Turkcell Iletisim (TKC) AI Stock Analysis

• Market Cap: $5.24B
• Dividend Yield: 5.38%
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.47
• Revenue Growth: 19.25%
• EPS Growth: 5.69%
• Country: US
• Employees: 23,795
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.12
• Shares Outstanding: 871,641,900
• 10 Day Avg. Volume: 4,412,629
• 30 Day Avg. Volume: 2,102,856
• 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: 1.23
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.12
• Enterprise Value/Ebitda: 0.08
• 1Y Price Target: $6.50
• Price Target Upside: 7.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: $6.50 ▲(7.97% Upside)

Turkcell's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's robust revenue growth and strategic investments in key areas like 5G and digital transformation are promising. While technical indicators suggest some caution, the attractive valuation and dividend yield provide additional support.

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 primarily through its telecommunications services, including mobile voice and data subscriptions, fixed broadband services, and digital services such as content, cloud, and financial technology solutions. The company has diverse revenue streams, including monthly subscription fees, usage-based charges, and value-added services. Additionally, Turkcell partners with various businesses to offer bundled services and solutions, enhancing its market presence and driving earnings. Significant partnerships with technology providers and content creators also contribute to its revenue, as they enable Turkcell to expand its service portfolio and attract new customers.

Turkcell Iletisim Financial Statement Overview

Summary

Turkcell Iletisim demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet is stable, though increasing debt levels warrant attention. Cash flow generation is robust, supporting the company's operational and strategic initiatives.

Income Statement

Turkcell Iletisim has demonstrated strong revenue growth with a 10.34% increase in the TTM period. The company maintains healthy margins, with a gross profit margin of 26.36% and a net profit margin of 13.27%. The EBIT and EBITDA margins are robust at 15.12% and 43.03%, respectively, indicating efficient operational management. However, the slight decline in net profit margin compared to the previous year suggests some pressure on profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.72, indicating moderate leverage. The return on equity is strong at 12.84%, showcasing effective use of equity capital. The equity ratio stands at 48.03%, suggesting a balanced capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 25.88% growth in free cash flow, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.77 indicates efficient conversion of income into cash. However, the free cash flow to net income ratio of 0.22 suggests room for improvement in translating profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	193.24B	166.67B	107.12B	134.98B	35.92B	29.10B
Gross Profit	52.24B	41.16B	22.70B	12.11B	10.70B	8.77B
EBITDA	84.61B	74.84B	45.19B	43.86B	13.03B	11.66B
Net Income	24.53B	23.52B	12.55B	6.88B	5.03B	4.50B
Balance Sheet
Total Assets	457.38B	344.28B	247.08B	101.26B	70.68B	51.50B
Cash, Cash Equivalents and Short-Term Investments	127.07B	75.82B	58.85B	30.91B	18.68B	12.56B
Total Debt	172.86B	104.34B	84.08B	53.85B	36.78B	21.59B
Total Liabilities	237.68B	157.31B	124.85B	70.37B	48.12B	30.71B
Stockholders Equity	219.71B	186.97B	122.25B	30.89B	22.56B	20.78B
Cash Flow
Free Cash Flow	44.73B	44.31B	17.64B	11.07B	29.80B	5.31B
Operating Cash Flow	94.12B	75.01B	60.24B	25.15B	19.95B	13.09B
Investing Cash Flow	-42.94B	-48.86B	-30.18B	-19.65B	-9.14B	-6.78B
Financing Cash Flow	20.10B	-9.78B	9.77B	3.39B	-3.94B	-4.27B

Turkcell Iletisim Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKC, the sentiment is Positive. The current price of 6.02 is above the 20-day moving average (MA) of 5.76, above the 50-day MA of 5.81, and below the 200-day MA of 6.27, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 91.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKC.

Turkcell Iletisim Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	79 Outperform	$5.24B	12.06	7.38%	5.38%	19.25%	5.69%
TLK	74 Outperform	18.65B	13.30	17.30%	6.89%	-5.13%	-5.90%
VIV	72 Outperform	20.02B	19.95	7.96%	4.65%	-6.51%	-0.21%
KT	72 Outperform	8.68B	14.51	2.91%	3.11%	-1.56%	-18.33%
SKM	67 Neutral	8.32B	11.64	11.13%	4.60%	-4.74%	-16.57%
TEF	52 Neutral	28.70B	-11.35	-13.79%	7.12%	-4.73%	-251.31%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Turkcell Iletisim Corporate Events

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.

Turkcell Reports Q2 2025 Financial Results Amid Inflation Adjustments

On August 13, 2025, Turkcell announced its financial results for the second quarter of 2025, showcasing a year-on-year comparison of key indicators. The report highlights the company’s revenue segmentation revision as of Q1 2025 and presents consolidated financial data prepared in accordance with IFRS. The financial results reflect the impact of inflation adjustments, with all non-monetary items restated to account for the purchasing power of the Turkish Lira as of June 30, 2025. This announcement provides insights into Turkcell’s operational and financial performance, indicating its strategic positioning and adaptation to macroeconomic conditions.

Turkcell Completes Bond Redemption on August 13, 2025

On August 13, 2025, Turkcell announced the redemption and coupon payment of its financing bond with ISIN code TRFTCEL82512, which had a nominal amount of TRY 900,000,000 and a maturity of 96 days. The bond, issued with an annual simple interest rate of 49.75%, was part of a private placement sale to qualified investors. This redemption reflects Turkcell’s strategic financial management and may strengthen its position in the domestic debt securities market, potentially impacting stakeholders positively by demonstrating the company’s capability to meet its financial obligations.

Turkcell Completes TRY 1.5 Billion Bond Issuance

On August 13, 2025, Turkcell Iletisim announced the completion of a financing bond issuance with a nominal amount of TRY 1,500,000,000. The bond, which has a maturity date of November 20, 2025, and an annual simple interest rate of 41.50%, was issued to qualified investors within Türkiye. This strategic financial move, approved by the Capital Markets Board, aims to strengthen Turkcell’s financial position and enhance its operational capabilities. The issuance reflects Turkcell’s commitment to leveraging domestic financial markets to support its growth and maintain its competitive edge in the telecommunications industry.

Turkcell Finalizes Sale of Ukrainian Subsidiaries for $538.7 Million

On August 4, 2025, Turkcell announced the final sale price of its Ukrainian subsidiaries, Lifecell LLC, LLC Global Bilgi, and LLC Ukrtower, to DVL Telecom, a part of NJJ Holding group. The transaction, initially announced on September 9, 2024, was completed for a final price of 538.7 million USD, following adjustments for cash and debt. This strategic move results in the termination of Turkcell’s subsidiary relationships in Ukraine and reflects a significant shift in its operational focus, with the transaction value representing 17.1% of the company’s latest annual financial statements.

Turkcell to Announce Q2 2025 Financial Results on August 13

Turkcell Iletisim Hizmetleri A.S. announced that its financial results for the second quarter of 2025, covering the period from April 1 to June 30, will be released on August 13, 2025, after the Borsa Istanbul trading hours. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and market positioning during this period.

Turkcell Completes Bond Redemption on July 2, 2025

On July 2, 2025, Turkcell announced the redemption of its financing bond with ISIN code TRFTCEL72513, which had a nominal amount of TRY 230,000,000 and a maturity of 97 days. The bond, which carried an annual simple interest rate of 46.00%, was issued through a private placement to qualified investors. This redemption is part of Turkcell’s strategic financial management and reflects its commitment to fulfilling its financial obligations, potentially strengthening its position in the domestic market.

Turkcell Announces Merger with Artel Bilisim

On June 25, 2025, Turkcell announced its decision to merge with its wholly-owned subsidiary, Artel Bilisim Servisleri A.S., through a facilitated procedure. The merger, which will not require an increase in capital or a detachment right for shareholders, aims to streamline operations by consolidating assets and liabilities. The merger is authorized by the Information and Communication Technologies Authority and awaits approval from the Capital Market Board.

Turkcell Announces New Sukuk Issuances to Boost Financial Flexibility

On June 25, 2025, Turkcell announced that its subsidiaries, Turkcell Ödeme ve Elektronik Para Hizmetleri A.S. and Turkcell Finansman A.S., have been authorized by the Board of Directors to issue lease certificates (sukuk) amounting to TRY 2 billion and TRY 2.5 billion respectively. These issuances, which are subject to approval by the Capital Markets Board, will be conducted in the domestic market through private placements and sales to qualified and institutional investors, with maturities up to 12 months. This strategic move is expected to enhance Turkcell’s financial flexibility and strengthen its position in the financial markets.