TURKCELL ILETISIM HIZMET-ADR (TKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKC - US9001112047 - ADR
6.69 USD
+0.08 (+1.21%)
6.75 USD
+0.06 (+0.9%)
Overall TKC gets a fundamental rating of 6 out of 10. We evaluated TKC against 22 industry peers in the Wireless Telecommunication Services industry. Both the profitability and the financial health of TKC get a neutral evaluation. Nothing too spectacular is happening here. TKC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make TKC a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- TKC had positive earnings in the past year.
- In the past year TKC had a positive cash flow from operations.
- In the past 5 years TKC has always been profitable.
- Each year in the past 5 years TKC had a positive operating cash flow.
1.2 Ratios
- TKC has a better Return On Assets (4.82%) than 68.18% of its industry peers.
- TKC has a Return On Equity (9.74%) which is in line with its industry peers.
- TKC's Return On Invested Capital of 9.40% is fine compared to the rest of the industry. TKC outperforms 77.27% of its industry peers.
- TKC had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 6.55%.
- The last Return On Invested Capital (9.40%) for TKC is above the 3 year average (3.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 9.74% | ||
| ROIC | 9.4% |
ROA(3y)4.95%
ROA(5y)6.04%
ROE(3y)9.71%
ROE(5y)14.37%
ROIC(3y)3.62%
ROIC(5y)6.29%
1.3 Margins
- TKC's Profit Margin of 7.30% is fine compared to the rest of the industry. TKC outperforms 63.64% of its industry peers.
- TKC's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 16.64%, TKC is doing good in the industry, outperforming 68.18% of the companies in the same industry.
- TKC's Operating Margin has declined in the last couple of years.
- TKC has a Gross Margin of 27.66%. This is amonst the worse of the industry: TKC underperforms 81.82% of its industry peers.
- TKC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.64% | ||
| PM (TTM) | 7.3% | ||
| GM | 27.66% |
OM growth 3Y-14.84%
OM growth 5Y-9.76%
PM growth 3Y0.26%
PM growth 5Y1.79%
GM growth 3Y-6.05%
GM growth 5Y-5.09%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TKC is destroying value.
- The number of shares outstanding for TKC remains at a similar level compared to 1 year ago.
- The number of shares outstanding for TKC has been increased compared to 5 years ago.
- Compared to 1 year ago, TKC has an improved debt to assets ratio.
2.2 Solvency
- TKC has an Altman-Z score of 2.63. 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 (2.63) than 90.91% of its industry peers.
- TKC has a debt to FCF ratio of 13.71. This is a negative value and a sign of low solvency as TKC would need 13.71 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 13.71, TKC perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
- TKC has a Debt/Equity ratio of 0.54. This is a neutral value indicating TKC is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.54, TKC is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 13.71 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.99
WACC9.49%
2.3 Liquidity
- A Current Ratio of 1.75 indicates that TKC should not have too much problems paying its short term obligations.
- TKC has a better Current ratio (1.75) than 95.45% of its industry peers.
- TKC has a Quick Ratio of 1.75. This is a normal value and indicates that TKC is financially healthy and should not expect problems in meeting its short term obligations.
- TKC has a better Quick ratio (1.75) than 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
- The earnings per share for TKC have decreased by -3.18% in the last year.
- Measured over the past years, TKC shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.75% on average per year.
- Looking at the last year, TKC shows a very strong growth in Revenue. The Revenue has grown by 70.48%.
- TKC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.99% yearly.
EPS 1Y (TTM)-3.18%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%-5.95%
Revenue 1Y (TTM)70.48%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%326.16%
3.2 Future
- TKC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.61% yearly.
- Based on estimates for the next years, TKC will show a very strong growth in Revenue. The Revenue will grow by 30.99% on average per year.
EPS Next Y-12.55%
EPS Next 2Y18.06%
EPS Next 3Y25.61%
EPS Next 5YN/A
Revenue Next Year42.5%
Revenue Next 2Y35.24%
Revenue Next 3Y30.15%
Revenue Next 5Y30.99%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.62, the valuation of TKC can be described as very reasonable.
- Based on the Price/Earnings ratio, TKC is valued cheaper than 86.36% of the companies in the same industry.
- TKC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
- With a Price/Forward Earnings ratio of 7.73, the valuation of TKC can be described as very cheap.
- 95.45% of the companies in the same industry are more expensive than TKC, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of TKC to the average of the S&P500 Index (25.72), we can say TKC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
- TKC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TKC is cheaper than 95.45% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TKC is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.14 | ||
| EV/EBITDA | 2.33 |
4.3 Compensation for Growth
- TKC has a very decent profitability rating, which may justify a higher PE ratio.
- TKC's earnings are expected to grow with 25.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y18.06%
EPS Next 3Y25.61%
5. Dividend
5.1 Amount
- TKC has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.98, TKC has a dividend in line with its industry peers.
- TKC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
- On average, the dividend of TKC grows each year by 45.17%, which is quite nice.
- TKC has been paying a dividend for at least 10 years, so it has a reliable track record.
- TKC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)45.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- TKC pays out 49.02% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of TKC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.02%
EPS Next 2Y18.06%
EPS Next 3Y25.61%
TURKCELL ILETISIM HIZMET-ADR / TKC FAQ
What is the fundamental rating for TKC stock?
ChartMill assigns a fundamental rating of 6 / 10 to TKC.
What is the valuation status of TURKCELL ILETISIM HIZMET-ADR (TKC) stock?
ChartMill assigns a valuation rating of 6 / 10 to TURKCELL ILETISIM HIZMET-ADR (TKC). This can be considered as Fairly Valued.
What is the profitability of TKC stock?
TURKCELL ILETISIM HIZMET-ADR (TKC) has a profitability rating of 6 / 10.
What is the financial health of TURKCELL ILETISIM HIZMET-ADR (TKC) stock?
The financial health rating of TURKCELL ILETISIM HIZMET-ADR (TKC) is 5 / 10.
What is the expected EPS growth for TURKCELL ILETISIM HIZMET-ADR (TKC) stock?
The Earnings per Share (EPS) of TURKCELL ILETISIM HIZMET-ADR (TKC) is expected to decline by -12.55% in the next year.