TELKOM INDONESIA PERSERO-ADR (TLK) Stock Fundamental Analysis
NYSE:TLK - New York Stock Exchange, Inc. - US7156841063 - ADR - Currency: USD
Overall TLK gets a fundamental rating of 6 out of 10. We evaluated TLK against 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 has a valuation in line with the averages, but it does not seem to be growing. TLK also has an excellent dividend rating. These ratings could make TLK a good candidate for 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.
Each year in the past 5 years TLK has been profitable.
In the past 5 years TLK always reported a positive cash flow from operatings.
1.2 Ratios
TLK has a better Return On Assets (7.81%) than 90.91% of its industry peers.
The Return On Equity of TLK (15.80%) is better than 84.85% of its industry peers.
TLK has a better Return On Invested Capital (13.74%) than 90.91% of its industry peers.
TLK had an Average Return On Invested Capital over the past 3 years of 15.68%. This 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
Looking at the Profit Margin, with a value of 15.69%, TLK belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
In the last couple of years the Profit Margin of TLK has grown nicely.
Looking at the Operating Margin, with a value of 27.78%, TLK belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
In the last couple of years the Operating Margin of TLK has declined.
TLK has a better Gross Margin (67.69%) than 78.79% of its industry peers.
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.
Compared to 1 year ago, TLK has about the same amount of shares outstanding.
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 2.65. 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.
TLK's Altman-Z score of 2.65 is amongst the best of the industry. TLK outperforms 90.91% 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 90.91% 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 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 2.65 |
ROIC/WACC2.39
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.89 indicates that TLK may have some problems paying its short term obligations.
The Current ratio of TLK (0.89) is worse than 72.73% of its industry peers.
TLK has a Quick 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.
With a Quick ratio value of 0.87, TLK is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
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 | 0.89 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for TLK have decreased by -3.23% in the last year.
The Earnings Per Share has been growing slightly by 4.85% on average over the past years.
Looking at the last year, TLK shows a decrease in Revenue. The Revenue has decreased by -0.92% 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)-0.92%
Revenue growth 3Y1.55%
Revenue growth 5Y2.04%
Sales Q2Q%-2.11%
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.
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
A Price/Earnings ratio of 12.12 indicates a correct valuation of TLK.
84.85% of the companies in the same industry are more expensive than TLK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TLK to the average of the S&P500 Index (27.69), we can say TLK is valued rather cheaply.
The Price/Forward Earnings ratio is 10.58, which indicates a very decent valuation of TLK.
TLK's Price/Forward Earnings ratio is rather cheap when compared to the industry. TLK is cheaper than 84.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.36. TLK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TLK is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.69 | ||
| 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)1.45
PEG (5Y)2.5
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.67%, TLK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.94, TLK pays a better dividend. On top of this TLK pays more dividend than 96.97% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TLK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.67% |
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.
TLK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.55%
EPS Next 2Y6.52%
EPS Next 3YN/A
17.57
+0.1 (+0.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.77%
Inst Owner Change-0.08%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap17.41B
Analysts77.69
Price Target16.6 (-5.52%)
Short Float %0.42%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.67% |
Yearly Dividend1.09
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)-5.3%
PT rev (3m)9.68%
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 | 12.12 | ||
| Fwd PE | 10.58 | ||
| P/S | 1.9 | ||
| P/FCF | 7.69 | ||
| P/OCF | 4.54 | ||
| P/B | 1.92 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.45
EY8.25%
EPS(NY)1.66
Fwd EY9.45%
FCF(TTM)2.28
FCFY13%
OCF(TTM)3.87
OCFY22.02%
SpS9.23
BVpS9.16
TBVpS8.58
PEG (NY)1.45
PEG (5Y)2.5
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 | 2.65 |
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%