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Turkcell Iletisim Hizmetleri As (TKC)
NYSE:TKC
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Turkcell Iletisim
(NYSE:TKC)
Rating:80Outperform
Price Target:
$7.00
▲( 9.72% Upside)
Turkcell Iletisim (TKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.51B
Dividend Yield2.37%
Average Volume (3M)838.83K
Price to Earnings (P/E)13.1
Beta (1Y)0.47
Revenue Growth14.09%
EPS Growth-11.43%
CountryUS
Employees23,795
SectorCommunication Services
Sector Strength86
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding873,242,500
10 Day Avg. Volume810,601
30 Day Avg. Volume838,831
Financial Highlights & Ratios
PEG Ratio4.80
Price to Book (P/B)1.02
Price to Sales (P/S)0.00
P/FCF Ratio13.58
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. 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 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 shows strong financial health with robust revenue growth and profitability, supported by a solid balance sheet structure. While operational efficiency and cash flow generation are commendable, rising operational costs and increased capital expenditures represent areas to monitor for future financial sustainability.Income Statement
Turkcell Iletisim's income statement shows strong growth and profitability. The Gross Profit Margin stands at 26.37% for TTM, indicating efficient cost management. Net Profit Margin is healthy at 13.27%, and the Revenue Growth Rate over the past year is impressive at 64.79%, reflecting robust market expansion. However, the EBIT Margin decreased to 13.35% from the previous year's 21.07%, suggesting rising operational costs. The EBITDA Margin remains strong at 43.78%, showcasing solid operational cash flow generation.85
Very Positive
Balance Sheet
The balance sheet demonstrates solid financial stability. The Debt-to-Equity Ratio is well-managed at 0.72, indicating a balanced capital structure. The Return on Equity (ROE) is strong at 11.08%, reflecting efficient use of equity capital, while the Equity Ratio stands at 50.18%, highlighting a solid equity base. However, the increase in total debt over the last year suggests potential leverage risk if not carefully managed.80
Positive
Cash Flow
Cash flow analysis reveals a mixed picture. The Free Cash Flow to Net Income Ratio is 0.67, indicating robust free cash flow generation relative to net income. The Operating Cash Flow to Net Income Ratio is 3.03, reflecting strong cash flow from operations. However, Free Cash Flow Growth Rate is negative at -64.60%, pointing to increased capital expenditures which could impact future liquidity.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 175.13B | 166.67B | 107.12B | 53.88B | 35.92B | 29.10B | Gross Profit |
| 46.18B | 41.16B | 22.70B | 17.09B | 10.69B | 8.77B | EBIT |
| 23.38B | 35.12B | 7.81B | 14.14B | 7.35B | 5.77B | EBITDA |
| 76.69B | 74.84B | 45.19B | 43.86B | 13.03B | 11.66B | Net Income Common Stockholders |
| 23.24B | 23.52B | 12.55B | 11.05B | 4.33B | 4.50B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 113.88B | 77.86B | 58.85B | 30.91B | 18.68B | 12.56B | Total Assets |
| 418.12B | 344.28B | 247.08B | 101.26B | 70.68B | 51.50B | Total Debt |
| 150.71B | 104.34B | 84.08B | 53.85B | 36.78B | 21.59B | Net Debt |
| 42.29B | 35.41B | 34.11B | 27.73B | 18.15B | 9.73B | Total Liabilities |
| 208.29B | 157.31B | 124.85B | 70.37B | 48.12B | 30.71B | Stockholders Equity |
| 209.83B | 186.97B | 122.25B | 30.89B | 22.56B | 20.78B |
| Cash Flow | Free Cash Flow | ||||
| 15.68B | 44.31B | 12.22B | 11.07B | 10.07B | 5.31B | Operating Cash Flow |
| 70.40B | 75.01B | 41.72B | 25.15B | 19.95B | 13.09B | Investing Cash Flow |
| -32.69B | -48.86B | -20.91B | -19.65B | -9.14B | -6.78B | Financing Cash Flow |
| 18.93B | -9.78B | 6.77B | 1.76B | -3.94B | -4.27B |
Turkcell Iletisim Technical Analysis
Neutral
6.38
Price Trends
6.19
Positive
6.68
Negative
6.64
Negative
Market Momentum
0.07
Negative
56.89
Neutral
79.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKC, the sentiment is Neutral. The current price of 6.38 is above the 20-day moving average (MA) of 6.13, above the 50-day MA of 6.19, and below the 200-day MA of 6.64, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 79.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.51B | 13.15 | 6.74% | 2.37% | 14.09% | -11.43% | |
73 Outperform | $4.71B | 8.87 | 28.10% | 5.57% | -0.91% | 11.25% | |
73 Outperform | $7.81B | 8.74 | 11.08% | 5.43% | -2.34% | 12.31% | |
71 Outperform | $6.34B | 17.75 | 10.19% | 4.75% | -1.52% | 4874.58% | |
64 Neutral | $5.18B | ― | -0.84% | ― | -3.48% | -169.60% | |
61 Neutral | $4.66B | 22.53 | 3.99% | ― | -12.77% | 40.80% | |
60 Neutral | $14.12B | 6.43 | -3.57% | 3.69% | 2.49% | -35.43% |
* Communication Services Sector Average
Performance Comparison
TKC
Turkcell Iletisim
6.38
-0.48
-7.00%
PHI
PLDT
22.48
-0.57
-2.47%
SKM
Sk Telecom
20.54
-0.67
-3.16%
TEO
Telecom Argentina
10.59
2.54
31.55%
USM
United States Cellular
61.08
18.10
42.11%
TIGO
Millicom International Cellular SA
36.89
13.76
59.49%
Turkcell Iletisim Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: 7.41%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Turkcell with significant revenue growth, strong financial performance, and strategic expansions in techfin and cloud services. However, the company faces challenges from intense market competition and currency volatility.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Turkcell reported a revenue of TRY48 billion, marking a 12.7% year-on-year increase. EBITDA reached TRY21 billion, up 19% with a robust margin of 43.7%.
Customer Base Growth
The company gained 153,000 postpaid and 30,000 fiber customers in Q1 2025, reflecting the success of its value-focused strategy.
Techfin and Cloud Revenue Surge
Techfin segment revenues increased by 31%, and data center and cloud revenues grew by 48%, indicating strong momentum in strategic areas.
Sustained ARPU Growth
Turkcell achieved double-digit ARPU growth of 15.9% driven by rational pricing and effective upselling strategies.
CapEx and Renewable Energy Progress
CapEx to sales ratio was 20.2%, with significant investments in data centers and renewable energy reaching 28 megawatts of active solar capacity.
Strong Balance Sheet
Total cash position increased to TRY108 billion, supporting debt service for the upcoming 3 years with a 0.2 times leverage ratio.
Negative Updates
Competitive Market Pressure
Intense market competition impacted postpaid net additions, with an increase in mobile churn rate to 1.7%.
Challenges in Fixed Broadband
Slight increase in churn due to transition to 12-month contracts and competition in the resale segment.
Deferred Tax Expenses
Higher deferred tax expenses were reported, influenced by differences in inflation accounting principles.
Net FX Position Concerns
Despite a strong balance sheet, volatility in currency exchange rates presents ongoing financial risks.
Company Guidance
In the first quarter of 2025, Turkcell reported a significant financial performance with several key metrics. The company achieved a top-line revenue of TRY48 billion, indicating a 12.7% year-on-year growth. EBITDA increased by 19% year-on-year to TRY21 billion, resulting in a robust margin of 43.7%, the highest first quarter margin in the last decade. Net profit stood at TRY3.1 billion, reflecting strong financial health. The mobile segment added 153,000 postpaid subscribers, pushing the postpaid share to an all-time high of 76%, while maintaining a low churn rate of 1.7%. The company also reported double-digit ARPU growth of 15.9%. In the fixed broadband segment, 30,000 net fiber customers were added, with residential fiber ARPU growing by 17.7% year-on-year. Strategic areas like the Techfin segment saw revenue growth of 31%, and data center and cloud revenues surged by 48%. Turkcell's CapEx to sales ratio was at 20.2%, with significant investments in data centers and renewable energy. The company maintained a strong balance sheet with a cash position of TRY108 billion and a leverage ratio of 0.2 times, ensuring readiness for future 5G investments.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.