TELKOM INDONESIA PERSERO-ADR (TLK)
US7156841063 - ADR
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. While TLK has a great profitability rating, there are some minor concerns on its financial health. TLK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TLK was profitable.
TLK had a positive operating cash flow in the past year.
In the past 5 years TLK has always been profitable.
TLK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TLK's Return On Assets of 8.56% is amongst the best of the industry. TLK outperforms 97.22% of its industry peers.
TLK has a Return On Equity of 18.09%. This is amongst the best in the industry. TLK outperforms 94.44% of its industry peers.
With an excellent Return On Invested Capital value of 15.56%, TLK belongs to the best of the industry, outperforming 97.22% 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 5.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.56% | ||
| ROE | 18.09% | ||
| ROIC | 15.56% |
ROA(3y)8.34%
ROA(5y)8.38%
ROE(3y)18.17%
ROE(5y)18.71%
ROIC(3y)16.05%
ROIC(5y)17.07%
1.3 Margins
TLK has a Profit Margin of 16.46%. This is amongst the best in the industry. TLK outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of TLK has grown nicely.
The Operating Margin of TLK (30.27%) is better than 97.22% of its industry peers.
In the last couple of years the Operating Margin of TLK has remained more or less at the same level.
With an excellent Gross Margin value of 69.12%, TLK belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
In the last couple of years the Gross Margin of TLK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.27% | ||
| PM (TTM) | 16.46% | ||
| GM | 69.12% |
OM growth 3Y-1.78%
OM growth 5Y0.42%
PM growth 3Y2.59%
PM growth 5Y3.61%
GM growth 3Y-0.75%
GM growth 5Y1.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TLK is still 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.
The debt/assets ratio for TLK is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.77 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 2.77. This is amongst the best in the industry. TLK outperforms 97.22% of its industry peers.
The Debt to FCF ratio of TLK is 2.53, which is a good value as it means it would take TLK, 2.53 years of fcf income to pay off all of its debts.
TLK has a better Debt to FCF ratio (2.53) than 88.89% of its industry peers.
TLK has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.39, TLK belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.63
WACC9.55%
2.3 Liquidity
A Current Ratio of 0.78 indicates that TLK may have some problems paying its short term obligations.
With a Current ratio value of 0.78, TLK is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.76 indicates that TLK may have some problems paying its short term obligations.
TLK has a Quick ratio of 0.76. This is in the lower half of the industry: TLK underperforms 69.44% 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 | 0.78 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
TLK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.34%, which is quite good.
TLK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.37% yearly.
The Revenue has been growing slightly by 1.30% in the past year.
TLK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.67% yearly.
EPS 1Y (TTM)18.34%
EPS 3Y5.69%
EPS 5Y6.37%
EPS growth Q2Q21.3%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y3.02%
Revenue growth 5Y2.67%
Revenue growth Q2Q-1.18%
3.2 Future
TLK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.53% yearly.
Based on estimates for the next years, TLK will show a small growth in Revenue. The Revenue will grow by 3.65% on average per year.
EPS Next Y11.83%
EPS Next 2Y9.17%
EPS Next 3Y7.53%
EPS Next 5YN/A
Revenue Next Year2.38%
Revenue Next 2Y3.28%
Revenue Next 3Y3.65%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.49 indicates a correct valuation of TLK.
Compared to the rest of the industry, the Price/Earnings ratio of TLK indicates a somewhat cheap valuation: TLK is cheaper than 77.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.43, TLK is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.15, the valuation of TLK can be described as very reasonable.
80.56% of the companies in the same industry are more expensive than TLK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TLK to the average of the S&P500 Index (20.51), we can say TLK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 11.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TLK indicates a somewhat cheap valuation: TLK is cheaper than 63.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.35 | ||
| 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.
The excellent profitability rating of TLK may justify a higher PE ratio.
PEG (NY)1.06
PEG (5Y)1.96
EPS Next 2Y9.17%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
TLK has a Yearly Dividend Yield of 5.37%, which is a nice return.
The stock price of TLK dropped by -24.55% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TLK's Dividend Yield is a higher than the industry average which is at 5.10.
Compared to an average S&P500 Dividend Yield of 2.39, TLK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
5.2 History
The dividend of TLK decreases each year by -0.01%.
TLK has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TLK decreased recently.
Dividend Growth(5Y)-0.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
67.60% of the earnings are spent on dividend by TLK. This is not a sustainable payout ratio.
DP67.6%
EPS Next 2Y9.17%
EPS Next 3Y7.53%
TELKOM INDONESIA PERSERO-ADR
NYSE:TLK (5/10/2024, 7:23:04 PM)
After market: 19.24 0 (0%)19.24
-0.04 (-0.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue beat(2)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 11.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.06
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.56% | ||
| ROE | 18.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.27% | ||
| PM (TTM) | 16.46% | ||
| GM | 69.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)18.34%
EPS 3Y5.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.3%
Revenue growth 3Y3.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y