TURKCELL ILETISIM HIZMET-ADR (TKC) Stock Fundamental Analysis
NYSE:TKC - US9001112047 - ADR
5.53 USD
+0.03 (+0.55%)
5.53 USD
0 (0%)
Taking everything into account, TKC scores 7 out of 10 in our fundamental rating. TKC was compared to 21 industry peers in the Wireless Telecommunication Services industry. TKC has an average financial health and profitability rating. TKC has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare 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.
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 (6.36%) than 90.48% of its industry peers.
TKC has a better Return On Equity (12.68%) than 66.67% of its industry peers.
TKC's Return On Invested Capital of 6.30% is fine compared to the rest of the industry. TKC outperforms 66.67% 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 6.09%.
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
Looking at the Profit Margin, with a value of 12.40%, TKC belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
TKC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.46%, TKC is in the better half of the industry, outperforming 61.90% 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 (25.51%) than 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
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
The debt/assets ratio for TKC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.35 indicates that TKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.35, TKC belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 201.59, TKC is doing worse than 80.95% of the companies in the same industry.
TKC has a Debt/Equity ratio of 0.53. This is a neutral value indicating TKC is somewhat dependend on debt financing.
TKC's Debt to Equity ratio of 0.53 is amongst the best of the industry. TKC outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 201.59 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.68
WACC9.32%
2.3 Liquidity
TKC has a Current Ratio of 1.73. This is a normal value and indicates that TKC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.73, TKC is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
TKC has a Quick Ratio of 1.72. This is a normal value and indicates that TKC is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.72, TKC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 48.75% on average over the past years. This is a very strong growth
TKC shows a strong growth in Revenue. In the last year, the Revenue has grown by 74.14%.
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
TKC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.25% yearly.
Based on estimates for the next years, TKC will show a very strong growth in Revenue. The Revenue will grow by 34.16% on average per year.
EPS Next Y-7.13%
EPS Next 2Y28.58%
EPS Next 3Y32.25%
EPS Next 5YN/A
Revenue Next Year39.34%
Revenue Next 2Y34.59%
Revenue Next 3Y29.95%
Revenue Next 5Y34.16%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.47 indicates a rather cheap valuation of TKC.
Based on the Price/Earnings ratio, TKC is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.43. TKC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.11 indicates a rather cheap valuation of TKC.
100.00% 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 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 5.11 |
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 100.00% of the companies listed in the same industry.
TKC's Price/Free Cash Flow ratio is rather expensive when compared to the industry. TKC is more expensive than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 266.16 | ||
| EV/EBITDA | 2.62 |
4.3 Compensation for Growth
The decent profitability rating of TKC may justify a higher PE ratio.
TKC's earnings are expected to grow with 32.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y28.58%
EPS Next 3Y32.25%
5. Dividend
5.1 Amount
TKC has a Yearly Dividend Yield of 4.02%, which is a nice return.
Compared to an average industry Dividend Yield of 5.44, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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 27.49% of its income as dividend. This is a sustainable payout ratio.
TKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.49%
EPS Next 2Y28.58%
EPS Next 3Y32.25%
5.53
+0.03 (+0.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners10.51%
Inst Owner Change24.51%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.82B
Analysts82.5
Price Target8.72 (57.69%)
Short Float %0.37%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend0.2
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)-2.78%
PT rev (3m)-6.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-21.97%
EPS NY rev (3m)-21.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)7.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 5.11 | ||
| P/S | 0.93 | ||
| P/FCF | 266.16 | ||
| P/OCF | 3.42 | ||
| P/B | 0.95 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 2.62 |
EPS(TTM)0.74
EY13.38%
EPS(NY)1.08
Fwd EY19.58%
FCF(TTM)0.02
FCFY0.38%
OCF(TTM)1.61
OCFY29.2%
SpS5.96
BVpS5.83
TBVpS3.34
PEG (NY)N/A
PEG (5Y)0.15
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 | 2.35 |
F-Score8
WACC9.32%
ROIC/WACC0.68
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 Y-7.13%
EPS Next 2Y28.58%
EPS Next 3Y32.25%
EPS Next 5YN/A
Revenue 1Y (TTM)74.14%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%49.57%
Revenue Next Year39.34%
Revenue Next 2Y34.59%
Revenue Next 3Y29.95%
Revenue Next 5Y34.16%
EBIT growth 1Y229.75%
EBIT growth 3Y42.04%
EBIT growth 5Y31.74%
EBIT Next Year295.46%
EBIT Next 3Y86.84%
EBIT Next 5Y79.42%
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%