PT Jasa Marga (Persero) Tbk operates as a leading toll road operator in Indonesia, managing over 1,200 kilometers of toll roads across key regions including Java and Sumatra. The company benefits from a growing middle class and increasing vehicle ownership, which drives traffic volume and toll revenue.
Jasa Marga generates revenue primarily through toll collections on its extensive network of toll roads. The company has pricing power due to the lack of viable alternative routes in many areas, allowing it to increase toll rates periodically in line with inflation and traffic growth.
Traffic volume growth on toll roads, particularly in urban areas like Jakarta
Regulatory changes affecting toll rates and road expansions
Infrastructure investment from the Indonesian government
Economic growth in Indonesia impacting vehicle ownership rates
Potential regulatory changes that could limit toll increases or affect profitability
Competition from alternative transportation modes, including ride-sharing and public transport
Emerging competitors in the toll road sector or alternative infrastructure providers
Increased competition from government-funded road projects
High debt levels may limit financial flexibility and increase vulnerability to economic downturns
Liquidity risk due to a current ratio of 0.58, indicating potential challenges in meeting short-term obligations
high - The company's performance is closely tied to GDP growth, as economic expansion drives increased vehicle usage and toll revenue.
Moderate - Rising interest rates can increase financing costs for new projects, but the company’s existing toll revenue is relatively insulated from rate fluctuations.
moderate - The company has a high debt-to-equity ratio of 2.03, which makes it sensitive to credit conditions and refinancing risks.
value - The stock is currently trading at low valuation multiples (P/S of 0.7x, P/B of 0.6x), appealing to value investors looking for turnaround potential.
high - The stock has shown significant volatility with a 1-year return of -34.5%, indicating higher risk.