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 33 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 correct valuation and a medium growth rate. Finally TLK also has an excellent dividend rating. These ratings would make TLK suitable for dividend investing!
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
TLK's Return On Assets of 7.89% is amongst the best of the industry. TLK outperforms 90.91% of its industry peers.
Looking at the Return On Equity, with a value of 16.64%, TLK belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.33%, TLK belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TLK is significantly above the industry average of 7.05%.
| 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's Profit Margin of 15.77% is amongst the best of the industry. TLK outperforms 84.85% of its industry peers.
TLK's Profit Margin has improved in the last couple of years.
TLK has a better Operating Margin (28.45%) than 93.94% of its industry peers.
In the last couple of years the Operating Margin of TLK has declined.
TLK has a better Gross Margin (67.94%) than 78.79% 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
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.
TLK has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for TLK is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 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 2.55. This is amongst the best in the industry. TLK outperforms 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.
With an excellent Debt to FCF ratio value of 2.16, TLK belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that TLK is not too dependend on debt financing.
TLK has a Debt to Equity ratio of 0.39. This is in the better half of the industry: TLK outperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.52
WACC9.43%
2.3 Liquidity
TLK has a Current 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's Current ratio of 0.82 is on the low side compared to the rest of the industry. TLK is outperformed by 72.73% of its industry peers.
A Quick Ratio of 0.81 indicates that TLK may have some problems paying 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
The earnings per share for TLK have decreased by -3.23% in the last year.
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 small growth in Revenue. The Revenue has grown by 0.50% in the last year.
The Revenue has been growing slightly by 2.04% on average over the past years.
EPS 1Y (TTM)-3.23%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%-4.01%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-2.11%
3.2 Future
Based on estimates for the next years, TLK will show a small growth in Earnings Per Share. The EPS will grow by 6.52% on average per year.
The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y8.34%
EPS Next 2Y6.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.24%
Revenue Next 2Y2.12%
Revenue Next 3Y2.25%
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 accelerating.
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 11.83, 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.
When comparing the Price/Earnings ratio of TLK to the average of the S&P500 Index (26.17), we can say TLK is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.33, the valuation of TLK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TLK is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TLK to the average of the S&P500 Index (22.10), we can say TLK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TLK is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| 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)1.42
PEG (5Y)2.44
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TLK has a Yearly Dividend Yield of 6.49%, which is a nice return.
TLK's Dividend Yield is rather good when compared to the industry average which is at 5.08. 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
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.
The dividend of TLK decreased 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
17.15
-0.06 (-0.35%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners25.66%
Inst Owner Change4.57%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap16.99B
Analysts78.46
Price Target16.55 (-3.5%)
Short Float %0.63%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
Yearly Dividend1.1
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)4.27%
PT rev (3m)-6.67%
EPS NQ rev (1m)3.9%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.14%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 10.33 | ||
| P/S | 1.85 | ||
| P/FCF | 7.79 | ||
| P/OCF | 4.5 | ||
| P/B | 1.95 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.45
EY8.45%
EPS(NY)1.66
Fwd EY9.68%
FCF(TTM)2.2
FCFY12.84%
OCF(TTM)3.81
OCFY22.22%
SpS9.28
BVpS8.79
TBVpS8.21
PEG (NY)1.42
PEG (5Y)2.44
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 | 2.55 |
F-Score6
WACC9.43%
ROIC/WACC1.52
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)-3.23%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%-4.01%
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%-2.11%
Revenue Next Year1.24%
Revenue Next 2Y2.12%
Revenue Next 3Y2.25%
Revenue Next 5YN/A
EBIT growth 1Y-5.54%
EBIT growth 3Y-1.08%
EBIT growth 5Y0.09%
EBIT Next Year78.13%
EBIT Next 3Y23.06%
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%