TURKCELL ILETISIM HIZMET-ADR (TKC) Stock Fundamental Analysis
NYSE:TKC - New York Stock Exchange, Inc. - US9001112047 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to TKC. TKC was compared to 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. An interesting combination arises when we look at growth and value: TKC is growing strongly while it also seems undervalued.
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.
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
With an excellent Return On Assets value of 7.66%, TKC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of TKC (14.11%) is better than 71.43% of its industry peers.
TKC has a Return On Invested Capital of 6.52%. This is comparable to the rest of the industry: TKC outperforms 57.14% of its industry peers.
TKC had an Average Return On Invested Capital over the past 3 years of 3.52%. This is below the industry average of 6.12%.
The 3 year average ROIC (3.52%) for TKC is below the current ROIC(6.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 14.11% | ||
| ROIC | 6.52% |
ROA(3y)4.95%
ROA(5y)6.04%
ROE(3y)9.71%
ROE(5y)14.37%
ROIC(3y)3.52%
ROIC(5y)6.23%
1.3 Margins
TKC has a better Profit Margin (13.18%) than 95.24% of its industry peers.
TKC's Profit Margin has improved in the last couple of years.
TKC's Operating Margin of 12.71% is fine compared to the rest of the industry. TKC outperforms 61.90% of its industry peers.
TKC's Operating Margin has declined in the last couple of years.
TKC has a Gross Margin of 24.15%. This is amonst the worse of the industry: TKC underperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of TKC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.71% | ||
| PM (TTM) | 13.18% | ||
| GM | 24.15% |
OM growth 3Y-16.37%
OM growth 5Y-10.73%
PM growth 3Y0.26%
PM growth 5Y1.79%
GM growth 3Y-6.05%
GM growth 5Y-5.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TKC is destroying value.
Compared to 1 year ago, TKC has about the same amount of shares outstanding.
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 2.57. 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.
Looking at the Altman-Z score, with a value of 2.57, TKC belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
TKC has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.37, TKC belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.57 |
ROIC/WACC0.38
WACC17.34%
2.3 Liquidity
A Current Ratio of 1.25 indicates that TKC should not have too much problems paying its short term obligations.
TKC's Current ratio of 1.25 is in line compared to the rest of the industry. TKC outperforms 47.62% of its industry peers.
A Quick Ratio of 1.24 indicates that TKC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.24, TKC is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
TKC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.50%, which is quite impressive.
The Earnings Per Share has been growing by 48.75% on average over the past years. This is a very strong growth
Looking at the last year, TKC shows a very strong growth in Revenue. The Revenue has grown by 86.79%.
The Revenue has been growing by 45.99% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)110.5%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%172.62%
Revenue 1Y (TTM)86.79%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%23.42%
3.2 Future
The Earnings Per Share is expected to grow by 50.24% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 31.57% on average over the next years. This is a very strong growth
EPS Next Y19.01%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
EPS Next 5YN/A
Revenue Next Year30.22%
Revenue Next 2Y28.44%
Revenue Next 3Y31.67%
Revenue Next 5Y31.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 7.62, the valuation of TKC can be described as very cheap.
95.24% of the companies in the same industry are more expensive than TKC, based on the Price/Earnings ratio.
TKC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 7.15, the valuation of TKC can be described as very cheap.
Based on the Price/Forward Earnings ratio, TKC is valued cheaper than 100.00% of the companies 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 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKC is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.79 |
4.3 Compensation for Growth
TKC's 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.
A more expensive valuation may be justified as TKC's earnings are expected to grow with 50.24% in the coming years.
PEG (NY)0.4
PEG (5Y)0.16
EPS Next 2Y53.27%
EPS Next 3Y50.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.97%, TKC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.32, TKC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, TKC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
On average, the dividend of TKC grows each year by 45.17%, 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)45.17%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TKC pays out 27.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of TKC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP27.73%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
6.02
+0.05 (+0.84%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners10.58%
Inst Owner Change0.26%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.25B
Analysts81.33
Price Target9.36 (55.48%)
Short Float %0.15%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend0.22
Dividend Growth(5Y)45.17%
DP27.73%
Div Incr Years4
Div Non Decr Years4
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)-6.29%
PT rev (3m)-3.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-8.38%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.15 | ||
| P/S | 1 | ||
| P/FCF | N/A | ||
| P/OCF | 4.06 | ||
| P/B | 1.07 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 2.79 |
EPS(TTM)0.79
EY13.12%
EPS(NY)0.84
Fwd EY13.99%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)1.48
OCFY24.6%
SpS6.03
BVpS5.63
TBVpS3.17
PEG (NY)0.4
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 14.11% | ||
| ROCE | 10.04% | ||
| ROIC | 6.52% | ||
| ROICexc | 9.09% | ||
| ROICexgc | 15.71% | ||
| OM | 12.71% | ||
| PM (TTM) | 13.18% | ||
| GM | 24.15% | ||
| FCFM | N/A |
ROA(3y)4.95%
ROA(5y)6.04%
ROE(3y)9.71%
ROE(5y)14.37%
ROIC(3y)3.52%
ROIC(5y)6.23%
ROICexc(3y)4.89%
ROICexc(5y)8.91%
ROICexgc(3y)8.33%
ROICexgc(5y)14.9%
ROCE(3y)5.45%
ROCE(5y)9.6%
ROICexcg growth 3Y-16.53%
ROICexcg growth 5Y-14.35%
ROICexc growth 3Y-18.5%
ROICexc growth 5Y-13.46%
OM growth 3Y-16.37%
OM growth 5Y-10.73%
PM growth 3Y0.26%
PM growth 5Y1.79%
GM growth 3Y-6.05%
GM growth 5Y-5.09%
F-Score8
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 107.39% | ||
| Cap/Sales | 25.45% | ||
| Interest Coverage | 1.85 | ||
| Cash Conversion | 67.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 2.57 |
F-Score8
WACC17.34%
ROIC/WACC0.38
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)110.5%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%172.62%
EPS Next Y19.01%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
EPS Next 5YN/A
Revenue 1Y (TTM)86.79%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%23.42%
Revenue Next Year30.22%
Revenue Next 2Y28.44%
Revenue Next 3Y31.67%
Revenue Next 5Y31.57%
EBIT growth 1Y156.64%
EBIT growth 3Y39.49%
EBIT growth 5Y30.32%
EBIT Next Year297.67%
EBIT Next 3Y93.95%
EBIT Next 5Y75.96%
FCF growth 1Y-419.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.31%
OCF growth 3Y32.41%
OCF growth 5Y37.83%