TURKCELL ILETISIM HIZMET-ADR (TKC)
US9001112047 - ADR
TKC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 22 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! This makes TKC very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
In the past year TKC was profitable.
In the past year TKC had a positive cash flow from operations.
In the past 5 years TKC has always been profitable.
TKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TKC (5.08%) is better than 71.43% of its industry peers.
TKC has a better Return On Equity (10.27%) than 66.67% of its industry peers.
TKC has a Return On Invested Capital (3.82%) which is comparable to the rest of the industry.
TKC had an Average Return On Invested Capital over the past 3 years of 5.47%. This is below the industry average of 7.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 10.27% | ||
| ROIC | 3.82% |
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
With a decent Profit Margin value of 11.72%, TKC is doing good in the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Profit Margin of TKC has grown nicely.
The Operating Margin of TKC (9.25%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TKC has declined.
TKC has a worse Gross Margin (21.19%) than 90.48% of its industry peers.
In the last couple of years the Gross Margin of TKC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.25% | ||
| PM (TTM) | 11.72% | ||
| GM | 21.19% |
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
TKC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TKC remains at a similar level compared to 1 year ago.
TKC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TKC has been reduced compared to a year ago.
2.2 Solvency
TKC has an Altman-Z score of 2.23. 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 2.23, TKC belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
TKC has a debt to FCF ratio of 4.66. This is a neutral value as TKC would need 4.66 years to pay back of all of its debts.
The Debt to FCF ratio of TKC (4.66) is better than 76.19% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that TKC is somewhat dependend on debt financing.
The Debt to Equity ratio of TKC (0.60) is better than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.66 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.22
WACC17.1%
2.3 Liquidity
TKC has a Current Ratio of 1.78. This is a normal value and indicates that TKC is financially healthy and should not expect problems in meeting its short term obligations.
TKC's Current ratio of 1.78 is amongst the best of the industry. TKC outperforms 85.71% of its industry peers.
TKC has a Quick Ratio of 1.77. 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 Quick ratio, with a value of 1.77, TKC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
TKC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.60%, which is quite good.
The Earnings Per Share has been growing by 44.11% on average over the past years. This is a very strong growth
The Revenue has grown by 98.81% 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 38.14% on average per year.
EPS 1Y (TTM)13.6%
EPS 3Y43.62%
EPS 5Y44.11%
EPS growth Q2Q-81.71%
Revenue 1Y (TTM)98.81%
Revenue growth 3Y54.4%
Revenue growth 5Y38.14%
Revenue growth Q2Q163.01%
3.2 Future
The Earnings Per Share is expected to grow by 32.62% on average over the next years. This is a very strong growth
Based on estimates for the next years, TKC will show a very strong growth in Revenue. The Revenue will grow by 31.33% on average per year.
EPS Next Y56.7%
EPS Next 2Y46.65%
EPS Next 3Y32.62%
EPS Next 5YN/A
Revenue Next Year62.78%
Revenue Next 2Y48.16%
Revenue Next 3Y31.33%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 13.73 indicates a correct valuation of TKC.
Based on the Price/Earnings ratio, TKC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
TKC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.02, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.72 indicates a rather cheap valuation of TKC.
90.48% 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 (21.32), we can say TKC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 6.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKC is valued a bit cheaper than 76.19% of the companies in the same industry.
61.90% of the companies in the same industry are more expensive than TKC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.49 | ||
| EV/EBITDA | 3.91 |
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.
A more expensive valuation may be justified as TKC's earnings are expected to grow with 32.62% in the coming years.
PEG (NY)0.24
PEG (5Y)0.31
EPS Next 2Y46.65%
EPS Next 3Y32.62%
5. Dividend
5.1 Amount
TKC has a Yearly Dividend Yield of 1.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.14, TKC has a dividend in line with its industry peers.
TKC's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
On average, the dividend of TKC grows each year by 40.69%, which is quite nice.
TKC has been paying a dividend for at least 10 years, so it has a reliable track record.
TKC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)40.69%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
19.79% of the earnings are spent on dividend by TKC. This is a low number and sustainable payout ratio.
The dividend of TKC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.79%
EPS Next 2Y46.65%
EPS Next 3Y32.62%
TURKCELL ILETISIM HIZMET-ADR
NYSE:TKC (4/29/2024, 7:04:00 PM)
After market: 6.19 +0.15 (+2.48%)6.04
+0.06 (+1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 6.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.24
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 10.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.25% | ||
| PM (TTM) | 11.72% | ||
| GM | 21.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.6%
EPS 3Y43.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y56.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)98.81%
Revenue growth 3Y54.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y