TELKOM INDONESIA PERSERO-ADR (TLK) Stock Fundamental Analysis
USA - NYSE:TLK - US7156841063 - ADR
18.46 USD
-0.44 (-2.33%)
18.46 USD
0 (0%)
Taking everything into account, TLK scores 6 out of 10 in our fundamental rating. TLK was compared to 36 industry peers in the Diversified Telecommunication Services industry. TLK scores excellent on profitability, but there are some minor concerns on its financial health. TLK has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TLK had positive earnings in the past year.
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 better Return On Assets (7.78%) than 94.44% of its industry peers.
TLK's Return On Equity of 17.30% is amongst the best of the industry. TLK outperforms 91.67% of its industry peers.
TLK has a Return On Invested Capital of 14.39%. 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 6.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 17.3% | ||
| ROIC | 14.39% |
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
Looking at the Profit Margin, with a value of 15.48%, TLK belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
TLK's Profit Margin has improved in the last couple of years.
TLK has a better Operating Margin (27.43%) 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 66.80%, TLK belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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 | 27.43% | ||
| PM (TTM) | 15.48% | ||
| GM | 66.8% |
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.
Compared to 1 year ago, TLK has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.53 indicates that TLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.53, TLK belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
The Debt to FCF ratio of TLK is 2.38, which is a good value as it means it would take TLK, 2.38 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.38, TLK belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that TLK is not too dependend on debt financing.
TLK's Debt to Equity ratio of 0.43 is amongst the best of the industry. TLK outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | 2.53 |
ROIC/WACC2.5
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.71 indicates that TLK may have some problems paying its short term obligations.
TLK has a worse Current ratio (0.71) than 83.33% of its industry peers.
TLK has a Quick Ratio of 0.71. 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 Quick 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.
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 | 0.71 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
TLK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.97%.
Measured over the past 5 years, TLK shows a small growth in Earnings Per Share. The EPS has been growing by 4.85% on average per year.
The Revenue has decreased by -2.22% in the past year.
The Revenue has been growing slightly by 2.04% on average over the past years.
EPS 1Y (TTM)-2.97%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%-9.51%
Revenue 1Y (TTM)-2.22%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-3.96%
3.2 Future
The Earnings Per Share is expected to grow by 3.37% on average over the next years.
The Revenue is expected to grow by 1.51% on average over the next years.
EPS Next Y-1.05%
EPS Next 2Y2.06%
EPS Next 3Y3.37%
EPS Next 5YN/A
Revenue Next Year-1.17%
Revenue Next 2Y0.89%
Revenue Next 3Y1.51%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.28, which indicates a correct valuation of TLK.
Based on the Price/Earnings ratio, TLK is valued cheaper than 86.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. TLK is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.30 indicates a correct valuation of TLK.
TLK's Price/Forward Earnings ratio is rather cheap when compared to the industry. TLK is cheaper than 83.33% of the companies in the same industry.
TLK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 12.3 |
4.2 Price Multiples
69.44% 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 | 8.51 | ||
| 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)2.74
EPS Next 2Y2.06%
EPS Next 3Y3.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.14%, TLK is a good candidate for dividend investing.
TLK's Dividend Yield is a higher than the industry average which is at 5.14.
TLK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
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
TLK pays out 92.06% 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.
DP92.06%
EPS Next 2Y2.06%
EPS Next 3Y3.37%
18.46
-0.44 (-2.33%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners25.6%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap18.29B
Analysts80.8
Price Target19.26 (4.33%)
Short Float %0.68%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
Yearly Dividend1.08
Dividend Growth(5Y)1.73%
DP92.06%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.54%
Min EPS beat(2)-11.44%
Max EPS beat(2)2.35%
EPS beat(4)2
Avg EPS beat(4)-3.5%
Min EPS beat(4)-11.44%
Max EPS beat(4)4.43%
EPS beat(8)3
Avg EPS beat(8)-8.26%
EPS beat(12)3
Avg EPS beat(12)-14.5%
EPS beat(16)3
Avg EPS beat(16)-11.88%
Revenue beat(2)0
Avg Revenue beat(2)-5.5%
Min Revenue beat(2)-6.03%
Max Revenue beat(2)-4.98%
Revenue beat(4)0
Avg Revenue beat(4)-5.19%
Min Revenue beat(4)-6.03%
Max Revenue beat(4)-4.35%
Revenue beat(8)0
Avg Revenue beat(8)-5.17%
Revenue beat(12)0
Avg Revenue beat(12)-5.96%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.72%
PT rev (3m)13.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.61%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)-8.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 12.3 | ||
| P/S | 2.05 | ||
| P/FCF | 8.51 | ||
| P/OCF | 4.7 | ||
| P/B | 2.29 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.39
EY7.53%
EPS(NY)1.5
Fwd EY8.13%
FCF(TTM)2.17
FCFY11.74%
OCF(TTM)3.93
OCFY21.29%
SpS9
BVpS8.05
TBVpS7.48
PEG (NY)N/A
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 17.3% | ||
| ROCE | 19.4% | ||
| ROIC | 14.39% | ||
| ROICexc | 17.06% | ||
| ROICexgc | 17.96% | ||
| OM | 27.43% | ||
| PM (TTM) | 15.48% | ||
| GM | 66.8% | ||
| FCFM | 24.09% |
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 | 0.43 | ||
| Debt/FCF | 2.38 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 19.58% | ||
| Interest Coverage | -7.35 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 155.6% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 2.53 |
F-Score5
WACC5.75%
ROIC/WACC2.5
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)23.42%
Cap/Sales(5y)22.53%
Profit Quality(3y)133.95%
Profit Quality(5y)145.96%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.97%
EPS 3Y-1.52%
EPS 5Y4.85%
EPS Q2Q%-9.51%
EPS Next Y-1.05%
EPS Next 2Y2.06%
EPS Next 3Y3.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.22%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-3.96%
Revenue Next Year-1.17%
Revenue Next 2Y0.89%
Revenue Next 3Y1.51%
Revenue Next 5YN/A
EBIT growth 1Y-9.48%
EBIT growth 3Y-1.08%
EBIT growth 5Y0.09%
EBIT Next Year73.68%
EBIT Next 3Y22.9%
EBIT Next 5YN/A
FCF growth 1Y16.34%
FCF growth 3Y-6.16%
FCF growth 5Y10.11%
OCF growth 1Y0.71%
OCF growth 3Y-3.41%
OCF growth 5Y2.31%