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 21 industry peers in the Wireless Telecommunication Services industry. TKC has an average financial health and profitability rating. TKC is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make TKC a good candidate 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.
TKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TKC has a Return On Assets of 6.36%. This is amongst the best in the industry. TKC outperforms 95.24% of its industry peers.
TKC's Return On Equity of 12.68% is fine compared to the rest of the industry. TKC outperforms 71.43% of its industry peers.
TKC's Return On Invested Capital of 6.30% is in line compared 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 3.62%. This 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.
TKC's Profit Margin has improved in the last couple of years.
TKC has a better Operating Margin (14.46%) than 61.90% of its industry peers.
TKC's Operating Margin has declined in the last couple of years.
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.
TKC's Gross Margin has declined in the last couple of years.
| 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
TKC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.36 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 2.36, 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 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 201.59 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.67
WACC9.34%
2.3 Liquidity
A Current Ratio of 1.73 indicates that TKC should not have too much problems paying its short term obligations.
TKC has a better Current ratio (1.73) than 90.48% of its industry peers.
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.
The Quick ratio of TKC (1.72) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
TKC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 111.69%, which is quite impressive.
TKC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.75% yearly.
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
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.
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
The Price/Earnings ratio is 7.57, which indicates a rather cheap valuation of TKC.
Compared to the rest of the industry, the Price/Earnings ratio of TKC indicates a rather cheap valuation: TKC is cheaper than 90.48% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.04. TKC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 3.63, 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.
When comparing the Price/Forward Earnings ratio of TKC to the average of the S&P500 Index (37.64), we can say TKC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 3.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKC is valued cheaper than 95.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TKC is valued more expensive than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 268.48 | ||
| EV/EBITDA | 2.65 |
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
TKC has a Yearly Dividend Yield of 3.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.67, TKC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, TKC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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 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%
5.68
-0.07 (-1.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners10.51%
Inst Owner Change-0.82%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.95B
Analysts82.67
Price Target8.97 (57.92%)
Short Float %0.24%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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)-3.03%
PT rev (3m)-6.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 3.63 | ||
| P/S | 0.94 | ||
| P/FCF | 268.48 | ||
| P/OCF | 3.45 | ||
| P/B | 0.96 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 2.65 |
EPS(TTM)0.75
EY13.2%
EPS(NY)1.57
Fwd EY27.58%
FCF(TTM)0.02
FCFY0.37%
OCF(TTM)1.64
OCFY28.95%
SpS6.07
BVpS5.94
TBVpS3.4
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 | 2.36 |
F-Score8
WACC9.34%
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%