Turkcell Iletisim (TKC) AI Stock Analysis

• Market Cap: $5.00B
• Dividend Yield: 5.79%
• Average Volume (3M): 3.56M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.39
• Revenue Growth: 19.02%
• EPS Growth: 9.26%
• Country: US
• Employees: 23,795
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.15
• Shares Outstanding: 871,641,900
• 10 Day Avg. Volume: 3,361,252
• 30 Day Avg. Volume: 3,563,585
• PEG Ratio: 0.10
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 4.53
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.11
• Enterprise Value/Ebitda: 0.07
• 1Y Price Target: $7.56
• Price Target Upside: 35.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $6.50 ▲(16.28% Upside)

Turkcell's strong financial performance and positive earnings call results are the most significant factors driving the score. The company's strategic achievements in 5G and digital services expansion are promising. However, technical indicators suggest caution, and competitive pressures pose challenges. The valuation is reasonable, with an attractive dividend yield.

Positive Factors

5G Spectrum Acquisition

Securing the maximum spectrum for 5G positions Turkcell as a leader in next-gen telecom services, enhancing its competitive edge and service offerings.

Revenue Growth

Consistent revenue growth underscores Turkcell's strong market position and effective business strategy, supporting long-term financial health.

Cash Flow Management

Strong cash flow growth indicates efficient operations and financial resilience, providing resources for future investments and debt management.

Negative Factors

Intense Market Competition

High competition in the mobile market can pressure Turkcell's margins and subscriber retention, challenging its market share and profitability.

Monetary Loss Impact

Monetary losses from divestitures can impact financial results, reducing available capital for reinvestment and potentially affecting investor confidence.

Debt Issuance Plan

Issuing significant new debt could increase financial leverage, potentially straining cash flows and limiting future financial flexibility.

Turkcell Iletisim Business Overview & Revenue Model

Company Description

Turkcell 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 Money

Turkcell generates revenue through multiple streams, with the primary source being mobile telecommunications services, which includes voice, SMS, and mobile data plans offered to individual and corporate customers. Additional revenue comes from fixed-line services, including broadband internet and television services. Turkcell also earns income from its digital services, such as mobile financial services and cloud-based solutions. Significant partnerships with technology firms and content providers enhance its offerings and contribute to its earnings. Furthermore, Turkcell has diversified into sectors such as IoT (Internet of Things) and digital business solutions, providing additional revenue opportunities through innovative products that meet the evolving needs of consumers and enterprises.

Turkcell Iletisim Financial Statement Overview

Summary

Turkcell Iletisim exhibits strong financial health with robust revenue growth and efficient cash flow management. While profitability margins have slightly declined, the company maintains a solid balance sheet with manageable debt levels. Continued focus on cost management and debt reduction could further enhance financial stability.

Income Statement

Turkcell Iletisim has shown strong revenue growth with a 10.02% increase in the TTM period. The gross profit margin improved to 27.02%, indicating efficient cost management. However, the net profit margin decreased to 12.70% from 14.11% in the previous year, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins are healthy at 15.40% and 43.10%, respectively, reflecting strong operational performance.

Balance Sheet

The company's debt-to-equity ratio improved to 0.79, indicating a balanced approach to leveraging. Return on equity is stable at 12.41%, showing consistent profitability. The equity ratio stands at 49.45%, suggesting a solid capital structure. However, the company should monitor its debt levels to maintain financial stability.

Cash Flow

Turkcell Iletisim's free cash flow grew by 6.41% in the TTM period, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 0.84, indicating efficient cash conversion. The free cash flow to net income ratio is 0.43, reflecting a healthy cash flow position relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	212.60B	166.67B	107.12B	134.98B	108.60B	69.50B
Gross Profit	58.65B	41.16B	22.70B	17.05B	22.46B	16.39B
EBITDA	92.37B	60.83B	45.19B	61.67B	44.00B	26.25B
Net Income	15.65B	23.52B	12.55B	9.93B	7.14B	4.50B
Balance Sheet
Total Assets	491.42B	344.28B	356.74B	234.99B	151.30B	7.11B
Cash, Cash Equivalents and Short-Term Investments	136.96B	75.82B	84.96B	50.66B	30.69B	1.69B
Total Debt	181.28B	104.34B	121.40B	88.74B	60.42B	2.90B
Total Liabilities	248.39B	157.31B	180.25B	125.61B	85.93B	4.31B
Stockholders Equity	243.03B	186.97B	176.50B	109.37B	65.37B	2.80B
Cash Flow
Free Cash Flow	1.16B	44.31B	17.64B	20.22B	1.75B	4.23B
Operating Cash Flow	15.06B	75.01B	60.24B	61.04B	2.37B	21.00B
Investing Cash Flow	-9.24B	-48.86B	-30.18B	-45.79B	-1.16B	-14.54B
Financing Cash Flow	33.32B	-9.78B	9.77B	4.89B	-441.64M	-9.95B

Turkcell Iletisim Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 5.59 is below the 20-day moving average (MA) of 5.73, below the 50-day MA of 5.87, and below the 200-day MA of 6.05, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 40.02 is Neutral, neither overbought nor oversold. The STOCH value of 37.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TKC.

Turkcell Iletisim Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	77 Outperform	$21.31B	20.05	8.36%	4.91%	-3.16%	4.70%
TLK	75 Outperform	$20.89B	15.97	15.54%	5.97%	-5.21%	-7.45%
TKC	74 Outperform	$5.00B	11.43	7.60%	5.79%	19.02%	9.26%
KT	67 Neutral	$8.27B	13.18	5.26%	4.18%	0.63%	-21.51%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	60 Neutral	$7.76B	19.58	4.72%	4.95%	-8.16%	-52.52%
TEF	45 Neutral	$24.45B	―	-0.70%	8.04%	-5.49%	-75.51%

Turkcell Iletisim Corporate Events

Turkcell Boosts Kıbrıs Telekom’s Capital by TRY 500 Million

On November 17, 2025, Turkcell Iletisim Hizmetleri A.S. announced a capital increase for its wholly-owned subsidiary, Kıbrıs Telekom. The capital was raised by TRY 500,000,000, bringing the total to TRY 922,724,863, with Turkcell fully exercising its pre-emption rights. This move is likely to strengthen the financial position of Kıbrıs Telekom and enhance its operational capabilities, potentially impacting its market competitiveness and stakeholder interests positively.

Turkcell Executes Significant Share Buy-back on November 12, 2025

On November 12, 2025, Turkcell announced the completion of a share buy-back transaction, purchasing a total of 2,093,944 shares at an average price of TRY 95.58, amounting to a total transaction value of TRY 200,141,178. This move is part of Turkcell’s strategy to protect stakeholder interests and support healthy market price formation, reflecting its commitment to maintaining the fair value of its shares.

Turkcell Partners with Google Cloud for Türkiye’s Digital Transformation

On November 12, 2025, Turkcell announced a strategic partnership with Google Cloud to enhance digital transformation across Türkiye. This collaboration aims to establish a new Google Cloud region in Türkiye by 2028-2029, expanding Turkcell’s data center capacity and supporting local data residency needs. The initiative is expected to boost the country’s digital ecosystem with advanced cloud services, facilitating innovation and efficiency for organizations. Turkcell projects a $1 billion investment in this partnership by 2032, with a target to significantly increase its data center and cloud revenues.

Turkcell Reports Strong Q3 2025 Financial Results with Revenue Growth

On November 6, 2025, Turkcell announced its financial results for the third quarter of 2025, showing a revenue increase of 11.2% compared to the same period in 2024. The financial data, prepared under IFRS and adjusted for inflation, reflects the company’s robust performance amidst challenging macroeconomic conditions, indicating a positive impact on its market position and operations.

Turkcell Announces TRY 15 Billion Debt Issuance Plan

On November 6, 2025, Turkcell’s Board of Directors announced their decision to issue debt instruments up to TRY 15 billion in the domestic market. These instruments will have maturities of up to two years and will be offered as private placements or to institutional investors, subject to approval by the Capital Markets Board. This strategic move is aimed at strengthening Turkcell’s financial positioning and operational capabilities.

Turkcell to Announce Q3 2025 Financial Results on November 6

Turkcell announced that its financial results for the third quarter of 2025, covering the period from July 1 to September 30, will be released on November 6, 2025, after the Borsa Istanbul trading hours. This announcement is significant for stakeholders as it provides insights into the company’s financial performance during this period, potentially impacting investor decisions and market positioning.

Turkcell Secures Major 5G Spectrum in ICTA Tender

On October 16, 2025, Turkcell announced that it has been awarded a 160 MHz frequency band for USD 1,224 million in the 5G spectrum allocation tender held by the Information and Communication Technologies Authority (ICTA). This allocation allows Turkcell to maintain its leadership in the Turkish telecommunications market by securing approximately 42% of the total available frequencies, enabling it to offer the highest 5G speeds in the country. The company plans to launch 5G services starting April 1, 2026, and has extended its existing authorizations for 2G, 3G, and 4.5G until December 31, 2042.

Turkcell Completes Eurobond Redemption on Schedule

On October 15, 2025, Turkcell announced the successful redemption of its 10-year Eurobond, originally issued on October 15, 2015. The bond, which carried a coupon rate of 5.75% and was offered at a 5.95% yield, has reached maturity, and all principal and interest payments have been completed as scheduled. This redemption marks a significant financial milestone for Turkcell, reflecting its robust financial management and commitment to fulfilling its financial obligations, which may positively impact its reputation among investors and stakeholders.

Turkcell Boosts Turktell’s Capital by TRY 2 Billion

On October 10, 2025, Turkcell Iletisim Hizmetleri A.S. announced a capital increase for its wholly-owned subsidiary, Turktell Bilişim Servisleri A.Ş., by TRY 2 billion, raising the total capital to TRY 22.22 billion. This move, fully funded by Turkcell’s pre-emption rights paid in cash, is aimed at strengthening Turktell’s financial position and enhancing its operational capabilities, potentially impacting its market competitiveness and stakeholder interests.

Turkcell to Participate in ICTA Tender for Mobile Infrastructure

On September 24, 2025, Turkcell announced its decision to participate in an upcoming tender organized by the Information and Communication Technologies Authority (ICTA) scheduled for October 16, 2025. This tender involves the authorization for establishing and operating mobile electronic communication infrastructures, as well as incorporating existing authorizations that expire in April 2029. This strategic move could potentially enhance Turkcell’s market position and expand its service offerings, impacting its operational capabilities and stakeholder interests.

Turkcell Announces Merger with Subsidiary Artel

On September 16, 2025, Turkcell announced its decision to merge with its wholly-owned subsidiary, Artel Bilişim Servisleri A.Ş., through a facilitated procedure. The merger, based on financial statements dated June 30, 2025, will not result in a capital increase or the issuance of new shares. This strategic move aims to streamline operations and enhance Turkcell’s market position, with the merger agreement pending approval from the Capital Markets Board.