Vale Indonesia Tbk

inco

Overview

INCO Overview

PT Vale Indonesia Tbk is an Indonesia-based company, which is engaged in nickel mining and processing in Indonesia. The Company’s integrated nickel mining and processing project in Morowali Regency, Central Sulawesi consist of mining area in Bahodopi and processing plant with Rotary Kiln-Electric Furnace (RKEF) technology in Sambalagi. It plans to construct nickel processing plant and its facilities in Sambalagi, Morowali Regency, Central Sulawesi and in Pomalaa, Kolaka Regency, Southeast Sulawesi. The project in Bahodopi, is to build a smelter to process saprolite nickel ore and produce ferronickel, a main material for stainless steel making. In Pomalaa, the project is to build a processing facility with HPAL (High Pressure Acid Leaching) technology to process limonite ore and produce intermediate product which can be further processing to material for electric vehicle (EV) battery. Its subsidiaries include PT Bahodopi Nickel Smelting Indonesia and PT Kolaka Nickel Indonesia.

5101520ValueCompetitiveFutureFinancialsDividend
Exchange
Indonesia Stock Exchange

Symbol: INCO

Main
Market Cap.
IDR 40.74Trillion

~$2.59B USD

Industry
Metals & Minerals
Sub-Industry
Diversified Metals & Minerals
Sector
Basic Materials
Sub-Sector

Valuation

INCO Valuation Metrics

4,100

IDR

Closing Price on 2024-04-05

Price to Equity

10.60

P/E

At 10.60x P/E TTM, INCO.JK is trading at a premium to its peers in the Basic Materials sector (avg 8.2x).

Price to Book

1.05

P/B

At 1.05x P/B TTM, INCO.JK is trading at a premium to its peers in the Basic Materials sector (avg 0.9x).

Price to Sales

2.15

P/S

At 2.15x P/S TTM, INCO.JK is trading at a premium to its peers in the Basic Materials sector (avg 0.8x).

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

Price/Cash Flow
5.61x
Price/Forward Earnings
15.52x
Enterprise Value/Revenue
1.53x
Enterprise Value/EBITDA
5.95x
PEG Ratio
0.05x

Analyst Ratings

40
60
80
0
100

62.5

Undervalued

Fairly Valued

Overvalued

Last closing: IDR4,1002024-04-05
IDR 3,813.15

Fairly Close to Intrinsic Value: Analyst's intrinsic value is of INCO is IDR3,813, which is 6% lower than INCO's last closing price of IDR4,100 (as of 2024-04-05).

Valuation Recap of INCO 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 10.60x is above the ID market average of 8.22x and is trading at a premium to peers in the Basic Materials sector (8.22x).
Max 3
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 1.05x is similar to the peers average of 0.89x in the Basic Materials sector.
Max 3
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 2.15x is above the peers average of 0.76x in the Basic Materials sector. When considered alongside the Forward Price/Earnings ratio, they serve to illustrate investors' expectations of INCO's valuation relative to its current sales and future earnings growth. INCO trades at a Forward P/E ratio of 15.52x, which is considered richly valued by analysts.
Max 2
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. INCO's P/CF ratio of 5.61x is considered healthy by analysts.
Max 2
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. INCO's EV/R ratio of 1.53x is considered fairly underpriced by the market The average EV/R ratio for the Basic Materials sector is 1.07x.
Max 3
Medium
Fairly Close to Intrinsic Value: Analyst's intrinsic value is of INCO is IDR 3,813.15, which is 6% lower than INCO's last closing price of IDR 4,100.00.
Max 3

Peers

INCO 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.649.04T127.21T 0.00T 0.00T 9.75
TPIAPT Chandra Asri Petrochemical Tbk614.23T77.45T 32.03T -0.92T -667.5114.37
BRPTBarito Pacific Tbk94.03T146.77T 41.15T 0.38T 244.683.78
MDKAPT Merdeka Copper Gold Tbk.63.00T72.67T 21.67T -0.52T -122.324.38
MBMAPT Merdeka Battery Materials Tbk62.64T0.00T 0.00T 0.00T
NCKLPT Trimegah Bangun Persada Tbk.56.79T45.09T 8.99T 2.04T 27.892.56
INKPIndah Kiat Pulp & Paper Tbk52.38T155.79T 56.29T 8.11T 6.460.57
ANTMAneka Tambang Tbk.41.01T35.50T 43.15T 4.04T 10.141.67
INCOVale Indonesia Tbk40.74T44.35T 18.96T 3.84T 10.601.05
SMGRSemen Indonesia (Persero) Tbk38.31T81.68T 38.76T 2.43T 15.770.90
Competitiveness Recap of INCO stock
WeightNotesScore
High
At a market cap of IDR 40,738.99 billion, INCO.JK ranks 9 in Market Cap out of 10 companies in the Basic Materials sector.
Max 2
High
At a PE of 10.60, INCO.JK ranks 4 out of 10 companies in the Basic Materials sector for P/E value. The average PE is -47.43 (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 Barito Pacific Tbk (244.68) in the Basic Materials sector.
Max 2
Medium
At a PE of 10.60, INCO.JK is trading at a higher PE than that of its subsector peers in Basic Materials (median of 8.22). false
Max 2
Medium
At a revenue of IDR 18.96 trillion, INCO.JK ranks 7 in Revenue out of 10 companies in the Basic Materials sector.
Max 2
Medium
At a profit of IDR 3.84 trillion, INCO.JK ranks 3 in Profit out of 10 companies in the Basic Materials sector.
Max 2

Future

Future Growth of INCO

Growth Forecasts

INCO 2024 Revenue Growth
-5.0%
INCO 2024 EPS Growth
-1.4%
Sector Revenue Growth
+1.8%
Basic Materials
Indonesia Market Growth
+12.0%
IDX overall growth
Basic Materials Sector Revenue Growth '24
+19.2%
Basic Materials Sector Revenue Growth '24
+19.2%

Sector Benchmark

Basic Materials companies in Indonesia are growing at a projected rate of 1.84% against the IDX average of +12.0%.

Basic Materials sector overview

INCO Earnings & Revenue Forecast

All values in IDR billion

Future growth prospect of INCO
WeightNotesScore
High
INCO's projected growth rate of 1.84% is below the ID market average of 11.98%.●●●
Max 3
High
The Basic Materials sub-sector is projected to grow revenue by 19.16% in 2024. This number is higher than the previous year 2023's growth rate of 1.18%. This bodes well for INCO's revenue growth prospects in the next 2 years. ●●●
Max 3
Medium
The Basic Materials sub-sector is projected to decrease earnings by -97.81% in 2024. This number is higher than the previous year 2023's EPS growth of -104.18%. false
Max 3
Medium
INCO 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 challenging year heading into 2024. Specifically, earnings are projected to decrease by -97.81% in 2024 while revenue growth is projected to increase by 19.16%. These macroeconomic trends will likely be a tailwind for INCO's earnings growth prospects in the next 2 years.
Max 3
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Management

Executive Management

President Director

Febriany Eddy15.2 years

Vice President Director

Adriansyah Chaniago15.4 years
Bernardus Irmanto
Director
Vinicius Mendes Ferreira
Director
Abu Ashar
Director
Robert Matthew Cherevaty
Director
NamePositionShares%
Abu AsharDirector22,000< 0.01
Expressed in millions IDR, unless otherwise stated

Ownership

INCO Ownership

Others
9.79%
Insiders
84.28%
Institutions
5.93%
NameNumber of SharesOwnership (%)Value
Vale Canada Limited4,351,403,82043.7917,840.76B
Public (Scripless)2,024,694,78020.388,301.25B
Pt Mineral Industri Indonesia (Persero)1,987,267,745208,147.80B
Sumitomo Metal Mining Co., Ltd.1,493,218,07515.036,122.19B
Public (Scrip)79,732,3000.8326.90B

Largest Institutional Buy

Los Angeles Capital Management LLC
Bought 31-12-2023
+1,612,900 shares
CBUS Super
Bought 31-12-2023
+1,011,736 shares
Legal & General(Unit Trust Managers)Ltd
Bought 31-12-2023
+530,972 shares

Largest Institutional Sell

BlackRock Fund Advisors
Sold 31-12-2023
-46,075,000 shares
Baillie Gifford & Co Limited.
Sold 31-12-2023
-31,827,591 shares
Baillie Gifford Overseas Limited
Sold 31-12-2023
-20,389,700 shares

Institutional Transactions

Tracking institutional transactions buying / selling of INCO stock