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TOWR

Sarana Menara Nusantara IDX:TOWR Stock Report

Last Price

Rp1.24k

Market Cap

Rp61.8t

7D

-1.6%

1Y

-5.7%

Updated

14 Aug, 2022

Data

Company Financials +
TOWR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health1/6
Dividends3/6

TOWR Stock Overview

PT Sarana Menara Nusantara Tbk. owns and operates telecommunication towers for wireless operators in Indonesia.

Sarana Menara Nusantara Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sarana Menara Nusantara
Historical stock prices
Current Share PriceRp1,240.00
52 Week HighRp1,430.00
52 Week LowRp870.00
Beta0.52
1 Month Change8.77%
3 Month Change24.62%
1 Year Change-5.70%
3 Year Change63.16%
5 Year Change35.37%
Change since IPO3,849.05%

Recent News & Updates

Shareholder Returns

TOWRID TelecomID Market
7D-1.6%-1.8%0.4%
1Y-5.7%29.4%13.0%

Return vs Industry: TOWR underperformed the ID Telecom industry which returned 29.4% over the past year.

Return vs Market: TOWR underperformed the ID Market which returned 13% over the past year.

Price Volatility

Is TOWR's price volatile compared to industry and market?
TOWR volatility
TOWR Average Weekly Movement4.4%
Telecom Industry Average Movement5.4%
Market Average Movement5.9%
10% most volatile stocks in ID Market11.5%
10% least volatile stocks in ID Market2.9%

Stable Share Price: TOWR is not significantly more volatile than the rest of ID stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TOWR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20081,543Ferdinandus Santosohttps://www.ptsmn.co.id

PT Sarana Menara Nusantara Tbk. owns and operates telecommunication towers for wireless operators in Indonesia. The company operates in two segments, Tower Rental, and Very Small Aperture Terminal (VSAT) and Wireline Services.

Sarana Menara Nusantara Fundamentals Summary

How do Sarana Menara Nusantara's earnings and revenue compare to its market cap?
TOWR fundamental statistics
Market CapRp61.75t
Earnings (TTM)Rp3.49t
Revenue (TTM)Rp9.30t

17.7x

P/E Ratio

6.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TOWR income statement (TTM)
RevenueRp9.30t
Cost of RevenueRp515.84b
Gross ProfitRp8.78t
Other ExpensesRp5.29t
EarningsRp3.49t

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)70.12
Gross Margin94.45%
Net Profit Margin37.55%
Debt/Equity Ratio326.2%

How did TOWR perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

34%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TOWR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TOWR?

Other financial metrics that can be useful for relative valuation.

TOWR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue11.2x
Enterprise Value/EBITDA15.4x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does TOWR's PE Ratio compare to its peers?

TOWR PE Ratio vs Peers
The above table shows the PE ratio for TOWR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average68.5x
TBIG Tower Bersama Infrastructure
38.2x12.1%Rp64.9t
MTEL Dayamitra Telekomunikasi
41.6x20.0%Rp65.5t
IBST Inti Bangun Sejahtera
176.4xn/aRp11.6t
TLKM Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia
17.6x7.2%Rp450.7t
TOWR Sarana Menara Nusantara
17.7x8.8%Rp61.8t

Price-To-Earnings vs Peers: TOWR is good value based on its Price-To-Earnings Ratio (17.7x) compared to the peer average (68.5x).


Price to Earnings Ratio vs Industry

How does TOWR's PE Ratio compare vs other companies in the Asian Telecom Industry?

Price-To-Earnings vs Industry: TOWR is good value based on its Price-To-Earnings Ratio (17.7x) compared to the ID Telecom industry average (24.2x)


Price to Earnings Ratio vs Fair Ratio

What is TOWR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TOWR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.7x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: TOWR is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).


Share Price vs Fair Value

What is the Fair Price of TOWR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TOWR (IDR1240) is trading below our estimate of fair value (IDR2894.84)

Significantly Below Fair Value: TOWR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Sarana Menara Nusantara forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOWR's forecast earnings growth (8.8% per year) is above the savings rate (7%).

Earnings vs Market: TOWR's earnings (8.8% per year) are forecast to grow slower than the ID market (10.4% per year).

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

Revenue vs Market: TOWR's revenue (6.4% per year) is forecast to grow slower than the ID market (10.2% per year).

High Growth Revenue: TOWR's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TOWR's Return on Equity is forecast to be high in 3 years time (25.1%)


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Past Performance

How has Sarana Menara Nusantara performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TOWR has high quality earnings.

Growing Profit Margin: TOWR's current net profit margins (37.6%) are lower than last year (41%).


Past Earnings Growth Analysis

Earnings Trend: TOWR's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: TOWR's earnings growth over the past year (12.4%) is below its 5-year average (15.3% per year).

Earnings vs Industry: TOWR earnings growth over the past year (12.4%) underperformed the Telecom industry 12.4%.


Return on Equity

High ROE: Whilst TOWR's Return on Equity (27.24%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is Sarana Menara Nusantara's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TOWR's short term assets (IDR4,395.1B) do not cover its short term liabilities (IDR18,647.0B).

Long Term Liabilities: TOWR's short term assets (IDR4,395.1B) do not cover its long term liabilities (IDR31,932.2B).


Debt to Equity History and Analysis

Debt Level: TOWR's net debt to equity ratio (312.5%) is considered high.

Reducing Debt: TOWR's debt to equity ratio has increased from 79.8% to 326.2% over the past 5 years.

Debt Coverage: TOWR's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: TOWR's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


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Dividend

What is Sarana Menara Nusantara current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.94%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TOWR's dividend (1.94%) is higher than the bottom 25% of dividend payers in the ID market (1.11%).

High Dividend: TOWR's dividend (1.94%) is low compared to the top 25% of dividend payers in the ID market (4.59%).


Stability and Growth of Payments

Stable Dividend: TOWR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TOWR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.4%), TOWR's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26.1%), TOWR's dividend payments are well covered by cash flows.


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Management

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

6.8yrs

Average board tenure


CEO

Ferdinandus Santoso (56 yo)

6.75yrs

Tenure

Mr. Ferdinandus Aming Santoso has been the President Director at PT Sarana Menara Nusantara Tbk and PT Profesional Telekomunikasi Indonesia Tbk since November 20, 2015. Mr. Santoso serves as Chief Executiv...


Board Members

Experienced Board: TOWR's board of directors are considered experienced (6.8 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 Sarana Menara Nusantara Tbk.'s employee growth, exchange listings and data sources


Key Information

  • Name: PT Sarana Menara Nusantara Tbk.
  • Ticker: TOWR
  • Exchange: IDX
  • Founded: 2008
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: Rp61.751t
  • Shares outstanding: 49.80b
  • Website: https://www.ptsmn.co.id

Number of Employees


Location

  • PT Sarana Menara Nusantara Tbk.
  • Jl. Jend. Ahmad Yani No. 19A
  • Kudus
  • Jawa Tengah
  • Indonesia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.