Telecommunication

Indonesia / Infrastructures /  Telecommunication

The Telecommunication subsector on the Indonesia Stock Exchange is a significant player in the country's market due to its historical importance and potential for growth. The subsector comprises various subindustries, including Integrated Telecommunication Service, Wireless Telecommunication Services, and Wired Telecommunication Service. This subsector plays a major role in Indonesia's market as it provides essential communication services to a vast population, contributing to economic development and connectivity. At this moment, this sub-sector appears to be in a bearish market sentiment, with a total market cap depreciation of approximately -13% over the past 365 days. It's possible that around 15 companies within this sub-sector may have encountered a negative market cap change, while it seems that only about 6 companies might have experienced a positive market cap change, indicating a challenging market environment. Notable companies in this subsector, based on market capitalization, include PT Telkom Indonesia (Persero) Tbk, PT Indosat Tbk, PT Dayamitra Telekomunikasi Tbk, Solusi Tunas Pratama Tbk, and PT Tower Bersama Infrastructure Tbk.

P/E Value

The Telecommunication sub-sector is generally considered defensive due to the consistent demand for communication services regardless of economic conditions. Historically, the P/E values for this sector have been moderate. The current lower P/E values compared to last year may be influenced by factors such as increased competition, regulatory changes, or shifts in consumer ...

373.59

Price to Earnings

Telecommunication Sector P/E
373.59
The Price-to-Earnings (P/E) ratio is a key tool for investors and analysts to assess whether a stock is overvalued, undervalued, or fairly valued. The P/E ratio is calculated by dividing the market price of a company's stock by its earnings per share (EPS).
Telecommunication Weighted Sector P/E
14.27
The weighted average P/E ratio is a measure of the average P/E ratio of the companies in the sector, weighted by market capitalization.
Indonesia Stocks Avg. P/E
8.70

Resilience & Health Index

In the Telecommunication sub-sector of the IDX, which consists of 22 companies, the average price changes in the last 30 days placed it at 19th in the sub-sector ranking, outperforming the overall IDX. This could be due to the stable demand for telecommunication services in Indonesia. With no new listing companies this month and the last one being in July 2023, barriers to ...

8.3

Sector Health Score

Telecommunication Sector Max Drawdown
-0.26
The maximum drawdown is the maximum loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum Drawdown (MDD) is an indicator of downside risk over a specified time period.
Indonesia Stocks Avg. Max Drawdown
-0.30
Telecommunication RSD (Close)
0.08
The RSD (Close) is a measure of the volatility of a stock's daily price change. It is calculated as the standard deviation of each day's logarithmic returns summed over the past 90 days.
Indonesia Stocks Avg. RSD (Close)
0.17

Sector Growth Index

In the past year, the Telecommunication sub-sector in Indonesia has shown strong growth with an 18.84% average Year on Year (YoY) quarter earnings increase and a 2.95% average YoY quarter revenue increase. The sub-sector ranks 14th in ...

2.9

Sector Growth Score

Trailing 3Y Telecommunication Sector Growth
+2.72%
This uses geometric mean to compute a measure of the sector's revenue growth over the last 3 years.
Telecommunication Current Revenue Growth
3.11%
The change in revenue this quarter compared to the same period a year ago.
Telecommunication Current Earnings Growth
21.84%
The change in earnings per share (EPS) this quarter compared to the same period a year ago.
Telecommunication 1Y Market Cap Growth
-15.44%
The change in market capitalization relative to the same period a year ago.
Telecommunication Recent Performance
21st
Recent growth beats 21% of all sectors in Indonesia.
Telecommunication '25 Revenue Growth Forecast
+11.05%
The estimated change in revenue for the Telecommunication sector in 2025.
Telecommunication '25 Earnings Growth Forecast
+24.45%
The estimated change in earnings for the Telecommunication sector in 2025.

Top Companies

Most profitable companies in Telecommunication

Company

Profit (billion)

24427.00

4506.39

3253.10

2010.33

1560.31

Key Figures

Telecommunication companies on IDX

22

Total Market Cap. (IDR, billion)

IDR 625,708.13B

5.07% of total market cap. on IDX
Range of P/E Value

-334 - 374

Average of 373.6 P/E
Sector CAGR

> 0%

Compound Annual Revenue Growth of 3.11%

Telecommunication Sector Performance

IDR 625.71T

Sector Market Cap. (IDR, trillion)
  1. Last 4 Quarters

  2. Prev 4 Quarters

Sector Composition

Sector Valuation

Historical valuation of companies in Telecommunication
More than 5% deviation of median from the last 3 years
Within 5% deviation of median of last 3 years
TTM: Trailing Twelve Months (TTM)
Metric2020202120222023Current (TTM)
Price/Equity14.0316.1621.8316.40373.59Higher than average of last 3 years
Price/Book1.552.171.461.281.81Within 5% deviation of average of last 3 years
Price/Sales4.046.544.243.8027.46Higher than average of last 3 years
Price/Cash Flow5.169.265.555.89107.74Higher than average of last 3 years

Executive Summary

Sector Performance

1W

-3.5%

1Y

-15.4%

YTD

-15.8%

Trailing 12 Months

Overall -15.4%

−0.40−0.30−0.20−0.10

Positive

Neutral (Within <2.5%)

Negative

Sector Percentile

21%

35
55
75
0
100

This sector has a return that beats 21% of all sectors on the Indonesia Stock Exchange over the past 12 months.

Sector Dividend Yield

3.13%

Dividend-paying companies in this sector pay out a dividend yield of 3.13% on average over the past 12 months. This beats the average dividend yield of all companies on IDX, which is around 3.39%.

Sector Stabillity

98%

35
55
75
0
100

This sector is very stable, with a RSD (Relative Standard Deviation) of 8%. Companies on IDX have an average RSD of 13%. This gives the sector a score of 98%.

RSD (Relative Standard Deviation)
98%
The relative standard deviation, caluclated from the S.D of the sector's returns.
Max Drawdown
-26.27%
The maximum loss from a peak to a trough during a specific period (TTM).

This past month

Over the last month, stocks in the Telecommunication sector has remained flat, although notably PT Centratama Telekomunikasi Indonesia Tbk. has gained 21.88% in the last month.

Current quarter

This quarter, the sector has seen an average revenue growth of 3.11% compared to the same quarter last year.
When it comes to earnings, the sector has seen an average growth of 21.84% compared to the same quarter in 2023. Much of this growth is driven by the following companies:
BTEL.JK(+96.4%), ISAT.JK(+12.6%), EXCL.JK(+12.0%), GHON.JK(+11.7%), MTEL.JK(+9.4%).

Last 12 Months

Companies in the Telecommunication sector have seen a -15.4% change in market cap over the last 12 months. Investors have become pessimistic on the sector couple with macroeconomic factors that might be strong headwinds for the sector.

Most of the last 12 months in the Telecommunication sector has been negative with August (+2.6%), February (+2.0%) and November (+0.0%) being the best performing months.

Sector Valuation

Has the Telecommunication sector valuation in Indonesia changed over the past 12 months?

Price to Earnings Ratio

  • The Telecommunication sector is trading at a median PE ratio of 373.59x, which is lower than its 3-year historical average PE of 14.27x. This puts the sector in the overvalued category based on its historical valuation.
  • Companies in the Telecommunication have an extremely wide range of PE ratio, going between -334x to 374x.This makes it necessary to consider the outliers in the sector, and adjust for the respective market caps of each company to prevent any skewing of the data.
  • To add some perspective across the value disparity, among the top gainers in the last month, PT Maharaksa Biru Energi Tbk commands a premium with a PE ratio of 90.95 while PT Centratama Telekomunikasi Indonesia Tbk. is trading at a PE ratio of only -0.65.
  • When weighted by market cap, the Telecommunication sector is trading at a PE ratio of 14.27x as compared to the unweighted PE ratio of 373.59x. The unweighted sector median is a significant premium (43.0x) to the overall IDX median of 8.70x.
  • The Telecommunication sector is trading at a PE ratio (373.59) that represents a significant premium to its historical average (17.10).

Sector Gainers

CENT Logo
PT Centratama Telekomunikasi Indonesia Tbk.
CENT.JK
Last Trading Day

IDR 39.00

1 Month

+21.88%

1 Year

-46.58%

P/E Ratio

-0.65

OASA Logo
PT Maharaksa Biru Energi Tbk
OASA.JK
Last Trading Day

IDR 147.00

1 Month

+15.75%

1 Year

-1.34%

P/E Ratio

90.95

EXCL Logo
PT XL Axiata Tbk
EXCL.JK
Last Trading Day

IDR 2,470.00

1 Month

+7.39%

1 Year

+27.32%

P/E Ratio

25.40

GOLD Logo
PT Visi Telekomunikasi Infrastruktur Tbk.
GOLD.JK
Last Trading Day

IDR 340.00

1 Month

+6.25%

1 Year

-2.86%

P/E Ratio

27.08

TBIG Logo
PT Tower Bersama Infrastructure Tbk
TBIG.JK
Last Trading Day

IDR 1,850.00

1 Month

+5.41%

1 Year

-4.88%

P/E Ratio

26.84