Turkcell Iletisim (TKC) AI Stock Analysis

• Market Cap: $5.09B
• Dividend Yield: 2.61%
• Average Volume (3M): 879.27K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.48
• Revenue Growth: 8.78%
• EPS Growth: -21.85%
• Country: US
• Employees: 23,795
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 0.48
• Shares Outstanding: 873,242,500
• 10 Day Avg. Volume: 830,604
• 30 Day Avg. Volume: 879,269
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Turkcell's strong financial performance, attractive valuation, and positive earnings call sentiment are key strengths, supporting its growth potential. However, technical indicators suggest a bearish trend, which tempers the overall score. The focus on strategic initiatives like 5G and renewable energy investments is promising, but rising debt and market competition pose risks that need monitoring.

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 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 presents a strong financial position with robust revenue and profit growth, a balanced financial structure despite rising debt levels, and effective cash generation and management. Key strengths include significant revenue growth, healthy margins, and impressive cash flow, though rising debt levels require careful monitoring.

Income Statement

Turkcell Iletisim has demonstrated strong revenue growth with a significant increase in total revenues from 2023 to 2024. The gross profit margin remains healthy, and net income has also shown considerable growth, indicating improved profitability. The EBIT and EBITDA margins are robust, reflecting efficient operations and profitability. The company has effectively managed to enhance its income, showcasing a positive trend in earnings.

Balance Sheet

The balance sheet reflects a solid equity base with a moderate debt-to-equity ratio, indicating a balanced financial structure. The equity ratio suggests a good proportion of the company's assets are financed by equity. However, the increase in total debt from previous periods could pose a potential risk if not managed properly. The return on equity is impressive, showcasing effective utilization of shareholder funds to generate income.

Cash Flow

Turkcell Iletisim exhibits a strong cash flow position with substantial growth in free cash flow, underscoring its ability to generate cash from operations. The operating cash flow to net income ratio is favorable, indicating a strong correlation between profitability and cash generation. The free cash flow to net income ratio is also healthy, suggesting efficient cash management practices.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
166.67B	107.12B	53.88B	35.92B	29.10B
	Gross Profit
41.16B	22.70B	17.09B	10.69B	8.77B
	EBIT
35.12B	7.81B	14.14B	7.35B	5.77B
	EBITDA
60.83B	45.19B	43.86B	13.03B	11.66B
	Net Income Common Stockholders
23.52B	12.55B	11.05B	4.33B	4.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.86B	58.85B	30.91B	18.68B	12.56B
	Total Assets
344.28B	247.08B	101.26B	70.68B	51.50B
	Total Debt
104.34B	84.08B	53.85B	36.78B	21.59B
	Net Debt
35.41B	34.11B	27.73B	18.15B	9.73B
	Total Liabilities
157.31B	124.85B	70.37B	48.12B	30.71B
	Stockholders Equity
186.97B	122.25B	30.89B	22.56B	20.78B
Cash Flow		Free Cash Flow
44.31B	12.22B	11.07B	10.07B	5.31B
	Operating Cash Flow
75.01B	41.72B	25.15B	19.95B	13.09B
	Investing Cash Flow
-48.86B	-20.91B	-19.65B	-9.14B	-6.78B
	Financing Cash Flow
-9.78B	6.77B	1.76B	-3.94B	-4.27B

Turkcell Iletisim Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 5.87 is below the 20-day moving average (MA) of 6.02, below the 50-day MA of 6.52, and below the 200-day MA of 6.76, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 38.70 is Neutral, neither overbought nor oversold. The STOCH value of 28.88 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
PHI	78 Outperform	$5.06B	9.06	29.05%	5.33%	-0.15%	17.96%
TIGO	77 Outperform	$5.76B	22.66	7.13%	5.17%	2.53%	―
TKC	75 Outperform	$5.09B	11.49	6.76%	2.61%	8.78%	-21.85%
SKM	73 Outperform	$8.04B	9.04	11.19%	5.19%	-2.34%	12.31%
USM	65 Neutral	$5.85B	―	-0.85%	―	-3.48%	-169.60%
TEO	64 Neutral	$4.20B	4.30	23.27%	―	-26.74%	―
Sector *	59 Neutral	$13.76B	7.64	-1.94%	3.86%	2.38%	-36.56%