PT Telekomunikasi Indonesia Tbk (TLK)

FairStock Score: 71/100 — STEADY

Key Financials

Strengths

• Generates $28.1 trillion in annual free cash flow (165307.1% yield on market cap)
• Solid return on equity of 18.3% above cost of capital
• Attractive 7.3% dividend yield providing steady income returns
• FairStock composite score of 71/100 places it in the top tier across value, quality, and momentum factors
• Established organization with 19,205 employees providing operational scale

Concerns

• Revenue declining at 0.8% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

PT Telekomunikasi Indonesia Tbk is a mid-cap communication services company valued at $17.0 billion. From a quality standpoint, PT shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.7 warrants caution. On valuation, the stock is attractively valued at 13.4x earnings, with offers a 91% margin of safety vs Graham Number of $200. Growth dynamics show revenue growing at -0.8% and profit growth of -18.7%. The 7.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 71/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates PT's consistent 18% ROE at just 13x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $28.1 trillion in annual free cash flow (165307.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Sluggish -1% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer