TURKCELL ILETISIM HIZMET-ADR (TKC) Stock Fundamental Analysis
NYSE:TKC - New York Stock Exchange, Inc. - US9001112047 - ADR - Currency: USD
Overall TKC gets a fundamental rating of 6 out of 10. We evaluated TKC against 22 industry peers in the Wireless Telecommunication Services industry. TKC has an average financial health and profitability rating. TKC is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make TKC suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
In the past year TKC was profitable.
In the past year TKC had a positive cash flow from operations.
In the past 5 years TKC has always been profitable.
TKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.50%, TKC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.05%, TKC belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
With a Return On Invested Capital value of 3.52%, TKC perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TKC is in line with the industry average of 6.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 14.05% | ||
| ROIC | 3.52% |
ROA(3y)5.04%
ROA(5y)6.09%
ROE(3y)12.95%
ROE(5y)15.45%
ROIC(3y)5.47%
ROIC(5y)8.32%
1.3 Margins
TKC's Profit Margin of 12.89% is amongst the best of the industry. TKC outperforms 90.48% of its industry peers.
TKC's Profit Margin has improved in the last couple of years.
TKC has a Operating Margin of 6.51%. This is comparable to the rest of the industry: TKC outperforms 47.62% of its industry peers.
In the last couple of years the Operating Margin of TKC has declined.
TKC has a worse Gross Margin (17.54%) than 85.71% of its industry peers.
TKC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.51% | ||
| PM (TTM) | 12.89% | ||
| GM | 17.54% |
OM growth 3Y-26.27%
OM growth 5Y-16.33%
PM growth 3Y-6.97%
PM growth 5Y4.31%
GM growth 3Y-11.07%
GM growth 5Y-8.79%
2. Health
2.1 Basic Checks
TKC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TKC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TKC has more shares outstanding
TKC has a better debt/assets ratio than last year.
2.2 Solvency
TKC has an Altman-Z score of 2.71. This is not the best score and indicates that TKC is in the grey zone with still only limited risk for bankruptcy at the moment.
TKC has a better Altman-Z score (2.71) than 95.24% of its industry peers.
TKC has a Debt/Equity ratio of 0.52. This is a neutral value indicating TKC is somewhat dependend on debt financing.
TKC has a better Debt to Equity ratio (0.52) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.71 |
ROIC/WACC0.19
WACC18.13%
2.3 Liquidity
TKC has a Current Ratio of 1.82. This is a normal value and indicates that TKC is financially healthy and should not expect problems in meeting its short term obligations.
TKC's Current ratio of 1.82 is amongst the best of the industry. TKC outperforms 90.48% of its industry peers.
TKC has a Quick Ratio of 1.81. This is a normal value and indicates that TKC is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.81, TKC belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
TKC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.70%, which is quite impressive.
Measured over the past years, TKC shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.11% on average per year.
Looking at the last year, TKC shows a very strong growth in Revenue. The Revenue has grown by 134.92%.
The Revenue has been growing by 38.14% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)40.7%
EPS 3Y43.62%
EPS 5Y44.11%
EPS Q2Q%160.96%
Revenue 1Y (TTM)134.92%
Revenue growth 3Y54.4%
Revenue growth 5Y38.14%
Sales Q2Q%46.53%
3.2 Future
Based on estimates for the next years, TKC will show a very strong growth in Earnings Per Share. The EPS will grow by 39.11% on average per year.
The Revenue is expected to grow by 37.50% on average over the next years. This is a very strong growth
EPS Next Y11.53%
EPS Next 2Y30.8%
EPS Next 3Y39.11%
EPS Next 5YN/A
Revenue Next Year74.18%
Revenue Next 2Y51.44%
Revenue Next 3Y45.08%
Revenue Next 5Y37.5%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.46 indicates a reasonable valuation of TKC.
Compared to the rest of the industry, the Price/Earnings ratio of TKC indicates a rather cheap valuation: TKC is cheaper than 90.48% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TKC to the average of the S&P500 Index (28.58), we can say TKC is valued rather cheaply.
TKC is valuated reasonably with a Price/Forward Earnings ratio of 8.37.
80.95% of the companies in the same industry are more expensive than TKC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.47. TKC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
95.24% of the companies in the same industry are more expensive than TKC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.21 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TKC has a very decent profitability rating, which may justify a higher PE ratio.
TKC's earnings are expected to grow with 39.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)0.21
EPS Next 2Y30.8%
EPS Next 3Y39.11%
5. Dividend
5.1 Amount
TKC has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.33, TKC has a dividend in line with its industry peers.
TKC's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
On average, the dividend of TKC grows each year by 40.69%, which is quite nice.
TKC has paid a dividend for at least 10 years, which is a reliable track record.
TKC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)40.69%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TKC pays out 10.14% of its income as dividend. This is a sustainable payout ratio.
TKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.14%
EPS Next 2Y30.8%
EPS Next 3Y39.11%
TURKCELL ILETISIM HIZMET-ADR
NYSE:TKC (1/24/2025, 8:11:01 PM)
After market: 7.5299 +0.06 (+0.8%)7.47
+0.07 (+0.95%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners11.34%
Inst Owner Change0.03%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.52B
Analysts81.18
Price Target9.68 (29.59%)
Short Float %0.12%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend1.13
Dividend Growth(5Y)40.69%
DP10.14%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.78%
PT rev (3m)-2.24%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-7.1%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.02%
Revenue NY rev (3m)3.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 8.37 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 5.54 | ||
| P/B | 1.33 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 3.21 |
EPS(TTM)0.79
EY10.58%
EPS(NY)0.89
Fwd EY11.95%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)1.35
OCFY18.07%
SpS6.11
BVpS5.6
TBVpS3.17
PEG (NY)0.82
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 14.05% | ||
| ROCE | 4.79% | ||
| ROIC | 3.52% | ||
| ROICexc | 5.16% | ||
| ROICexgc | 8.6% | ||
| OM | 6.51% | ||
| PM (TTM) | 12.89% | ||
| GM | 17.54% | ||
| FCFM | N/A |
ROA(3y)5.04%
ROA(5y)6.09%
ROE(3y)12.95%
ROE(5y)15.45%
ROIC(3y)5.47%
ROIC(5y)8.32%
ROICexc(3y)7.93%
ROICexc(5y)11.92%
ROICexgc(3y)12.93%
ROICexgc(5y)20.38%
ROCE(3y)7.45%
ROCE(5y)11.31%
ROICexcg growth 3Y-33.19%
ROICexcg growth 5Y-16.6%
ROICexc growth 3Y-32.78%
ROICexc growth 5Y-17.23%
OM growth 3Y-26.27%
OM growth 5Y-16.33%
PM growth 3Y-6.97%
PM growth 5Y4.31%
GM growth 3Y-11.07%
GM growth 5Y-8.79%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 73.58% | ||
| Cap/Sales | 22.29% | ||
| Interest Coverage | 1.03 | ||
| Cash Conversion | 60.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 2.71 |
F-Score7
WACC18.13%
ROIC/WACC0.19
Cap/Depr(3y)98.56%
Cap/Depr(5y)107.54%
Cap/Sales(3y)27.53%
Cap/Sales(5y)26.31%
Profit Quality(3y)220.29%
Profit Quality(5y)188.11%
High Growth Momentum
Growth
EPS 1Y (TTM)40.7%
EPS 3Y43.62%
EPS 5Y44.11%
EPS Q2Q%160.96%
EPS Next Y11.53%
EPS Next 2Y30.8%
EPS Next 3Y39.11%
EPS Next 5YN/A
Revenue 1Y (TTM)134.92%
Revenue growth 3Y54.4%
Revenue growth 5Y38.14%
Sales Q2Q%46.53%
Revenue Next Year74.18%
Revenue Next 2Y51.44%
Revenue Next 3Y45.08%
Revenue Next 5Y37.5%
EBIT growth 1Y-42.52%
EBIT growth 3Y13.83%
EBIT growth 5Y15.58%
EBIT Next Year156.35%
EBIT Next 3Y57.97%
EBIT Next 5Y50.16%
FCF growth 1Y-102.13%
FCF growth 3Y38.39%
FCF growth 5Y68.3%
OCF growth 1Y50.02%
OCF growth 3Y50%
OCF growth 5Y48.6%