TURKCELL ILETISIM HIZMET-ADR (TKC) Stock Fundamental Analysis
USA - NYSE:TKC - US9001112047 - ADR
5.95 USD
-0.23 (-3.72%)
5.95 USD
0 (0%)
Taking everything into account, TKC scores 6 out of 10 in our fundamental rating. TKC was compared to 22 industry peers in the Wireless Telecommunication Services industry. Both the profitability and the financial health of TKC get a neutral evaluation. Nothing too spectacular is happening here. TKC is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make TKC a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year TKC was profitable.
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
Looking at the Return On Assets, with a value of 5.36%, TKC is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
TKC's Return On Equity of 11.17% is fine compared to the rest of the industry. TKC outperforms 63.64% of its industry peers.
TKC has a Return On Invested Capital of 3.88%. This is comparable to the rest of the industry: TKC outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TKC is below the industry average of 5.96%.
The last Return On Invested Capital (3.88%) for TKC is above the 3 year average (3.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 11.17% | ||
| ROIC | 3.88% |
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 12.70%, TKC belongs to the top of the industry, outperforming 81.82% 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 (10.62%) 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 (27.02%) than 81.82% of its industry peers.
TKC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.62% | ||
| PM (TTM) | 12.7% | ||
| GM | 27.02% |
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
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.
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 2.12 indicates that TKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TKC (2.12) is better than 86.36% of its industry peers.
TKC has a debt to FCF ratio of 16.04. This is a negative value and a sign of low solvency as TKC would need 16.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.04, TKC is doing worse than 63.64% of the companies in the same industry.
TKC has a Debt/Equity ratio of 0.58. This is a neutral value indicating TKC is somewhat dependend on debt financing.
TKC has a better Debt to Equity ratio (0.58) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.04 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.41
WACC9.38%
2.3 Liquidity
A Current Ratio of 1.69 indicates that TKC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.69, TKC is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
A Quick Ratio of 1.69 indicates that TKC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.69, TKC belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 56.73% over the past year.
Measured over the past years, TKC shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.75% on average per year.
The Revenue has grown by 9.78% in the past year. This is quite good.
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)56.73%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%-32.75%
Revenue 1Y (TTM)9.78%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%256.57%
3.2 Future
The Earnings Per Share is expected to grow by 32.25% 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 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 Year40.14%
Revenue Next 2Y34.59%
Revenue Next 3Y29.95%
Revenue Next 5Y34.16%
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 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
TKC is valuated reasonably with a Price/Earnings ratio of 8.75.
Based on the Price/Earnings ratio, TKC is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TKC to the average of the S&P500 Index (27.86), we can say TKC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.56, the valuation of TKC can be described as very cheap.
Based on the Price/Forward Earnings ratio, TKC is valued cheaper than 100.00% 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 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 5.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TKC is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TKC indicates a slightly more expensive valuation: TKC is more expensive than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.01 | ||
| EV/EBITDA | 3.31 |
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)0.18
EPS Next 2Y28.58%
EPS Next 3Y32.25%
5. Dividend
5.1 Amount
TKC has a Yearly Dividend Yield of 3.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.58, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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 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 44.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TKC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.74%
EPS Next 2Y28.58%
EPS Next 3Y32.25%
5.95
-0.23 (-3.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners10.86%
Inst Owner Change24.51%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.18B
Analysts82.5
Price Target8.83 (48.4%)
Short Float %1.05%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Yearly Dividend0.2
Dividend Growth(5Y)45.17%
DP44.74%
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)1.29%
PT rev (3m)-4.51%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-22.31%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)8.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 5.56 | ||
| P/S | 1.12 | ||
| P/FCF | 20.01 | ||
| P/OCF | 3.08 | ||
| P/B | 0.98 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 3.31 |
EPS(TTM)0.68
EY11.43%
EPS(NY)1.07
Fwd EY17.98%
FCF(TTM)0.3
FCFY5%
OCF(TTM)1.93
OCFY32.51%
SpS5.33
BVpS6.06
TBVpS3.48
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 11.17% | ||
| ROCE | 5.78% | ||
| ROIC | 3.88% | ||
| ROICexc | 5.95% | ||
| ROICexgc | 9.75% | ||
| OM | 10.62% | ||
| PM (TTM) | 12.7% | ||
| GM | 27.02% | ||
| FCFM | 5.58% |
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-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 16.04 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 110.94% | ||
| Cap/Sales | 30.72% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 94.75% | ||
| Profit Quality | 43.94% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 2.12 |
F-Score6
WACC9.38%
ROIC/WACC0.41
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)56.73%
EPS 3Y67.24%
EPS 5Y48.75%
EPS Q2Q%-32.75%
EPS Next Y-7.13%
EPS Next 2Y28.58%
EPS Next 3Y32.25%
EPS Next 5YN/A
Revenue 1Y (TTM)9.78%
Revenue growth 3Y66.79%
Revenue growth 5Y45.99%
Sales Q2Q%256.57%
Revenue Next Year40.14%
Revenue Next 2Y34.59%
Revenue Next 3Y29.95%
Revenue Next 5Y34.16%
EBIT growth 1Y-6.58%
EBIT growth 3Y42.04%
EBIT growth 5Y31.74%
EBIT Next Year316%
EBIT Next 3Y87.57%
EBIT Next 5Y79.42%
FCF growth 1Y-17.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y105.16%
OCF growth 3Y32.41%
OCF growth 5Y37.83%