Fundamental Determinants of Stock Prices in the Consumer Goods Industry: Empirical Evidence from PT Indofood CBP Sukses Makmur Tbk, 2017–2024

Abstract

The capital market reflects investors’ perceptions of a company’s performance and prospects, one of which is reflected in its stock price. Return on Assets (ROA), Debt to Equity Ratio (DER), and Earnings Per Share (EPS) are fundamental indicators that may influence stock prices because they represent profitability, debt-related risk, and the company’s ability to generate earnings per share, respectively. At PT Indofood CBP Sukses Makmur Tbk (ICBP), stock price movements during the 2017–2024 period did not always correspond with improvements in financial performance, indicating that investors also consider risk and future expectations. Previous studies examining the effects of ROA, DER, and EPS on stock prices have produced inconsistent findings. This condition represents a research gap, particularly because studies specifically examining these three variables in ICBP during the 2017–2024 period remain limited. Therefore, this study aims to analyze the effects of ROA, DER, and EPS on the stock price of PT Indofood CBP Sukses Makmur Tbk during the 2017–2024 period, both partially and simultaneously. This study employs a quantitative research approach using secondary quantitative data obtained from the company’s financial statements. The data were analyzed using multiple linear regression with SPSS version 29. The results show that, partially, Earnings Per Share (EPS) has a significant effect on the stock price of PT Indofood CBP Sukses Makmur Tbk during 2017–2024.and with low entry costs for partners. However, the "Customer Relationships" and "Key Activities" elements remain weak points, as the KCU's mentoring and advanced training programs have not been implemented consistently. Key supporting factors include trust in the PT. Pos Indonesia brand as a state-owned enterprise (BUMN) and the partners' social capital within their local communities. Conversely, major obstacles include a low ratio of support staff to partners, limited digital literacy, internet network infrastructure constraints, and an incentive structure that is centralized and not yet fully competitive. The impact of the Pos Agent business model on the sustainability of micro-scale retail businesses varies: it is significant for partners with strategic locations and high transaction volumes, supplementary for medium-volume partners, and potentially marginal for low-volume partners.