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 35 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 is valued correctly, 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
TLK had positive earnings in the past year.
In the past year TLK had a positive cash flow from operations.
Each year in the past 5 years TLK has 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 7.81% is amongst the best of the industry. TLK outperforms 90.91% of its industry peers.
TLK's Return On Equity of 15.80% is amongst the best of the industry. TLK outperforms 84.85% of its industry peers.
The Return On Invested Capital of TLK (13.74%) is better than 90.91% 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 7.14%.
| 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
With an excellent Profit Margin value of 15.69%, TLK belongs to the best 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.
With an excellent Operating Margin value of 27.78%, TLK belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
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 78.79% 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 | 27.78% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TLK is creating value.
Compared to 1 year ago, TLK has about the same amount of shares outstanding.
TLK has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for TLK is higher compared to a year ago.
2.2 Solvency
TLK has an Altman-Z score of 2.67. 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 (2.67) is better than 87.88% 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.
TLK has a Debt to FCF ratio of 1.87. This is amongst the best in the industry. TLK outperforms 90.91% of its industry peers.
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 | 2.67 |
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.
TLK's Current ratio of 0.89 is on the low side compared to the rest of the industry. TLK is outperformed by 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.
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.
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 -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
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 12.48, TLK is valued correctly.
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 26.82, TLK is valued rather cheaply.
A Price/Forward Earnings ratio of 10.86 indicates a reasonable 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.
TLK is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 10.86 |
4.2 Price Multiples
69.70% 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 | 7.9 | ||
| 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)1.5
PEG (5Y)2.57
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TLK has a Yearly Dividend Yield of 7.38%, which is a nice return.
TLK's Dividend Yield is rather good when compared to the industry average which is at 5.12. TLK pays more dividend than 93.94% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TLK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.38% |
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
TLK pays out 75.55% 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.
DP75.55%
EPS Next 2Y6.52%
EPS Next 3YN/A
17.84
+0.24 (+1.36%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.77%
Inst Owner Change0.07%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap17.67B
Analysts77.69
Price Target16.6 (-6.95%)
Short Float %0.41%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.38% |
Yearly Dividend1.08
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)-2.43%
PT rev (3m)4.52%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)-9.94%
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)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 10.86 | ||
| P/S | 1.95 | ||
| P/FCF | 7.9 | ||
| P/OCF | 4.66 | ||
| P/B | 1.97 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.43
EY8.02%
EPS(NY)1.64
Fwd EY9.2%
FCF(TTM)2.26
FCFY12.66%
OCF(TTM)3.83
OCFY21.45%
SpS9.13
BVpS9.06
TBVpS8.49
PEG (NY)1.5
PEG (5Y)2.57
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 | 2.67 |
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%