ISAT:IDXPT Indosat Tbk Class B Analysis

Revenue grew 12.1% YoY in Q1 2026, pushing EBITDA margin to roughly 48% and delivering an EPS of IDR 176.47. Profitability remains solid with a gross margin above 55% and a ROE near 15%, while the company pays a generous 5.14% dividend yield at a 47.5% payout ratio. Valuation metrics are attractive, as the price‑to‑earnings sits at ~12× versus an industry average of 17× and the DCF model suggests a fair value of about IDR 3,827, implying roughly 29% upside. However, the balance sheet is heavily leveraged, with a debt‑to‑equity ratio exceeding 130 and total debt far outweighing cash reserves. Technical signals are mixed: the stock trades below its 20‑day SMA, the MACD histogram is negative, and volume has been decreasing, indicating short‑term bearish pressure. Market sentiment is exuberant, reflected by an extreme‑greed reading of 93.25 on the fear‑and‑greed index.
The low beta of 0.40 suggests limited market‑wide volatility, yet 30‑day price swings are high at over 40%, highlighting company‑specific risk. The neutral trend and RSI around 50 point to a market in balance, while support around IDR 2,000 and resistance near IDR 2,380 define a relatively wide trading range. Given the strong cash flow generation and dividend yield, the dividend appears sustainable for now, but the heavy debt load warrants close monitoring. Overall, the fundamentals and valuation present a compelling case for upside, but technical weakness and leverage introduce caution.