DB:ISM

Stock Analysis Report

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Executive Summary

PT Indofood Sukses Makmur Tbk produces and sells various food products in Indonesia and internationally.


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.

Share Price & News

How has Indofood Sukses Makmur's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ISM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.6%

ISM

2.2%

DE Food

2.0%

DE Market


1 Year Return

-0.3%

ISM

-0.5%

DE Food

-2.6%

DE Market

Return vs Industry: ISM matched the German Food industry which returned -0.2% over the past year.

Return vs Market: ISM exceeded the German Market which returned -4.5% over the past year.


Shareholder returns

ISMIndustryMarket
7 Day-1.6%2.2%2.0%
30 Day4.4%10.2%8.4%
90 Day-18.9%2.1%-7.3%
1 Year2.3%-0.3%1.0%-0.5%-1.0%-2.6%
3 Year-25.9%-33.1%-12.6%-17.9%-6.6%-13.9%
5 Year-12.0%-22.4%11.6%1.6%1.1%-11.7%

Price Volatility Vs. Market

How volatile is Indofood Sukses Makmur's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Indofood Sukses Makmur undervalued compared to its fair value and its price relative to the market?

11.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ISM (€0.38) is trading above our estimate of fair value (€0.38)

Significantly Below Fair Value: ISM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ISM is good value based on its PE Ratio (11.4x) compared to the Food industry average (23.9x).

PE vs Market: ISM is good value based on its PE Ratio (11.4x) compared to the German market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: ISM is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: ISM is good value based on its PB Ratio (1.4x) compared to the DE Food industry average (1.8x).


Next Steps

Future Growth

How is Indofood Sukses Makmur forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISM's forecast earnings growth (9.5% per year) is above the savings rate (0.2%).

Earnings vs Market: ISM's earnings (9.5% per year) are forecast to grow slower than the German market (21.7% per year).

High Growth Earnings: ISM's earnings are forecast to grow, but not significantly.

Revenue vs Market: ISM's revenue (5.1% per year) is forecast to grow slower than the German market (5.6% per year).

High Growth Revenue: ISM's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ISM's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has Indofood Sukses Makmur performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISM has high quality earnings.

Growing Profit Margin: ISM's current net profit margins (6.5%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: ISM's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: ISM's earnings growth over the past year (14.6%) exceeds its 5-year average (12.9% per year).

Earnings vs Industry: ISM earnings growth over the past year (14.6%) exceeded the Food industry -24.1%.


Return on Equity

High ROE: ISM's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is Indofood Sukses Makmur's financial position?


Financial Position Analysis

Short Term Liabilities: ISM's short term assets (IDR37,504.7B) exceed its short term liabilities (IDR28,185.5B).

Long Term Liabilities: ISM's short term assets (IDR37,504.7B) exceed its long term liabilities (IDR17,906.3B).


Debt to Equity History and Analysis

Debt Level: ISM's debt to equity ratio (47.7%) is considered high.

Reducing Debt: ISM's debt to equity ratio has reduced from 66.3% to 47.7% over the past 5 years.

Debt Coverage: ISM's debt is well covered by operating cash flow (49.6%).

Interest Coverage: ISM's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Indofood Sukses Makmur's current dividend yield, its reliability and sustainability?

3.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ISM's dividend (3.67%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: ISM's dividend (3.67%) is low compared to the top 25% of dividend payers in the German market (4.19%).


Stability and Growth of Payments

Stable Dividend: ISM's dividend payments have been volatile in the past 10 years.

Growing Dividend: ISM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.3%), ISM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ISM's dividends in 3 years are forecast to be well covered by earnings (46.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Anthoni Salim (70yo)

16.33yrs

Tenure

Mr. Anthoni Salim serves as the Chief Executive Officer and President of Salim Group. Mr. Salim serves as a Co-Owner of GA 1821 Pte. Ltd. He is the Owner of Droxford International Limited and Universal Int ...


Leadership Team

NamePositionTenureCompensationOwnership
Anthoni Salim
President Director & CEO16.33yrsno data0.015% IDR526.3k
Mark Wakeford
Head of Investor Relations1.75yrsno datano data
Franciscus Welirang
Head of Corporate Human Resources25.33yrsno datano data
Taufik Wiraatmadja
Heads of the Noodles Division & Director16.33yrsno data0.00057% IDR19.8k
Paulus Moleonoto
Heads the Plantations Division & Director11.33yrsno datano data
Axton Salim
Heads the Dairy Division & Director11.33yrsno datano data
Adrian Jogi
Head of Corporate Internal Audit8.17yrsno datano data
Joedianto Soejonopoetro
Heads the Distribution Group & Director5.33yrsno datano data
Melia Setawati Santoso
General Manager of Compensationno datano datano data
Alexander Aditio
Head of Procurement1.75yrsno datano data

1.8yrs

Average Tenure

59yo

Average Age

Experienced Management: ISM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Anthoni Salim
President Director & CEO16.33yrsno data0.015% IDR526.3k
Franciscus Welirang
Head of Corporate Human Resources25.33yrsno datano data
Taufik Wiraatmadja
Heads of the Noodles Division & Director16.33yrsno data0.00057% IDR19.8k
Paulus Moleonoto
Heads the Plantations Division & Director11.33yrsno datano data
Axton Salim
Heads the Dairy Division & Director11.33yrsno datano data
Joedianto Soejonopoetro
Heads the Distribution Group & Director5.33yrsno datano data
Tje Fie Tjhie
Company Secretary & Director16.33yrsno datano data
Hendra Widjaja
Head of Corporate Controller & Director2yrsno datano data
Manuel Pangilinan
President Commissioner21.33yrsno datano data
Utomo Josodirdjo
Independent Commissioner16.33yrsno datano data

15.9yrs

Average Tenure

61yo

Average Age

Experienced Board: ISM's board of directors are seasoned and experienced ( 15.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PT Indofood Sukses Makmur Tbk's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PT Indofood Sukses Makmur Tbk
  • Ticker: ISM
  • Exchange: DB
  • Founded: 1990
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: Rp56.414t
  • Listing Market Cap: Rp3.476b
  • Shares outstanding: 8.78b
  • Website: https://www.indofood.com

Number of Employees


Location

  • PT Indofood Sukses Makmur Tbk
  • Sudirman Plaza
  • Indofood Tower, 27th Floor
  • Jakarta
  • 12910
  • Indonesia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PIFM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1994
INDFIDX (Indonesia Stock Exchange)YesOrdinary SharesIDIDRAug 1994
ISMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1994
PIFM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

PT Indofood Sukses Makmur Tbk produces and sells various food products in Indonesia and internationally. It operates through four segments: Consumer Branded Products Business Group, Bogasari Business Group, Agribusiness Group, and Distribution Business Group. The Consumer Branded Products Business Group segment offers noodles; dairy products, including sweetened condensed, temperature, sterilized bottled, pasteurized liquid, and powdered milk, as well as butter, ice cream, creamer, and lactic acid beverages; snack foods, such as potato, cassava, soybean, sweet potato chips, and various extruded snacks, as well as biscuits; culinary products and syrups; nutrition and special foods; non-alcoholic beverages, including carbonated and non-carbonated soft drinks; and packaging materials. The Bogasari Business Group segment produces flour and pasta. The Agribusiness Group segment produces palm oil, rubber, sugar cane, timber, cocoa, and tea; and manufactures and markets cooking oils, margarines, shortenings, and other by-products. The Distribution Business Group segment distributes company’s and third-party products. It is also involved in the shipping, investment, trade export agency, industrial estate, and restaurant chain management activities; ownership and management of buildings; and provision of management consulting, flour blending and trading, research management and technical, and food and fisheries processing services, as well as fertilizers. In addition, it manufactures coffee; extracts and processes coconut oil; operates bulking station; provides transportation services; and markets and distributes paper diapers and packaged drinking water. The company was formerly known as PT Panganjaya Intikusuma and changed its name to PT Indofood Sukses Makmur Tbk in 1994. The company was founded in 1990 and is headquartered in Jakarta, Indonesia. PT Indofood Sukses Makmur Tbk is a subsidiary of CAB Holdings Limited, Seychelles. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/24 22:49
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.