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Koc Holding A.S. Unsponsored ADR Class B (KHOLY)
OTHER OTC:KHOLY
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Koc Holding A.S. Unsponsored ADR Class B
(OTC:KHOLY)
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Rating:59Neutral
Price Target:
$21.00
▼(-1.22% Downside)
Koc Holding A.S. receives a moderate score due to its consistent revenue growth and attractive dividend yield. However, challenges in profitability, high leverage, and liquidity concerns weigh down the score. Technical indicators show short-term bullish momentum, but potential overbought conditions may limit upside potential.
Positive Factors
Business Model Strength
Koc Holding's diversified business model across sectors like automotive, consumer durables, and energy provides resilience against market fluctuations, ensuring stable revenue streams.
Strategic Partnerships
Partnerships, such as with Fiat in automotive, bolster Koc Holding's competitive position and operational efficiency, supporting long-term growth and market penetration.
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, contributing to the company's long-term financial health.
Negative Factors
High Leverage
High leverage can strain financial flexibility and increase risk, potentially impacting Koc Holding's ability to invest in growth opportunities.
Profitability Challenges
Low profitability margins suggest challenges in cost management and efficiency, which may hinder long-term profitability and shareholder returns.
Cash Flow Issues
Negative cash flow metrics highlight inefficiencies in cash generation, posing risks to liquidity and the ability to fund operations or investments.
Koc Holding A.S. Unsponsored ADR Class B (KHOLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.82B
Dividend Yield4.41%
Average Volume (3M)32.00
Price to Earnings (P/E)24.5
Beta (1Y)0.11
Revenue Growth-6.21%
EPS Growth-89.39%
CountryUS
Employees130,760
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.04
Shares Outstanding371,424,930
10 Day Avg. Volume96
30 Day Avg. Volume32
Financial Highlights & Ratios
PEG Ratio-3.54
Price to Book (P/B)0.86
Price to Sales (P/S)0.20
P/FCF Ratio24.69
Enterprise Value/Market Cap129.92
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit3.54
Enterprise Value/Ebitda6.99
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
Koc Holding A.S. Unsponsored ADR Class B Business Overview & Revenue Model
Company DescriptionKoç Holding A.S., through its subsidiaries, engages in the energy, automotive, consumer durables, finance, and other businesses in Turkey and internationally. The company's energy business operates petroleum refineries; distributes petroleum products and liquefied petroleum gases; and generates electricity through hydroelectric, natural gas, coal, thermal, and solar power and other renewable plants. It serves customers under the Akpa, Aygaz, Lipetgaz, Mogaz, Pursu, Aygaz Dogalaz, Demir Export, Ditas, Opet Fuchs, Opet, THY Opet, Tupras, Elektra Bregenz, and Entek brand names. The company's automotive business provides light commercial vehicles, passenger cars, tractors, buses, and trucks, as well as offers automotive retailing and car rental services. It serves customers under the Ford, Koç Fiat Kredi, Otokar, Avis, Birmot, Budget, Otokoç, Otokoç Otomotiv, Otokoç Sigorta, Alfa Romeo, Ferrari, Fiat, Lancia, Maserati, Otoeksper, Tofas, Case IH, and TürkTraktör. The company's consumer durables business offers white goods, televisions, and air conditioners under the Arçelik, Beko, Leisure, Arctic, Altus, Grundig, Blomberg, Defy, Elektra Bregenz, Flavel, Arçelik LG, TEE, and WAT brand names. Its finance business provides various banking and financial products and services that include private banking, factoring, leasing, portfolio management, and credit cards under the Koçfinans, Yapi Kredi Bankasi, Token, akpakoc, Yapi Kredi Faktoring, Yapi Kredi, Yapi Kredi Leasing, Yapi Kredi Kültür Sanat Yayincilik, Yapi Kredi Portföy Yönetimi, Yapi Kredi Yatirim, and Yapi Kredi Koray brand names. The company's other business offers tomato products and pastes, canned pickles, and ketchups; and pasteurized milk, as well as do it yourself retailing, marina, tourism, and information technology services under various brand names. The company was founded in 1926 and is based in Istanbul, Turkey.
How the Company Makes MoneyKoc Holding generates revenue through a diversified business model that encompasses multiple sectors. Key revenue streams include the production and sale of automotive vehicles and components, consumer electronics and appliances, energy generation and distribution, and financial services through its banking and investment arms. The company benefits from strategic partnerships with global brands, enabling it to enhance its product offerings and market reach. Additionally, Koc Holding's involvement in various joint ventures and collaborations with international companies further strengthens its revenue potential, allowing it to tap into new markets and technological advancements.
Koc Holding A.S. Unsponsored ADR Class B Earnings Call Summary
Earnings Call Date:Nov 07, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented mixed results with strong performance in the energy segment and an improved net cash position, but significant challenges were noted in the finance, automotive, and export sectors. The NAV discount reduction is a positive, yet the consolidated net loss and negative finance segment contribution weigh heavily on the overall outlook.Q3-2024 Updates
Positive Updates
Strong Performance in Energy Segment
The Energy segment's contribution to Koç Holding's consolidated net income was strong, supported by higher sales and lower energy expenses. Tüpras international sales volume was up by 24% year-on-year.
Net Cash Position Improvement
Koç Holding's net cash position improved to $853 million at the end of September 2024 from $795 million at the end of 2023.
International Revenue Growth
International revenues constituted 29% of total revenues, with a notable increase of 22% year-on-year in Arçelik's international revenues, primarily due to inorganic growth from Whirlpool's contribution.
NAV Discount Reduction
Koç Holding's average NAV discount improved to approximately 22% in 2024, better than the 31% average in 2023.
Negative Updates
Negative Contribution from Finance Segment
The Finance segment's contribution to net income was negative due to monetary losses from inflation accounting affecting Yapi Kredi's financials.
Domestic Auto Market Decline
The domestic auto market saw a decrease of 1% year-on-year and Koç Holding's market share in the domestic market decreased around 6 percentage points.
Weakness in Turkish Export Markets
TürkTraktör's revenues decreased by 16% due to a 10% lower volume, and Tofas witnessed a 33% decrease in export volumes.
Consolidated Net Loss
Koç Holding reported a consolidated net loss of around TRY 1.9 billion in the first 9 months of 2024.
Company Guidance
During the Q3 2024 earnings call for Koç Holding, executives provided detailed financial guidance and performance metrics across various segments. The company reported a net cash position of $853 million by September 2024, with $1.6 billion in gross cash, 87% of which is held in hard currency. The dividend income for the first nine months was approximately TRY 29.7 billion ($903 million), with expectations to reach $1.2 billion by year-end. Koç Holding's diversified portfolio demonstrated resilience, with 29% of revenues from international sales and 48% in hard currency. Key performance indicators highlighted a 3.8% growth in Turkey's economy in H1 2024, though domestic demand slowed in Q3, contributing to disinflation efforts. The automotive segment experienced a 6% decrease in market share, while the energy segment's net income contribution remained strong, backed by higher sales and reduced energy expenses. Meanwhile, the finance segment faced challenges due to monetary losses and inflation-adjusted financials, although Yapi Kredi's net fees and commissions grew by 132% year-on-year. Looking ahead, Polat Sen projected challenges due to ongoing monetary tightening but expressed confidence in the group's strategic agility and prudent risk management to navigate the evolving economic landscape.Koc Holding A.S. Unsponsored ADR Class B Financial Statement Overview
Summary
Koc Holding A.S. shows consistent revenue growth but faces challenges with profitability and cash flow management. High leverage and declining return on equity pose potential risks, while negative cash flow metrics indicate liquidity concerns.Income Statement
Koc Holding A.S. has shown a consistent revenue growth trend, with a TTM revenue growth rate of 5.42%. However, profitability margins such as the net profit margin (0.25%) and EBIT margin (4.38%) are relatively low, indicating challenges in converting revenue into profit. The gross profit margin has decreased over time, suggesting potential cost management issues.Balance Sheet
The company has a high debt-to-equity ratio of 1.96 in the TTM period, indicating significant leverage. Return on equity has decreased to 1.06%, reflecting reduced efficiency in generating returns on shareholders' equity. The equity ratio is not explicitly provided, but the high leverage suggests a lower proportion of equity in the capital structure.Cash Flow
Koc Holding A.S. faces challenges with negative free cash flow growth and operating cash flow in the TTM period, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in cash generation relative to net income. Despite these challenges, the free cash flow to net income ratio is high at 5.21, suggesting some ability to generate cash relative to net income.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.49T | 2.32T | 1.60T | 901.86B | 346.69B | 183.78B |
| Gross Profit | 397.04B | 327.83B | 376.65B | 226.84B | 80.06B | 44.33B |
| EBITDA | 201.00B | 143.77B | 309.02B | 142.16B | 35.24B | 23.42B |
| Net Income | 17.18B | 1.31B | 72.23B | 118.22B | 26.18B | 12.63B |
Balance Sheet | ||||||
| Total Assets | 5.11T | 3.91T | 2.86T | 1.58T | 1.02T | 630.10B |
| Cash, Cash Equivalents and Short-Term Investments | 933.92B | 575.01B | 486.29B | 306.72B | 207.25B | 113.25B |
| Total Debt | 1.34T | 879.32B | 670.38B | 378.55B | 286.29B | 181.81B |
| Total Liabilities | 4.07T | 3.05T | 2.18T | 1.34T | 899.45B | 542.03B |
| Stockholders Equity | 644.49B | 528.63B | 404.73B | 149.35B | 63.64B | 46.34B |
Cash Flow | ||||||
| Free Cash Flow | -124.72B | 18.38B | 270.74B | 87.88B | 38.14B | 12.18B |
| Operating Cash Flow | -16.31B | 116.31B | 339.02B | 115.48B | 50.66B | 20.21B |
| Investing Cash Flow | -131.16B | -121.37B | -165.46B | -86.42B | -53.60B | 12.84B |
| Financing Cash Flow | 163.87B | 9.60B | -17.42B | -5.56B | 10.20B | -10.85B |
Koc Holding A.S. Unsponsored ADR Class B Technical Analysis
Positive
21.26
Price Trends
20.17
Positive
20.48
Positive
20.14
Positive
Market Momentum
0.23
Negative
62.49
Neutral
91.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KHOLY, the sentiment is Positive. The current price of 21.26 is above the 20-day moving average (MA) of 20.34, above the 50-day MA of 20.17, and above the 200-day MA of 20.14, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 62.49 is Neutral, neither overbought nor oversold. The STOCH value of 91.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KHOLY.
Koc Holding A.S. Unsponsored ADR Class B Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $130.30B | 21.85 | 35.85% | 2.24% | 7.48% | 9.55% | |
73 Outperform | $4.27B | 10.74 | 8.36% | 0.21% | 10.31% | ― | |
71 Outperform | $8.28B | 36.62 | 14.90% | 0.63% | 1.23% | -22.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $10.82B | 24.53 | 0.97% | 4.41% | -6.21% | -89.39% | |
59 Neutral | $87.78B | 26.41 | 73.38% | 1.82% | -13.09% | -20.63% | |
48 Neutral | $4.72B | -9.95 | -12.71% | 27.59% | -8.45% | 27.66% |
* Industrials Sector Average
KHOLY
Koc Holding A.S. Unsponsored ADR Class B
21.26
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-11.72%
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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.