Assessment of The Feasibility of Investment in PT Cikarang Listrindo Tbk (POWR) Shares in The Indonesian Sharia Stock Index (ISSI) for Investment Decisions

Autor(s): Yudhistira Pramana Andaka, Muhammad Wahyu Nurdin, Mujakir Mujakir
DOI: 10.35760/ugefic.v8i1.114

Abstract

This study assesses the investment feasibility of PT Cikarang Listrindo Tbk (POWR) shares, listed on the Indonesian Sharia Stock Index (ISSI). Using a combination of fundamental and technical analysis, the results suggest that POWR shares are suitable for long-term investment. In terms of valuation, the company is considered undervalued by its Price to Earnings Ratio (PER) and fairly valued by its Price to Book Value (PBV). Its Earnings Per Share (EPS) and Book Value Per Share (BVPS) ratios are above the sub-sector average. The company's solvency ratios are healthy, and its liquidity ratios are extreme, though cash management needs to be optimized. Despite a drop in profitability due to rising fuel costs, the company maintains healthy profit margins. POWR is also committed to sustainable growth, expanding into renewable energy through a new subsidiary and planning a new data center business. However, a high dividend payout ratio (up to 96%) risks depleting cash flow and hindering business expansion, as reflected by negative net cash changes in 2023 and 2024.

Keywords

Investment; Sharia Stocks; POWR; Fundamental Analysis; Financial Ratios.

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DOI: http://dx.doi.org/10.35760/ugefic.v8i1.114

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