Koc Holding A.S. Unsponsored ADR Class B (KHOLY) AI Stock Analysis

• Market Cap: $10.22B
• Dividend Yield: 4.31%
• Average Volume (3M): 80.00
• Price to Earnings (P/E): 71.1
• Beta (1Y): 0.12
• Revenue Growth: -6.21%
• EPS Growth: -89.39%
• Country: US
• Employees: 130,760
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.04
• Shares Outstanding: 371,424,930
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 80
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.78
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.08
• Enterprise Value/Ebitda: 0.17
• 1Y Price Target: $21.00
• Price Target Upside: 4.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $21.00 ▲(4.37% Upside)

Koc Holding A.S. faces significant financial challenges, with high leverage and low profitability. Technical indicators suggest bearish momentum, and the high P/E ratio raises concerns about overvaluation. The dividend yield is a positive aspect, but overall, the stock presents considerable risks.

Positive Factors

Diversified Business Model

Koc Holding's diversified business model across sectors like automotive, energy, and finance provides resilience against sector-specific downturns, ensuring stable revenue streams and reducing dependency on any single market.

Strategic Partnerships

Strategic partnerships with global brands enhance Koc Holding's product offerings and market reach, providing competitive advantages and access to new technologies and markets, which can drive long-term growth.

Operational Efficiency

Improved EBIT and EBITDA margins suggest better operational efficiency, which can lead to enhanced profitability and competitive positioning in the long term, even amidst revenue growth challenges.

Negative Factors

High Leverage

High leverage increases financial risk, as it can strain cash flows and limit the company's ability to invest in growth opportunities, potentially impacting long-term financial stability.

Profitability Challenges

Low net profit margins indicate difficulties in cost management and achieving profitability, which can hinder the company's ability to generate sustainable earnings and reinvest in the business.

Cash Flow Management Issues

Negative cash flows highlight potential liquidity issues, limiting the company's ability to fund operations and growth initiatives, which could affect long-term financial health and operational flexibility.

Koc Holding A.S. Unsponsored ADR Class B Business Overview & Revenue Model

Company Description

Koç 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 Money

Koc 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 Financial Statement Overview

Summary

Koc Holding A.S. demonstrates moderate revenue growth and operational efficiency improvements, but faces profitability and cash flow challenges. High leverage and low return on equity highlight potential financial risks. The company needs to focus on improving profitability and cash flow management to enhance financial stability.

Income Statement

Koc Holding A.S. has shown a steady revenue growth rate of 3.75% in the TTM, indicating positive momentum. However, the gross profit margin has decreased from previous years, and the net profit margin remains low at 0.25%, suggesting challenges in cost management and profitability. The EBIT and EBITDA margins have improved slightly, reflecting operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio is high at 1.96, indicating significant leverage, which could pose risks if not managed properly. Return on equity has improved slightly to 1.06%, but remains low, suggesting limited profitability from shareholders' investments. The equity ratio is stable, providing some balance sheet strength.

Cash Flow

Koc Holding A.S. faces challenges in cash flow management, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is high at 5.21, indicating reliance on non-operational sources for cash. The negative free cash flow growth rate suggests potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.36T	2.32T	1.60T	901.86B	346.69B	183.78B
Gross Profit	356.10B	327.83B	376.65B	226.84B	80.06B	44.33B
EBITDA	164.19B	143.77B	322.60B	142.16B	35.24B	19.89B
Net Income	5.85B	1.31B	72.23B	118.22B	26.18B	12.63B
Balance Sheet
Total Assets	4.66T	3.91T	2.86T	1.58T	1.02T	630.10B
Cash, Cash Equivalents and Short-Term Investments	788.89B	575.01B	486.29B	306.72B	207.25B	113.25B
Total Debt	1.17T	879.32B	670.38B	378.55B	286.29B	181.81B
Total Liabilities	3.70T	3.05T	2.18T	1.34T	899.45B	542.03B
Stockholders Equity	595.18B	528.63B	404.73B	149.35B	63.64B	46.34B
Cash Flow
Free Cash Flow	-128.07B	18.38B	270.74B	87.88B	38.14B	12.18B
Operating Cash Flow	-24.61B	116.31B	339.02B	115.48B	50.66B	20.21B
Investing Cash Flow	-41.54B	-121.37B	-165.46B	-86.42B	-53.60B	12.84B
Financing Cash Flow	63.69B	9.60B	-17.42B	-5.56B	10.20B	-10.85B

Koc Holding A.S. Unsponsored ADR Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KHOLY, the sentiment is Negative. The current price of 20.12 is below the 20-day moving average (MA) of 21.50, below the 50-day MA of 21.35, and below the 200-day MA of 21.57, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 36.31 is Neutral, neither overbought nor oversold. The STOCH value of 13.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KHOLY.

Koc Holding A.S. Unsponsored ADR Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	78 Outperform	$7.37B	34.78	14.51%	0.69%	-0.15%	24.55%
HON	74 Outperform	$134.26B	24.04	34.60%	2.14%	7.16%	0.21%
SEB	72 Outperform	$3.78B	27.51	2.92%	0.23%	4.70%	-44.60%
Sector *	63 Neutral	$10.74B	15.33	7.44%	2.00%	2.86%	-14.57%
MMM	58 Neutral	$84.09B	21.96	96.00%	1.83%	-19.56%	325.26%
IEP	51 Neutral	$4.67B	―	-21.56%	24.54%	-11.23%	-6.85%
KHOLY	49 Neutral	$10.22B	71.13	0.97%	4.31%	-6.21%	-89.39%