TURKCELL ILETISIM HIZMET-ADR (TKC) Stock Fundamental Analysis
NYSE:TKC - New York Stock Exchange, Inc. - US9001112047 - ADR - Currency: USD
TKC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 21 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make TKC a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year TKC was profitable.
TKC had a positive operating cash flow in the past year.
TKC had positive earnings in each of the past 5 years.
In the past 5 years TKC always reported a positive cash flow from operatings.
1.2 Ratios
TKC's Return On Assets of 6.36% is amongst the best of the industry. TKC outperforms 95.24% of its industry peers.
TKC has a better Return On Equity (12.68%) than 71.43% of its industry peers.
With a Return On Invested Capital value of 6.30%, TKC perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TKC is below the industry average of 6.34%.
The 3 year average ROIC (3.62%) for TKC is below the current ROIC(6.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 12.68% | ||
| ROIC | 6.3% |
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 has a Profit Margin of 12.40%. This is amongst the best in the industry. TKC outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of TKC has grown nicely.
TKC has a better Operating Margin (14.46%) than 61.90% of its industry peers.
In the last couple of years the Operating Margin of TKC has declined.
TKC's Gross Margin of 25.51% is on the low side compared to the rest of the industry. TKC is outperformed by 85.71% of its industry peers.
In the last couple of years the Gross Margin of TKC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.46% | ||
| PM (TTM) | 12.4% | ||
| GM | 25.51% |
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%
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.
TKC has about the same amout of shares outstanding than it did 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
An Altman-Z score of 2.37 indicates that TKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TKC (2.37) is better than 95.24% of its industry peers.
TKC has a debt to FCF ratio of 201.59. This is a negative value and a sign of low solvency as TKC would need 201.59 years to pay back of all of its debts.
TKC's Debt to FCF ratio of 201.59 is on the low side compared to the rest of the industry. TKC is outperformed by 80.95% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that TKC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, TKC belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 201.59 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.67
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.73 indicates that TKC should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.73, TKC belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
A Quick Ratio of 1.72 indicates that TKC should not have too much problems paying its short term obligations.
TKC has a Quick ratio of 1.72. This is amongst the best in the industry. TKC outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 111.69% over the past year.
TKC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.75% yearly.
The Revenue has grown by 74.14% in the past year. This is a very strong growth!
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)111.69%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%8.46%
Revenue 1Y (TTM)74.14%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%49.57%
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 50.24% on average per year.
TKC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.90% yearly.
EPS Next Y19.01%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
EPS Next 5YN/A
Revenue Next Year29.03%
Revenue Next 2Y29.53%
Revenue Next 3Y28.99%
Revenue Next 5Y32.9%
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.
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
The Price/Earnings ratio is 7.66, which indicates a rather cheap valuation of TKC.
Based on the Price/Earnings ratio, TKC is valued cheaper than 95.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of TKC to the average of the S&P500 Index (27.30), we can say TKC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.67, the valuation of TKC can be described as very cheap.
Based on the Price/Forward Earnings ratio, TKC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TKC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.66 | ||
| Fwd PE | 3.67 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than TKC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TKC is valued expensively inside the industry as 80.95% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 271.47 | ||
| EV/EBITDA | 2.68 |
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.
The decent profitability rating of TKC may justify a higher PE ratio.
TKC's earnings are expected to grow with 50.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)0.16
EPS Next 2Y53.27%
EPS Next 3Y50.24%
5. Dividend
5.1 Amount
TKC has a Yearly Dividend Yield of 3.71%.
Compared to an average industry Dividend Yield of 5.06, TKC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, TKC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
The dividend of TKC is nicely growing with an annual growth rate of 45.17%!
TKC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TKC decreased in the last 3 years.
Dividend Growth(5Y)45.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TKC pays out 27.49% of its income as dividend. This is a sustainable payout ratio.
TKC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP27.49%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
5.82
-0.02 (-0.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners10.51%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.07B
Analysts82.67
Price Target9.25 (58.93%)
Short Float %0.26%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend0.21
Dividend Growth(5Y)45.17%
DP27.49%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-3.48%
PT rev (3m)-1.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-8.2%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.66 | ||
| Fwd PE | 3.67 | ||
| P/S | 0.95 | ||
| P/FCF | 271.47 | ||
| P/OCF | 3.49 | ||
| P/B | 0.97 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 2.68 |
EPS(TTM)0.76
EY13.06%
EPS(NY)1.59
Fwd EY27.27%
FCF(TTM)0.02
FCFY0.37%
OCF(TTM)1.67
OCFY28.63%
SpS6.15
BVpS6.02
TBVpS3.45
PEG (NY)0.4
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 12.68% | ||
| ROCE | 9.52% | ||
| ROIC | 6.3% | ||
| ROICexc | 9.48% | ||
| ROICexgc | 15.63% | ||
| OM | 14.46% | ||
| PM (TTM) | 12.4% | ||
| GM | 25.51% | ||
| FCFM | 0.35% |
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%
ROICexcg growth 3Y-15%
ROICexcg 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-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 201.59 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 114.25% | ||
| Cap/Sales | 26.72% | ||
| Interest Coverage | 2.02 | ||
| Cash Conversion | 71.53% | ||
| Profit Quality | 2.81% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.37 |
F-Score8
WACC9.36%
ROIC/WACC0.67
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)111.69%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%8.46%
EPS Next Y19.01%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
EPS Next 5YN/A
Revenue 1Y (TTM)74.14%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%49.57%
Revenue Next Year29.03%
Revenue Next 2Y29.53%
Revenue Next 3Y28.99%
Revenue Next 5Y32.9%
EBIT growth 1Y229.75%
EBIT growth 3Y42.04%
EBIT growth 5Y31.74%
EBIT Next Year295.46%
EBIT Next 3Y86.84%
EBIT Next 5Y77.74%
FCF growth 1Y-91.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y131.77%
OCF growth 3Y32.41%
OCF growth 5Y37.83%