Arcelik (ACKAY) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: N/A
• Average Volume (3M): 10.00
• Price to Earnings (P/E): 39.7
• Beta (1Y): 0.38
• Revenue Growth: 2.58%
• EPS Growth: 30.99%
• Country: US
• Employees: 53,401
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.41
• Shares Outstanding: 135,145,600
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 10
• PEG Ratio: -0.68
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -9.53
• Enterprise Value/Market Cap: 3.39
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: 0.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.92
• Revenue Forecast (FY): $13.01B

• Rating: 52 Neutral
• Price Target: $12.50 ▲(0.48% Upside)

Arcelik's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant challenges in profitability and cash flow management, with high leverage posing financial risks. Technical indicators suggest bearish momentum, further weighing on the stock. Valuation metrics are unattractive due to negative earnings. Improvement in operational efficiency and cash flow generation is crucial for enhancing the stock's outlook.

Positive Factors

Revenue Growth

Consistent revenue growth, even if slight, suggests that Arcelik is maintaining its market presence and product demand, which is crucial for long-term sustainability.

Global Market Presence

Arcelik's extensive global market presence provides a diversified revenue base and reduces dependency on any single market, enhancing resilience against regional economic fluctuations.

Innovation and R&D

Continuous investment in R&D supports Arcelik's competitive edge by fostering innovation, leading to new product offerings and potential market expansion.

Negative Factors

High Leverage

Significant leverage increases financial risk and could limit Arcelik's ability to invest in growth opportunities, impacting long-term financial stability.

Negative Profitability

Negative profitability indicates operational inefficiencies and challenges in cost management, which could hinder Arcelik's ability to generate sustainable earnings.

Cash Flow Issues

Negative cash flow growth suggests difficulties in cash management, potentially leading to increased reliance on external financing and impacting operational flexibility.

Arcelik Business Overview & Revenue Model

Company Description

Arçelik 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 Money

Arcelik generates revenue primarily through the sale of its wide range of household appliances and consumer electronics. The company has a diverse revenue model that includes direct sales through retail channels, e-commerce platforms, and partnerships with wholesalers and distributors. Key revenue streams include major appliances, which account for a significant portion of sales, as well as small appliances and consumer electronics. Arcelik also benefits from international markets, with a substantial presence in Europe, Asia, and Africa, which diversifies its revenue base. Additionally, the company engages in strategic partnerships and collaborations with other firms and technology providers to enhance product offerings and expand market reach, contributing to its overall profitability.

Arcelik Financial Statement Overview

Summary

Arcelik faces challenges in profitability and cash flow management, despite some revenue growth. High leverage and negative returns on equity highlight financial risks. The company should prioritize improving operational efficiency and cash flow generation to strengthen its financial position.

Income Statement

Arcelik's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 4.46%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -0.09%. Gross profit margin remains stable at around 27%, but EBIT and EBITDA margins have declined over time, indicating pressure on operating efficiency. The company needs to focus on improving its cost structure and profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 2.23, indicating significant leverage, which could pose a risk if not managed properly. Return on equity has turned negative in the TTM period, suggesting challenges in generating returns for shareholders. However, the equity ratio remains stable, showing a reasonable proportion of equity financing. The company should aim to reduce debt levels to improve financial stability.

Cash Flow

Cash flow analysis reveals concerns, with negative free cash flow and a declining operating cash flow to net income ratio. The TTM period shows a negative free cash flow growth, indicating cash management issues. The company must enhance its cash generation capabilities to support operations and reduce reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	463.06B	428.55B	257.10B	133.92B	68.18B	40.87B
Gross Profit	127.90B	118.10B	75.38B	39.49B	20.48B	13.81B
EBITDA	42.80B	36.25B	24.33B	11.65B	7.55B	6.25B
Net Income	-2.28B	1.69B	7.67B	4.32B	3.06B	2.85B
Balance Sheet
Total Assets	502.81B	397.73B	258.14B	132.24B	85.08B	46.55B
Cash, Cash Equivalents and Short-Term Investments	60.08B	50.82B	48.79B	24.53B	16.01B	12.00B
Total Debt	205.13B	138.04B	101.91B	51.44B	32.58B	17.08B
Total Liabilities	427.60B	322.66B	198.57B	105.14B	64.02B	32.53B
Stockholders Equity	68.98B	67.17B	53.17B	24.95B	19.38B	13.82B
Cash Flow
Free Cash Flow	-16.17B	-9.41B	-22.43B	-811.47M	-3.14B	4.69B
Operating Cash Flow	6.58B	14.39B	-8.64B	5.10B	-627.45M	6.42B
Investing Cash Flow	-21.07B	-14.72B	-14.41B	-4.62B	-4.38B	-1.32B
Financing Cash Flow	25.33B	1.06B	31.54B	4.07B	4.80B	-1.31B

Arcelik Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACKAY, the sentiment is Negative. The current price of 12.44 is below the 20-day moving average (MA) of 12.52, below the 50-day MA of 13.11, and below the 200-day MA of 15.44, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 19.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACKAY.

Arcelik Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	74 Outperform	$1.59B	17.82	8.82%	2.33%	1.78%	-25.36%
TILE	72 Outperform	$1.60B	14.25	20.20%	0.22%	5.11%	34.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MHK	61 Neutral	$6.92B	16.67	5.20%	―	-0.82%	-23.99%
MLKN	55 Neutral	$1.09B	―	-1.18%	4.71%	5.37%	-127.27%
ACKAY	52 Neutral	$1.68B	39.68	1.98%	―	2.58%	30.99%
WHR	51 Neutral	$4.49B	―	-6.68%	6.63%	-11.36%	-133.01%

Arcelik Corporate Events

Arcelik A.S. Faces Challenges Amidst Declining Sales

Arcelik A.S. is a prominent player in the consumer durables and electronics sector, operating globally with a diverse portfolio of brands and manufacturing facilities spread across multiple countries. The company is known for its extensive range of home appliances and electronics, serving a wide array of markets worldwide.