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 32 industry peers in the Diversified Telecommunication Services industry. TLK scores excellent on profitability, but there are some minor concerns on its financial health. TLK is valued quite cheap, but it does not seem to be growing. Finally TLK also has an excellent dividend rating. With these ratings, TLK could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year TLK was profitable.
TLK had a positive operating cash flow in the past year.
Each year in the past 5 years TLK has 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 7.81% is amongst the best of the industry. TLK outperforms 90.63% of its industry peers.
Looking at the Return On Equity, with a value of 15.80%, TLK belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.74%, TLK belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TLK is significantly above the industry average of 7.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 15.8% | ||
| ROIC | 13.74% |
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 better Profit Margin (15.69%) than 87.50% of its industry peers.
TLK's Profit Margin has improved in the last couple of years.
TLK's Operating Margin of 27.78% is amongst the best of the industry. TLK outperforms 93.75% of its industry peers.
TLK's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 67.69%, TLK is doing good in the industry, outperforming 78.13% 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 | 27.78% | ||
| PM (TTM) | 15.69% | ||
| GM | 67.69% |
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 well above the Cost of Capital (WACC), which means it is creating value.
TLK has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TLK has about the same amount of shares outstanding.
The debt/assets ratio for TLK is higher compared to a year ago.
2.2 Solvency
TLK has an Altman-Z score of 2.62. 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 (2.62) is better than 90.63% of its industry peers.
TLK has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
The Debt to FCF ratio of TLK (1.87) is better than 90.63% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that TLK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, TLK belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 2.62 |
ROIC/WACC2.39
WACC5.75%
2.3 Liquidity
TLK has a Current Ratio of 0.89. 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 Current ratio of 0.89. This is in the lower half of the industry: TLK underperforms 71.88% of its industry peers.
A Quick Ratio of 0.87 indicates that TLK may have some problems paying its short term obligations.
TLK has a worse Quick ratio (0.87) than 71.88% 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 | 0.89 | ||
| Quick Ratio | 0.87 |
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.
The Revenue has decreased by -0.92% in the past 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)-3.23%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%-4.01%
Revenue 1Y (TTM)-0.92%
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.
Based on estimates for the next years, TLK will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
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 11.66, the valuation of TLK can be described as very reasonable.
81.25% of the companies in the same industry are more expensive than TLK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.28, TLK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.18, the valuation of TLK can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TLK indicates a rather cheap valuation: TLK is cheaper than 84.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TLK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 10.18 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than TLK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.4 | ||
| 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)1.4
PEG (5Y)2.4
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.84%, TLK is a good candidate for dividend investing.
TLK's Dividend Yield is rather good when compared to the industry average which is at 5.16. TLK pays more dividend than 93.75% of the companies in the same industry.
TLK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
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
75.55% 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.
DP75.55%
EPS Next 2Y6.52%
EPS Next 3YN/A
17.02
-0.13 (-0.76%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.77%
Inst Owner Change4.58%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap16.86B
Analysts78.46
Price Target17.01 (-0.06%)
Short Float %0.44%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
Yearly Dividend1.1
Dividend Growth(5Y)1.73%
DP75.55%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.39%
Min EPS beat(2)2.35%
Max EPS beat(2)4.43%
EPS beat(4)2
Avg EPS beat(4)-3.6%
Min EPS beat(4)-11.85%
Max EPS beat(4)4.43%
EPS beat(8)3
Avg EPS beat(8)-8.68%
EPS beat(12)3
Avg EPS beat(12)-13.61%
EPS beat(16)4
Avg EPS beat(16)-10.64%
Revenue beat(2)0
Avg Revenue beat(2)-4.67%
Min Revenue beat(2)-4.98%
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)-4.93%
Revenue beat(12)0
Avg Revenue beat(12)-6.1%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.74%
PT rev (3m)9.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.63%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 10.18 | ||
| P/S | 1.83 | ||
| P/FCF | 7.4 | ||
| P/OCF | 4.37 | ||
| P/B | 1.84 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.46
EY8.58%
EPS(NY)1.67
Fwd EY9.82%
FCF(TTM)2.3
FCFY13.51%
OCF(TTM)3.9
OCFY22.89%
SpS9.29
BVpS9.23
TBVpS8.64
PEG (NY)1.4
PEG (5Y)2.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 15.8% | ||
| ROCE | 18.19% | ||
| ROIC | 13.74% | ||
| ROICexc | 16.18% | ||
| ROICexgc | 16.97% | ||
| OM | 27.78% | ||
| PM (TTM) | 15.69% | ||
| GM | 67.69% | ||
| FCFM | 24.74% |
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 | 0.34 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 17.19% | ||
| Interest Coverage | -7.74 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 157.67% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.62 |
F-Score5
WACC5.75%
ROIC/WACC2.39
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)-0.92%
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-8.72%
EBIT growth 3Y-1.08%
EBIT growth 5Y0.09%
EBIT Next Year78.13%
EBIT Next 3Y23.06%
EBIT Next 5YN/A
FCF growth 1Y16.56%
FCF growth 3Y-2.7%
FCF growth 5Y12.52%
OCF growth 1Y-6.81%
OCF growth 3Y-3.41%
OCF growth 5Y2.31%