Fact based stock research
Telekom Malaysia (KLSE:TM)

MYL4863OO006

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Telekom Malaysia stock research in summary

tm.com.my

ANALYSIS: With an Obermatt Combined Rank of 34 (worse than 66% compared with investment alternatives), Telekom Malaysia (Integrated Telecommunication, Malaysia) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Telekom Malaysia are a good value (attractively priced) with a consolidated Value Rank of 50 (better than 50% of alternatives), are safely financed (Safety Rank of 64, which means low debt burdens), but show below-average growth (Growth Rank of 23). ...read more

RECOMMENDATION: A Combined Rank of 34, is a hold recommendation based on Telekom Malaysia's financial characteristics. As the company Telekom Malaysia's key financial metrics exhibit good value (Obermatt Value Rank of 50) but low growth (Obermatt Growth Rank of 23) while being safely financed (Obermatt Safety Rank of 64), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 50% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	50
Growth Rank	23
Safety Rank	64
Combined Rank	34

Country	Malaysia
Industry	Integrated Telecommunication
Index	Good Governace Growth Markets, Independent Boards Growth Markets, Telecommunications
Size class	Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Telekom Malaysia

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	55	44	50
GROWTH
GROWTH	48	15	51	23
SAFETY
SAFETY	46	54	70	64
SENTIMENT
SENTIMENT	n/a	52	100	^new
360° VIEW
360° VIEW	n/a	33	82	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Telekom Malaysia is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	55	44	50
GROWTH
GROWTH	48	15	51	23
SAFETY
SAFETY	46	54	70	64
COMBINED
COMBINED	59	28	53	34

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Telekom Malaysia the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 50 (better than 50% compared with alternatives), Telekom Malaysia shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Telekom Malaysia. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 65% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 26 which means that the stock price compared with what market professionals expect for future profits is higher than 74% of comparable companies, indicating a low value concerning Telekom Malaysia's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 41 which means that the stock price compared with what market professionals expect for future profit levels is higher than 59% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 48 is also low. Compared with invested capital, the stock price is higher than for 52% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 50, is a buy recommendation based on Telekom Malaysia's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Telekom Malaysia? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Telekom Malaysia only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	50	56	35	26
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	61	43	50	41
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	40	42	37	48
DIVIDEND YIELD
DIVIDEND YIELD	48	58	65	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	52	55	44	50

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Telekom Malaysia; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 23 (better than 23% compared with alternatives), Telekom Malaysia shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Telekom Malaysia. Capital Growth has a rank of 50, which means that currently professionals expect the company to grow its invested capital more than 15% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 71 (above 71% of alternative investments). But Sales Growth has only a rank of 26, which means that, currently, professionals expect the company to grow less than 74% of its competitors, and Profit Growth is also low at a rank of 15. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 23, is a sell recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Telekom Malaysia, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	56	12	16	26
PROFIT GROWTH
PROFIT GROWTH	75	36	81	15
CAPITAL GROWTH
CAPITAL GROWTH	n/a	61	51	50
STOCK RETURNS
STOCK RETURNS	34	39	47	71
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	48	15	51	23

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Telekom Malaysia.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 64 (better than 64% compared with alternatives), the company Telekom Malaysia has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Telekom Malaysia is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Telekom Malaysia. Leverage is at 54, meaning the company has a below-average debt-to-equity ratio. It has less debt than 54% of its competitors. Refinancing is at a rank of 55, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Finally, Liquidity is also good at a rank of 76, which means that the company generates more profit to service its debt than 76% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 64 (better than 64% compared with alternatives), Telekom Malaysia has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Telekom Malaysia but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	49	42	56	54
REFINANCING
REFINANCING	36	63	65	55
LIQUIDITY
LIQUIDITY	67	45	67	76
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	46	54	70	64

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Telekom Malaysia and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	58	74	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	98	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	17	96	^new
MARKET PULSE
MARKET PULSE	n/a	83	83	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	52	100	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Telekom Malaysia.
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