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 22 industry peers in the Wireless Telecommunication Services industry. TKC has an average financial health and profitability rating. An interesting combination arises when we look at growth and value: TKC is growing strongly while it also seems undervalued. These ratings would make TKC suitable 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
TKC's Return On Assets of 6.36% is amongst the best of the industry. TKC outperforms 90.91% of its industry peers.
With a decent Return On Equity value of 12.68%, TKC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.30%, TKC is in line with its industry, outperforming 59.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TKC is below the industry average of 6.03%.
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
Looking at the Profit Margin, with a value of 12.40%, 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.
TKC's Operating Margin of 14.46% is fine compared to the rest of the industry. TKC outperforms 63.64% of its industry peers.
TKC's Operating Margin has declined in the last couple of years.
The Gross Margin of TKC (25.51%) is worse than 86.36% 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
TKC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 2.38 indicates that TKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TKC (2.38) is better than 95.45% of its industry peers.
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.
TKC has a Debt to FCF ratio of 201.59. This is amonst the worse of the industry: TKC underperforms 81.82% 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 has a better Debt to Equity ratio (0.53) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 201.59 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.67
WACC9.37%
2.3 Liquidity
TKC has a Current Ratio of 1.73. 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 1.73 is fine compared to the rest of the industry. TKC outperforms 72.73% 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.
Looking at the Quick ratio, with a value of 1.72, TKC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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.
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%.
TKC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.99% yearly.
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.
Based on estimates for the next years, TKC will show a very strong growth in Revenue. The Revenue will grow by 33.96% on average per year.
EPS Next Y19.01%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
EPS Next 5YN/A
Revenue Next Year38.91%
Revenue Next 2Y33.44%
Revenue Next 3Y29.29%
Revenue Next 5Y33.96%
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 7.81, the valuation of TKC can be described as very cheap.
Based on the Price/Earnings ratio, TKC is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.85, TKC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.77, the valuation of TKC can be described as very cheap.
Based on the Price/Forward Earnings ratio, TKC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TKC to the average of the S&P500 Index (34.98), we can say TKC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 3.77 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TKC indicates a rather expensive valuation: TKC more expensive than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 279.12 | ||
| EV/EBITDA | 2.74 |
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)0.41
PEG (5Y)0.16
EPS Next 2Y53.27%
EPS Next 3Y50.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.84%, TKC has a reasonable but not impressive dividend return.
TKC's Dividend Yield is comparable with the industry average which is at 6.04.
Compared to an average S&P500 Dividend Yield of 2.36, TKC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
The dividend of TKC is nicely growing with an annual growth rate of 45.17%!
TKC has paid a dividend for at least 10 years, which is 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.
The dividend of TKC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP27.49%
EPS Next 2Y53.27%
EPS Next 3Y50.24%
5.86
0 (0%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners10.51%
Inst Owner Change24.51%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.11B
Analysts82.67
Price Target8.62 (47.1%)
Short Float %0.34%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
Yearly Dividend0.2
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)-6.8%
PT rev (3m)-10.05%
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)7.66%
Revenue NY rev (3m)7.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 3.77 | ||
| P/S | 0.97 | ||
| P/FCF | 279.12 | ||
| P/OCF | 3.59 | ||
| P/B | 0.99 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 2.74 |
EPS(TTM)0.75
EY12.8%
EPS(NY)1.55
Fwd EY26.53%
FCF(TTM)0.02
FCFY0.36%
OCF(TTM)1.63
OCFY27.85%
SpS6.03
BVpS5.89
TBVpS3.37
PEG (NY)0.41
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 | 2.38 |
F-Score8
WACC9.37%
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 Year38.91%
Revenue Next 2Y33.44%
Revenue Next 3Y29.29%
Revenue Next 5Y33.96%
EBIT growth 1Y229.75%
EBIT growth 3Y42.04%
EBIT growth 5Y31.74%
EBIT Next Year295.46%
EBIT Next 3Y86.84%
EBIT Next 5Y79.15%
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%