Turkcell Iletisim Hizmetleri A.S. Fundamental Analysis
Turkcell Iletisim Hizmetleri A.S. Fundamental Analysis
Turkcell Iletisim Hizmetleri A.S. (TKC) shows moderate financial fundamentals with a PE ratio of 16.16, profit margin of 7.85%, and ROE of 7.54%. The company generates $182.7B in annual revenue with strong year-over-year growth of 44.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TKC's fundamental strength across five key dimensions:
Efficiency Score
WeakTKC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTKC trades at attractive valuation levels.
Growth Score
ExcellentTKC delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTKC maintains a strong and stable balance sheet.
Profitability Score
WeakTKC struggles to sustain strong margins.
Key Financial Metrics
Is TKC Expensive or Cheap?
P/E Ratio
TKC trades at 16.16 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TKC's PEG of -0.02 indicates potential undervaluation.
Price to Book
The market values Turkcell Iletisim Hizmetleri A.S. at 0.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.39 times EBITDA. This is generally considered low.
How Well Does TKC Make Money?
Net Profit Margin
For every $100 in sales, Turkcell Iletisim Hizmetleri A.S. keeps $7.85 as profit after all expenses.
Operating Margin
Core operations generate 16.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.54 in profit for every $100 of shareholder equity.
ROA
Turkcell Iletisim Hizmetleri A.S. generates $2.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Turkcell Iletisim Hizmetleri A.S. generates strong operating cash flow of $53.10B, reflecting robust business health.
Free Cash Flow
Turkcell Iletisim Hizmetleri A.S. generates strong free cash flow of $24.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $27.62 in free cash annually.
FCF Yield
TKC converts 10.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How TKC Stacks Against Its Sector Peers
| Metric | TKC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.16 | 24.20 | Better (Cheaper) |
| ROE | 7.54% | 959.00% | Weak |
| Net Margin | 7.85% | -68674.00% (disorted) | Weak |
| Debt/Equity | 0.71 | 3.02 | Strong (Low Leverage) |
| Current Ratio | 1.69 | 1.71 | Neutral |
| ROA | 2.31% | -2558.00% (disorted) | Weak |
TKC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Turkcell Iletisim Hizmetleri A.S.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
740.62%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
296.11%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
767.25%
Industry Style: Growth, Technology, Streaming
High Growth