PT Telekomunikasi Indonesia Tbk (TLK) AI Stock Analysis

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PT Telekomunikasi Indonesia Tbk

(NYSE:TLK)

76Outperform

TLK's stock shows a strong financial backbone with stable revenue and efficient cost management, reflected in a solid financial performance score. Valuation metrics suggest the stock is reasonably priced with good income potential via dividends. Technical analysis indicates short-term upward momentum, but caution is advised as it approaches overbought conditions. The earnings call unveils a cautious optimism with both growth opportunities and challenges, particularly in margin pressures and Telkomsel's performance. Overall, TLK is a stable investment with potential, especially for income-focused portfolios, but investors should be mindful of competitive and cost pressures.

PT Telekomunikasi Indonesia Tbk (TLK) vs. S&P 500 (SPY)

Market Cap

$15.59B

Dividend Yield5.11%

Average Volume (3M)584.71K

Price to Earnings (P/E)10.7

Beta (1Y)0.58

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. Volume452,425

30 Day Avg. Volume584,708

Financial Highlights & Ratios

PEG Ratio-10.82

Price to Book (P/B)1.75

Price to Sales (P/S)0.00

P/FCF Ratio7.38

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 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. The company is well-positioned within the telecommunications industry, but should remain vigilant to maintain its growth and profitability trajectory.

Income Statement

Positive

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.

Balance Sheet

Very Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
42.55T	43.01T	44.48T	39.58T	47.56T	43.96T
	EBITDA
76.73T	76.97T	78.12T	74.39T	80.61T	72.44T
	Net Income Common Stockholders
23.41T	23.65T	24.43T	27.68T	33.95T	29.89T
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.71T	35.03T	30.43T	32.88T	38.74T	21.82T
	Total Assets
10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
	Total Debt
69.16T	76.83T	68.00T	63.04T	69.08T	64.72T
	Net Debt
34.75T	42.93T	38.99T	31.09T	30.77T	44.13T
	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

Technical Analysis Sentiment

Positive

Last Price16.58

Price Trends

50DMA

15.07

Positive

100DMA

15.55

Positive

200DMA

16.95

Negative

Market Momentum

MACD

0.34

Negative

RSI

63.74

Neutral

STOCH

74.55

Neutral

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 16.58 is above the 20-day moving average (MA) of 15.80, above the 50-day MA of 15.07, and below the 200-day MA of 16.95, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 63.74 is Neutral, neither overbought nor oversold. The STOCH value of 74.55 is Neutral, 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 0 New Risks

PT Telekomunikasi Indonesia Tbk Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	81 Outperform	$15.96B	15.92	7.95%	3.91%	-5.69%	-0.05%
CHT	80 Outperform	$33.38B	28.59	9.59%	2.66%	-0.19%	-0.79%
TLK	76 Outperform	$15.59B	10.70	16.28%	5.11%	-5.14%	-7.47%
SKM	73 Outperform	$7.79B	8.61	11.08%	5.44%	-2.34%	12.31%
VOD	71 Outperform	$22.61B	8.81	4.31%	7.51%	-24.84%	-74.77%
TEF	64 Neutral	$27.94B	―	-0.55%	4.92%	1.18%	―
Sector *	60 Neutral	$14.09B	6.86	-3.35%	3.70%	2.42%	-36.28%

* Communication Services Sector Average

Performance Comparison

TLK

PT Telekomunikasi Indonesia Tbk

16.58

-2.21

-11.76%

CHT

Chunghwa Telecom Co

43.67

5.67

14.92%

SKM

Sk Telecom

20.54

-0.94

-4.38%

VIV

Telefonica Brasil

9.81

1.22

14.20%

TEF

Telefonica

4.91

0.69

16.35%

VOD

Vodafone

9.45

0.37

4.07%

PT Telekomunikasi Indonesia Tbk Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q3-2024)

% Change Since: 6.69%|

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.