Equal · Financial Report

Sido Muncul

SIDO/FY2021–FY2025/Educational Analysis/IDR/Data source · 2026-06-19

ROE = tax × interest × margin × turnover × leverage

	FY2021	FY2022	FY2023	FY2024	FY2025
Tax burden	0.80x	0.80x	0.77x	0.79x	0.80x
Interest burden	1.00x	1.00x	1.00x	1.00x	1.00x
Operating margin	39.3%	35.8%	34.6%	37.9%	37.6%
Asset turnoverdriver	0.99x	0.95x	0.92x	0.99x	1.11x
Leverage (equity mult.)	1.17x	1.16x	1.15x	1.13x	1.18x
= Return on Equity (consolidated)	36.3%	31.5%	28.1%	33.6%	39.4%
Return on Invested Capital (ROIC)	36.3%	31.5%	28.1%	33.6%	39.4%

Consolidated (pre-minority-interest) basis; the headline ROE in the ratio grid is owners’ basis.

Liquidity

	FY2021	FY2022	FY2023	FY2024	FY2025
Current Ratio(Current Assets / Current Liabilities)	4.13x	4.06x	4.47x	5.36x	3.86x
Quick Ratio((Current Assets − Inventory) / Current Liabilities)	3.29x	3.05x	3.59x	4.31x	2.95x
Cash Ratio(Cash / Current Liabilities)	1.99x	1.71x	1.80x	2.08x	0.90x
Working Capital(Current Assets − Current Liabilities)	Rp 1.7 T	Rp 1.7 T	Rp 1.6 T	Rp 1.8 T	Rp 1.5 T

Leverage & Solvency

	FY2021	FY2022	FY2023	FY2024	FY2025
Debt to Equity (DER)(Total Debt / Total Equity)	0.00x	0.00x	0.00x	0.00x	0.00x
Liabilities to Equity(Total Liabilities / Total Equity)	0.17x	0.16x	0.15x	0.13x	0.18x
Debt to Assets(Total Debt / Total Assets)	0.00x	0.00x	0.00x	0.00x	0.00x
Net Debt(Total Debt − Cash)	-Rp 1.1 T	-Rp 921 M	-Rp 821 M	-Rp 852 M	-Rp 458 M
Interest Coverage(EBIT / Interest Expense)	2,139.65x	2,154.59x	2,273.75x	1,136.95x	942.08x
Equity Multiplier (Assets ÷ Equity)	1.17x	1.16x	1.15x	1.13x	1.18x

Profitability

	FY2021	FY2022	FY2023	FY2024	FY2025
Gross Margin(Gross Profit / Revenue)	56.9%	56.1%	56.6%	58.7%	58.0%
Operating Margin(EBIT / Revenue)	39.3%	35.8%	34.6%	37.9%	37.6%
Net Margin(Net Income / Revenue)	31.4%	28.6%	26.7%	29.9%	30.1%
EBITDA(EBIT + D&A)	Rp 1.7 T	Rp 1.5 T	Rp 1.3 T	Rp 1.6 T	Rp 1.7 T
EBITDA Margin(EBITDA / Revenue)	41.9%	38.6%	37.5%	40.6%	40.7%
Return on Assets (ROA)(Net Income / Total Assets)	31.0%	27.1%	24.4%	29.7%	33.4%
Return on Equity (ROE)(Net Income (Owners) / Equity (Owners))	36.3%	31.5%	28.1%	33.6%	39.4%
Tax Burden (Net ÷ Pretax)	0.80x	0.80x	0.77x	0.79x	0.80x
Interest Burden (Pretax ÷ EBIT)	1.00x	1.00x	1.00x	1.00x	1.00x
Return on Invested Capital (ROIC)	36.3%	31.5%	28.1%	33.6%	39.4%

Operations & Efficiency

Turnover	FY2021	FY2022	FY2023	FY2024	FY2025
Asset Turnover(Revenue / Total Assets)	0.99x	0.95x	0.92x	0.99x	1.11x
Inventory Turnover(COGS / Inventory)	3.80x	3.13x	3.79x	3.75x	3.67x
Receivables Turnover(Revenue / Receivables)	6.06x	5.63x	4.52x	4.50x	3.94x
Payables Turnover(COGS / Payables)	9.20x	8.11x	8.27x	9.14x	8.11x

Conversion Period	FY2021	FY2022	FY2023	FY2024	FY2025
Days Inventory Outstanding (DIO)(365 × Inventory / COGS)	96.0 days	116.7 days	96.4 days	97.5 days	99.5 days
Days Sales Outstanding (DSO)(365 × Receivables / Revenue)	60.3 days	64.8 days	80.7 days	81.2 days	92.5 days
Days Payable Outstanding (DPO)(365 × Payables / COGS)	39.7 days	45.0 days	44.2 days	39.9 days	45.0 days
Cash Conversion Cycle (CCC)(DIO + DSO − DPO)	116.6 days	136.5 days	132.9 days	138.7 days	147.1 days

Cash Flow

	FY2021	FY2022	FY2023	FY2024	FY2025
Free Cash Flow(Operating Cash Flow − Capex)	Rp 1.1 T	Rp 929 M	Rp 1.0 T	Rp 1.1 T	Rp 1.2 T

Valuation

price as-of 2026-07-31fundamentals: FY2025

Price Rp 362 · market cap Rp 11 T

Multiple	SIDO	Peer median	vs median
P/E	8.67x	9.09x	-5%
P/B	3.42x	1.41x	+142%
P/S	2.61x	0.93x	+182%
EV/EBITDA	6.14x	5.35x	+15%
EV/EBIT	6.64x	6.62x	+0%
EV/Sales	2.50x	0.78x	+221%
FCF Yield	11.21%	7.21%	+55%
Dividend Yield	10.22%	6.85%	+49%

EV = mkt cap Rp 11 T + debt Rp 4.1 M − cash Rp 463 M + minority interest Rp 7 jt = Rp 10 T

What the price implies

At today’s price, the market is paying for 1.8%/yr FCF growth (-1.0% at 12.0% to 4.5% at 16.0% discount rates). Delivered over the last 4 years: 2.6% FCF · 0.4% revenue.

Reverse DCF: single-stage FCF, terminal growth 2.5%, discount band 12.0–16.0% (β=1; build cited in Methodology). Not a forecast.

Forward DCF (glass-box)

This model projects the operating cash the whole business generates, discounts it back at the blended cost of capital, and subtracts net debt. What remains is the equity value, stated per share. Every input below comes from the company's own audited record or from cited market data, and you can adjust each one yourself.

Assumption	Value	Basis
Rf (risk-free)	7.26%	Indonesia 10Y government bond, re-verified 31 Jul 2026
ERP (Rm − Rf)	6.69%	Damodaran Indonesia, Jul 2026 (Baa2, CRP 2.46%)
β	0.89 → 0.89	Drugs (Pharmaceutical) (unlevered) relevered at own D/E 0.00
Cost of equity	13.22%	Rf + β × ERP
Cost of debt	7.66%	median interest coverage 2139.6x (EBIT ÷ interest, FY2021–FY2025) implies a Aaa/AAA synthetic rating and a 0.40% default spread, over a 7.26% base (Indonesia 10Y 7.26%, already the sovereign rate). Its BOOK rate is 39.7%, which is what past debt actually costs; the gap is legacy or subsidised borrowing, not the rate on new debt. Spread table: A. Damodaran, Ratings, Interest Coverage Ratios and Default Spread, January 2026 data update (large non-financial service firms)
Tax rate	20.2%	median effective rate, FY2021–FY2025 (pretax ≈ EBIT − interest)
WACC	13.21%	100% E × CoE + 0% D × Kd × (1 − t)
Revenue growth (yr 1, fading)	0.4%	delivered 4-yr revenue CAGR 0.4%, fading linearly to terminal
EBIT margin	36.7%	mean EBIT margin, last 3 FYs
D&A / revenue	2.9%	mean D&A/revenue, last 3 FYs
Capex / revenue	1.3%	mean capex/revenue, last 3 FYs, for the explicit years. The terminal year instead FUNDS ITS OWN GROWTH: in stable growth g = reinvestment rate x return on capital, and returns are assumed to converge to the 13.2% cost of capital, so the perpetuity reinvests 18.9% of NOPAT and terminal capex is 8.0% of revenue against depreciation of 2.9%. Both simpler rules are wrong in opposite directions: holding the historical ratio charges a build phase in perpetuity, while setting capex equal to depreciation hands the company 2.5% growth forever for no new capital. Because returns converge to the cost of capital, terminal growth here is value-neutral
ΔNWC / Δrevenue	18.2%	median ΔNWC/Δrevenue across the seeded years (NWC = AR + inventory − AP)
Terminal growth	2.5%	BI inflation-target midpoint (2.5% ± 1%)

Growth path

year 1 → fading to terminal over 5 yrs0.4%

EBIT margin36.7%

WACC13.2%

Terminal growth2.5%

Explicit years5

FCFF drivers

FCFF = NOPAT + D&A − capex − ΔNWC

Each default is the company's own historical average, which describes the phase it happened to be in. Switch a driver to Per-year when that phase is ending: a company mid-build does not spend at its peak rate forever, and one in a capex pause does not stay there. The terminal year keeps its own ratios, so a taper you enter here changes the explicit window and leaves the perpetuity coherent.

Capex

% of revenue1.3%

D&A

% of revenue2.9%

ΔNWC

% of the CHANGE in revenue18.2%

Year	+1	+2	+3	+4	+5	T∞
Growth	0.4%	0.9%	1.4%	2.0%	2.5%	2.5%
Revenue	Rp 4.1 T	Rp 4.1 T	Rp 4.2 T	Rp 4.3 T	Rp 4.4 T	Rp 4.5 T
EBIT	Rp 1.5 T	Rp 1.5 T	Rp 1.5 T	Rp 1.6 T	Rp 1.6 T	Rp 1.6 T
NOPAT	Rp 1.2 T	Rp 1.2 T	Rp 1.2 T	Rp 1.3 T	Rp 1.3 T	Rp 1.3 T
+ D&A	Rp 120 M	Rp 121 M	Rp 123 M	Rp 125 M	Rp 128 M	Rp 131 M
− Capex	Rp 55 M	Rp 55 M	Rp 56 M	Rp 57 M	Rp 59 M	Rp 360 M
− ΔNWC	Rp 2.7 M	Rp 6.7 M	Rp 11 M	Rp 15 M	Rp 19 M	Rp 20 M
FCFF	Rp 1.3 T	Rp 1.3 T	Rp 1.3 T	Rp 1.3 T	Rp 1.3 T	Rp 1.1 T
PV	Rp 1.1 T	Rp 989 M	Rp 884 M	Rp 793 M	Rp 716 M	Rp 5.3 T

Check it yourself: revenue × margin = EBIT · NOPAT = EBIT × (1 − tax) · FCFF = NOPAT + D&A − Capex − ΔNWC · PV = FCFF ÷ (1+WACC)^yr · TV = FCFF(T∞) ÷ (WACC − g), discounted from year 5 · equity = EV − net debt − minority · per share = equity ÷ shares outstanding

EV = PV(explicit) Rp 4.5 T + PV(TV) Rp 5.3 T = Rp 9.8 T · TV 54% of EV · − net debt -Rp 458 M − minority Rp 7 jt = equity Rp 10 T ÷ shares outstanding

Model output: Rp 350/share (-3% vs price Rp 362)· exit-multiple check (5.4x): Rp 338

Under these assumptions the model lands close to today's price. The market and these inputs are telling broadly the same story.

Sensitivity (per share, Rp)

g \ WACC	12.2%	13.2%	14.2%
2.0%	368	339	315
2.5%	382	350	324
3.0%	396	362	333

Model output under the stated assumptions. Every input above comes from the company's own audited record or from cited market data, and every one can be adjusted. This is not a price target and not advice.

Educational analysis. Multiples pair today’s price with the latest audited fiscal year (trailing-FY convention); peer figures are the covered peer sample, not the whole market. Never a price target.

Macro backdropfull backdrop + sensitivity map →

BI Rate 5.75%IDR/USD 18,05810Y government bond yield 7.26%Inflation 3.34%(as-of 2026-07-31)

Rupiah weaker(H)GDP/consumption ↑(M)

Income Statement

	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	Rp 4.0 T	Rp 3.9 T	Rp 3.6 T	Rp 3.9 T	Rp 4.1 T
Cost of Goods Sold	Rp 1.7 T	Rp 1.7 T	Rp 1.5 T	Rp 1.6 T	Rp 1.7 T
Gross Profit	Rp 2.3 T	Rp 2.2 T	Rp 2.0 T	Rp 2.3 T	Rp 2.4 T
Operating Income (EBIT)	Rp 1.6 T	Rp 1.4 T	Rp 1.2 T	Rp 1.5 T	Rp 1.5 T
Interest Expense	Rp 739 jt	Rp 642 jt	Rp 542 jt	Rp 1.3 M	Rp 1.6 M
Net Income	Rp 1.3 T	Rp 1.1 T	Rp 951 M	Rp 1.2 T	Rp 1.2 T
Net Income Attributable to Owners	Rp 1.3 T	Rp 1.1 T	Rp 951 M	Rp 1.2 T	Rp 1.2 T
Depreciation & Amortization	Rp 103 M	Rp 107 M	Rp 105 M	Rp 108 M	Rp 126 M

Balance Sheet

	FY2021	FY2022	FY2023	FY2024	FY2025
Cash & Equivalents	Rp 1.1 T	Rp 923 M	Rp 830 M	Rp 856 M	Rp 463 M
Accounts Receivable	Rp 664 M	Rp 687 M	Rp 789 M	Rp 872 M	Rp 1.0 T
Inventory	Rp 456 M	Rp 543 M	Rp 408 M	Rp 432 M	Rp 468 M
Current Assets	Rp 2.2 T	Rp 2.2 T	Rp 2.1 T	Rp 2.2 T	Rp 2.0 T
Total Assets	Rp 4.1 T	Rp 4.1 T	Rp 3.9 T	Rp 3.9 T	Rp 3.7 T
Accounts Payable	Rp 189 M	Rp 209 M	Rp 187 M	Rp 177 M	Rp 212 M
Current Liabilities	Rp 543 M	Rp 541 M	Rp 462 M	Rp 411 M	Rp 515 M
Total Liabilities	Rp 598 M	Rp 576 M	Rp 505 M	Rp 452 M	Rp 561 M
Total Interest-Bearing Debt	Rp 8.7 M	Rp 2.4 M	Rp 9.4 M	Rp 3.3 M	Rp 4.1 M
Total Equity	Rp 3.5 T	Rp 3.5 T	Rp 3.4 T	Rp 3.5 T	Rp 3.1 T
Equity Attributable to Owners	Rp 3.5 T	Rp 3.5 T	Rp 3.4 T	Rp 3.5 T	Rp 3.1 T

Cash Flow Statement

	FY2021	FY2022	FY2023	FY2024	FY2025
Operating Cash Flow	Rp 1.2 T	Rp 1.1 T	Rp 1.1 T	Rp 1.2 T	Rp 1.3 T
Capital Expenditure	Rp 123 M	Rp 178 M	Rp 50 M	Rp 46 M	Rp 59 M

Company Deep Analysis

Reviewed: 2026-06-26

Analyst Verdict

Sido Muncul is Indonesia’s leading maker of herbal medicine (jamu) and consumer health, led by Tolak Angin (the dominant herbal cold remedy), Kuku Bima Ener-G energy drinks and a range of supplements. It is the quality outlier in healthcare: the highest margins in the group (gross ~58%, net ~30%) and the best returns (ROE rising 28%→39%, FY22–25), all net-cash and asset-light. What sets it apart from the pharma names is that its herbal inputs are sourced locally, so it barely depends on imports or FX, and it owns an irreplaceable heritage brand. This is a high-margin, high-return defensive compounder, and the things that move it are Tolak Angin volume, the broader health-and-herbal trend, and how far export expansion runs.

Business Model

Indonesia’s largest herbal-medicine (jamu) and consumer-health company, with three segments: herbal/supplements (flagship Tolak Angin), food & beverage (Kuku Bima Ener-G energy drinks, herbal beverages) and pharmaceuticals. It sources herbal raw materials largely domestically and runs an asset-light, high-margin, net-cash model with strong dividends. Tolak Angin is a category-defining brand.

Operating Model (Business Process)

01Source the herbs at home (the cost and FX edge)
SIDO buys its botanical raw materials largely inside Indonesia, unlike pharma names that import active ingredients.
EconomicsLocal sourcing keeps the biggest cost low AND removes FX exposure: this is the structural reason gross margin (~58%) beats import-reliant pharma.
02Turn cheap herbs into a branded product
It formulates and manufactures branded consumer-health products (flagship Tolak Angin, Kuku Bima) on a relatively asset-light plant base.
EconomicsLow input cost plus branded output plus a light asset base is what lifts operating margin to ~38%: the product sells for far more than the herbs cost to buy and process.
03Sell the brand, not the ingredient (pricing power)
Tolak Angin is a category-defining heritage brand; SIDO prices it well above input cost and raises price over time.
EconomicsThat brand premium is the margin pool: it carries net margin to ~30%, the highest in Indonesian healthcare.
04Earn it on a tiny asset base (why ROE is elite)
Because the model is asset-light and carries net cash, the equity base stays small relative to the profit it earns.
EconomicsThat is the lever that turns high margins into ROE of ~30–39% (a dip to 28% in FY23), the best returns in the group.
05Return the cash (a harvester, not a builder)
Growth needs little new capital, so SIDO pays most of its steady free cash flow (~Rp0.9–1.2tn) out as high dividends.
EconomicsThis is the signature of a mature, high-return brand: it compounds shareholder value by distributing cash rather than reinvesting heavily.

Cost structureInput-light, brand-heavy. The biggest cost, herbal raw material, is sourced domestically, so it is both cheap and FX-free unlike import-reliant pharma; manufacturing is asset-light. So most of the price a customer pays is brand margin, not cost, which is the structural source of the ~58% gross and ~38% operating margins. The main cost risk is modest: harvest and weather can nudge botanical input prices.

Cash cycleShort and self-funding. SIDO sells fast-moving consumer-health products through distributors and collects quickly, and it carries net cash, so it funds its own growth and dividends from operating cash flow (~Rp0.9–1.2tn) without borrowing. Working capital is light because the whole asset base is light.

Unit economicsPer product, the local-herb input is a small fraction of the shelf price and the rest is brand margin. Because the plants and working capital are light, almost every extra unit sold at that margin flows through to profit and then to cash, which is why a high-margin income statement becomes an even-higher ROE on a small, net-cash balance sheet.

Segments

Herbal & supplements (Tolak Angin: the profit engine) and Food & Beverage (Kuku Bima Ener-G) dominate, with a smaller pharma arm. The local-herbal sourcing model delivers the highest margins in healthcare (gross ~58%, operating ~38%) and best-in-class returns (ROE ~30–39%), with minimal debt.

Value Chain & Positioning

Local herbal/botanical sourcing → extraction & manufacturing → branded marketing → distribution → retail. SIDO’s margin pool is its dominant heritage brands (Tolak Angin) priced well above input cost, with locally-sourced inputs giving a structural cost and FX advantage over import-dependent pharma: the source of sector-leading margins.

Competitive Forces (Porter’s 5)

Supplier powerLow

How much leverage input/funding providers have over pricing.

Herbal/botanical inputs are largely domestic and abundant, unlike import-dependent pharma APIs.

Implication → A structural cost and FX advantage: the foundation of the highest margins in healthcare (gross ~58%).

Buyer powerLow

How much leverage customers have to push prices down.

Tolak Angin and Kuku Bima are category-defining brands with deep loyalty.

Implication → Strong pricing power underpins ~38% operating margins and ~30%+ ROE.

Threat of new entryLow

How easily new competitors can enter the market.

Heritage brands, herbal expertise and distribution are formidable barriers; Tolak Angin is iconic.

Implication → The franchise is highly defensible: the brand is essentially irreplaceable.

Threat of substitutesMedium

Risk that alternative products/services replace demand.

Modern pharma OTC, other jamu and home remedies substitute.

Implication → Caps the category, but the trusted brand and health trend defend it.

Competitive rivalryMedium

Intensity of competition among existing players.

Competes with pharma OTC (KLBF) and other herbal/beverage players.

Implication → Brand dominance limits direct pressure; SIDO leads the herbal niche.

Moat / Competitive Edge

Wide. SIDO’s moat is its iconic heritage brands, Tolak Angin is synonymous with herbal cold relief, plus herbal-formulation expertise, distribution and locally-sourced inputs that give a structural cost (and FX) advantage over import-reliant pharma. This delivers the highest margins and returns in healthcare on an asset-light, net-cash base. The limit: it is concentrated in a few flagship brands and a culturally-specific (jamu) category.

Key Drivers & Sensitivities

Brand / volume (Tolak Angin)
The core engine. Tolak Angin’s dominance and volume drive the high-margin mix; deepening household penetration sustains growth.
Health / herbal trend
Rising natural-health and immunity awareness expands the herbal-supplement market: a structural tailwind.
Export expansion
Growing exports (regional, Middle East) are a long-term growth runway beyond a large home market.
Local-herbal input costs
Domestic botanical sourcing keeps costs low and FX exposure minimal: a margin advantage vs pharma; harvest/weather can move input costs modestly.
Pricing / premiumisation
Brand strength allows price increases and premium supplements, protecting sector-leading margins.

Earnings Quality

Pristine. Operating cash flow tracks net income closely (OCF/NI ~0.95–1.11x) with no debt, no leverage games and no one-off gains, the earnings are exactly what they look like. The only wobble is operating: FY2023 saw ROE dip to 28% on softer demand and a slightly lower margin before recovering to a record 39% by FY2025. High-quality, cash-backed profit from a fortress balance sheet.

Checked: no material one-offs found in the reviewed window.

Cash conversionOCF runs at roughly 1x net income every year (0.95–1.11x), light working capital and no debt mean profit converts almost fully to cash, which is what funds the very high dividend.

Capital Allocation

Harvester: returns cash, limited reinvestment

An extreme harvester: SIDO returns MORE than it earns. With a dividend payout above 100% (~112% of earnings), it is deliberately paying out its profit AND drawing down its net-cash pile, because an asset-light, high-return brand simply needs very little capital reinvested. Capex is tiny (1–5% of revenue) and the balance sheet stays net cash.

DeploymentMinimal reinvestment (capex 1–5% of revenue), zero debt, and a dividend above 100% of earnings, the surplus cash is returned rather than hoarded or deployed. The definition of a cash cow.

Returns trendROE (and ROIC, since there is no debt) runs an exceptional 28–39%, dipping to 28% in the soft FY2023 and rising to a record 39% by FY2025, the highest returns in the coverage, sustained by brand pricing on a tiny asset base.

Linkages

Tied to consumer health spending (defensive, even counter-cyclical: herbal remedies sell in downturns), the natural-health trend and domestic agriculture (herbal inputs). Minimal import/FX exposure (a structural advantage over pharma). A defensive consumption play with low macro sensitivity.

Recent Developments

FY21–25 is a compounding story, and the reason it compounds so hard is structural. SIDO is asset-light and holds net cash, so its equity base is tiny relative to the profit it earns, that is the lever that turns a high gross margin (~56–59%) and net margin (~27–30%) into an exceptional ROE, which ran 36% (FY21), dipped to 28% in a softer-demand FY2023, then rose to a record 39% by FY2025. Because the business needs almost no reinvested capital (capex 1–5% of revenue), it converts nearly all its profit to cash and returns more than it earns, a dividend payout above 100% that draws gently on its net-cash pile. The one caveat: the FY2023 dip showed that even this defensive, high-return name is not immune to a weak consumer year. Locally-sourced herbal inputs keep it largely free of the FX and import-cost pressure that squeezes the pharma names.

Regulation

Regulated by BPOM (herbal/traditional-medicine and supplement registration, GMP) and the Ministry of Health; halal certification is important for its products. Traditional-medicine (jamu/OMAI: standardised herbal) and food/beverage rules apply. Listed on the IDX.

ESG & Sustainability

Material issues: sustainable sourcing of herbal/botanical raw materials (and supporting farmer livelihoods), product quality/safety, and packaging. Governance reflects founding-family control with professional management. The local-sourcing model has positive social/supply-chain impact; halal compliance is core.

Red-Flag Protocol

Brand concentrationwatch
Returns rest on a few flagship brands (Tolak Angin above all) in the culturally specific jamu/herbal category; a shift in that single franchise would matter disproportionately.
Demand cyclicalitywatch
The FY2023 dip (ROE 31%→28%, lower margin) showed that even this "defensive" name softens in a weak consumer year, it is less staple-like than its margins suggest.
Payout above 100%none found
Paying out ~112% of earnings draws down the net-cash cushion; deliberate and sustainable for now given the fortress balance sheet and light capital needs, but not a lever that can rise further.
Earnings qualitynone found
Pristine: cash-backed (OCF ~1x net income), net cash, no one-offs.

Risks

Concentration in flagship brands (Tolak Angin)
Category limits of jamu / herbal vs modern pharma
Competition from pharma OTC and other herbal players
Herbal-input (harvest/weather) cost variability
Regulatory (BPOM) and product-claim risk

Outlook & What to Watch

The highest-quality name in healthcare: iconic brands, sector-best margins and returns, net cash and a local-sourcing cost edge, riding the natural-health trend with export upside. The base case is sustained high-margin growth; the swing factors are flagship-brand volume and export expansion. (Interpretation, not a forecast.)

Key KPIs

Gross margin: Gross profit ÷ revenue: sector-best (~58%)
ROE: Net income ÷ equity: highest in healthcare (~30–39%)
ROIC: Return on invested capital: very high, asset-light
Net margin: Net income ÷ revenue: ~30%
FCF: Free cash flow: funds high dividends

Sources

Curated narrative (educational interpretation), backed by the linked sources. The figures above are deterministic. Not investment advice.