ESSA Industries Indonesia Tbk

essa

+3.45%

Overview

ESSA Overview

PT Surya Esa Perkasa Tbk. is an Indonesia-based company, which is engaged in the purification and processing of natural gas. The Company's main business activities are processing of natural gas that can be used directly as fuel, where such process includes the attempt for gas quality improvements, such as refining, mixing and other processes produced from natural gas, including liquefied petroleum gas (LPG), propane, butane, condensate, methanol, dimethyl ether (DME) and others. The Company’s segments include LPG and Processing Fee, Ammonia, and Others. It owns and operates a privately-owned LPG refinery in Indonesia. Its main business is the refining and processing of natural gas to produce LPG (a mixture of propane and butane) and condensate with a capacity of 190 tons per day LPG and 500 barrels per day condensate. The Company’s facilities are located near Palembang, Indonesia. The Company’s subsidiary, PT Panca Amara Utama, produces 700,000 mega tons per year of ammonia.

51015ValueCompetitiveFutureFinancialsDividend
Exchange
Indonesia Stock Exchange

Symbol: ESSA

Main
Market Cap.
IDR 12.92Trillion

~$0.81B USD

Industry
Chemicals
Sub-Industry
Basic Chemicals
Sector
Basic Materials
Sub-Sector

Valuation

ESSA Valuation Metrics

750

IDR
+3.4%

Closing Price on 2024-04-18

Price to Equity

24.10

P/E

At 24.10x P/E TTM, ESSA.JK is trading at a premium to its peers in the Basic Materials sector (avg 8.4x).

Price to Book

2.20

P/B

At 2.20x P/B TTM, ESSA.JK is trading at a premium to its peers in the Basic Materials sector (avg 0.9x).

Price to Sales

2.42

P/S

At 2.42x P/S TTM, ESSA.JK is trading at a premium to its peers in the Basic Materials sector (avg 0.8x).

Valuing ESSA Industries Indonesia Tbk based on its trailing twelve months (TTM) valuation metrics against its peers in the Basic Materials sector

Historical Price to Earnings

Other Valuation Metrics

Valuing ESSA Industries Indonesia Tbk relative to other stocks in the Basic Materials sector

Price/Cash Flow
5.51x
Price/Forward Earnings
15.71x
Enterprise Value/Revenue
2.59x
Enterprise Value/EBITDA
11.71x
PEG Ratio
-0.29x

Analyst Ratings

40
60
80
0
100

75.0

Undervalued

Fairly Valued

Overvalued

Last closing: IDR7502024-04-18
IDR 236.72

Considerably Lower Intrinsic Value: Analyst's intrinsic value is of ESSA is IDR237, which is 67% lower than ESSA's last closing price of IDR750 (as of 2024-04-18).

Valuation Recap of ESSA 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 24.10x is above the ID market average of 8.46x and is trading at a premium to peers in the Basic Materials sector (8.44x). In fact, less than 25% of its peers trade at a higher P/E ratio than ESSA.

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 2.20x is above the peers average of 0.88x in the Basic Materials sector. ESSA trades at a higher P/B ratio than >75% of its peers in the Basic Materials 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 2.42x is above the peers average of 0.83x in the Basic Materials sector. When considered alongside the Forward Price/Earnings ratio, they serve to illustrate investors' expectations of ESSA's valuation relative to its current sales and future earnings growth. ESSA trades at a Forward P/E ratio of 15.71x, which is considered richly valued 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. ESSA's P/CF ratio of 5.51x 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. ESSA's EV/R ratio of 2.59x is considered fairly underpriced by the market The average EV/R ratio for the Basic Materials sector is 1.14x.

Medium
Considerably Lower Intrinsic Value: Analyst's intrinsic value is of ESSA is IDR 236.72, which is 67% lower than ESSA's last closing price of IDR 750.00.

Peers

ESSA 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
AMMNPT Amman Mineral Internasional Tbk.649.04T140.91T 31.50T 3.91T 166.189.21
TPIAPT Chandra Asri Petrochemical Tbk599.09T86.97T 33.46T -0.52T -1151.8914.12
BRPTBarito Pacific Tbk89.82T157.22T 42.76T 0.40T 222.033.43
MDKAPT Merdeka Copper Gold Tbk.67.36T76.90T 26.44T -0.32T -210.524.69
MBMAPT Merdeka Battery Materials Tbk61.02T50.55T 20.58T 0.11T 568.512.57
NCKLPT Trimegah Bangun Persada Tbk.56.47T45.29T 23.86T 5.62T 10.052.40
INKPIndah Kiat Pulp & Paper Tbk52.79T156.84T 53.89T 6.37T 8.280.57
INCOVale Indonesia Tbk42.83T45.32T 19.09T 4.25T 10.081.08
ANTMAneka Tambang Tbk.41.45T35.50T 43.15T 4.04T 10.251.68
AVIAPT Avia Avian Tbk33.44T11.17T 7.02T 1.64T 20.363.37
Competitiveness Recap of ESSA stock
WeightNotesScore
High
At a market cap of IDR 12,920.25 billion, ESSA.JK ranks 10 in Market Cap out of 10 companies in the Basic Materials sector.

High
At a PE of 24.10, ESSA.JK ranks 4 out of 10 companies in the Basic Materials sector for P/E value. The average PE is -34.29 (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 Basic Materials. In this regard, it trails behind sector leaders such as PT Merdeka Battery Materials Tbk (568.51) in the Basic Materials sector.

Medium
At a PE of 24.10, ESSA.JK is trading at a higher PE than that of its subsector peers in Basic Materials (median of 8.44). false

Medium
At a revenue of IDR 5.34 trillion, ESSA.JK ranks 10 in Revenue out of 10 companies in the Basic Materials sector.

Medium
At a profit of IDR 0.54 trillion, ESSA.JK ranks 6 in Profit out of 10 companies in the Basic Materials sector.

Future

Future Growth of ESSA

Growth Forecasts

ESSA 2024 Revenue Growth
-22.9%
ESSA 2024 EPS Growth
0.0%
Sector Revenue Growth
+5.0%
Basic Materials
Indonesia Market Growth
+7.6%
IDX overall growth
Basic Materials Sector Revenue Growth '24
+93.4%
Basic Materials Sector Revenue Growth '24
+93.4%

Sector Benchmark

Basic Materials companies in Indonesia are growing at a projected rate of 5.04% against the IDX average of +7.6%.

Basic Materials sector overview

ESSA Earnings & Revenue Forecast

All values in IDR billion

Future growth prospect of ESSA
WeightNotesScore
High
ESSA's projected growth rate of 5.04% is below the ID market average of 7.62%.

High
The Basic Materials sub-sector is projected to grow revenue by 93.43% in 2024. This number is higher than the previous year 2023's growth rate of -8.67%. This bodes well for ESSA's revenue growth prospects in the next 2 years.

Medium
The Basic Materials sub-sector is projected to increase earnings by 8.54% in 2024. This number is higher than the previous year 2023's EPS growth of 0.72%. This bodes well for ESSA's earnings growth prospects in the next 2 years.

Medium
ESSA and its peers in the Basic Materials sub-sector belongs to the Basic Materials sector. Companies in the Basic Materials sector are projected to have a fruitful year heading into 2024. Specifically, earnings are projected to increase by 8.54% in 2024 while revenue growth is projected to increase by 93.43%. These macroeconomic trends will likely be a tailwind for ESSA's earnings growth prospects in the next 2 years.

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Management

Executive Management

President Director

Kanishk Laroya15.2 years

Vice President Director

.15.4 years
Mukesh Agrawal
Director
Isenta
Director
Prakash Chand Bumb
Director
NamePositionShares%
Arif RachmatCommissioner1,979,600< 0.01
Chander Vinod LaroyaVice President Commissioner2,821,983,67716.38
Expressed in millions IDR, unless otherwise stated

Ownership

ESSA Ownership

Others
39.57%
Insiders
47.19%
Institutions
13.24%
NameNumber of SharesOwnership (%)Value
Public (Scripless)10,785,112,42362.618,088.83B
Pt Trinugraha Akraya Sejahtera3,617,900,000212,713.43B
Chander Vinod Laroya2,821,983,67716.382,116.49B
Arif Rachmat1,979,6000.011.48B

Largest Institutional Buy

State Street Global Advisors
Bought 31-01-2024
+7,580,542 shares
Dimensional Fund Advisors LP
Bought 31-01-2024
+1,490,781 shares
Northern Trust Investments Inc
Bought 31-01-2024
+1,199,153 shares

Largest Institutional Sell

First Trust Advisors L.P.
Sold 31-01-2024
-12,210,100 shares
SEI Investments Management Corp
Sold 31-01-2024
-10,752,100 shares
Goldman Sachs Asset Management, L.P.
Sold 31-01-2024
-9,626,100 shares

Institutional Transactions

Tracking institutional transactions buying / selling of ESSA stock