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P.t. Telekomunikasi Indonesia Tbk. (TLK)
NYSE:TLK
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PT Telekomunikasi Indonesia Tbk
(NYSE:TLK)
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Rating:74Outperform
Price Target:
$20.50
▲(10.57% Upside)
The overall stock score of 73.5 reflects strong financial performance and attractive valuation metrics, particularly the high dividend yield. However, technical indicators suggest the stock may be overbought, posing a risk of short-term price correction. The lack of revenue growth is a concern that could impact future performance.
PT Telekomunikasi Indonesia Tbk (TLK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.18B
Dividend Yield6.94%
Average Volume (3M)473.92K
Price to Earnings (P/E)12.8
Beta (1Y)0.71
Revenue Growth-5.13%
EPS Growth-5.90%
CountryUS
Employees19,712
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.33
Shares Outstanding990,622,200
10 Day Avg. Volume426,999
30 Day Avg. Volume473,922
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$20.50Price Target Upside10.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
PT Telekomunikasi Indonesia Tbk Business Overview & Revenue Model
Company DescriptionPT Telekomunikasi Indonesia Tbk (TLK) is a leading telecommunications and network services provider in Indonesia. Established in 1961, the company operates across various sectors, including fixed-line and mobile telecommunications, internet services, and digital solutions. TLK offers a range of products including mobile voice and data services, broadband internet, and enterprise solutions, positioning itself as a comprehensive service provider to both individual consumers and businesses.
How the Company Makes MoneyPT Telekomunikasi Indonesia Tbk generates revenue primarily through its diverse portfolio of telecommunications services. The main revenue streams include mobile services, which encompass voice calls, SMS, and data plans; fixed-line services, including traditional telephony and broadband internet access; and digital services, such as cloud computing and enterprise solutions. The company also earns income from value-added services and content distribution. Additionally, TLK has established strategic partnerships with various content providers and technology firms, enhancing its service offerings and driving customer engagement. Its extensive subscriber base and market leadership in Indonesia enable it to capitalize on economies of scale, contributing significantly to its overall earnings.
PT Telekomunikasi Indonesia Tbk Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Oct 29, 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 operational efficiency with robust margins and effective cash flow management. However, the negative revenue growth rate is a concern that needs addressing. The company maintains a balanced leverage position, supporting its financial stability.Income Statement
The income statement shows a strong gross profit margin of 66.8% for the TTM, indicating efficient cost management. However, the net profit margin has slightly declined to 15.5%. Revenue growth is negative at -1.0%, which is a concern, but the EBIT and EBITDA margins remain robust at 28.9% and 51.3%, respectively, suggesting operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.64, indicating a balanced approach to leverage. The return on equity is healthy at 16.4%, demonstrating effective use of equity to generate profits. The equity ratio stands at 44.9%, showing a solid equity base relative to total assets.70
Positive
Cash Flow
Cash flow analysis reveals a positive free cash flow growth rate of 8.3% for the TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 0.76, and the free cash flow to net income ratio is 0.62, highlighting efficient cash conversion from profits.80
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 | 98.65T | 10.00T> | 90.98T | 10.00T> | 99.90T | 96.47T |
| EBITDA | 75.27T | 76.97T | 78.12T | 74.39T | 80.61T | 72.44T |
| Net Income | 22.86T | 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 | 34.43T | 35.03T | 30.43T | 32.88T | 38.74T | 21.82T |
| Total Debt | 84.80T | 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 | 39.97T | 31.94T | 26.98T | 38.34T | 38.43T | 35.76T |
| Operating Cash Flow | 64.49T | 61.60T | 60.58T | 73.35T | 68.35T | 65.32T |
| Investing Cash Flow | -26.71T | -29.46T | -36.91T | -39.12T | -37.91T | -35.26T |
| Financing Cash Flow | -30.15T | -27.50T | -26.57T | -40.97T | -12.78T | -27.75T |
PT Telekomunikasi Indonesia Tbk Technical Analysis
Positive
18.54
Price Trends
19.14
Negative
17.90
Positive
16.30
Positive
Market Momentum
-0.24
Positive
45.15
Neutral
31.02
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 18.54 is below the 20-day moving average (MA) of 18.91, below the 50-day MA of 19.14, and above the 200-day MA of 16.30, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 31.02 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 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.96B | 15.70 | 13.78% | 6.98% | -7.99% | 2.16% | |
74 Outperform | $18.18B | 12.75 | 17.71% | 6.94% | -5.13% | -5.90% | |
72 Outperform | $19.03B | 18.78 | 8.20% | 4.81% | -6.51% | -0.21% | |
67 Neutral | $8.14B | 11.40 | 8.49% | 4.76% | -4.74% | -16.57% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $26.97B | 9.21 | -7.17% | 4.43% | 0.89% | -494.16% | |
52 Neutral | $28.77B | ― | -3.55% | 6.64% | -4.73% | -251.31% |
* Communication Services Sector Average
TLK
PT Telekomunikasi Indonesia Tbk
18.54
1.00
5.70%
SKM
Sk Telecom
21.00
-1.83
-8.02%
VIV
Telefonica Brasil
11.89
2.98
33.45%
TEF
Telefonica
4.94
0.42
9.29%
TIMB
TIM
20.77
6.83
49.00%
VOD
Vodafone
11.17
1.98
21.55%
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.