Gudang Garam Tbk

ggrm

Overview

GGRM Overview

PT Gudang Garam Tbk is an Indonesia-based company that is engaged in the cigarette industry and other related cigarette industry activities. The Company’s segments include cigarettes, paperboards, infrastructure, and others. The Company’s products range from sigaret kretek klobot (SKL) or corn husk-wrapped clove cigarettes, sigaret kretek linting tangan (SKT) or hand-rolled clove cigarettes, up to sigaret kretek linting mesin (SKM) or machine-rolled clove cigarettes. The Company’s brands include Gudang Garam Signature Mild, Gudang Garam Signature, Gudang Garam Djaja, Gudang Garam Merah, Gudang Garam International, Sriwedari, Surya Professional, Surya Pro Mild, Surya Exclusive, GG Mild, GG Shiver, GG Move, Klobot, and Gudang Garam Deluxe. Gudang Garam Deluxe is a kretek clove cigarette made of chopped tobacco and cloves. Its subsidiaries include PT Surya Pamenang, PT Surya Madistrindo, PT Surya Air, PT Graha Surya Media, PT Surya Inti Tembakau, Galaxy Prime Ltd. and Prime Galaxy Ltd.

51015ValueCompetitiveFutureFinancialsDividend
Exchange
Indonesia Stock Exchange

Symbol: GGRM

Main
Market Cap.
IDR 37.71Trillion

~$2.36B USD

Industry
Tobacco
Sub-Industry
Tobacco
Sector
Consumer Non-Cyclicals
Sub-Sector

Valuation

GGRM Valuation Metrics

19,600

IDR
0.0%

Closing Price on 2024-04-18

Price to Equity

7.08

P/E

At 7.08x P/E TTM, GGRM.JK is trading at a discount to its peers in the Tobacco sector.

Price to Book

0.62

P/B

At 0.62x P/B TTM, GGRM.JK is trading at a discount to its peers in the Tobacco sector.

Price to Sales

0.32

P/S

At 0.32x P/S TTM, GGRM.JK is trading at a discount to its peers in the Tobacco sector.

Valuing Gudang Garam Tbk based on its trailing twelve months (TTM) valuation metrics against its peers in the Tobacco sector

Historical Price to Earnings

Other Valuation Metrics

Valuing Gudang Garam Tbk relative to other stocks in the Tobacco sector

Price/Cash Flow
8.55x
Price/Forward Earnings
6.46x
Enterprise Value/Revenue
0.39x
Enterprise Value/EBITDA
5.61x
PEG Ratio
0.06x

Analyst Ratings

40
60
80
0
100

50.0

Undervalued

Fairly Valued

Overvalued

Last closing: IDR19,6002024-04-18
IDR 40,021.40

Considerably Higher Intrinsic Value: Analyst's intrinsic value is of GGRM is IDR40,021, which is 105% higher than GGRM's last closing price of IDR19,600 (as of 2024-04-18).

Valuation Recap of GGRM 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 7.08x is below the ID market average of 8.46x and is trading at a discount to peers in the Tobacco sector (8.99x).

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 0.62x is similar to the peers average of 0.98x in the Tobacco sector. In fact, less than 25% of its peers trade at a lower P/B ratio than GGRM.

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 0.32x is similar to the peers average of 0.66x in the Tobacco sector. When considered alongside the Forward Price/Earnings ratio, they serve to illustrate investors' expectations of GGRM's valuation relative to its current sales and future earnings growth. GGRM trades at a Forward P/E ratio of 6.46x, 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. GGRM's P/CF ratio of 8.55x 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. GGRM's EV/R ratio of 0.39x is considered extremely underpriced by the market The average EV/R ratio for the Tobacco sector is 0.62x.

Medium
Considerably Higher Intrinsic Value: Analyst's intrinsic value is of GGRM is IDR 40,021.40, which is 105% higher than GGRM's last closing price of IDR 19,600.00.

Peers

GGRM 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
ICBPIndofood CBP Sukses Makmur Tbk117.79T119.27T 67.91T 6.99T 16.852.89
AMRTPT Sumber Alfaria Trijaya Tbk.115.85T34.25T 106.94T 3.40T 34.048.00
HMSPHM Sampoerna Tbk97.13T55.32T 115.98T 8.10T 12.003.25
UNVRUnilever Indonesia Tbk91.18T16.66T 38.61T 4.80T 18.9926.97
PANIPT Pantai Indah Kapuk Dua Tbk.83.61T33.71T 2.16T 0.27T 309.616.46
CPINCharoen Pokphand Indonesia Tbk79.69T40.97T 61.62T 2.32T 34.372.95
INDFIndofood Sukses Makmur Tbk53.78T186.59T 111.70T 8.15T 6.600.91
MYORMayora Indah Tbk52.77T23.42T 31.33T 2.88T 18.303.81
CMRYPT Cisarua Mountain Dairy Tbk39.67T7.05T 7.77T 1.24T 31.956.68
GGRMGudang Garam Tbk37.71T92.45T 118.95T 5.32T 7.080.62
Competitiveness Recap of GGRM stock
WeightNotesScore
High
At a market cap of IDR 37,712.16 billion, GGRM.JK ranks 10 in Market Cap out of 10 companies in the Consumer Non-Cyclicals sector.

High
At a PE of 7.08, GGRM.JK ranks 9 out of 10 companies in the Consumer Non-Cyclicals sector for P/E value. The average PE is 48.98 (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 Consumer Non-Cyclicals. In this regard, it trails behind sector leaders such as PT Pantai Indah Kapuk Dua Tbk. (309.61) in the Consumer Non-Cyclicals sector.

Medium
At a PE of 7.08, GGRM.JK is trading at a lower PE than that of its subsector peers in Tobacco (median of 8.99). 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 118.95 trillion, GGRM.JK ranks 1 in Revenue out of 10 companies in the Consumer Non-Cyclicals sector.

Medium
At a profit of IDR 5.32 trillion, GGRM.JK ranks 4 in Profit out of 10 companies in the Consumer Non-Cyclicals sector.

Future

Future Growth of GGRM

Growth Forecasts

GGRM 2024 Revenue Growth
+11.5%
GGRM 2024 EPS Growth
0.0%
Sector Revenue Growth
+9.6%
Tobacco
Indonesia Market Growth
+7.6%
IDX overall growth
Tobacco Sector Revenue Growth '24
+8.8%
Consumer Non-Cyclicals Sector Revenue Growth '24
+17.4%

Sector Benchmark

Tobacco companies in Indonesia are growing at a projected rate of 9.61% against the IDX average of +7.6%.

Tobacco sector overview

GGRM Earnings & Revenue Forecast

All values in IDR billion

Future growth prospect of GGRM
WeightNotesScore
High
GGRM's projected growth rate of 9.61% is above the ID market average of 7.62%.

Medium
GGRM and its peers in the Tobacco sub-sector belongs to the Consumer Non-Cyclicals sector. Companies in the Consumer Non-Cyclicals sector are projected to have a fruitful year heading into 2024. Specifically, earnings are projected to increase by 64.39% in 2024 while revenue growth is projected to increase by 17.36%. These macroeconomic trends will likely be a tailwind for GGRM's earnings growth prospects in the next 2 years.

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Management

Executive Management

President Director

Susilo Wonowidjojo15.2 years

Vice President Director

Indra Gunawan Wonowidjojo15.4 years
Heru Budiman
Director
Herry Susianto
Director
Istata Taswin Siddharta
Director
Andik Wahyudi
Director
Hamdhany Halim
Director
Slamet Budiono
Director
Sony Sasono Rahmadi
Director
NamePositionShares%
No data is available for GGRM at the moment.
Expressed in millions IDR, unless otherwise stated

Ownership

GGRM Ownership

Others
22.18%
Insiders
76.22%
Institutions
1.6%
NameNumber of SharesOwnership (%)Value
Pt. Suryaduta Investama1,333,146,80069.2926,129.68B
Public (Scripless)330,144,91517.166,470.84B
Public (Scrip)140,353,5857.292,750.93B
Pt. Suryamitra Kusuma120,442,7006.262,360.68B

Largest Institutional Buy

No data is available for GGRM at the moment.

Largest Institutional Sell

BlackRock Fund Advisors
Sold 31-01-2024
-5,863,251 shares
Northern Trust Investments Inc
Sold 31-01-2024
-2,668,158 shares
State Street Global Advisors
Sold 31-01-2024
-2,078,355 shares

Institutional Transactions

Tracking institutional transactions buying / selling of GGRM stock