Arcelik (ACKAY) AI Stock Analysis

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Arcelik

(OTC:ACKAY)

Rating:56Neutral

Price Target:

$16.00

▲(1.65%Upside)

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)

Market Cap

$2.13B

Dividend YieldN/A

Average Volume (3M)4.00

Price to Earnings (P/E)42.5

Beta (1Y)0.36

Revenue Growth11.99%

EPS Growth-128.21%

CountryUS

Employees53,401

SectorConsumer Cyclical

Sector Strength61

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)-0.50

Shares Outstanding135,145,600

10 Day Avg. Volume0

30 Day Avg. Volume4

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.71

Enterprise Value/Revenue0.01

Enterprise Value/Gross Profit0.05

Enterprise Value/Ebitda0.15

Forecast

1Y Price Target

$14.00

Price Target Upside-11.05% Downside

Rating ConsensusHold

Number of Analyst Covering0

Arcelik Business Overview & Revenue Model

Company DescriptionArçelik Anonim Sirketi, together with its subsidiaries, produces, markets, sells, services, imports, and exports consumer durable goods and electronics in Turkey and internationally. It operates through White Goods, Consumer Electronics, and Other segments. It offers top and front door washing machines, horizontal and vertical deep freezers, split air conditioners, microwave ovens, water dispensers, cooking appliances, washing machines, dishwashers, coolers, gas and/or electric cookers, refrigerators, coffee machines, laundry and washer-dryers, hoods, and built-in cooking products. The company also provides televisions, computers, cash registers, and other electronic devices. It offers its products under the Arçelik, Beko, Grundig, Defy, Arctic, Dawlance, Elektrabregenz, Blomberg, VoltasBeko, Leisure, Altus, and Flavel brand names. The company was incorporated in 1955 and is headquartered in Istanbul, Turkey.

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 23, 2025

(Q3-2024)

% Change Since: -1.07%|

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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	428.55B	257.10B	133.92B	68.18B	40.87B
Gross Profit	118.10B	75.38B	39.49B	20.48B	13.81B
EBITDA	36.25B	24.95B	11.65B	7.38B	6.05B
Net Income	1.69B	7.67B	4.32B	3.06B	2.85B
Balance Sheet
Total Assets	397.73B	258.14B	132.24B	85.08B	46.55B
Cash, Cash Equivalents and Short-Term Investments	50.82B	49.25B	24.53B	16.01B	12.00B
Total Debt	138.04B	101.91B	51.44B	32.58B	17.08B
Total Liabilities	322.66B	198.57B	105.14B	64.02B	32.53B
Stockholders Equity	67.17B	53.17B	24.95B	19.38B	13.82B
Cash Flow
Free Cash Flow	-9.41B	-22.43B	-811.47M	-3.14B	4.69B
Operating Cash Flow	14.39B	-8.64B	5.10B	-627.45M	6.42B
Investing Cash Flow	-14.72B	-14.41B	-4.62B	-4.38B	-1.32B
Financing Cash Flow	1.06B	31.54B	4.07B	4.80B	-1.31B

Arcelik Technical Analysis

Technical Analysis Sentiment

Positive

Last Price15.74

Price Trends

50DMA

14.89

Positive

100DMA

15.88

Positive

200DMA

17.60

Negative

Market Momentum

MACD

0.17

Negative

RSI

62.35

Neutral

STOCH

73.69

Neutral

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 15.74 is above the 20-day moving average (MA) of 15.61, above the 50-day MA of 14.89, and below the 200-day MA of 17.60, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 62.35 is Neutral, neither overbought nor oversold. The STOCH value of 73.69 is Neutral, 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PATK	72 Outperform	$3.28B	26.52	11.25%	1.60%	6.09%	-18.29%
MHK	71 Outperform	$7.25B	15.51	5.95%	―	-1.61%	―
MBC	63 Neutral	$1.40B	14.21	8.02%	―	1.30%	-44.70%
Sector *	62 Neutral	AU$3.02B	29.09	4.95%	4.87%	2.19%	-27.19%
ACKAY	56 Neutral	$2.13B	42.50	-2.98%	―	11.99%	-128.21%
MLKN	53 Neutral	$1.23B	45.68	-2.77%	4.12%	1.14%	-149.26%
WHR	50 Neutral	$4.62B	738.81	-5.35%	8.47%	-16.05%	-127.65%

* Consumer Cyclical Sector Average

Performance Comparison

ACKAY

Arcelik

16.37

-6.29

-27.76%

MLKN

MillerKnoll

19.57

-7.72

-28.29%

MHK

Mohawk

119.29

-27.71

-18.85%

PATK

Patrick Industries

100.35

21.64

27.49%

WHR

Whirlpool

82.67

-4.17

-4.80%

MBC

MasterBrand Inc

11.05

-4.75

-30.06%

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