FINANCIAL PERFORMANCE ANALYSIS AND THE EFFECT OF FINANCIAL RATIOS ON THE STOCK PRICE OF PT CHAROEN POKPHAND INDONESIA, PT JAPFA COMFEED INDONESIA, AND PT MALINDO FEEDMILL FOR THE PERIOD 2017 – 2022

• Main Author: Laksono Indah Budiasih, Putri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/80906
• Institution: Institut Teknologi Bandung

The expanding population in Indonesia requires an increased supply of poultry and other livestock. PT Charoen Pokphand Indonesia (CPIN), PT Japfa Comfeed Indonesia (JPFA), and PT Malindo Feedmill Indonesia (MAIN) are all prominent companies in the Indonesian agribusiness and food industry. All the three companies are involved in animal feed production, poultry farming, and related activities. They contribute to meeting Indonesia's growing demand for animal protein, including poultry and meat products. This research objective is to determine CPIN, JPFA and MAIN financial health levels based on Ministerial decree of SOE’s KEP-100/BMU/2002 about company’s health condition and Altman Z-Score. This research evaluated and calculated the financial performance of three companies from 2017 – 2022 by doing financial ratio analysis. The result of the company's financial health condition based on KEP100/BMU/2002 are as follow: CPIN (AA, AA, AA, AA, A, A), JPFA (A, AA, A, A, AA, A), and MAIN (BB, A, BBB, BB, BBB, BB). The result of Altman Z-Score assessment shows that CPIN was categorized in safe zone area in that period. JPFA was categorized in safe zone area from 2017-2021 and grey zone in 2022. MAIN was categorized in grey zone area in 2017 and 2019-2022, but at the safe zone in 2018. To summarize, the financial performance of poultry and animal feed companies is declining, particularly in terms of profitability. According financial health result, this research analyse the intrinsic value of MAIN using financial analysis. Considering both external and internal factors, the analysis employs PESTEL, Porter's Five Forces, VRIO, and valuation methods. The company's valuation is indicated at IDR 516 per share using Discounted Cash Flow (DCF), and the Enterprise Value-to-EBITDA ratio indicated at 11.37. Both methods show the stock to be undervalued compared to its intrinsic value. Therefore, the result of this thesis is recommending buying stock in MAIN.