Financial Analysis of KLBF.JK (Kalbe Farma)
Valuation Metrics
- Market Capitalization: IDR 67.84 trillion.
- Enterprise Value: IDR 65.99 trillion.
- Price-to-Earnings (Trailing): 22.03, indicating a slightly higher valuation compared to the industry average.
- Price-to-Book Ratio: 3.06, suggesting the stock is trading at over 3 times its book value.
- Price-to-Sales (Trailing 12 Months): 2.11, indicating moderate valuation compared to its revenue generation.
Profitability Metrics
- Profit Margins: 9.59%, showing decent profitability for a pharmaceutical company.
- Return on Assets (ROA): 8.92%, which is healthy and efficient.
- Return on Equity (ROE): 13.4%, reflecting the company’s good ability to generate profits from shareholders’ equity.
Growth Metrics
- Earnings Growth (YoY): 7.6%.
- Revenue Growth (YoY): 7.2%, showing steady growth.
Financial Health
- Quick Ratio: 2.32, indicating strong short-term liquidity.
- Current Ratio: 4.15, reflecting robust capability to meet short-term obligations.
- Debt-to-Equity Ratio: 3.11, which is very low and suggests low financial risk.
- Total Cash: IDR 4.32 trillion, ensuring financial flexibility.
Dividends
- Dividend Yield: 2.11%, higher than the 5-year average of 1.96%.
- Payout Ratio: 46.43%, indicating a balanced approach to rewarding shareholders while retaining earnings for growth.
Trading Activity
- 52-Week Range: IDR 1,375 – 1,795.
- Current Price: IDR 1,470.
- Average Volume (10-day): 35,090,040 shares, suggesting good liquidity.
- Beta: 0.238, meaning lower volatility compared to the market.
Analyst Recommendations
- Mean Recommendation: 2.07 (Buy).
- Target Price (Mean): IDR 1,761 (potential upside of 19.8%).
- Target Price Range: IDR 1,550 – 2,200.
Operational Metrics
- Gross Margins: 38.02%.
- EBITDA Margins: 14.54%.
- Operating Margins: 8.91%, which are reasonable for the sector.
Price Prediction
Based on the current metrics and growth trajectory:
- Short-Term Outlook: Neutral to slightly bullish, with the potential to test the lower target price of IDR 1,550 if momentum builds.
- Long-Term Outlook: Positive, with the mean target price of IDR 1,761 achievable if growth sustains and market conditions remain stable.
Key Strengths and Risks
Strengths:
- Strong liquidity and low debt levels.
- Consistent revenue and earnings growth.
- Attractive valuation metrics for long-term investors.
Risks:
- Limited volatility may slow rapid price appreciation.
- Recent underperformance in the 52-week period (-9.53%).
Disclaimer: This analysis is for informational purposes only and should not be taken as financial advice. Please consult with a licensed financial advisor before making any investment decisions.
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