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. While TLK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TLK has a decent growth rate and is not valued too expensively. Finally TLK also has an excellent dividend rating. These ratings would make TLK suitable for dividend investing!
1. Profitability
1.1 Basic Checks
TLK had positive earnings in the past year.
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 7.89% is amongst the best of the industry. TLK outperforms 90.91% of its industry peers.
TLK has a Return On Equity of 16.64%. This is amongst the best in the industry. TLK outperforms 84.85% of its industry peers.
TLK has a better Return On Invested Capital (14.33%) 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 7.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 16.64% | ||
| ROIC | 14.33% |
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 (15.77%) is better than 84.85% of its industry peers.
In the last couple of years the Profit Margin of TLK has grown nicely.
The Operating Margin of TLK (28.45%) is better than 93.94% of its industry peers.
TLK's Operating Margin has declined in the last couple of years.
TLK has a better Gross Margin (67.94%) than 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 | 28.45% | ||
| PM (TTM) | 15.77% | ||
| GM | 67.94% |
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) just above the Cost of Capital (WACC), TLK is creating some value.
Compared to 1 year ago, TLK has about the same amount of shares outstanding.
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
TLK has an Altman-Z score of 2.53. 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.
Looking at the Altman-Z score, with a value of 2.53, TLK belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Debt to FCF ratio of TLK is 2.16, which is a good value as it means it would take TLK, 2.16 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TLK (2.16) is better than 87.88% 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.
With a decent Debt to Equity ratio value of 0.39, TLK is doing good in the industry, outperforming 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.52
WACC9.43%
2.3 Liquidity
A Current Ratio of 0.82 indicates that TLK may have some problems paying its short term obligations.
TLK's Current ratio of 0.82 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 0.82. 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 0.81, TLK is not doing good in the industry: 72.73% 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 | 0.82 | ||
| Quick Ratio | 0.81 |
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 small growth in Revenue. The Revenue has grown by 0.50% 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)0.5%
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.
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.
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
The Price/Earnings ratio is 11.87, which indicates a very decent valuation of TLK.
Based on the Price/Earnings ratio, TLK is valued cheaper than 81.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. TLK is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.33, which indicates a very decent valuation of TLK.
81.82% of the companies in the same industry are more expensive than TLK, based on the Price/Forward Earnings ratio.
TLK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 10.33 |
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 | 7.78 | ||
| 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)1.42
PEG (5Y)2.45
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TLK has a Yearly Dividend Yield of 6.49%, which is a nice return.
Compared to an average industry Dividend Yield of 5.09, 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 2.40, TLK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
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.
The dividend of TLK decreased in the last 3 years.
Dividend Growth(5Y)1.73%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TLK pays out 74.77% 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.
DP74.77%
EPS Next 2Y6.52%
EPS Next 3YN/A
17.21
+0.47 (+2.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners25.66%
Inst Owner Change4.57%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap17.05B
Analysts78.46
Price Target16.55 (-3.83%)
Short Float %0.63%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
Yearly Dividend1.1
Dividend Growth(5Y)1.73%
DP74.77%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.46%
Min EPS beat(2)-9.34%
Max EPS beat(2)4.43%
EPS beat(4)1
Avg EPS beat(4)-7.62%
Min EPS beat(4)-13.73%
Max EPS beat(4)4.43%
EPS beat(8)2
Avg EPS beat(8)-9.79%
EPS beat(12)2
Avg EPS beat(12)-14.01%
EPS beat(16)4
Avg EPS beat(16)-10.45%
Revenue beat(2)0
Avg Revenue beat(2)-4.88%
Min Revenue beat(2)-5.41%
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)-5.39%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
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)3.9%
EPS NQ rev (3m)3.9%
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 | 11.87 | ||
| Fwd PE | 10.33 | ||
| P/S | 1.85 | ||
| P/FCF | 7.78 | ||
| P/OCF | 4.5 | ||
| P/B | 1.95 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.45
EY8.43%
EPS(NY)1.67
Fwd EY9.68%
FCF(TTM)2.21
FCFY12.85%
OCF(TTM)3.83
OCFY22.23%
SpS9.31
BVpS8.83
TBVpS8.24
PEG (NY)1.42
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 16.64% | ||
| ROCE | 19.14% | ||
| ROIC | 14.33% | ||
| ROICexc | 16.86% | ||
| ROICexgc | 17.7% | ||
| OM | 28.45% | ||
| PM (TTM) | 15.77% | ||
| GM | 67.94% | ||
| FCFM | 23.73% |
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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.16 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 17.34% | ||
| Interest Coverage | -8.06 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 150.51% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.53 |
F-Score6
WACC9.43%
ROIC/WACC1.52
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)0.5%
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-5.54%
EBIT growth 3Y-1.08%
EBIT growth 5Y0.09%
EBIT Next Year78.13%
EBIT Next 3Y23.06%
EBIT Next 5YN/A
FCF growth 1Y31.93%
FCF growth 3Y-2.7%
FCF growth 5Y12.52%
OCF growth 1Y1.68%
OCF growth 3Y-3.41%
OCF growth 5Y2.31%