Sarana Menara Nusantara Tbk

TOWR

+2.68%

Overview

TOWR Overview

PT Sarana Menara Nusantara Tbk is an Indonesia-based company, which is engaged in investing in the operating companies, which owns and operates tower telecommunication sites and lease them to wireless communication companies. The Company's segments include Tower rental and VSAT and wireline services. Its business activities are conducted primarily through PT Profesional Telekomunikasi Indonesia (Protelindo). Protelindo's primary business is leasing space on its multi-tenant tower sites to wireless operators in Indonesia pursuant to long-term lease agreements. The leased space consists of vertical space on the tower, on which its customers can install both radio frequency antennas and microwave antennas, as well as ground space at each site for its shelters and cabinets for electronic equipment and power supplies storage. Protelindo operates independently from the wireless communication operators. Protelindo owns and operates approximately 29,794 telecommunication tower sites.

51015ValueCompetitiveFutureFinancialsDividend
Exchange
Indonesia Stock Exchange

Symbol: TOWR

Main
Market Cap.
IDR 38.10Trillion

~$2.38B USD

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

Valuation

TOWR Valuation Metrics

765

IDR
+2.7%

Closing Price on 2024-05-22

Price to Equity

11.71

P/E

At 11.71x P/E TTM, TOWR.JK is trading at a discount to its peers in the Telecommunication sector.

Price to Book

2.31

P/B

At 2.31x P/B TTM, TOWR.JK is trading at a premium to its peers in the Telecommunication sector (avg 1.4x).

Price to Sales

3.24

P/S

At 3.24x P/S TTM, TOWR.JK is trading at a discount to its peers in the Telecommunication sector.

Valuing Sarana Menara Nusantara 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 Sarana Menara Nusantara Tbk relative to other stocks in the Telecommunication sector

Price/Cash Flow
4.27x
Price/Forward Earnings
10.53x
Enterprise Value/Revenue
7.04x
Enterprise Value/EBITDA
13.13x
PEG Ratio
-1.85x

Analyst Ratings

40
60
80
0
100

72.5

Recommended

Neutral

Not Recommended

Last closing: IDR7652024-05-22
IDR 1,124.06

Considerably Higher Intrinsic Value: Analyst's intrinsic value is of TOWR is IDR1,124, which is 48% higher than TOWR's last closing price of IDR765 (as of 2024-05-22).

Valuation Recap of TOWR 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 11.71x is above the ID market average of 8.70x and is trading at a discount to 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 2.31x is above the peers average of 1.42x in the Telecommunication sector. TOWR 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 3.24x 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 TOWR's valuation relative to its current sales and future earnings growth. TOWR trades at a Forward P/E ratio of 10.53x, 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. TOWR's P/CF ratio of 4.27x 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. TOWR's EV/R ratio of 7.04x is considered a relatively high ratio The average EV/R ratio for the Telecommunication sector is 7.04x.

Medium
Considerably Higher Intrinsic Value: Analyst's intrinsic value is of TOWR is IDR 1,124.06, which is 48% higher than TOWR's last closing price of IDR 765.00.

Peers

TOWR 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 TOWR stock
WeightNotesScore
High
At a market cap of IDR 38,096.23 billion, TOWR.JK ranks 8 in Market Cap out of 10 companies in the Infrastructures sector.

High
At a PE of 11.71, TOWR.JK ranks 9 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 11.71, TOWR.JK is trading at a lower PE than that of its subsector peers in Telecommunication (median of 18.03). A lower P/E value presents a potential value opportunity, but it might also indicate that the company is facing headwinds in its business.

Medium
At a revenue of IDR 11.74 trillion, TOWR.JK ranks 5 in Revenue out of 10 companies in the Infrastructures sector.

Medium
At a profit of IDR 3.25 trillion, TOWR.JK ranks 4 in Profit out of 10 companies in the Infrastructures sector.

Future

Future Growth of TOWR

Growth Forecasts

TOWR 2024 Revenue Growth
+4.3%
TOWR 2025 Revenue Growth
+8.9%
TOWR 2024 EPS Growth
0.0%
TOWR 2025 EPS Growth
0.0%
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

TOWR Earnings & Revenue Forecast

All values in IDR billion

Future growth prospect of TOWR
WeightNotesScore
High
TOWR'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 TOWR'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 TOWR's earnings growth prospects in the next 2 years.

Medium
TOWR 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 TOWR's earnings growth prospects in the next 2 years.

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Management

Executive Management

President Director

Ferdinandus Aming Santoso15.2 years

Vice President Director

Adam Gifari 15.4 years
Eko Santoso Hadiprodjo
Director
Indra Gunawan
Director
Anita Anwar
Director
NamePositionShares%
Adam GifariDirector27,634,6450.05
Anita AnwarDirector2,600< 0.01
Ario WibisonoCommissioner241,655,8000.47
Eko Santoso HadiprodjoDirector3,997,000< 0.01
Ferdinandus Aming SantosoPresident Director10,859,0000.02
Indra GunawanDirector13,567,4900.03
Stephen Duffus WeissVice President Director6,593,500< 0.01
Expressed in millions IDR, unless otherwise stated

Ownership

TOWR Ownership

Others
22.02%
Insiders
64.71%
Institutions
13.27%
NameNumber of SharesOwnership (%)Value
Pt Sapta Adhikari Investama27,764,246,16554.4221,239.65B
Public19,179,654,10037.614,672.44B
Pt Dwimuria Investama Andalan2,550,831,30051,951.39B
Treasury Stock1,215,583,4002.38929.92B
Ario Wibisono241,655,8000.47184.87B
Adam Gifari27,634,6450.0521.14B
Indra Gunawan13,567,4900.0310.38B
Ferdinandus Aming Santoso10,859,0000.028.31B
Eko Santoso Hadiprodjo3,997,0000.013.06B
Stephen Duffus Weiss6,593,5000.015.04B

Largest Institutional Buy

Virtus Investment Advisers, Inc.
Bought 31-01-2024
+53,002,000 shares
State Street Global Advisors
Bought 31-01-2024
+20,061,194 shares
Credit Suisse Asset Management (Schweiz) AG
Bought 31-01-2024
+18,633,300 shares

Largest Institutional Sell

FIL Fund Management Limited
Sold 31-01-2024
-90,824,217 shares
Walter Scott & Partners Limited
Sold 31-01-2024
-50,486,200 shares
B&I Capital AG
Sold 31-01-2024
-44,202,000 shares

Institutional Transactions

Tracking institutional transactions buying / selling of TOWR stock