Turkcell Iletisim Hizmetleri As (TKC)
NYSE:TKC
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Turkcell Iletisim
(NYSE:TKC)
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Rating:59Neutral
Price Target:
$6.50
â–²(14.04% Upside)
Action:Downgraded
Date:05/17/26
The score is driven primarily by steady profitability and manageable leverage but weighed down by weak revenue momentum and mixed cash conversion. Technical signals are bearish and valuation is pressured by an extremely high P/E, while a positive earnings outlook and strategic initiatives (data center/cloud, 5G investments, shareholder returns) provide meaningful support.
Positive Factors
High Operating Margins
Sustained industry-leading margins provide durable cash generation and pricing power, enabling reinvestment in networks and digital services. High EBITDA/EBIT margins cushion against cyclical revenue swings and support funding of capex, dividends and buybacks over the next several quarters.
Negative Factors
Revenue Volatility
Choppy and recently declining top-line trends undermine sustainable growth expectations and increase dependency on non-core segments and price actions to meet targets. Persisting revenue weakness would pressure long-term cash conversion and make meeting guidance more difficult over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High Operating Margins
Sustained industry-leading margins provide durable cash generation and pricing power, enabling reinvestment in networks and digital services. High EBITDA/EBIT margins cushion against cyclical revenue swings and support funding of capex, dividends and buybacks over the next several quarters.
Read all positive factors
Turkcell Iletisim (TKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.11B
Dividend Yield5.57%
Average Volume (3M)3.56M
Price to Earnings (P/E)549.7
Beta (1Y)0.46
Revenue Growth18.57%
EPS Growth5.36%
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-26.40
Price to Book (P/B)33.54
Price to Sales (P/S)33.17
P/FCF Ratio2.74
Enterprise Value/Market Cap67.07
Enterprise Value/Revenue2.96
Enterprise Value/Gross Profit10.48
Enterprise Value/Ebitda6.24
Forecast
1Y Price Target
$7.28Price Target Upside27.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.65
Revenue Forecast (FY)$7.05B
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 servi...
How the Company Makes Money
Turkcell primarily makes money by selling telecommunications and related digital services to retail and corporate customers. The main revenue stream is service revenue from its mobile business, which includes monthly subscription (postpaid) plans ...
Turkcell Iletisim Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: clear top-line and EBITDA growth, strong subscriber momentum (record postpaid additions and ARPU expansion), fast scaling in digital, techfin and data center businesses, solid cash and leverage metrics, and strategic wins (5G spectrum and Google Cloud partnership). Key risks flagged include elevated competition and mobile portability, FX exposure from a reduced hedging posture, potential margin pressure in 2026 due to salary and 5G ramp costs, and an expected normalization of very high data center growth rates as the base expands. On balance, the positive results, strategic progress and strong balance sheet materially outweigh the near-term risks.Positive Updates
Strong Revenue and Profit Growth
Full-year revenues +11% year-on-year, surpassing TRY 241 billion; Q4 revenues +7% to TRY 63 billion. Full-year EBITDA +14% to TRY 104 billion with EBITDA margin ~43% (CEO cited 43.1%); Q4 EBITDA +12% to TRY 26 billion (41.2% margin). Net income from continuing operations +23% to TRY 17.8 billion (Q4 net income +11% to TRY 3.6 billion).
Negative Updates
Elevated Competition and High Mobile Number Portability
Management noted elevated competition through much of 2025 and record-high mobile number portability, creating market pressure that required active pricing and customer-centric measures to defend share.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue and Profit Growth
Full-year revenues +11% year-on-year, surpassing TRY 241 billion; Q4 revenues +7% to TRY 63 billion. Full-year EBITDA +14% to TRY 104 billion with EBITDA margin ~43% (CEO cited 43.1%); Q4 EBITDA +12% to TRY 26 billion (41.2% margin). Net income from continuing operations +23% to TRY 17.8 billion (Q4 net income +11% to TRY 3.6 billion).
Read all positive updates
Company Guidance
Turkcell guided to real revenue growth of 5–7% for 2026, an EBITDA margin of 40–42% and operational CapEx intensity of about 25% to support 5G, data center and renewables investment (FY25 CapEx intensity was 22.6%). For data center & cloud, management expects 18–20% revenue growth in 2026, about $100m of EBITDA beginning in 2026 and at least a sixfold increase in USD revenues by 2032 as active capacity (50 MW today) is doubled by 2032. They reiterated a net leverage target below 1x (FY25 net debt TRY15bn, net leverage 0.1x; cash TRY92bn), a target FX position around $1.5bn (FY25 FX debt USD3.4bn) and ongoing shareholder returns (72% of 2025 net income distributed; $58m repurchased to date).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 | 115.78B | 6.10B | 166.67B | 107.12B | 134.98B | 108.60B |
| Gross Profit | 32.74B | 1.75B | 41.16B | 22.70B | 17.05B | 22.46B |
| EBITDA | 54.96B | 2.64B | 60.83B | 45.19B | 61.67B | 44.00B |
| Net Income | 9.80B | 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
5.70
Price Trends
6.25
Negative
6.30
Negative
6.03
Negative
Market Momentum
-0.06
Positive
36.74
Neutral
3.88
Positive
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 5.7 is below the 20-day moving average (MA) of 6.33, below the 50-day MA of 6.25, and below the 200-day MA of 6.03, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.74 is Neutral, neither overbought nor oversold. The STOCH value of 3.88 is Positive, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $22.42B | 26.59 | 9.28% | 5.03% | 10.34% | 17.26% | |
65 Neutral | $14.09B | 12.72 | 3.00% | 5.02% | -7.08% | -73.85% | |
64 Neutral | $17.24B | 324,222.53 | 13.00% | 6.14% | -6.44% | -27.87% | |
63 Neutral | $9.12B | 11.21 | 8.77% | 4.13% | 13.45% | 148.36% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $5.11B | 549.75 | 7.27% | 5.57% | 18.57% | 5.36% |
* Communication Services Sector Average
TKC
Turkcell Iletisim
5.94
-0.27
-4.39%
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Turkcell Iletisim Corporate Events
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...
Turkcell Applies for Approval to Issue Domestic Debt Instruments
Apr 22, 2026
On April 22, 2026, Turkcell announced that it has applied to Türkiye’s Capital Markets Board for approval of a certificate to issue debt instruments in the domestic market, following an earlier announcement on November 6, 2025. The move...
Turkcell Sets May 11 Date for First-Quarter 2026 Results
Apr 21, 2026
On April 21, 2026, Turkcell announced its financial reporting schedule for the first quarter of 2026, covering the period from January 1 to March 31. The company plans to release these results on May 11, 2026 after the close of trading on Borsa Is...
Turkcell Names PwC as Independent Auditor and Sustainability Assurer for 2026
Apr 21, 2026
On April 21, 2026, Turkcell’s board resolved to appoint PwC Bagimsiz Denetim ve Serbest Muhasebeci Mali Musavirlik Anonim Sirketi as its independent audit firm for the 2026 financial year. The mandate covers both the audit of the companyR...
Turkcell Raises TRY 530 Million in Short-Term Lira Bond for Qualified Investors
Mar 27, 2026
On March 27, 2026, Turkcell announced it had completed the bookbuilding for a domestic Turkish lira-denominated financing bond sold via private placement to qualified investors. The issuance, conducted under a TRY 10 billion debt programme approve...
Turkcell Secures $1 Billion Murabaha Loan to Fund 5G Investments
Mar 23, 2026
On March 23, 2026, Turkcell announced it had signed a USD 1 billion Murabaha syndicated loan facility structured in line with Islamic finance principles, led by HSBC Bank Middle East and joined by 13 other international banks. The seven-year facil...
Turkcell Files 2025 Integrated Annual Report with U.S. SEC
Mar 13, 2026
On March 13, 2026, Turkcell Iletisim Hizmetleri A.S. filed a Form 6-K with the U.S. Securities and Exchange Commission, submitting its 2025 Integrated Annual Report as an exhibit. The report, prepared under Turkish Accounting and Financial Reporti...
Turkcell Raises TRY 500 Million via High-Yield Domestic Bond Issuance
Mar 12, 2026
On March 12, 2026, Turkcell completed the book-building for a TRY 500 million financing bond issued under its previously approved TRY 10 billion domestic debt programme. The bond, sold via private placement to qualified investors in Türkiye w...
Turkcell Posts 10.7% Revenue Growth in Hyperinflation-Adjusted 2025 Results
Mar 6, 2026
On March 5, 2026, Turkcell released its full-year 2025 financial results, reporting consolidated revenue of TRY 241.5 billion, up 10.7% year on year from TRY 218.2 billion in 2024, with figures prepared under IFRS and adjusted for hyperinflation a...
Turkcell Unit Turkcell Finansman Cleared to Issue Up to TRY 3 Billion in Sukuk
Mar 5, 2026
On March 5, 2026, Turkcell announced that its board has authorized its wholly owned subsidiary Turkcell Finansman A.Ş. to issue commodity trading-based lease certificates, or sukuk, in the Turkish domestic market with maturities of up to 12 m...
Turkcell Completes Redemption of TRY 750 Million Short-Term Bond
Feb 24, 2026
Turkcell Iletisim Hizmetleri A.S. has redeemed in full a TRY 750 million domestic financing bond with ISIN TRFTCEL22617, originally issued via private placement to qualified investors and carrying a 96-day maturity and 39.25% annual simple interes...
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.