TURKCELL ILETISIM HIZMET-ADR (TKC) Stock Fundamental Analysis
NYSE:TKC - New York Stock Exchange, Inc. - US9001112047 - ADR - Currency: USD
Overall TKC gets a fundamental rating of 7 out of 10. We evaluated TKC against 21 industry peers in the Wireless Telecommunication Services industry. TKC has only an average score on both its financial health and profitability. An interesting combination arises when we look at growth and value: TKC is growing strongly while it also seems undervalued. Finally TKC also has an excellent dividend rating. This makes TKC very considerable for value and dividend 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.
Each year in the past 5 years TKC has been profitable.
In the past 5 years TKC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TKC (6.36%) is better than 95.24% of its industry peers.
TKC has a Return On Equity of 12.68%. This is in the better half 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.
The Average Return On Invested Capital over the past 3 years for TKC is below the industry average of 6.34%.
The last Return On Invested Capital (6.30%) for TKC is above the 3 year average (3.62%), which is a sign of increasing profitability.
| 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 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of TKC has grown nicely.
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 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TKC is destroying value.
Compared to 1 year ago, TKC has about the same amount of shares outstanding.
The number of shares outstanding for TKC has been increased compared to 5 years ago.
The debt/assets ratio for TKC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.40 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 2.40, TKC belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
The Debt to FCF ratio of TKC is 201.59, which is on the high side as it means it would take TKC, 201.59 years of fcf income to pay off all of its debts.
TKC's Debt to FCF ratio of 201.59 is on the low side compared to the rest of the industry. TKC is outperformed by 80.95% of its industry peers.
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 | 2.4 |
ROIC/WACC0.67
WACC9.42%
2.3 Liquidity
A Current Ratio of 1.73 indicates that TKC should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.73, TKC belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
A Quick Ratio of 1.72 indicates that TKC should not have too much problems paying its short term obligations.
TKC has a better Quick ratio (1.72) than 100.00% of its industry peers.
| 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
The Revenue has grown by 74.14% in the past year. This is a very strong growth!
The Revenue has been growing by 45.99% on average over the past years. This is a very strong growth!
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 50.24% yearly.
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
With a Price/Earnings ratio of 8.09, the valuation of TKC can be described as very reasonable.
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.
When comparing the Price/Earnings ratio of TKC to the average of the S&P500 Index (27.45), we can say TKC is valued rather cheaply.
The Price/Forward Earnings ratio is 3.91, which indicates a rather cheap valuation of TKC.
TKC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TKC is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, TKC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 3.91 |
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 | 289.43 | ||
| EV/EBITDA | 2.84 |
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.
The decent profitability rating of TKC may justify a higher PE ratio.
TKC's earnings are expected to grow with 50.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)0.17
EPS Next 2Y53.27%
EPS Next 3Y50.24%
5. Dividend
5.1 Amount
TKC has a Yearly Dividend Yield of 4.06%, which is a nice return.
TKC's Dividend Yield is comparable with the industry average which is at 5.00.
TKC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
5.2 History
The dividend of TKC is nicely growing with an annual growth rate of 45.17%!
TKC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TKC decreased in the last 3 years.
Dividend Growth(5Y)45.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
27.49% 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.
DP27.49%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
NYSE:TKC (7/3/2025, 8:12:56 PM)
6.23
+0.04 (+0.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners10.51%
Inst Owner Change6.1%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.43B
Analysts82.67
Price Target9.25 (48.48%)
Short Float %0.26%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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)-3.48%
PT rev (3m)-7.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-8.05%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 3.91 | ||
| P/S | 1.01 | ||
| P/FCF | 289.43 | ||
| P/OCF | 3.72 | ||
| P/B | 1.03 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 2.84 |
EPS(TTM)0.77
EY12.36%
EPS(NY)1.59
Fwd EY25.58%
FCF(TTM)0.02
FCFY0.35%
OCF(TTM)1.67
OCFY26.85%
SpS6.18
BVpS6.04
TBVpS3.46
PEG (NY)0.43
PEG (5Y)0.17
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 | 2.4 |
F-Score8
WACC9.42%
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%