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Turkcell Iletisim
(NYSE:TKC)
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Rating:58Neutral
Price Target:
$6.00
▲(9.09% Upside)
Action:Reiterated
Date:06/10/26
The score is driven primarily by stable profitability and manageable leverage, partially offset by weak revenue trends and uneven cash conversion. Technicals are a notable drag (below major moving averages with negative momentum), while a reasonable P/E and moderate dividend yield provide some valuation support.
Positive Factors
High profitability margins
Sustained telecom-level margins (strong EBITDA and positive net margin) provide durable earnings power to fund network investment, absorb operating shocks, and support dividends. High margins are a structural advantage in capital-intensive networks and underpin long-term cash generation capacity.
Negative Factors
Revenue inconsistency
Choppy or declining top-line reduces ability to scale fixed-cost leverage and creates uncertainty for long-term growth. Persistent revenue weakness can limit room for sustained capex, slow digital expansion, and make margins and payout sustainability more sensitive to competitive or macro shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability margins
Sustained telecom-level margins (strong EBITDA and positive net margin) provide durable earnings power to fund network investment, absorb operating shocks, and support dividends. High margins are a structural advantage in capital-intensive networks and underpin long-term cash generation capacity.
Read all positive factors
Turkcell Iletisim (TKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.70B
Dividend Yield4.03%
Average Volume (3M)3.56M
Price to Earnings (P/E)12.2
Beta (1Y)0.41
Revenue Growth16.11%
EPS Growth2.49%
CountryUS
Employees23,795
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)21.50
Shares Outstanding871,641,900
10 Day Avg. Volume3,361,252
30 Day Avg. Volume3,563,585
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)33.54
Price to Sales (P/S)33.17
P/FCF Ratio2.74
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.62
Revenue Forecast (FY)$6.76B
Turkcell Iletisim Business Overview & Revenue Model
Company Description
Turkcell Iletisim Hizmetleri A.S. operates as a leading provider of various digital services, extending its reach across Turkey, Ukraine, Belarus, Northern Cyprus, Germany, and the Netherlands. The company's diverse operations are managed through ...
How the Company Makes Money
Turkcell primarily makes money by charging customers for connectivity and related services. The company’s core revenue stream is telecommunications service revenue from mobile subscribers, including recurring subscription and usage-based charges f...
Turkcell Iletisim Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and strategic picture: the company achieved real revenue growth and strong margins despite severe macro pressures, delivered robust subscriber gains and notable expansion across strategic growth areas (fibre, FWA, digital business services, data centers, and techfin). Key challenges include persistent high inflation, FX volatility and related reported FX losses, higher depreciation from 5G assets affecting near-term net income, and some segment-level pressures (Financell revenue decline and Paycell margin dilution). Management emphasized disciplined execution, conservative balance-sheet management, and long-term upside from data center and digital services, while indicating some ARPU recovery will materialize more clearly in 2027.Positive Updates
Real Revenue Growth Despite High Inflation
Group revenue of 71.8 billion TRY, up 2.5% year-over-year. Management emphasised this as real growth given inflation of ~32%, and reiterated unchanged guidance despite revising year-end inflation expectation to ~28%.
Negative Updates
Persistent High Inflation and Macroeconomic Headwinds
Inflation remains elevated (~32% during the quarter) and management revised year-end inflation assumption upward to ~28% (from 23%), creating a tougher macro backdrop and uncertainty for consumer demand and pricing dynamics.
Read all updates
Q2-2026 Updates
Positive
Negative
Real Revenue Growth Despite High Inflation
Group revenue of 71.8 billion TRY, up 2.5% year-over-year. Management emphasised this as real growth given inflation of ~32%, and reiterated unchanged guidance despite revising year-end inflation expectation to ~28%.
Read all positive updates
Company Guidance
Turkcell reaffirmed its full‑year financial guidance despite revising its year‑end inflation assumption to ~28% (from 23%), noting Q2 EBITDA of TL30.0bn and a 41.8% margin that sits in line with full‑year expectations; management reiterated confidence in CapEx guidance (operational CapEx/sales at 25% in Q2 and 23.2% H1, with 81% of operational CapEx to core 5G/fiber) and said TL89bn cash and TL44bn net debt (leverage ~0.4x) fully cover remaining 5G license obligations and maturities over the next four years; 5G license installments were: ~US$605m paid in January, ~US$400m due Dec‑2026 and ~US$400m due May‑2027; Q2 FX exposure included US$4.3bn FX liabilities, US$2.6bn FX assets and US$1.2bn hedges (net short well within the ±US$1.5bn target, 60% of cash in hard currency, 87% of debt in hard currency); management expects ARPU improvement signals in H2 with more material impact into 2027.Turkcell Iletisim Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 182.60B | 6.10B | 166.67B | 107.12B | 134.98B | 108.60B |
| Gross Profit | 50.65B | 1.75B | 41.16B | 22.70B | 17.05B | 22.46B |
| EBITDA | 87.09B | 2.64B | 60.83B | 45.19B | 61.67B | 44.00B |
| Net Income | 14.33B | 444.87M | 23.52B | 12.55B | 9.93B | 7.14B |
Balance Sheet | ||||||
| Total Assets | 619.60B | 12.07B | 344.28B | 356.74B | 234.99B | 151.30B |
| Cash, Cash Equivalents and Short-Term Investments | 120.59B | 2.49B | 75.82B | 84.96B | 50.66B | 30.69B |
| Total Debt | 206.83B | 3.69B | 104.34B | 121.40B | 88.74B | 60.42B |
| Total Liabilities | 328.01B | 6.03B | 157.31B | 180.25B | 125.61B | 85.93B |
| Stockholders Equity | 291.59B | 6.04B | 186.97B | 176.50B | 109.37B | 65.37B |
Cash Flow | ||||||
| Free Cash Flow | 24.04B | 73.90B | 44.31B | 17.64B | 20.22B | 1.75B |
| Operating Cash Flow | 53.09B | 121.62B | 75.01B | 60.24B | 61.04B | 2.37B |
| Investing Cash Flow | -98.27B | -98.17B | -48.86B | -30.18B | -45.79B | -1.16B |
| Financing Cash Flow | -2.29B | -1.66B | -9.78B | 9.77B | 4.89B | -441.64M |
Turkcell Iletisim Technical Analysis
Negative
5.50
Price Trends
5.75
Negative
5.97
Negative
6.02
Negative
Market Momentum
-0.09
Negative
42.57
Neutral
26.89
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 5.5 is below the 20-day moving average (MA) of 5.54, below the 50-day MA of 5.75, and below the 200-day MA of 6.02, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 26.89 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 3 New Risks
1.
Summary of Risk Relating to our American Depositary Shares Q4, 2023
2.
We have two major shareholders whose interests may not be aligned with those of other shareholders. Q4, 2023
3.
Risk Factors Summary Summary of Risks relating to Turkiye Q4, 2023
Turkcell Iletisim Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $18.10B | 14.44 | 9.70% | 5.69% | 16.10% | 24.13% | |
71 Outperform | $14.39B | 15.12 | 13.16% | 8.52% | -3.37% | -27.49% | |
68 Neutral | $8.94B | 9.38 | 7.59% | 4.42% | 5.40% | 37.27% | |
62 Neutral | $13.58B | 30.40 | 6.07% | 1.78% | -7.65% | -32.07% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $4.70B | 12.19 | 7.27% | 4.01% | 16.11% | 2.49% |
* Communication Services Sector Average
TKC
Turkcell Iletisim
5.46
-0.31
-5.39%
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Turkcell Iletisim Corporate Events
Turkcell Sets August 13 Date for Q2 2026 Earnings Release
Jul 23, 2026
Turkcell announced on July 23, 2026 that it plans to release its financial results for the second quarter of 2026, covering the period from April 1 to June 30, after the close of trading on Borsa Istanbul on August 13, 2026. The scheduled disclosu...
Turkcell Redeems TRY 530 Million Short-Term Bond on June 24, 2026
Jun 24, 2026
Turkcell Iletisim Hizmetleri has redeemed a short-term domestic financing bond, underscoring its active use of local debt markets and disciplined liability management. The TRY 530 million bill, issued via private placement to qualified investors w...
Turkcell Redeems TRY 500 Million Short-Term Bond on Schedule
Jun 24, 2026
Turkcell Iletisim has redeemed a TRY 500 million financing bond, underscoring its active use of local debt markets to manage funding and liquidity. The bond, issued via private placement to qualified domestic investors with ISIN TRFTCEL62613, carr...
Turkcell Raises TRY 500 Million in High-Yield Domestic Bond Issuance
Jun 24, 2026
On June 24, 2026, Turkcell completed a domestic financing bond issuance to qualified investors in Türkiye under its TRY 15 billion debt securities program approved by the Capital Markets Board. The company sold TRY 500 million in 93-day bills...
Turkcell Raises TRY 500 Million via High-Yield Short-Term Bond Issuance in Türkiye
Jun 24, 2026
Turkcell Iletisim Hizmetleri A.S., a major telecoms provider in Türkiye, supplies mobile and fixed connectivity along with a range of digital services to domestic customers and businesses. The group frequently taps local debt markets, support...
Turkcell Wins CMB Approval for TRY 15 Billion Domestic Debt Issuance
Jun 22, 2026
Turkcell announced that Türkiye’s Capital Markets Board approved its application on June 17, 2026 to issue domestic debt instruments with a ceiling of TRY 15 billion. The issuance, authorized by a board decision dated November 6, 2025, ...
Turkcell Lowers Size and Cost of China Development Bank Loan Tranche
Jun 22, 2026
On June 22, 2026, Turkcell announced it had amended the second tranche of a long-term loan agreement with China Development Bank, originally disclosed on March 28, 2025. The size of the second tranche in the RMB 2.46 billion credit package was red...
Turkcell Boosts Capital in Belarus Subsidiary BeST to Strengthen Regional Telecom Presence
Jun 18, 2026
On June 18, 2026, Turkcell announced that the capital of its subsidiary CJSC Belarusian Telecommunications Network, known as BeST, was increased by BYN 10,876,568.78 to a new total of BYN 1,374,742,237.28. Turkcell fully exercised and paid its pre...
Turkcell Posts 8.9% Revenue Growth in First-Quarter 2026 Results
May 12, 2026
On May 11, 2026, Turkcell reported its first-quarter 2026 results, showing consolidated revenue of TRY 68.4 billion, an 8.9% year-on-year increase from TRY 62.8 billion, supported by contributions from its telecom, digital, and financial services ...
Turkcell Unit Superonline Plans Up to TRY 3 Billion Sukuk Issuance
May 11, 2026
On May 11, 2026, Turkcell’s board approved a funding move via its wholly owned subsidiary Superonline Iletisim Hizmetleri A.S., which may issue lease certificates (sukuk) of up to TRY 3 billion. The sukuk will be structured through a Tü...
Turkcell Approves 2025 Results and TRY 8.8 Billion Dividend at May 7 General Assembly
May 7, 2026
At its Ordinary General Assembly for 2025 held in Istanbul on May 7, 2026, Turkcell approved its 2025 consolidated financial statements and its Sustainability Report, which was prepared under Turkish Sustainability Reporting Standards. The meeting...
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.