TURKCELL ILETISIM HIZMET-ADR (TKC) Stock Fundamental Analysis
NYSE:TKC - New York Stock Exchange, Inc. - US9001112047 - ADR - Currency: USD
Taking everything into account, TKC scores 7 out of 10 in our fundamental rating. TKC was compared to 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 growing strongly while it also seems undervalued. This is an interesting combination With these ratings, TKC could be worth investigating further for value and 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.
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
The Return On Assets of TKC (7.50%) is better than 100.00% of its industry peers.
TKC's Return On Equity of 14.05% is fine compared to the rest of the industry. TKC outperforms 76.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.52%, TKC is in line with its industry, outperforming 47.62% of the companies in the same industry.
TKC had an Average Return On Invested Capital over the past 3 years of 5.47%. This is in line with the industry average of 6.52%.
| 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.
In the last couple of years the Profit Margin of TKC has grown nicely.
TKC's Operating Margin of 6.51% is in line compared to the rest of the industry. TKC outperforms 47.62% of its industry peers.
TKC's Operating Margin has declined in the last couple of years.
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
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.
TKC has more shares outstanding than it did 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 2.71. 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.
With an excellent Altman-Z score value of 2.71, TKC belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that TKC is somewhat dependend on debt financing.
TKC's Debt to Equity ratio of 0.52 is fine compared to the rest of the industry. TKC outperforms 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
WACC18.1%
2.3 Liquidity
A Current Ratio of 1.82 indicates that TKC should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.82, TKC belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
A Quick Ratio of 1.81 indicates that TKC should not have too much problems paying 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.
TKC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.11% yearly.
TKC shows a strong growth in Revenue. In the last year, 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
The Earnings Per Share is expected to grow by 48.26% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 37.80% on average over the next years. This is a very strong growth
EPS Next Y44.63%
EPS Next 2Y37.18%
EPS Next 3Y48.26%
EPS Next 5YN/A
Revenue Next Year76.64%
Revenue Next 2Y53.5%
Revenue Next 3Y42.79%
Revenue Next 5Y37.8%
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.48, which indicates a very decent valuation of TKC.
TKC's Price/Earnings ratio is rather cheap when compared to the industry. TKC is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.43. TKC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.60, which indicates a rather cheap valuation of TKC.
95.24% of the companies in the same industry are more expensive than TKC, based on the Price/Forward Earnings ratio.
TKC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TKC indicates a rather cheap valuation: TKC is cheaper than 95.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.18 |
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.
TKC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TKC's earnings are expected to grow with 48.26% in the coming years.
PEG (NY)0.21
PEG (5Y)0.21
EPS Next 2Y37.18%
EPS Next 3Y48.26%
5. Dividend
5.1 Amount
TKC has a Yearly Dividend Yield of 2.67%.
Compared to an average industry Dividend Yield of 5.07, TKC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, TKC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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
10.14% of the earnings are spent on dividend by TKC. This is a low number and 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.
DP10.14%
EPS Next 2Y37.18%
EPS Next 3Y48.26%
NYSE:TKC (2/26/2025, 12:55:01 PM)
7.3
+0.06 (+0.83%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners10.58%
Inst Owner Change-89.66%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.37B
Analysts81.25
Price Target9.67 (32.47%)
Short Float %0.13%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)-0.04%
PT rev (3m)-0.92%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)29.69%
EPS NY rev (3m)29.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.42%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 7.6 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 5.53 | ||
| P/B | 1.33 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 3.18 |
EPS(TTM)0.77
EY10.55%
EPS(NY)0.96
Fwd EY13.16%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)1.32
OCFY18.1%
SpS5.98
BVpS5.48
TBVpS3.1
PEG (NY)0.21
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
WACC18.1%
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 Y44.63%
EPS Next 2Y37.18%
EPS Next 3Y48.26%
EPS Next 5YN/A
Revenue 1Y (TTM)134.92%
Revenue growth 3Y54.4%
Revenue growth 5Y38.14%
Sales Q2Q%46.53%
Revenue Next Year76.64%
Revenue Next 2Y53.5%
Revenue Next 3Y42.79%
Revenue Next 5Y37.8%
EBIT growth 1Y-42.52%
EBIT growth 3Y13.83%
EBIT growth 5Y15.58%
EBIT Next Year156.35%
EBIT Next 3Y57.97%
EBIT Next 5Y50.49%
FCF growth 1Y-102.13%
FCF growth 3Y38.39%
FCF growth 5Y68.3%
OCF growth 1Y50.02%
OCF growth 3Y50%
OCF growth 5Y48.6%