KDB Tifa Finance Tbk PT
KDB Tifa Finance Tbk maintains a debt-to-equity ratio of 0.6, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with free cash flow of 7.34 billion IDR and cash and equivalents of 12.36 billion IDR, but net cash is negative after subtracting total debt. Return on equity stands at 5.44%, and return on assets is 3.25%, both below the typical thresholds for high-performing financial institutions. Profitability metrics show that KDB Tifa Finance Tbk's net income is 66.31 billion IDR, with operating income of 107.08 billion IDR. These figures suggest a healthy operating margin, but the company's return on equity and return on assets are below the median for the Consumer Lending industry, indicating room for improvement in asset utilization and capital efficiency. The company's revenue is distributed across four segments: finance lease, multipurpose financing, sharia financing, and treasury. While the exact revenue contribution of each segment is not disclosed, the company operates through six network offices, with a branch in Surabaya and representative offices in Semarang, Balikpapan, Makassar, and Pekanbaru. This geographic spread suggests a moderate level of regional diversification. Looking ahead, the company's growth trajectory is expected to be influenced by its operating cash flow of 59.67 billion IDR and capital expenditure of -189.17 million IDR. The negative capital expenditure indicates a reduction in investment, which may affect future growth potential. The company's revenue history and outlook suggest a stable but not aggressive growth path. Risk factors include a medium liquidity risk and a low dilution risk. The company's shares outstanding are the same for both basic and diluted shares, indicating no immediate dilution pressure. However, the negative net cash position after subtracting total debt is a key flag to monitor. Recent events and filings do not indicate significant changes in the company's operations or financial strategy. The company's ESG controversies score is 100.0, suggesting a high level of ESG-related controversies, while its governance pillar score is 66.4 and social pillar score is 18.9, indicating mixed ESG performance.
Business. KDB Tifa Finance Tbk (TIFA.JK) provides a range of financing services including investment, sharia, working capital, multipurpose, and infrastructure financing, operating through four segments: finance lease, multipurpose financing, sharia financing, and treasury.
Classification. KDB Tifa Finance Tbk is classified under the Financials sector, Banking & Investment Services business sector, and Consumer Lending industry with a confidence level of 0.92.
- KDB Tifa Finance Tbk has a moderate debt-to-equity ratio of 0.6, suggesting a balanced capital structure.
- The company's return on equity of 5.44% and return on assets of 3.25% are below the median for the Consumer Lending industry.
- Revenue is distributed across four segments, with a geographic presence in Surabaya, Semarang, Balikpapan, Makassar, and Pekanbaru.
- The company's growth trajectory is expected to be stable, with operating cash flow of 59.67 billion IDR and negative capital expenditure.
- Risk factors include medium liquidity risk and a high ESG controversies score of 100.0.
- # RATIONALES
- **margin_outlook_rationale**: The company's operating margin is expected to remain stable due to consistent revenue and controlled operating expenses.
- **rd_outlook_rationale**: Research and development is not a significant factor in the company's operations, as it is primarily a finance company.
- Net cash is negative after subtracting total debt.