Operating Margin - Indosat Tbk PT (IDX:ISAT)

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Price: 2 170 IDR 0.93%

Market Cap: 70T IDR

18.5%

Current

17%

Average

9.8%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

18.5%

Operating Profit

10.2T

Revenue

55.2T

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
ID		Indosat Tbk PT IDX:ISAT	70T IDR	19%
ZA	M	MTN Group Ltd JSE:MTN	323.6B Zac	24%
ZA	V	Vodacom Group Ltd JSE:VOD	280.1B Zac	22%
US		T-Mobile US Inc NASDAQ:TMUS	221.4B USD	23%
CN		China Mobile Ltd SSE:600941	1.4T CNY	14%
JP		SoftBank Group Corp TSE:9984	24.3T JPY	9%
IN		Bharti Airtel Ltd NSE:BHARTIARTL	11.5T INR	30%
JP		SoftBank Corp TSE:9434	10.2T JPY	14%
JP		KDDI Corp TSE:9433	10.2T JPY	18%
MX		America Movil SAB de CV BMV:AMXB	1.1T MXN	20%
UK		Vodafone Group PLC LSE:VOD	25.7B GBP	12%

Indosat Tbk PT
Glance View

Economic Moat

None

Market Cap

70T IDR

Industry

Telecommunication

In the bustling world of Indonesian telecommunications, Indosat Tbk PT stands as a notable player, weaving connectivity across the archipelago. Founded in 1967, the company has transformed significantly over the decades, evolving from a long-distance telephone service provider to a comprehensive digital communications powerhouse. Indosat, under its brand Indosat Ooredoo Hutchison, stands at the forefront of delivering mobile network services, internet data, and digital solutions, essential for supporting Indonesia’s burgeoning digital economy. The merger between Indosat Ooredoo and Hutchison 3 Indonesia in 2022 has further cemented its position as the second-largest telecom in the region, enabling the organization to expand its network infrastructure, improve service offerings, and achieve greater economies of scale. At the heart of Indosat's business model is its focus on generating revenue through an extensive suite of telecommunications and digital services. Mobile services, including prepaid and postpaid plans, stand as the backbone of its income, catering to the country’s vast population with varying needs and preferences. Additionally, Indosat capitalizes on the growing demand for mobile internet, offering tailored data packages and digital applications that foster customer engagement and loyalty. Beyond individual consumers, the company also targets enterprises with customized solutions, helping businesses navigate Indonesia's dynamic market landscape through secure and efficient connectivity. Through its strategic innovations and significant market presence, Indosat plays an integral role in shaping the future of communication in Indonesia, ensuring accessibility and technological advancement for millions.

View ISAT Analysis

ISAT Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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Indosat Tbk PT
IDX:ISAT