tiprankstipranks
Trending News
More News >
Arcelik A.S. Unsponsored ADR (ACKAY)
:ACKAY
Advertisement

Arcelik (ACKAY) AI Stock Analysis

Compare
7 Followers

Top Page

ACKAY

Arcelik

(OTC:ACKAY)

Rating:56Neutral
Price Target:
$16.00
▼(-6.54% Downside)
Arcelik's overall stock score is moderate at 56.0, driven by mixed financial performance with growth in revenue but challenges in profitability and cash flow. Technical analysis suggests some short-term positive momentum but caution due to longer-term weaknesses. Valuation is impacted negatively by the lack of profitability, reflected in the negative P/E ratio. The absence of earnings call data and corporate events means these factors were not considered.

Arcelik (ACKAY) vs. SPDR S&P 500 ETF (SPY)

Arcelik Business Overview & Revenue Model

Company DescriptionArcelik A.S. (ACKAY) is a leading multinational household appliances and electronics manufacturer headquartered in Turkey. The company operates in the durable consumer goods sector, providing a comprehensive range of products including refrigerators, washing machines, dishwashers, air conditioners, and small home appliances. Arcelik is recognized for its innovative solutions and commitment to sustainability, servicing both domestic and international markets with a presence in over 145 countries.
How the Company Makes MoneyArcelik generates revenue primarily through the design, production, and sale of household appliances and electronics. The company's key revenue streams include the direct sale of its branded products under various brand names such as Beko, Grundig, and Arctic. Arcelik also benefits from its extensive distribution network and retail partnerships that help in reaching a global customer base. Additionally, the company invests in research and development to continuously innovate and enhance its product offerings, which contributes to maintaining a competitive edge in the market. Earnings are further supported by after-sales services and solutions that provide ongoing customer engagement and revenue opportunities.

Arcelik Earnings Call Summary

Earnings Call Date:Jul 25, 2025
(Q3-2024)
|
% Change Since: 9.46%|
Next Earnings Date:Oct 17, 2025
Earnings Call Sentiment Negative
The earnings call highlighted substantial international revenue growth and recovery signs in key European markets, driven by inorganic growth and cost management strategies. However, these positives were overshadowed by significant challenges, including declining gross margins, increased financial expenses, a recorded net loss, and rising leverage. Despite some market recoveries, the financial pressures and operational costs presented a challenging quarter.
Q3-2024 Updates
Positive Updates
Revenue Growth
Achieved 13.8% revenue growth year-on-year, totaling TRY 105.4 billion in Q3, with significant contributions from inorganic growth in Europe and MENA.
International Revenue Surge
International revenues increased by 58.1% in euro terms year-on-year, largely driven by inorganic growth contributions.
European Market Recovery
Significant recovery in consumer demand in key Western European markets such as the U.K., Italy, Germany, Spain, Belgium, and Austria.
Cost Management
Implemented forward contracts for raw material costs, minimizing exposure to rising costs and anticipating stability in future pricing.
Negative Updates
Gross Margin Decline
Gross profit margin decreased by 2.9 points year-on-year to 26.4%, impacted by unfavorable product mix and rising raw material costs.
Adjusted EBITDA Weakness
Adjusted EBITDA margin fell to 4.6% due to lower gross profitability and higher operating expenses.
Increased Financial Expenses
Net financial expenses grew by 57% year-over-year and 65% quarterly, primarily due to increased net interest expenses and higher hedging costs.
Net Loss
Recorded a net loss of TRY 5.6 billion in Q3, reflecting a negative 5.3% net margin.
Leverage Increase
Leverage ratio increased to 4.29x due to higher borrowings and weaker EBITDA performance.
Company Guidance
During the Q3 2024 earnings call for Arcelik, the company provided guidance indicating revised expectations for the full year. They anticipate a flat performance in local sales due to stagnant demand but foresee a 50% year-on-year increase in international revenues in euro terms, driven by inorganic growth. The adjusted EBITDA margin is projected to be between 5.8% and 6% for the full year. Additionally, Arcelik expects an improvement in the net working capital over sales ratio, updating the guidance to approximately 20%. The company also revised its CapEx guidance from EUR 350 million to EUR 400 million, factoring in costs related to maintenance, integration, and restructuring. With ongoing synergies and cost savings from recent acquisitions, Arcelik remains optimistic about achieving these targets, despite current leverage standing at 4.3%.

Arcelik Financial Statement Overview

Summary
Arcelik shows revenue growth but struggles with profitability and cash flow issues. High leverage and negative net income raise concerns about financial stability.
Income Statement
55
Neutral
Arcelik's income statement shows mixed results. The TTM revenue growth of 3.44% indicates a steady increase in sales, yet the company faces profitability challenges with a negative net profit margin of -0.09%. The gross profit margin remains strong at 27.42%, but declining EBIT and EBITDA margins at 1.41% and 8.47% respectively reflect operational inefficiencies. Overall, while revenue is growing, profitability is under pressure, requiring attention to cost management.
Balance Sheet
60
Neutral
The balance sheet indicates moderate financial health with a stable equity ratio of 15.91% suggesting a reasonable proportion of assets financed by equity. However, the debt-to-equity ratio of 2.23 points to high leverage, posing potential risks given the substantial debt levels. Return on equity is negative at -0.53% due to negative net income, highlighting the need for improved profitability to enhance shareholder value.
Cash Flow
48
Neutral
Arcelik's cash flow statement reveals a decline in free cash flow, which decreased significantly by -67.64% in the TTM period. The operating cash flow to net income ratio is negative, reflecting challenges in converting income into cash. The need to improve cash generation is crucial to support operations and debt obligations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue428.55B257.10B133.92B68.18B40.87B
Gross Profit118.10B75.38B39.49B20.48B13.81B
EBITDA36.25B24.95B11.65B7.38B6.05B
Net Income1.69B7.67B4.32B3.06B2.85B
Balance Sheet
Total Assets397.73B258.14B132.24B85.08B46.55B
Cash, Cash Equivalents and Short-Term Investments50.82B49.25B24.53B16.01B12.00B
Total Debt138.04B101.91B51.44B32.58B17.08B
Total Liabilities322.66B198.57B105.14B64.02B32.53B
Stockholders Equity67.17B53.17B24.95B19.38B13.82B
Cash Flow
Free Cash Flow-9.41B-22.43B-811.47M-3.14B4.69B
Operating Cash Flow14.39B-8.64B5.10B-627.45M6.42B
Investing Cash Flow-14.72B-14.41B-4.62B-4.38B-1.32B
Financing Cash Flow1.06B31.54B4.07B4.80B-1.31B

Arcelik Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.12
Price Trends
50DMA
15.44
Positive
100DMA
15.64
Positive
200DMA
17.44
Negative
Market Momentum
MACD
0.47
Negative
RSI
67.37
Neutral
STOCH
100.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACKAY, the sentiment is Positive. The current price of 17.12 is above the 20-day moving average (MA) of 16.22, above the 50-day MA of 15.44, and below the 200-day MA of 17.44, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 67.37 is Neutral, neither overbought nor oversold. The STOCH value of 100.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACKAY.

Arcelik Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.65B17.397.15%4.05%-47.49%
71
Outperform
$8.01B17.025.95%-1.61%
65
Neutral
$3.74B30.4411.25%1.40%6.09%-18.29%
61
Neutral
$17.23B11.50-5.97%3.09%1.49%-16.00%
56
Neutral
$2.31B42.50-2.98%11.99%-128.21%
56
Neutral
$1.44B45.68-2.77%3.53%1.14%-149.26%
51
Neutral
$4.98B738.81-5.35%7.94%-16.05%-127.65%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACKAY
Arcelik
17.12
-5.64
-24.78%
MLKN
MillerKnoll
21.24
-7.11
-25.08%
MHK
Mohawk
128.08
-21.30
-14.26%
PATK
Patrick Industries
112.13
29.25
35.29%
WHR
Whirlpool
88.13
-1.42
-1.59%
MBC
MasterBrand Inc
12.52
-3.21
-20.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025