Kordsa Teknik Tekstil (IBSE:KORDS) - Share price, News & Analysis

Q: What is the Fair Price of KORDS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

KORDS (TRY49.06) is trading above our estimate of [[fair value]] (TRY25.06)

KORDS fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	5/6
Financial Health	3/6
Dividends	3/6

KORDS Stock Overview

Kordsa Teknik Tekstil A.S. manufactures and sells carcass and industrial fabrics.

Rewards

Price-To-Earnings ratio (8x) is below the TR market (11.3x)

Earnings are forecast to grow 35.22% per year

Earnings grew by 168.1% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 1.68% is not well covered by earnings

Kordsa Teknik Tekstil Competitors

Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret

IBSE:BRISA

₺11.5b

Goodyear Lastikleri T.A.S

IBSE:GOODY

₺279.2b

Ege Endüstri ve Ticaret

IBSE:EGEEN

₺7.4b

Döktas Dökümcülük Ticaret ve Sanayi

IBSE:DOKTA

₺5.6b

Price History & Performance

Summary of all time highs, changes and price drops for Kordsa Teknik Tekstil
Historical stock prices
Current Share Price	₺49.06
52 Week High	₺59.55
52 Week Low	₺22.86
Beta	0.48
1 Month Change	-0.49%
3 Month Change	11.75%
1 Year Change	103.40%
3 Year Change	341.98%
5 Year Change	527.37%
Change since IPO	477,509.03%

Shareholder Returns

	KORDS	TR Auto Components	TR Market
7D	-5.8%	-1.8%	2.9%
1Y	103.4%	57.6%	81.0%

Return vs Industry: KORDS exceeded the TR Auto Components industry which returned 57.6% over the past year.

Return vs Market: KORDS exceeded the TR Market which returned 81% over the past year.

Price Volatility

Is KORDS's price volatile compared to industry and market?
KORDS volatility
KORDS Average Weekly Movement	6.4%
Auto Components Industry Average Movement	5.6%
Market Average Movement	5.9%
10% most volatile stocks in TR Market	8.9%
10% least volatile stocks in TR Market	4.1%

Stable Share Price: KORDS is not significantly more volatile than the rest of TR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KORDS's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1973	4,925	Ibrahim Yildirim	https://www.kordsa.com

Kordsa Teknik Tekstil A.S. manufactures and sells carcass and industrial fabrics. The company offers industrial fabrics, which are used in the structure of vehicle tires; rubber and plastic materials, such as transmission belts, V belts, rubber hoses, etc.; and denier fiber and connection fabrics. It also produces and markets fabrics for mechanical rubber goods and other rubber reinforcement materials; converts various types of yarns into cord fabrics; provides advanced composites to the civil aviation sector; and offers nylon 6, nylon 6.6, and polyethylene-terephthalate high modulus low shrinkage polyester, as well as rayon heavy decitex yarns for use in tires and mechanical rubber goods.

Kordsa Teknik Tekstil Fundamentals Summary

How do Kordsa Teknik Tekstil's earnings and revenue compare to its market cap?
KORDS fundamental statistics
Market Cap	₺9.54b
Earnings (TTM)	₺1.20b
Revenue (TTM)	₺13.49b

8.0x

P/E Ratio

0.7x

P/S Ratio

Is KORDS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KORDS income statement (TTM)
Revenue	₺13.49b
Cost of Revenue	₺10.60b
Gross Profit	₺2.88b
Other Expenses	₺1.68b
Earnings	₺1.20b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	6.16
Gross Margin	21.37%
Net Profit Margin	8.88%
Debt/Equity Ratio	75.3%

How did KORDS perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

13%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is KORDS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KORDS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KORDS. This is calculated by dividing KORDS's market cap by their current preferred multiple.
What is KORDS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₺9.54b

KORDS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.2x
Enterprise Value/EBITDA	8.9x
PEG Ratio	0.2x

Price to Earnings Ratio vs Peers

How does KORDS's PE Ratio compare to its peers?

KORDS PE Ratio vs Peers

The above table shows the PE ratio for KORDS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	186.1x
BRISA Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret	8.4x	-14.1%	₺11.5b
GOODY Goodyear Lastikleri T.A.S	706.3x	n/a	₺279.2b
EGEEN Ege Endüstri ve Ticaret	10.2x	n/a	₺7.4b
DOKTA Döktas Dökümcülük Ticaret ve Sanayi	19.5x	n/a	₺5.6b
KORDS Kordsa Teknik Tekstil	8x	35.2%	₺9.5b

Price-To-Earnings vs Peers: KORDS is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (186.1x).

Price to Earnings Ratio vs Industry

How does KORDS's PE Ratio compare vs other companies in the Asian Auto Components Industry?

Price-To-Earnings vs Industry: KORDS is good value based on its Price-To-Earnings Ratio (8x) compared to the TR Auto Components industry average (13.8x)

Price to Earnings Ratio vs Fair Ratio

What is KORDS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KORDS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8x
Fair PE Ratio	12.8x

Price-To-Earnings vs Fair Ratio: KORDS is good value based on its Price-To-Earnings Ratio (8x) compared to the estimated Fair Price-To-Earnings Ratio (12.8x).

Share Price vs Fair Value

What is the Fair Price of KORDS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KORDS (TRY49.06) is trading above our estimate of fair value (TRY25.06)

Significantly Below Fair Value: KORDS is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Kordsa Teknik Tekstil forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

35.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KORDS's forecast earnings growth (35.2% per year) is above the savings rate (8.9%).

Earnings vs Market: KORDS's earnings (35.2% per year) are forecast to grow faster than the TR market (13% per year).

High Growth Earnings: KORDS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KORDS's revenue (52.7% per year) is forecast to grow faster than the TR market (14.4% per year).

High Growth Revenue: KORDS's revenue (52.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if KORDS's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Kordsa Teknik Tekstil performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

36.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KORDS has high quality earnings.

Growing Profit Margin: KORDS's current net profit margins (8.9%) are higher than last year (7.8%).

Past Earnings Growth Analysis

Earnings Trend: KORDS's earnings have grown significantly by 36.5% per year over the past 5 years.

Accelerating Growth: KORDS's earnings growth over the past year (168.1%) exceeds its 5-year average (36.5% per year).

Earnings vs Industry: KORDS earnings growth over the past year (168.1%) exceeded the Auto Components industry 50%.

Return on Equity

High ROE: KORDS's Return on Equity (15.4%) is considered low.

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Financial Health

How is Kordsa Teknik Tekstil's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KORDS's short term assets (TRY10.1B) exceed its short term liabilities (TRY6.6B).

Long Term Liabilities: KORDS's short term assets (TRY10.1B) exceed its long term liabilities (TRY4.3B).

Debt to Equity History and Analysis

Debt Level: KORDS's net debt to equity ratio (64.2%) is considered high.

Reducing Debt: KORDS's debt to equity ratio has increased from 45.4% to 75.3% over the past 5 years.

Debt Coverage: KORDS's debt is not well covered by operating cash flow (2%).

Interest Coverage: KORDS earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Kordsa Teknik Tekstil current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.68%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KORDS's dividend (1.68%) is higher than the bottom 25% of dividend payers in the TR market (0.67%).

High Dividend: KORDS's dividend (1.68%) is low compared to the top 25% of dividend payers in the TR market (3.27%).

Stability and Growth of Payments

Stable Dividend: KORDS's dividend payments have been volatile in the past 10 years.

Growing Dividend: KORDS's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (13.3%), KORDS's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: KORDS is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure

CEO

Ibrahim Yildirim (52 yo)

0.33

Tenure

Mr. Ibrahim Ozgur Yildirim had been President Director at PT Indo Kordsa Tbk since 2020 until June 2022. He serves as Chief Executive Officer at Kordsa Teknik Tekstil A.S. since April 01, 2022 and served a...

Leadership Team

Experienced Management: KORDS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: KORDS's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/14 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31