PT Indosat Tbk

ISAT

-1.71%

Overview

ISAT Overview

PT Indosat Tbk is an Indonesia-based company that provides telecommunications, informatics and/or convergence technology services. The Company operates through three segments: cellular, fixed telecommunications (fixed) and multimedia, Internet, and data communication (MIDI). Together with its subsidiaries, such as PT Indosat Mega Media (IM2) and PT Aplikanusa Lintasarta, it offers a range of fixed data or MIDI services, such as Internet protocol-virtual private network (IPVPN), leased line, Internet services and information technology (IT) services to corporate segments. Its MIDI services consist of Internet and data communication services, including high-speed point-to-point and point-to-multipoint international and domestic ethernet link and Internet with broadband and narrowband capacity, IPVPN and multiprotocol label switching-based services (MPLS). The Company provides cellular, fixed data and wireless broadband services as well as fixed telecommunication or fixed voice offerings.

2468ValueCompetitiveFutureFinancialsDividend
Exchange
Indonesia Stock Exchange

Symbol: ISAT

Main
Market Cap.
IDR 81.23Trillion
#25 in Indonesia

~$5.08B USD

Industry
Wireless Telecommunication Services
Sub-Industry
Wireless Telecommunication Services
Sector
Infrastructures

Valuation

ISAT Valuation Metrics

10,075

IDR
-1.7%

Closing Price on 2024-05-22

Price to Equity

18.03

P/E

At 18.03x P/E TTM, ISAT.JK is trading in line with its peers in the Telecommunication sector.

Price to Book

2.64

P/B

At 2.64x P/B TTM, ISAT.JK is trading at a premium to its peers in the Telecommunication sector (avg 1.4x).

Price to Sales

1.59

P/S

At 1.59x P/S TTM, ISAT.JK is trading at a discount to its peers in the Telecommunication sector.

Valuing PT Indosat Tbk based on its trailing twelve months (TTM) valuation metrics against its peers in the Telecommunication sector

Historical Price to Earnings

Other Valuation Metrics

Valuing PT Indosat Tbk relative to other stocks in the Telecommunication sector

Price/Cash Flow
4.59x
Price/Forward Earnings
12.72x
Enterprise Value/Revenue
2.54x
Enterprise Value/EBITDA
5.14x
PEG Ratio
0.27x

Analyst Ratings

40
60
80
0
100

77.5

Recommended

Neutral

Not Recommended

Last closing: IDR10,0752024-05-22
IDR 4,987.05

Considerably Lower Intrinsic Value: Analyst's intrinsic value is of ISAT is IDR4,987, which is 50% lower than ISAT's last closing price of IDR10,075 (as of 2024-05-22).

Valuation Recap of ISAT stock
WeightNotesScore
High
The P/E ratio is calculated by dividing the market price of a company's stock by its earnings per share (EPS). It is a key tool for investors and analysts to assess whether a stock is overvalued, undervalued, or fairly valued. A P/E ratio of 18.03x is above the ID market average of 8.70x but is trading in a P/E range similar to its peers in the Telecommunication sector (18.03x).

High
The P/B ratio is calculated by dividing the market price of a company's stock by its book value per share (BVPS). It measures the company's stock value relative to its assets minus liabilities. A P/B ratio of 2.64x is above the peers average of 1.42x in the Telecommunication sector. ISAT trades at a higher P/B ratio than >75% of its peers in the Telecommunication sector.

Medium
The P/S ratio is calculated by dividing the market price of a company's stock by its sales per share. It measures the company's stock value relative to its sales. A P/S ratio of 1.59x is below the peers average of 4.45x in the Telecommunication sector. When considered alongside the Forward Price/Earnings ratio, they serve to illustrate investors' expectations of ISAT's valuation relative to its current sales and future earnings growth. ISAT trades at a Forward P/E ratio of 12.72x, which is considered fairly undervalued by analysts.

Low
The Price/Cash Flow ratio (P/CF) is calculated by dividing the market price of a company's stock by its cash flow per share. It measures the company's stock value relative to its cash flow, and is sometimes said to be a more objective measure of a company's value because cash flows cannot be manipulated as easily as earnings, which considers non-cash items such as depreciation and amortization. ISAT's P/CF ratio of 4.59x is considered healthy by analysts.

Low
The Enterprise Value/Revenue ratio (EV/R) is calculated by dividing the enterprise value of a company by its revenue. It measures the company's enterprise value relative to its revenue. It is an indicator of how much it costs to buy the company's revenue; the lower the ratio, the cheaper the company's revenue. ISAT's EV/R ratio of 2.54x is considered fairly underpriced by the market The average EV/R ratio for the Telecommunication sector is 7.04x.

Medium
Considerably Lower Intrinsic Value: Analyst's intrinsic value is of ISAT is IDR 4,987.05, which is 50% lower than ISAT's last closing price of IDR 10,075.00.

Peers

ISAT Peers and Comparison

Peer Companies

Supertype Fuzzy Search
SymbolCompany Name
Market Cap
(in Trillion IDR)
Total Assets
(in Trillion IDR)
Total Revenue
(in Trillion IDR)
Profit and Loss
(in Trillion IDR)
P/E
P/B
BRENPT Barito Renewables Energy Tbk.1,505.09T54.35T 9.22T 1.66T 904.56218.79
TLKMPT Telkom Indonesia (Persero) Tbk291.24T286.59T 149.22T 24.43T 11.922.15
ISATPT Indosat Tbk81.23T114.72T 51.23T 4.51T 18.032.64
PGEOPT Pertamina Geothermal Energy Tbk52.28T45.91T 6.29T 2.53T 20.631.71
MTELPT Dayamitra Telekomunikasi Tbk49.92T57.01T 8.59T 2.01T 24.831.47
SUPRSolusi Tunas Pratama Tbk44.51T9.89T 1.89T 1.13T 39.457.79
TBIGPT Tower Bersama Infrastructure Tbk41.88T46.97T 6.64T 1.56T 26.843.57
TOWRSarana Menara Nusantara Tbk38.10T68.42T 11.74T 3.25T 11.712.31
JSMRPT Jasa Marga Tbk36.29T129.31T 21.32T 6.79T 5.341.30
EXCLPT XL Axiata Tbk32.29T87.69T 32.32T 1.27T 25.401.22
Competitiveness Recap of ISAT stock
WeightNotesScore
High
At a market cap of IDR 81,231.50 billion, ISAT.JK ranks 3 in Market Cap out of 10 companies in the Infrastructures sector.

High
At a PE of 18.03, ISAT.JK ranks 7 out of 10 companies in the Infrastructures sector for P/E value. The average PE is 108.87 (unadjusted). A high P/E ratio often indicates higher growth expectation, or other qualitative factors that led investors to believe that the company has a defensible competitive advantage compared to its peers in Infrastructures. In this regard, it trails behind sector leaders such as PT Barito Renewables Energy Tbk. (904.56) in the Infrastructures sector.

Medium
At a PE of 18.03, ISAT.JK is trading at a higher PE than that of its subsector peers in Telecommunication (median of 18.03). false

Medium
At a revenue of IDR 51.23 trillion, ISAT.JK ranks 2 in Revenue out of 10 companies in the Infrastructures sector.

Medium
At a profit of IDR 4.51 trillion, ISAT.JK ranks 3 in Profit out of 10 companies in the Infrastructures sector.

Future

Future Growth of ISAT

Growth Forecasts

ISAT 2024 Revenue Growth
+7.5%
ISAT 2025 Revenue Growth
+14.0%
ISAT 2024 EPS Growth
+16.6%
ISAT 2025 EPS Growth
+44.9%
Sector Revenue Growth
+13.5%
Telecommunication
Indonesia Market Growth
+13.8%
IDX overall growth
Telecommunication Sector Revenue Growth '24
+4.5%
Telecommunication Sector Revenue Growth '25
+11.0%
Infrastructures Sector Revenue Growth '24
+4.9%
Infrastructures Sector Revenue Growth '25
+9.8%

Sector Benchmark

Telecommunication companies in Indonesia are growing at a projected rate of 13.47% against the IDX average of +13.8%.

Telecommunication sector overview

ISAT Earnings & Revenue Forecast

All values in IDR billion

Future growth prospect of ISAT
WeightNotesScore
High
ISAT's projected growth rate of 13.47% is below the ID market average of 13.80%.

High
The Telecommunication sub-sector is projected to grow revenue by 11.05% in 2025. This number is higher than the previous year 2024's growth rate of 4.48%. This bodes well for ISAT's revenue growth prospects in the next 2 years.

Medium
The Telecommunication sub-sector is projected to increase earnings by 24.45% in 2025. This number is higher than the previous year 2024's EPS growth of 12.10%. This bodes well for ISAT's earnings growth prospects in the next 2 years.

Medium
ISAT and its peers in the Telecommunication sub-sector belongs to the Infrastructures sector. Companies in the Infrastructures sector are projected to have a fruitful year heading into 2025. Specifically, earnings are projected to increase by 16.49% in 2025 while revenue growth is projected to increase by 9.78%. These macroeconomic trends will likely be a tailwind for ISAT's earnings growth prospects in the next 2 years.

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Management

Executive Management

President Director

Vikram Sinha15.2 years
Lee Chi Hung
Director
Muhammad Buldansyah
Director
Irsyad Sahroni
Director
Cheung Kwok Tung
Director
Ritesh Kumar Singh
Director
Ahmad Zulfikar
Director
NamePositionShares%
Muhammad BuldansyahDirector245,000< 0.01
Expressed in millions IDR, unless otherwise stated

Ownership

ISAT Ownership

Others
10.31%
Insiders
83.61%
Institutions
6.08%
NameNumber of SharesOwnership (%)Value
Ooredoo Hutchison Asia Pte. Ltd5,292,710,75265.6453,324.06B
Public (Scripless)1,320,019,85516.3713,299.20B
Pt Perusahaan Pengelola Aset (Persero)776,624,9999.637,824.50B
Pt Tiga Telekomunikasi Indonesia671,755,0888.336,767.93B
Public (Scrip)1,326,1450.0213.36B

Largest Institutional Buy

Capital Research and Management Company
Bought 31-12-2023
+9,980,900 shares
Capital Guardian Trust Company
Bought 31-12-2023
+8,750,500 shares
Capital International Inc
Bought 31-12-2023
+8,750,500 shares

Largest Institutional Sell

Vanguard Group Inc
Sold 31-12-2023
-17,187,100 shares
JPMorgan Asset Management (Europe) S.à r.l.
Sold 31-12-2023
-8,925,500 shares
JPMorgan Asset Management (Asia Pacific) Limited
Sold 31-12-2023
-8,221,997 shares

Institutional Transactions

Tracking institutional transactions buying / selling of ISAT stock