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Arcelik (ACKAY)
OTHER OTC:ACKAY
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Arcelik
(OTC:ACKAY)
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Rating:46Neutral
Price Target:
$13.50
▲(4.25% Upside)
Action:ReiteratedDate:02/05/26
The score is mainly held down by weakening fundamentals: a 2025 net loss, rising leverage, and persistently negative free cash flow. Technicals are a partial offset with price above key moving averages and positive MACD, though momentum appears stretched (overbought Stoch). Valuation is constrained by loss-making earnings (negative P/E) and no provided dividend yield.
Positive Factors
Revenue Scale
Sustained top-line scale indicates broad product acceptance and market penetration across appliance categories. Larger revenue provides room for operating leverage, procurement efficiencies and channel reach that can support margin recovery and reinvestment over the next several quarters.
Brand & Geographic Diversification
A multi-brand, international footprint reduces single-market exposure and supports volume and pricing flexibility. Well-known brands (Beko, Arçelik) enable distribution partnerships, recurring after-sales revenue, and cross-market product transfers that stabilize revenue through regional cycles.
Positive Operating Profitability
Positive operating profit shows the core appliance business still generates operating income before financing and extraordinary items. This suggests fundamental product economics remain viable and gives management a base to restore net profitability once financing costs or one-off pressures ease.
Negative Factors
Rising Leverage
A sharp jump in leverage materially raises refinancing and interest-rate sensitivity. With higher debt load and weaker earnings, financial flexibility to fund operations, capex or turn the business around is constrained, raising long-term solvency and covenant risks if losses persist.
Negative Free Cash Flow
Persistent negative free cash flow forces reliance on external financing or working-capital moves to fund operations. Over months this restricts investment in product development, manufacturing capacity and after-sales, and exacerbates leverage pressure, limiting ability to sustain growth.
Profitability Deterioration
A swing to a net loss and falling gross margins point to structural margin pressure from cost inflation, price competition or adverse mix. Lower profitability reduces retained earnings, undermines ROE and makes deleveraging harder, risking longer recovery time even if revenues hold.
Arcelik (ACKAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.97B
Dividend YieldN/A
Average Volume (3M)10.00
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth2.58%
EPS Growth30.99%
CountryUS
Employees53,401
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.37
Shares Outstanding135,145,600
10 Day Avg. Volume0
30 Day Avg. Volume10
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.98
Price to Sales (P/S)0.12
P/FCF Ratio-4.23
Enterprise Value/Market Cap111.18
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit1.47
Enterprise Value/Ebitda4.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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 Earnings Call Summary
Earnings Call Date:Oct 25, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
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
Income statement shows strong revenue growth but a sharp deterioration in profitability (swing to net loss in 2025) and declining gross margin. Balance sheet risk is high with sharply higher leverage (debt-to-equity rising to ~3.5x) and negative ROE. Cash flow quality is weak with recurring negative free cash flow and low cash generation relative to scale, increasing financing risk.Income Statement
Revenue has scaled rapidly over the last several years, including strong growth in the most recent annual period (2025). However, profitability has deteriorated materially: the company moved from modest profits in 2024 to a net loss in 2025, and gross margin has trended down from earlier years. Operating profitability remains positive, but the sharp swing to losses points to cost pressure and weaker earnings quality despite top-line momentum.44
Neutral
Balance Sheet
Leverage is elevated and rising: debt-to-equity increased from ~2.1x (2024) to ~3.5x (2025), alongside a large increase in total debt. With 2025 in a net loss position, return on equity turned negative, reducing financial flexibility. While the asset base has expanded, the balance sheet risk is dominated by higher debt load and weaker earnings capacity to support it.28
Negative
Cash Flow
Cash generation is weak relative to the company’s scale. Operating cash flow is positive in 2025 but very low versus reported earnings levels, and free cash flow remains meaningfully negative in recent years (including 2024–2025). The pattern of recurring free-cash-flow deficits suggests reliance on financing and/or working-capital swings, increasing risk in a higher-leverage setup.22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 568.57B | 428.55B | 257.10B | 133.92B | 68.18B |
| Gross Profit | 148.78B | 118.10B | 75.38B | 39.49B | 20.48B |
| EBITDA | 53.92B | 36.25B | 24.33B | 11.65B | 7.55B |
| Net Income | -9.07B | 1.69B | 7.67B | 4.32B | 3.06B |
Balance Sheet | |||||
| Total Assets | 543.25B | 397.73B | 258.14B | 132.24B | 85.08B |
| Cash, Cash Equivalents and Short-Term Investments | 97.78B | 50.82B | 48.79B | 24.53B | 16.01B |
| Total Debt | 243.58B | 138.04B | 101.91B | 51.44B | 32.58B |
| Total Liabilities | 467.39B | 322.66B | 198.57B | 105.14B | 64.02B |
| Stockholders Equity | 70.35B | 67.17B | 53.17B | 24.95B | 19.38B |
Cash Flow | |||||
| Free Cash Flow | -16.23B | -9.41B | -22.43B | -811.47M | -3.14B |
| Operating Cash Flow | 3.60B | 14.39B | -8.64B | 5.10B | -627.45M |
| Investing Cash Flow | -29.05B | -14.72B | -14.41B | -4.62B | -4.38B |
| Financing Cash Flow | 53.96B | 1.06B | 31.54B | 4.07B | 4.80B |
Arcelik Technical Analysis
Neutral
12.95
Price Trends
13.11
Positive
13.08
Positive
14.30
Negative
Market Momentum
0.38
Positive
49.71
Neutral
19.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACKAY, the sentiment is Neutral. The current price of 12.95 is below the 20-day moving average (MA) of 13.88, below the 50-day MA of 13.11, and below the 200-day MA of 14.30, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 19.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACKAY.
Arcelik Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.96B | 17.49 | 20.20% | 0.21% | 5.11% | 34.02% | |
67 Neutral | $8.10B | 21.65 | 5.20% | ― | -0.82% | -23.99% | |
65 Neutral | $1.45B | 17.64 | 8.11% | 2.39% | 1.78% | -25.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.50B | ― | -1.95% | 4.16% | 4.34% | -141.36% | |
50 Neutral | $4.89B | 15.28 | 11.76% | 7.40% | -11.36% | -133.01% | |
46 Neutral | $1.97B | -8.33 | 1.98% | ― | 2.58% | 30.99% |
* Consumer Cyclical Sector Average
ACKAY
Arcelik
13.74
-3.32
-19.48%
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22.34
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6.03%
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37.02
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-15.79%
MHK
Mohawk
127.00
11.59
10.04%
WHR
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84.49
-10.65
-11.19%
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.