TURKCELL ILETISIM HIZMET-ADR (TKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TKC - US9001112047 - ADR
6.13 USD
+0.04 (+0.66%)
6.07 USD
-0.06 (-0.98%)
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 not overvalued while it is showing excellent growth. This is an interesting combination. 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.
- TKC had a positive operating cash flow in the past year.
- Each year in the past 5 years TKC has been profitable.
- In the past 5 years TKC always reported a positive cash flow from operatings.
1.2 Ratios
- TKC has a better Return On Assets (5.36%) than 68.18% of its industry peers.
- TKC has a Return On Equity of 11.17%. This is in the better half of the industry: TKC outperforms 63.64% of its industry peers.
- With a Return On Invested Capital value of 3.88%, TKC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- TKC had an Average Return On Invested Capital over the past 3 years of 3.62%. This is below the industry average of 6.24%.
- The last Return On Invested Capital (3.88%) for TKC is above the 3 year average (3.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 11.17% | ||
| ROIC | 3.88% |
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 12.70% is fine compared to the rest of the industry. TKC outperforms 72.73% of its industry peers.
- TKC's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 10.62%, TKC perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
- In the last couple of years the Operating Margin of TKC has declined.
- TKC has a worse Gross Margin (27.02%) than 81.82% of its industry peers.
- TKC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.62% | ||
| PM (TTM) | 12.7% | ||
| GM | 27.02% |
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
- 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.
- TKC has more shares outstanding than it did 5 years ago.
- TKC has a better debt/assets ratio than last year.
2.2 Solvency
- TKC has an Altman-Z score of 2.13. 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.
- The Altman-Z score of TKC (2.13) is better than 81.82% of its industry peers.
- The Debt to FCF ratio of TKC is 16.04, which is on the high side as it means it would take TKC, 16.04 years of fcf income to pay off all of its debts.
- TKC has a Debt to FCF ratio of 16.04. This is comparable to the rest of the industry: TKC outperforms 40.91% of its industry peers.
- A Debt/Equity ratio of 0.58 indicates that TKC is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.58, TKC perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.04 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.41
WACC9.41%
2.3 Liquidity
- TKC has a Current Ratio of 1.69. 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 Current ratio of 1.69. This is amongst the best in the industry. TKC outperforms 90.91% of its industry peers.
- A Quick Ratio of 1.69 indicates that TKC should not have too much problems paying its short term obligations.
- TKC has a better Quick ratio (1.69) than 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 56.73% over the past 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 quite strong growth in Revenue. The Revenue has grown by 9.78% in the last year.
- Measured over the past years, TKC shows a very strong growth in Revenue. The Revenue has been growing by 45.99% on average per year.
EPS 1Y (TTM)56.73%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%-32.75%
Revenue 1Y (TTM)9.78%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%256.57%
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 27.63% on average per year.
- The Revenue is expected to grow by 30.99% on average over the next years. This is a very strong growth
EPS Next Y-9.1%
EPS Next 2Y21.92%
EPS Next 3Y27.63%
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
- TKC is valuated reasonably with a Price/Earnings ratio of 9.43.
- TKC's Price/Earnings ratio is rather cheap when compared to the industry. TKC is cheaper than 90.91% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, TKC is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 6.63, the valuation of TKC can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TKC indicates a rather cheap valuation: TKC is cheaper than 100.00% of the companies listed in the same industry.
- TKC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TKC is valued cheaper than 90.91% 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 | 21.44 | ||
| EV/EBITDA | 3.41 |
4.3 Compensation for Growth
- TKC's earnings are expected to grow with 27.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y21.92%
EPS Next 3Y27.63%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.51%, TKC has a reasonable but not impressive dividend return.
- TKC's Dividend Yield is comparable with the industry average which is at 6.15.
- TKC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
- The dividend of TKC is nicely growing with an annual growth rate of 45.17%!
- TKC has paid a dividend for at least 10 years, which is 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
- 44.74% of the earnings are spent on dividend by TKC. This is a bit on the high side, but may be sustainable.
- TKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.74%
EPS Next 2Y21.92%
EPS Next 3Y27.63%
6.13
+0.04 (+0.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)11-06 2025-11-06
Earnings (Next)02-25 2026-02-25/bmo
Inst Owners11.92%
Inst Owner Change0.32%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.34B
Revenue(TTM)193.24B
Net Income(TTM)24.53B
Analysts82.86
Price Target8.14 (32.79%)
Short Float %0.04%
Short Ratio0.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
Yearly Dividend0.19
Dividend Growth(5Y)45.17%
DP44.74%
Div Incr Years2
Div Non Decr Years2
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)-3.97%
PT rev (3m)-7.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.11%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 6.63 | ||
| P/S | 1.2 | ||
| P/FCF | 21.44 | ||
| P/OCF | 3.3 | ||
| P/B | 1.05 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 3.41 |
EPS(TTM)0.65
EY10.6%
EPS(NY)0.92
Fwd EY15.09%
FCF(TTM)0.29
FCFY4.66%
OCF(TTM)1.86
OCFY30.35%
SpS5.12
BVpS5.83
TBVpS3.34
PEG (NY)N/A
PEG (5Y)0.19
Graham Number9.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 11.17% | ||
| ROCE | 5.78% | ||
| ROIC | 3.88% | ||
| ROICexc | 5.95% | ||
| ROICexgc | 9.75% | ||
| OM | 10.62% | ||
| PM (TTM) | 12.7% | ||
| GM | 27.02% | ||
| FCFM | 5.58% |
ROA(3y)4.95%
ROA(5y)6.04%
ROE(3y)9.71%
ROE(5y)14.37%
ROIC(3y)3.62%
ROIC(5y)6.29%
ROICexc(3y)5.04%
ROICexc(5y)8.99%
ROICexgc(3y)8.58%
ROICexgc(5y)15.05%
ROCE(3y)5.61%
ROCE(5y)9.7%
ROICexgc growth 3Y-15%
ROICexgc growth 5Y-13.41%
ROICexc growth 3Y-17.01%
ROICexc growth 5Y-12.51%
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%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.04 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 110.94% | ||
| Cap/Sales | 30.72% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 94.75% | ||
| Profit Quality | 43.94% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 2.13 |
F-Score6
WACC9.41%
ROIC/WACC0.41
Cap/Depr(3y)90.31%
Cap/Depr(5y)105.08%
Cap/Sales(3y)28.83%
Cap/Sales(5y)27.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)56.73%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%-32.75%
EPS Next Y-9.1%
EPS Next 2Y21.92%
EPS Next 3Y27.63%
EPS Next 5YN/A
Revenue 1Y (TTM)9.78%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%256.57%
Revenue Next Year42.5%
Revenue Next 2Y35.24%
Revenue Next 3Y30.15%
Revenue Next 5Y30.99%
EBIT growth 1Y-6.58%
EBIT growth 3Y42.04%
EBIT growth 5Y31.74%
EBIT Next Year328.99%
EBIT Next 3Y89.5%
EBIT Next 5Y64.04%
FCF growth 1Y-17.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y105.16%
OCF growth 3Y32.41%
OCF growth 5Y37.83%
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 5 / 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 -9.1% in the next year.