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 scores excellent on profitability, but there are some minor concerns on its financial health. TLK has a valuation in line with the averages, but on the other hand it scores bad on growth. TLK also has an excellent dividend rating. These ratings would make TLK suitable 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.
TLK had positive earnings in each of the past 5 years.
TLK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.81%, TLK belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Return On Equity of TLK (15.80%) is better than 84.85% of its industry peers.
TLK has a Return On Invested Capital of 13.74%. This is amongst the best in the industry. TLK outperforms 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 7.03%.
| 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
The Profit Margin of TLK (15.69%) is better than 84.85% of its industry peers.
TLK's Profit Margin has improved in the last couple of years.
The Operating Margin of TLK (27.78%) is better than 93.94% of its industry peers.
TLK's Operating Margin has declined in the last couple of years.
TLK's Gross Margin of 67.69% is fine compared to the rest of the industry. TLK outperforms 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 | 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 just above the Cost of Capital (WACC), which means it is creating some 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 2.63 indicates that TLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.63, TLK belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.87, TLK belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
TLK has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TLK (0.34) is better than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.46
WACC9.43%
2.3 Liquidity
A Current Ratio of 0.89 indicates that TLK may have some problems paying its short term obligations.
With a Current ratio value of 0.89, TLK is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
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.
The Quick ratio of TLK (0.87) is worse than 72.73% 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
TLK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.23%.
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.
Measured over the past years, TLK shows a small growth in Revenue. The Revenue has been growing by 2.04% on average per year.
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
The Earnings Per Share is expected to grow by 6.52% on average over the next years.
TLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.83 indicates a reasonable valuation of TLK.
Based on the Price/Earnings ratio, TLK is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.25, TLK is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.34, the valuation of TLK can be described as very reasonable.
TLK's Price/Forward Earnings ratio is rather cheap when compared to the industry. TLK is cheaper than 81.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. TLK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| 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 | 7.52 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 6.33%, which is a nice return.
Compared to an average industry Dividend Yield of 5.07, TLK pays a better dividend. On top of this TLK pays more dividend than 87.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TLK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
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
17.15
-0.04 (-0.23%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners25.66%
Inst Owner Change4.58%
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 | 6.33% |
Yearly Dividend1.09
Dividend Growth(5Y)1.73%
DP75.55%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)4.27%
PT rev (3m)-6.67%
EPS NQ rev (1m)-10.63%
EPS NQ rev (3m)-10.63%
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 | 10.34 | ||
| P/S | 1.86 | ||
| P/FCF | 7.52 | ||
| P/OCF | 4.44 | ||
| P/B | 1.87 | ||
| P/tB | 2 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.45
EY8.45%
EPS(NY)1.66
Fwd EY9.67%
FCF(TTM)2.28
FCFY13.3%
OCF(TTM)3.87
OCFY22.54%
SpS9.22
BVpS9.15
TBVpS8.57
PEG (NY)1.42
PEG (5Y)2.44
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 | 2.63 |
F-Score5
WACC9.43%
ROIC/WACC1.46
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%