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PT Telekomunikasi Indonesia Tbk (TLK) AI Stock Analysis
PT Telekomunikasi Indonesia Tbk
(NYSE:TLK)
TLK scores in the middle of the range. The dominant factor is deteriorating financial performance: flat-to-declining revenue, four years of margin compression, a ~30% drop in net income from peak, and ROE falling from over 20% to ~13%, partially offset by strong and improving free cash flow and manageable leverage. Technicals are the second drag, with the stock trading below all major moving averages and negative MACD confirming a persistent downtrend. The offsetting strength is valuation — a ~11.9x P/E and a ~10.5% dividend yield backed by solid cash generation provide meaningful income appeal and downside cushion, reinforced by a low beta of 0.69. The stock looks cheap for income-focused investors, but a re-rating likely requires evidence that margins and growth can stabilize.
PT Telekomunikasi Indonesia Tbk (TLK) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $11.01B
- Dividend Yield
- 10.99%
- Average Volume (3M)
- 1.35M
- Price to Earnings (P/E)
- 11.4
- Beta (1Y)
- 0.66
- Revenue Growth
- -3.37%
- EPS Growth
- -27.49%
- Country
- US
- Employees
- 19,082
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Telecommunications Services
PT Telekomunikasi Indonesia Tbk Business Overview & Revenue Model
Company Description
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, known as TELKOM Indonesia, is a global provider of telecommunications, information technology, and network solutions. Founded in Bandung, Indonesia, in 1884, its operations are organized...
How the Company Makes Money
Telkom Indonesia generates revenue primarily by selling telecommunications connectivity and related digital services to consumers and businesses. Key revenue streams include: 1) Mobile services (via Telkomsel): Telkomsel sells mobile connectivity to...
PT Telekomunikasi Indonesia Tbk Earnings Call Summary
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
Negative Updates
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
Financials are mixed and trending weaker. The income statement (48) is the main drag: revenue has stalled and even declined ~2.2% in 2025, while net margin compressed from ~17.4% in 2021 to ~11.9%, with net income down roughly 30% from peak. The balance sheet (62) is adequate with moderate leverage (D/E ~0.45-0.57), but total debt has climbed ~28% since 2022, equity has shrunk, and ROE has fallen from ~20.5% to ~13.2%. Cash flow (65) is the bright spot, with stable operating cash flow of IDR 66.1 trillion and free cash flow rising ~5.1% to IDR 41.4 trillion, though debt coverage has weakened from ~1.04 to ~0.65.
Income Statement
48NeutralBalance Sheet
62PositiveCash Flow
65Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 186.81T | 146.74T | 149.97T | 149.22T | 147.31T | 143.21T |
| Gross Profit | 116.61T | 98.49T | 101.89T | 103.14T | 103.68T | 99.90T |
| EBITDA | 83.43T | 73.08T | 79.90T | 78.12T | 73.64T | 79.85T |
| Net Income | 21.48T | 17.49T | 23.61T | 24.43T | 20.74T | 24.88T |
Balance Sheet | ||||||
| Total Assets | 303.09T | 288.45T | 299.68T | 286.59T | 274.82T | 276.16T |
| Cash, Cash Equivalents and Short-Term Investments | 56.48T | 35.73T | 35.03T | 30.43T | 32.88T | 38.74T |
| Total Debt | 80.89T | 75.09T | 76.83T | 68.00T | 62.85T | 68.58T |
| Total Liabilities | 168.24T | 137.55T | 137.19T | 130.36T | 125.74T | 130.99T |
| Stockholders Equity | 118.33T | 131.00T | 142.09T | 135.74T | 129.22T | 121.63T |
Cash Flow | ||||||
| Free Cash Flow | 41.42T | 38.07T | 31.94T | 26.98T | 38.34T | 38.43T |
| Operating Cash Flow | 66.13T | 63.84T | 61.60T | 60.58T | 73.35T | 68.35T |
| Investing Cash Flow | -25.47T | -26.09T | -29.46T | -36.91T | -39.12T | -37.91T |
| Financing Cash Flow | -20.18T | -37.74T | -27.50T | -26.57T | -40.97T | -12.78T |
PT Telekomunikasi Indonesia Tbk Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLK, the sentiment is Negative. The current price of 10.84 is below the 20-day moving average (MA) of 12.13, below the 50-day MA of 13.41, and below the 200-day MA of 15.80, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 34.51 is Neutral, neither overbought nor oversold. The STOCH value of 38.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
1 New RiskPT Telekomunikasi Indonesia Tbk Peers Comparison
Overall Rating
VIV77Outperform
TIGO73.5Outperform
PHI71.8Outperform
TKC66Neutral
VEON66Neutral- TLK58Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| VIV | 77Outperform | $18.15B | 14.90 | 9.70% | 7.84% | 16.10% | 24.13% |
| TIGO | 74Outperform | $13.33B | 19.99 | 21.02% | 5.34% | 29.10% | -29.84% |
| PHI | 72Outperform | $3.81B | 9.25 | 22.35% | 8.53% | -1.72% | -18.30% |
| TKC | 66Neutral | $3.94B | 10.00 | 7.05% | 4.81% | 16.11% | 2.15% |
| VEON | 66Neutral | $5.26B | 121.38 | 4.15% | ― | 14.60% | -94.13% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| TLK | 58Neutral | $10.80B | 11.43 | 13.16% | 10.99% | -3.37% | -27.49% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TLK | P.t. Telekomunikasi Indonesia Tbk. | 11.17 | -7.83 | -41.20% | |
| PHI | PLDT, Inc. | 17.78 | -0.41 | -2.28% | |
| VIV | Telefonica Brasil SA | 11.28 | -0.05 | -0.42% | |
| TKC | Turkcell Iletisim Hizmetleri As | 4.58 | -1.17 | -20.36% | |
| TIGO | Millicom International Cellular Sa | 79.57 | 35.69 | 81.34% | |
| VEON | VEON Ltd | 82.54 | 34.45 | 71.64% |
PT Telekomunikasi Indonesia Tbk Corporate Events
Telkom Indonesia Sets October Share Buyback for Dissenting Investors After Fiber Spin-Off Vote
On October 2, 2026, PT Telekomunikasi Indonesia Tbk disclosed to the Indonesian Financial Services Authority a plan to repurchase shares from investors who opposed its recently approved partial spin-off of the Wholesale Fiber Connectivity Business Se...
Telkom Indonesia Formalizes New Head of Internal Audit Unit in October 2026 Regulatory Filings
PT Telekomunikasi Indonesia Tbk reported to the U.S. Securities and Exchange Commission on October 2, 2026, via a Form 6‑K filing, confirming corporate actions taken in line with Indonesian regulatory requirements for internal audit governance....
Telkom Indonesia Advances Fiber Infrastructure Spin-Off, Ousts Top Executives at September EGM
On September 30, 2026, Telkom Indonesia convened an online extraordinary shareholders’ meeting with nearly 88% of voting shares represented, fulfilling quorum under Indonesian regulations and its Articles of Association. The state and private s...
Telkom Indonesia Overhauls Board, Appoints Nanang Hendarno as President Director
On 30 September 2026, PT Telekomunikasi Indonesia Tbk held an Extraordinary General Meeting of Shareholders that approved changes to its Board of Directors and Board of Commissioners, including appointing former Network Director Nanang Hendarno as Pr...
PT Telkom Indonesia Spins Off Wholesale Fiber Connectivity Business to Infrastructure Subsidiary
On September 30, 2026, PT Telkom Indonesia (Persero) Tbk executed a deed to spin off its wholesale fiber connectivity business segment into its controlled subsidiary PT Telkom Infrastruktur Indonesia (TIF). The move follows approval at Telkom’s...
PT Telekomunikasi Indonesia Tbk Takes Full Control of Telkom Data Ekosistem
On September 17, 2026, PT Telekomunikasi Indonesia Tbk completed the purchase of all PT Sigma Cipta Caraka’s shares in PT Telkom Data Ekosistem, acquiring 1,445,020 Series A and more than 2.0 trillion Series B shares. The deal raises TelkomR...
Telkom Indonesia Sets September EGMS to Advance Fiber Spin-Off and Management Changes
PT Telekomunikasi Indonesia Tbk has called an Extraordinary General Meeting of Shareholders for September 30, 2026, to be held electronically via KSEI’s eASY.KSEI platform, with eligibility based on the shareholder register and KSEI depository...
Telkom Indonesia Names Temporary Head of Internal Audit Unit
On August 7, 2026, PT Telekomunikasi Indonesia Tbk informed Indonesia’s Financial Services Authority of a leadership change in its internal audit function, in line with local regulations governing the appointment of internal audit heads. The co...
PT Telkom Indonesia Sets Fully Online Extraordinary Shareholders’ Meeting for September 30, 2026
PT Telkom Indonesia has announced that it will convene an Extraordinary General Meeting of Shareholders (EGMS) for 2026 on Wednesday, September 30, 2026, at 14:00 Western Indonesia Time, to be held fully online via the KSEI Electronic General Meeting...
Telkom Indonesia to Spin Off Phase‑2 Wholesale Fiber Connectivity Business to Infrastructure Subsidiary
On 7 August 2026, Telkom Indonesia announced a Phase‑2 spin‑off of its Wholesale Fiber Connectivity Business Segment, transferring part of its wholesale fiber connectivity assets and liabilities to its 99.9%-owned subsidiary PT Telkom Inf...
Telkom Indonesia Reports Higher Mid‑Year Assets in July 31, 2026 Form 6‑K Filing
On July 31, 2026, Telkom Indonesia filed a Form 6-K in the United States, presenting its unaudited consolidated financial statements as of June 30, 2026 and for the six‑month period then ended. The filing confirms that Telkom’s total asse...
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.
Date of analysis: Oct 21, 2026