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P.t. Telekomunikasi Indonesia Tbk. (TLK)
NYSE:TLK
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PT Telekomunikasi Indonesia Tbk
(NYSE:TLK)
Rating:79Outperform
Price Target:
$19.50
▲(15.86%Upside)
PT Telekomunikasi Indonesia Tbk (TLK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.59B
Dividend Yield5.89%
Average Volume (3M)574.92K
Price to Earnings (P/E)11.4
Beta (1Y)0.65
Revenue Growth-5.14%
EPS Growth-7.47%
CountryUS
Employees19,712
SectorCommunication Services
Sector Strength84
IndustryTelecommunications Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding990,622,200
10 Day Avg. Volume609,986
30 Day Avg. Volume574,921
Financial Highlights & Ratios
PEG Ratio-71.96
Price to Book (P/B)284.50
Price to Sales (P/S)0.00
P/FCF Ratio959.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
PT Telekomunikasi Indonesia Tbk Business Overview & Revenue Model
Company DescriptionPT Telekomunikasi Indonesia Tbk (TLK), commonly known as Telkom Indonesia, is the largest telecommunications and network provider in Indonesia. The company operates in multiple sectors, including broadband, mobile services, and digital services. With a robust infrastructure network across Indonesia, Telkom Indonesia provides a wide range of services such as fixed-line telephony, mobile cellular, internet and data communication, and information technology solutions.
How the Company Makes MoneyTelkom Indonesia generates revenue through several key streams. The primary revenue source is its mobile services, which include voice, SMS, and data services provided through its subsidiary, Telkomsel, the largest mobile operator in Indonesia. Another significant revenue stream is broadband internet services, offered to both individual and corporate customers. Telkom Indonesia also earns money through its enterprise services, which encompass IT and cloud services, managed services, and network and satellite services for businesses. Additionally, the company benefits from its investments in digital platforms and services, such as digital advertising, financial technology, and e-commerce. Strategic partnerships and collaborations with global tech companies enhance its service offerings and contribute to its revenue growth.
PT Telekomunikasi Indonesia Tbk Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q3-2024)
| % Change Since: 14.72%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call reveals a mix of positive and negative aspects. While there are notable achievements such as positive revenue growth and strong performance in fixed broadband and Mitratel, challenges such as EBITDA decline, operating net income drop, and Telkomsel revenue decline indicate pressure points. The sentiment reflects cautious optimism amidst macroeconomic challenges and competitive pressures.Q3-2024 Updates
Positive Updates
Positive Revenue Growth
Telkom Group delivered a revenue growth of 0.9% year-on-year to RP 112.2 trillion for the past 9 months of 2024.
Fixed Broadband Growth
Fixed broadband business showed a 200.6% year-on-year increase, driven by the integration of IndiHome to Telkomsel and an expansion strategy targeting broader segments.
Mitratel Revenue Growth
Mitratel reported a solid revenue contribution of IDR 6.82 trillion, marking an 8.7% year-on-year growth.
Efficient Market Segmentation
Improvement in CapEx purchases for devices and networks due to group procurement initiatives, serving broader market segmentation effectively.
Negative Updates
EBITDA Decline
EBITDA decreased by 4.1% year-on-year to RP 56.6 trillion, impacted by personnel expenses due to an early retirement program.
Operating Net Income Drop
Operating net income declined by 5.1% year-on-year to IDR 18.6 trillion, after adjustments for market effects and one-off costs.
Telkomsel Revenue Decline
Telkomsel recorded a slight revenue decline of 2.1% in the third quarter due to seasonal impact and weak purchasing power.
Margin Pressure
Normalized EBITDA margin decelerated to 51.5%, with challenges in maintaining margins due to increased competition and cost pressures.
Company Guidance
During the earnings call for PT Telekom Indonesia, the company provided guidance for the fiscal year 2024, highlighting several key metrics and strategies. The company aims to achieve a low single-digit revenue growth, maintaining an EBITDA margin between 50% to 52%, and a CapEx-to-revenue ratio of 22% to 24%. For the first nine months of 2024, revenue grew by 0.9% year-on-year to IDR 112.2 trillion, while EBITDA decreased by 4.1% to IDR 56.6 trillion. The decline in EBITDA was primarily due to personnel expenses, which increased by 12.7% year-on-year, but normalized EBITDA stood at IDR 57.8 trillion, a 2.1% decline. Additionally, the company reported a net debt-to-EBITDA ratio of 0.6x, and Telkomsel's B2C business posted a 16.4% year-on-year revenue growth. The company is focusing on its 5 Bold Move strategy, including efforts to enhance digital connectivity and explore strategic partnerships for data center business, aiming to conclude these initiatives by early 2025.PT Telekomunikasi Indonesia Tbk Financial Statement Overview
Summary
PT Telekomunikasi Indonesia Tbk demonstrates strong financial health with stable revenue streams and efficient cost management. The balance sheet reflects robust equity and manageable debt levels, supporting a stable financial position. Cash flow generation is solid, though careful attention is needed to manage free cash flow trends.Income Statement
The company's income statement reflects stable revenue generation with a slight decline in TTM revenue compared to the previous annual report. The gross profit margin shows a robust performance, consistently above 58%, indicating effective cost management. However, the net profit margin has shown some contraction, which may suggest increasing costs or competitive pressures. The EBIT and EBITDA margins are strong, showcasing efficient operational management.78
Positive
Balance Sheet
The balance sheet indicates strong equity levels with a healthy equity ratio suggesting financial stability. The debt-to-equity ratio is moderate, reflecting balanced leverage. Return on equity remains solid, showcasing the company's ability to generate profit from its equity base. However, a slight increase in liabilities warrants attention for potential long-term risk management.82
Very Positive
Cash Flow
Operating cash flow is healthy and supports the company's ability to finance its operations and investments. However, free cash flow has shown a slight decline in recent periods, which may impact future flexibility. The operating cash flow to net income ratio is strong, indicating good cash conversion efficiency, though free cash flow growth has been inconsistent.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Gross Profit | 87.75T | 10.00T> | 90.98T | 10.00T> | 99.90T | 96.47T |
| EBITDA | 76.73T | 76.97T | 78.12T | 74.39T | 80.61T | 72.44T |
| Net Income | 23.41T | 23.65T | 24.43T | 27.68T | 33.95T | 29.89T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 35.71T | 35.03T | 30.43T | 32.88T | 38.74T | 21.82T |
| Total Debt | 69.16T | 76.83T | 68.00T | 63.04T | 69.08T | 64.72T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
Cash Flow | ||||||
| Free Cash Flow | 35.23T | 31.94T | 26.98T | 38.34T | 38.43T | 35.76T |
| Operating Cash Flow | 45.77T | 61.60T | 60.58T | 73.35T | 68.35T | 65.32T |
| Investing Cash Flow | -29.92T | -29.46T | -36.91T | -39.12T | -37.91T | -35.26T |
| Financing Cash Flow | -27.99T | -27.50T | -26.57T | -40.97T | -12.78T | -27.75T |
PT Telekomunikasi Indonesia Tbk Technical Analysis
Positive
16.83
Price Trends
15.88
Positive
14.97
Positive
15.78
Positive
Market Momentum
0.26
Negative
57.86
Neutral
85.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLK, the sentiment is Positive. The current price of 16.83 is above the 20-day moving average (MA) of 16.59, above the 50-day MA of 15.88, and above the 200-day MA of 15.78, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 85.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLK.
PT Telekomunikasi Indonesia Tbk Risk Analysis
PT Telekomunikasi Indonesia Tbk disclosed 59 risk factors in its most recent earnings report. PT Telekomunikasi Indonesia Tbk reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Indonesian regulations require telecommunications service providers such as ourselves to share our network infrastructure and capacity with our competitors, and the enforcement of these regulations remain uncertain. Q4, 2023
PT Telekomunikasi Indonesia Tbk Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $16.59B | 11.39 | 16.28% | 5.89% | -5.14% | -7.47% | |
77 Outperform | $19.27B | 18.89 | 7.95% | 1.95% | -5.69% | -0.05% | |
76 Outperform | $36.19B | 31.44 | 9.59% | 2.77% | -0.19% | -0.79% | |
74 Outperform | $8.95B | 10.12 | 11.08% | 4.37% | -4.13% | 4.96% | |
59 Neutral | $30.20B | ― | -0.55% | 4.50% | -2.29% | -182.68% | |
57 Neutral | $26.45B | 9.21 | -7.17% | 4.74% | 0.89% | -494.16% | |
55 Neutral | HK$64.46B | -1.91 | -1.90% | 7.21% | -4.17% | -13.99% |
* Communication Services Sector Average
Performance Comparison
TLK
PT Telekomunikasi Indonesia Tbk
16.83
-0.82
-4.65%
CHT
Chunghwa Telecom Co
45.51
10.21
28.92%
SKM
Sk Telecom
23.58
2.87
13.86%
VIV
Telefonica Brasil
11.76
3.79
47.55%
TEF
Telefonica
5.29
1.26
31.27%
VOD
Vodafone
10.78
2.15
24.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.