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Turkcell Iletisim Hizmetleri As (TKC)
NYSE:TKC
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Turkcell Iletisim
(NYSE:TKC)
75Outperform
Turkcell Iletisim (TKC) vs. S&P 500 (SPY)
Market Cap
$5.07B
Dividend Yield2.66%
Average Volume (3M)692.23K
Price to Earnings (P/E)11.3
Beta (1Y)0.45
Revenue Growth8.78%
EPS Growth-21.85%
CountryUS
Employees23,795
SectorCommunication Services
Sector Strength73
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.48
Shares Outstanding873,242,500
10 Day Avg. Volume632,404
30 Day Avg. Volume692,233
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. (TKC) is a leading telecommunications and technology services provider based in Turkey. The company operates in the telecommunications sector, offering a wide range of services including mobile voice and data services, fixed broadband internet, and television broadcasting. Turkcell is known for its comprehensive digital services, which encompass digital payments, cloud solutions, and IoT (Internet of Things) applications, aiming to enhance connectivity and digitalization in the region.
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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Negative
5.78
Price Trends
7.02
Negative
6.84
Negative
6.90
Negative
Market Momentum
-0.29
Positive
39.29
Neutral
48.17
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 5.78 is below the 20-day moving average (MA) of 6.58, below the 50-day MA of 7.02, and below the 200-day MA of 6.90, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 39.29 is Neutral, neither overbought nor oversold. The STOCH value of 48.17 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $305.86B | 27.72 | 17.93% | 1.23% | 3.62% | 38.24% | |
76 Outperform | $191.23B | 17.86 | 10.54% | 4.17% | -0.08% | -24.48% | |
75 Outperform | $5.07B | 11.27 | 6.76% | 2.66% | 8.78% | -21.85% | |
73 Outperform | $181.14B | 10.38 | 18.27% | 6.24% | 0.61% | 50.39% | |
65 Neutral | $5.84B | ― | -0.85% | ― | -3.48% | -169.60% | |
64 Neutral | $5.90B | ― | -17.68% | ― | 32.25% | 20.56% | |
58 Neutral | $25.21B | 3.07 | -13.86% | 4.29% | 2.47% | -43.03% |
* Communication Services Sector Average
Performance Comparison
TKC
Turkcell Iletisim
5.78
0.18
3.21%
T
AT&T
26.64
10.34
63.44%
USM
United States Cellular
64.48
29.42
83.91%
VZ
Verizon
43.03
3.94
10.08%
TMUS
T Mobile US
248.11
89.45
56.38%
S
SentinelOne
16.91
-6.00
-26.19%
Turkcell Iletisim Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -20.82% | Next Earnings Date: Apr 25, 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.