Turkcell Iletisim (TKC) AI Stock Analysis

Compare

308 Followers

TKC Dividends

Top Page

Turkcell Iletisim

(NYSE:TKC)

75Outperform

Turkcell's strong financial performance, attractive valuation, and positive earnings call sentiment are key strengths, supporting its growth potential. However, technical indicators suggest a bearish trend, which tempers the overall score. The focus on strategic initiatives like 5G and renewable energy investments is promising, but rising debt and market competition pose risks that need monitoring.

Turkcell Iletisim (TKC) vs. S&P 500 (SPY)

Market Cap

$5.18B

Dividend Yield2.54%

Average Volume (3M)882.55K

Price to Earnings (P/E)11.8

Beta (1Y)0.46

Revenue Growth8.78%

EPS Growth-21.85%

CountryUS

Employees23,795

SectorCommunication Services

Sector Strength83

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.48

Shares Outstanding873,242,500

10 Day Avg. Volume867,472

30 Day Avg. Volume882,552

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.75

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Turkcell Iletisim Business Overview & Revenue Model

Company DescriptionTurkcell Iletisim Hizmetleri A.S. provides digital services in Turkey, Ukraine, Belarus, Northern Cyprus, Germany, and the Netherlands. It operates through Turkcell Turkey, Turkcell International, and Techfin segments. It offers work contact services consisting of mobile communications, fixed business internet and business phone, and customer loyalty and programs. The company provides digital business services comprising of uninterrupted access, cyber security, data center, internet of things, big data, e-transformation, technologies, and managed services, and cloud solutions. In addition, the company provides various devices, hardware, software, and financing solutions. Further, the company offers digital services comprising of search, invoice and TL services; and information, entertainment, and application services. Additionally, the company provides TV+, which enables subscribers to watch series and other TV contents whenever and wherever they want; fizy, a digital music platform; magazine holder, a magazine, and newspapers service, and yaani browser, a mobile application. Furthermore, the company offers BiP, an all-access communication service application; goals pocket, a news and goal videos application; and digital operator, a transactions and technology purchases application. The company provides home internet and TV services. The company was incorporated in 1993 and is headquartered in Istanbul, Turkey.

How the Company Makes MoneyTurkcell generates revenue primarily through its mobile and fixed-line telecommunications services. The company's key revenue streams include voice and data services provided to individual customers, corporate clients, and governmental bodies. Revenue is also derived from digital services, such as digital payment systems and cloud-based solutions, which cater to the growing demand for digital transformation. Turkcell's strategic partnerships with global technology companies and local enterprises enhance its service offerings, contributing to its financial performance. Additionally, the company earns from its television broadcasting services and value-added services such as mobile applications and content offerings.

Turkcell Iletisim Financial Statement Overview

Summary

Turkcell Iletisim presents a strong financial position with impressive growth across key financial metrics. The income statement shows robust revenue and profit growth, the balance sheet reflects a balanced financial structure despite rising debt levels, and the cash flow statement highlights effective cash generation and management. The company appears well-positioned for future growth, though careful monitoring of debt levels is advisable.

Income Statement

Very Positive

Turkcell Iletisim has demonstrated strong revenue growth with a significant increase in total revenues from 2023 to 2024. The gross profit margin remains healthy, and net income has also shown considerable growth, indicating improved profitability. The EBIT and EBITDA margins are robust, reflecting efficient operations and profitability. The company has effectively managed to enhance its income, showcasing a positive trend in earnings.

Balance Sheet

Positive

The balance sheet reflects a solid equity base with a moderate debt-to-equity ratio, indicating a balanced financial structure. The equity ratio suggests a good proportion of the company's assets are financed by equity. However, the increase in total debt from previous periods could pose a potential risk if not managed properly. The return on equity is impressive, showcasing effective utilization of shareholder funds to generate income.

Cash Flow

Very Positive

Turkcell Iletisim exhibits a strong cash flow position with substantial growth in free cash flow, underscoring its ability to generate cash from operations. The operating cash flow to net income ratio is favorable, indicating a strong correlation between profitability and cash generation. The free cash flow to net income ratio is also healthy, suggesting efficient cash management practices.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
166.67B	107.12B	53.88B	35.92B	29.10B
	Gross Profit
41.16B	22.70B	17.09B	10.69B	8.77B
	EBIT
35.12B	7.81B	14.14B	7.35B	5.77B
	EBITDA
60.83B	45.19B	43.86B	13.03B	11.66B
	Net Income Common Stockholders
23.52B	12.55B	11.05B	4.33B	4.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.86B	58.85B	30.91B	18.68B	12.56B
	Total Assets
344.28B	247.08B	101.26B	70.68B	51.50B
	Total Debt
104.34B	84.08B	53.85B	36.78B	21.59B
	Net Debt
35.41B	34.11B	27.73B	18.15B	9.73B
	Total Liabilities
157.31B	124.85B	70.37B	48.12B	30.71B
	Stockholders Equity
186.97B	122.25B	30.89B	22.56B	20.78B
Cash Flow		Free Cash Flow
44.31B	12.22B	11.07B	10.07B	5.31B
	Operating Cash Flow
75.01B	41.72B	25.15B	19.95B	13.09B
	Investing Cash Flow
-48.86B	-20.91B	-19.65B	-9.14B	-6.78B
	Financing Cash Flow
-9.78B	6.77B	1.76B	-3.94B	-4.27B

Turkcell Iletisim Technical Analysis

Technical Analysis Sentiment

Negative

Last Price6.05

Price Trends

50DMA

6.64

Negative

100DMA

6.77

Negative

200DMA

6.80

Negative

Market Momentum

MACD

-0.13

Negative

RSI

43.43

Neutral

STOCH

73.24

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKC, the sentiment is Negative. The current price of 6.05 is below the 20-day moving average (MA) of 6.07, below the 50-day MA of 6.64, and below the 200-day MA of 6.80, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 73.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TKC.

Turkcell Iletisim Risk Analysis

Turkcell Iletisim disclosed 28 risk factors in its most recent earnings report. Turkcell Iletisim reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Turkcell Iletisim Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHI	78 Outperform	$5.10B	8.99	29.05%	5.34%	-0.15%	17.96%
TIGO	77 Outperform	$5.64B	22.43	7.13%	3.05%	2.53%	―
SKM	76 Outperform	$8.52B	9.52	11.19%	5.08%	-2.34%	12.31%
TKC	75 Outperform	$5.18B	11.80	6.76%	2.54%	8.78%	-21.85%
USM	65 Neutral	$5.73B	―	-0.85%	―	-3.48%	-169.60%
TEO	64 Neutral	$4.26B	4.54	23.27%	―	-26.74%	―
Sector *	59 Neutral	$13.71B	6.83	-3.41%	3.82%	2.31%	-35.16%

* Communication Services Sector Average

Performance Comparison

TKC

Turkcell Iletisim

6.05

0.16

2.72%

PHI

PLDT

23.35

0.38

1.65%

SKM

Sk Telecom

22.43

1.75

8.46%

TEO

Telecom Argentina

9.74

2.00

25.84%

USM

United States Cellular

67.35

30.75

84.02%

TIGO

Millicom International Cellular SA

32.77

13.09

66.51%

Turkcell Iletisim Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -17.12% | Next Earnings Date: May 9, 2025

Earnings Call Sentiment Positive

Turkcell's earnings call reflected strong financial performance and strategic achievements, including record postpaid additions and sustainable finance initiatives. However, challenges such as increased churn and intense market competition were noted. Overall, the highlights outweigh the lowlights, indicating a positive sentiment.

Highlights

Record-Breaking Postpaid Additions

Turkcell achieved a record-breaking 1.9 million net postpaid additions, the highest in the past 15 years, increasing the postpaid share to 76%.

Strong Financial Performance

Turkcell's full-year top line reached TRY 16.7 billion, reflecting a 7.8% year-on-year rise, and EBITDA surged by 10.2% to TRY 70 billion, with the EBITDA margin expanding by 0.9 percentage points.

Successful Ukraine Asset Sale

A key milestone was the completion of the Ukraine asset sale in Q3, contributing to a 30% increase in net income, exceeding TRY 23.5 billion.

Techfin Segment Growth

Paycell, a mobile payment platform, achieved 33% growth in Q4, while Paylater transaction volumes surged by 87%. Financell revenue rose by 13.6%.

Sustainable Finance and Renewable Energy Efforts

Turkcell issued a $1 billion euro bond, with half being a sustainable bond issue, and added 8.2 megawatts of active solar capacity.

Lowlights

Increased Churn Rate

The churn rate rose to 2.8% due to accelerated market aggressiveness and lifecycle closures, with a quarterly net loss of 0.9 million in the prepaid segment.

Intense Market Competition

The mobile market remained highly competitive with aggressive pricing dynamics, impacting pricing strategies and leading to increased churn.

Challenges in Prepaid Segment

A quarterly net loss in the prepaid segment was noted, driven by broader adoption of alternative data solutions and postpaid migrations.

Company Guidance

During the Turkcell earnings call for the fiscal year 2024, the company provided guidance for 2025, indicating expectations for a 7% to 9% top-line revenue growth. The data center and cloud revenue growth is projected to be between 32% and 34%. Turkcell aims to maintain an EBITDA margin of 41% to 42% and anticipates a CapEx intensity around 24%. The company also highlighted its strategic focus on 5G investments, fiber network expansion, and renewable energy projects, while emphasizing its commitment to maintaining a strong balance sheet and leveraging its diversified revenue streams to drive future growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.