max Revenue beat(2)-4.35%
Revenue beat(4)0
Avg Revenue beat(4)-4.41%
Min Revenue beat(4)-5.41%
Max Revenue beat(4)-2.89%
Revenue beat(8)0
Avg Revenue beat(8)-5.39%
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)4.94%
PT rev (3m)-10.49%
EPS NQ rev (1m)3.9%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 10.34 | ||
| P/S | 1.77 | ||
| P/FCF | 7.44 | ||
| P/OCF | 4.3 | ||
| P/B | 1.86 | ||
| P/tB | 2 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.45
EY8.92%
EPS(NY)1.57
Fwd EY9.67%
FCF(TTM)2.19
FCFY13.44%
OCF(TTM)3.78
OCFY23.26%
SpS9.21
BVpS8.72
TBVpS8.14
PEG (NY)1.34
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 16.64% | ||
| ROCE | 19.14% | ||
| ROIC | 14.33% | ||
| ROICexc | 16.86% | ||
| ROICexgc | 17.7% | ||
| OM | 28.45% | ||
| PM (TTM) | 15.77% | ||
| GM | 67.94% | ||
| FCFM | 23.73% |
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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.16 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 17.34% | ||
| Interest Coverage | -8.06 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 150.51% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.49 |
F-Score6
WACC9.38%
ROIC/WACC1.53
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)21.24%
Cap/Sales(5y)21.22%
Profit Quality(3y)148.17%
Profit Quality(5y)154.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.71%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%18.07%
EPS Next Y8.34%
EPS Next 2Y6.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.5%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-0.61%
Revenue Next Year2.13%
Revenue Next 2Y2.77%
Revenue Next 3Y2.38%
Revenue Next 5YN/A
EBIT growth 1Y-5.54%
EBIT growth 3Y-1.08%
EBIT growth 5Y0.09%
EBIT Next Year85.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.93%
FCF growth 3Y-2.7%
FCF growth 5Y12.52%
OCF growth 1Y1.68%
OCF growth 3Y-3.41%
OCF growth 5Y2.31%