IDX:ADRO

Stock Analysis Report

Executive Summary

PT Adaro Energy Tbk, together with its subsidiaries, engages in trading, hauling, services, industry, workshop, mining, and construction activities of coal industry in Indonesia.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Adaro Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

11.1%

ADRO

4.4%

ID Oil and Gas

0.8%

ID Market


1 Year Return

-12.7%

ADRO

-33.9%

ID Oil and Gas

-29.8%

ID Market

Return vs Industry: ADRO exceeded the ID Oil and Gas industry which returned -36.2% over the past year.

Return vs Market: ADRO exceeded the ID Market which returned -31.4% over the past year.


Shareholder returns

ADROIndustryMarket
7 Day11.1%4.4%0.8%
30 Day-8.7%-7.5%-19.0%
90 Day-24.9%-17.6%-27.8%
1 Year-4.5%-12.7%-30.4%-33.9%-27.5%-29.8%
3 Year-29.8%-41.8%-23.3%-31.8%-15.7%-21.8%
5 Year48.7%12.8%-0.8%-15.0%-7.4%-17.6%

Price Volatility Vs. Market

How volatile is Adaro Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Adaro Energy undervalued compared to its fair value and its price relative to the market?

5.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADRO (IDR1100) is trading above our estimate of fair value (IDR953.92)

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


Price To Earnings Ratio

PE vs Industry: ADRO is good value based on its PE Ratio (5.2x) compared to the Oil and Gas industry average (5.5x).

PE vs Market: ADRO is good value based on its PE Ratio (5.2x) compared to the ID market (10.7x).


Price to Earnings Growth Ratio

PEG Ratio: ADRO is poor value based on its PEG Ratio (10.8x)


Price to Book Ratio

PB vs Industry: ADRO is good value based on its PB Ratio (0.6x) compared to the ID Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Adaro Energy forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADRO's forecast earnings growth (0.5% per year) is below the savings rate (7.1%).

Earnings vs Market: ADRO's earnings (0.5% per year) are forecast to grow slower than the ID market (11.6% per year).

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

Revenue vs Market: ADRO's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: ADRO's revenue is forecast to decline over the next 3 years (-2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADRO's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has Adaro Energy performed over the past 5 years?

26.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADRO has high quality earnings.

Growing Profit Margin: ADRO's current net profit margins (11.7%) are higher than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: ADRO's earnings have grown significantly by 26.1% per year over the past 5 years.

Accelerating Growth: ADRO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADRO had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-17.7%).


Return on Equity

High ROE: ADRO's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is Adaro Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ADRO's short term assets ($2.1B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: ADRO's short term assets ($2.1B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: ADRO's debt to equity ratio (45.3%) is considered high.

Reducing Debt: ADRO's debt to equity ratio has reduced from 54.9% to 45.3% over the past 5 years.

Debt Coverage: ADRO's debt is well covered by operating cash flow (50.9%).

Interest Coverage: ADRO's interest payments on its debt are well covered by EBIT (18.3x coverage).


Balance Sheet

Inventory Level: ADRO has a high level of physical assets or inventory.

Debt Coverage by Assets: ADRO's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Adaro Energy's current dividend yield, its reliability and sustainability?

9.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADRO's dividend (9.44%) is higher than the bottom 25% of dividend payers in the ID market (1.93%).

High Dividend: ADRO's dividend (9.44%) is in the top 25% of dividend payers in the ID market (8.26%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), ADRO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADRO's dividends in 3 years are forecast to be well covered by earnings (38.5% payout ratio).


Next Steps

Management

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

11.0yrs

Average board tenure


CEO

Garibaldi Thohir (54yo)

no data

Tenure

Mr. Garibaldi Thohir, also known as Boy, serves as Chief Executive Officer, President Director and Chairman of Management Board at PT Adaro Power. Mr. Thohir is the Chief Executive Officer at PT Adaro Ener ...


Board Members

NamePositionTenureCompensationOwnership
Garibaldi Thohir
President Director & CEOno datano data6.18% $2.1t
Christian Rachmat
Vice President Director & Deputy CEO12yrsno data0.063% $20.8b
Ah Chia
COO & Director12yrsno data0.028% $9.5b
Mohammad Indra Aman
Chief Legal Officer & Director9yrsno datano data
Julius Aslan
Chief HRGA-IT Officer & Director7yrsno data0.053% $17.7b
Theodore Rachmat
Vice President Commissioner12yrsno data2.54% $845.5b
Edwin Soeryadjaya
President Commissioner12yrsno data3.29% $1.1t
Raden Pardede
Independent Commissioner10yrsno datano data
Arini Subianto
Commissioner3.33yrsno data0.25% $83.1b
Mohammad Effendi
Independent Commissioner1yrno datano data

11.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: ADRO's board of directors are seasoned and experienced ( 11 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 Adaro Energy Tbk's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PT Adaro Energy Tbk
  • Ticker: ADRO
  • Exchange: IDX
  • Founded: 2004
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: Rp33.265t
  • Shares outstanding: 31.99b
  • Website: https://www.adaro.com

Number of Employees


Location

  • PT Adaro Energy Tbk
  • Menara Karya Building
  • 23rd Floor
  • Jakarta
  • Jakarta Raya
  • 12950
  • Indonesia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADROIDX (Indonesia Stock Exchange)YesOrdinary SharesIDIDRJul 2008
A64DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2008
PADE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2008
ADOO.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2010

Biography

PT Adaro Energy Tbk, together with its subsidiaries, engages in trading, hauling, services, industry, workshop, mining, and construction activities of coal industry in Indonesia. The company operates through Coal Mining and Trading; Mining Services; Logistics; and Others segments. It provides coal mining and trading, mining contracting, infrastructure, coal logistics, power generation, and water treatment services; and coal handling and barging, terminal handling, farming, trading, power plant, and construction services, as well as manufactures, repairs, and maintains sea transportation. PT Adaro Energy Tbk also exports its products to China, Malaysia, Japan, India, South Korea, and internationally. The company was formerly known as PT Padang Karunia and changed its name to PT Adaro Energy Tbk in April 2008. PT Adaro Energy Tbk was founded in 2004 and is headquartered in Jakarta, Indonesia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 17:57
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.