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Arcelik A.S. Unsponsored ADR (ACKAY)
:ACKAY
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Arcelik
(OTC:ACKAY)
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Rating:52Neutral
Price Target:
$12.50
▼(-0.87% Downside)
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.
Arcelik (ACKAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.79B
Dividend YieldN/A
Average Volume (3M)35.00
Price to Earnings (P/E)―
Beta (1Y)0.39
Revenue Growth11.99%
EPS Growth-128.21%
CountryUS
Employees53,401
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)N/A
Shares Outstanding135,145,600
10 Day Avg. Volume30
30 Day Avg. Volume35
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Arcelik Business Overview & Revenue Model
Company DescriptionArcelik A.Ş. is a leading Turkish multinational company specializing in the manufacturing and marketing of household appliances and consumer electronics. Founded in 1955 and headquartered in Istanbul, Arcelik operates in various sectors, including major appliances, small home appliances, and consumer electronics. The company is known for its innovative products, which include refrigerators, washing machines, dishwashers, air conditioners, and kitchen appliances, marketed under several brands, including Beko and Grundig.
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 17, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jan 28, 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
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.65
Positive
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.60
Neutral
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.55
Neutral
| 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 | 24.95B | 11.65B | 7.38B | 6.05B |
| 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 | 49.25B | 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
Negative
12.61
Price Trends
15.23
Negative
15.31
Negative
16.22
Negative
Market Momentum
-0.73
Negative
39.35
Neutral
35.07
Neutral
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 12.61 is below the 20-day moving average (MA) of 13.57, below the 50-day MA of 15.23, and below the 200-day MA of 16.22, indicating a bearish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 39.35 is Neutral, neither overbought nor oversold. The STOCH value of 35.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACKAY.
Arcelik Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.64B | 17.38 | 18.63% | 0.18% | 6.26% | 44.74% | |
64 Neutral | $1.35B | 14.99 | 9.09% | 2.69% | 2.18% | -22.35% | |
64 Neutral | $7.45B | 17.85 | 5.20% | ― | -0.82% | -23.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $1.20B | ― | -1.18% | 4.39% | 5.37% | -127.27% | |
52 Neutral | $1.79B | ― | -2.98% | ― | 11.99% | -128.21% | |
45 Neutral | $4.12B | ― | -5.35% | 8.25% | -16.05% | -127.65% |
* Consumer Cyclical Sector Average
ACKAY
Arcelik
13.28
-5.96
-30.98%
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17.45
-5.31
-23.33%
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28.12
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LZB
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32.73
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-15.99%
MHK
Mohawk
119.90
-11.81
-8.97%
WHR
Whirlpool
73.66
-23.68
-24.33%
Arcelik Corporate Events
Arcelik A.S. Faces Challenges Amidst Declining Sales
Aug 5, 2025
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.
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.