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 6 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.
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.
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's Return On Assets of 7.66% is amongst the best of the industry. TKC outperforms 100.00% of its industry peers.
TKC has a better Return On Equity (14.11%) than 76.19% of its industry peers.
With a Return On Invested Capital value of 6.83%, TKC perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TKC is below the industry average of 6.27%.
The 3 year average ROIC (3.62%) for TKC is below the current ROIC(6.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 14.11% | ||
| ROIC | 6.83% |
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's Profit Margin of 13.18% is amongst the best of the industry. TKC outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of TKC has grown nicely.
TKC has a better Operating Margin (13.31%) than 61.90% of its industry peers.
TKC's Operating Margin has declined in the last couple of years.
TKC's Gross Margin of 24.15% is on the low side compared to the rest of the industry. TKC is outperformed by 85.71% of its industry peers.
In the last couple of years the Gross Margin of TKC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.31% | ||
| PM (TTM) | 13.18% | ||
| GM | 24.15% |
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.
TKC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TKC has been increased compared to 5 years ago.
TKC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.65 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 2.65, TKC belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that TKC is not too dependend on debt financing.
TKC's Debt to Equity ratio of 0.37 is amongst the best of the industry. TKC outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.65 |
ROIC/WACC0.39
WACC17.6%
2.3 Liquidity
A Current Ratio of 1.25 indicates that TKC should not have too much problems paying its short term obligations.
The Current ratio of TKC (1.25) is comparable to the rest of the industry.
TKC has a Quick Ratio of 1.24. This is a normal value and indicates that TKC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.24, TKC perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
TKC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.50%, which is quite impressive.
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 86.79%.
TKC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.99% yearly.
EPS 1Y (TTM)110.5%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%172.62%
Revenue 1Y (TTM)86.79%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%23.42%
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 31.57% 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 5Y31.57%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.21, the valuation of TKC can be described as very reasonable.
Based on the Price/Earnings ratio, TKC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
TKC is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.75, the valuation of TKC can be described as very cheap.
TKC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TKC is cheaper than 85.71% of the companies in the same industry.
TKC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 7.75 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.97 |
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.
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 3.77%. Purely for dividend investing, there may be better candidates out there.
TKC's Dividend Yield is comparable with the industry average which is at 5.43.
Compared to an average S&P500 Dividend Yield of 2.36, TKC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
On average, the dividend of TKC grows each year by 45.17%, 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)45.17%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TKC pays out 27.73% 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.
DP27.73%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
6.4
0 (0%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners10.58%
Inst Owner Change5.54%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.58B
Analysts81.43
Price Target9.58 (49.69%)
Short Float %0.25%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend0.21
Dividend Growth(5Y)45.17%
DP27.73%
Div Incr Years4
Div Non Decr Years4
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)2.4%
PT rev (3m)-0.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 7.75 | ||
| P/S | 1.08 | ||
| P/FCF | N/A | ||
| P/OCF | 4.41 | ||
| P/B | 1.16 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 2.97 |
EPS(TTM)0.78
EY12.19%
EPS(NY)0.83
Fwd EY12.9%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)1.45
OCFY22.69%
SpS5.91
BVpS5.52
TBVpS3.1
PEG (NY)0.43
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 14.11% | ||
| ROCE | 10.51% | ||
| ROIC | 6.83% | ||
| ROICexc | 9.52% | ||
| ROICexgc | 16.45% | ||
| OM | 13.31% | ||
| PM (TTM) | 13.18% | ||
| GM | 24.15% | ||
| FCFM | N/A |
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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 107.39% | ||
| Cap/Sales | 25.45% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 66.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 2.65 |
F-Score8
WACC17.6%
ROIC/WACC0.39
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)110.5%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%172.62%
EPS Next Y19.01%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
EPS Next 5YN/A
Revenue 1Y (TTM)86.79%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%23.42%
Revenue Next Year29.03%
Revenue Next 2Y29.53%
Revenue Next 3Y28.99%
Revenue Next 5Y31.57%
EBIT growth 1Y168.82%
EBIT growth 3Y42.04%
EBIT growth 5Y31.74%
EBIT Next Year297.67%
EBIT Next 3Y93.95%
EBIT Next 5Y75.96%
FCF growth 1Y-419.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.31%
OCF growth 3Y32.41%
OCF growth 5Y37.83%