NYSE:TKC

Stock Analysis Report

Turkcell Iletisim Hizmetleri

Executive Summary

Turkcell Iletisim Hizmetleri A.S. provides digital services in Turkey, Ukraine, Belarus, Azerbaijan, Cyprus, Germany, and the Netherlands.

Snowflake

Fundamentals

Very undervalued with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Turkcell Iletisim Hizmetleri's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.9%

NYSE:TKC

-1.0%

US Wireless Telecom

-0.02%

US Market


1 Year Return

25.3%

NYSE:TKC

5.3%

US Wireless Telecom

1.6%

US Market

TKC outperformed the Wireless Telecom industry which returned 6.5% over the past year.

TKC outperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

TKCIndustryMarket
7 Day-2.9%-1.0%-0.02%
30 Day2.5%2.0%2.7%
90 Day5.9%-1.0%1.4%
1 Year27.9%25.3%6.5%5.3%3.8%1.6%
3 Year-20.9%-31.5%33.5%28.3%45.2%35.8%
5 Year-44.9%-57.6%41.2%27.1%61.8%44.1%

Price Volatility Vs. Market

How volatile is Turkcell Iletisim Hizmetleri's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Turkcell Iletisim Hizmetleri undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Turkcell Iletisim Hizmetleri's share price is below the future cash flow value, and at a moderate discount (> 20%).

Turkcell Iletisim Hizmetleri's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Turkcell Iletisim Hizmetleri is good value based on earnings compared to the US Wireless Telecom industry average.

Turkcell Iletisim Hizmetleri is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Turkcell Iletisim Hizmetleri is good value based on expected growth next year.


Price Based on Value of Assets

Turkcell Iletisim Hizmetleri is good value based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is Turkcell Iletisim Hizmetleri expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Turkcell Iletisim Hizmetleri's revenue is expected to grow by 12% yearly, however this is not considered high growth (20% yearly).

Turkcell Iletisim Hizmetleri's earnings are expected to grow significantly at over 20% yearly.

Turkcell Iletisim Hizmetleri's revenue growth is expected to exceed the United States of America market average.

Turkcell Iletisim Hizmetleri's earnings growth is expected to exceed the United States of America market average.

Turkcell Iletisim Hizmetleri's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Turkcell Iletisim Hizmetleri is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Turkcell Iletisim Hizmetleri performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Turkcell Iletisim Hizmetleri's year on year earnings growth rate has been positive over the past 5 years.

Turkcell Iletisim Hizmetleri's 1-year earnings growth exceeds its 5-year average (16.7% vs 0.7%)

Turkcell Iletisim Hizmetleri's earnings growth has exceeded the US Wireless Telecom industry average in the past year (16.7% vs 7.7%).


Return on Equity

Turkcell Iletisim Hizmetleri has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Turkcell Iletisim Hizmetleri used its assets more efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Turkcell Iletisim Hizmetleri has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Turkcell Iletisim Hizmetleri's financial position?


Financial Position Analysis

Turkcell Iletisim Hizmetleri is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Turkcell Iletisim Hizmetleri's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Turkcell Iletisim Hizmetleri's level of debt (118.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (22% vs 118.2% today).

Debt is well covered by operating cash flow (36.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 17.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

What is Turkcell Iletisim Hizmetleri's current dividend yield, its reliability and sustainability?

8.65%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Turkcell Iletisim Hizmetleri's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Turkcell Iletisim Hizmetleri's dividend is above the markets top 25% of dividend payers in United States of America (3.69%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of Turkcell Iletisim Hizmetleri's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Murat Erkan (50yo)

0.5yrs

Tenure

0

Mr. Murat Erkan has been the Chief Executive Officer of Turkcell Iletisim Hizmetleri A.S. since May 2019 and served as its Acting Chief Executive Officer from March 15, 2019 to May 2019. Mr. Erkan served a ...


Management Age and Tenure

3.3yrs

Average Tenure

45yo

Average Age

The tenure for the Turkcell Iletisim Hizmetleri management team is about average.


Board Age and Tenure

1.5yrs

Average Tenure

60yo

Average Age

The average tenure for the Turkcell Iletisim Hizmetleri board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Nihat Narin

    Director of Investor Relations & Business Development

    • Tenure: 0yrs
  • Tugrul Cora (50yo)

    Senior Vice President of Corporate Sales

    • Tenure: 4.2yrs
  • Aziz Sezgin (53yo)

    Executive Vice President of Network Technologies

    • Tenure: 3.9yrs
  • Banu Sezen (47yo)

    Senior Vice President of Turkcell Academy

    • Tenure: 4.4yrs
  • Izzet Demir (45yo)

    Executive Vice President of Legal & Regulation

    • Tenure: 4.3yrs
  • Murat Erkan (50yo)

    Chief Executive Officer

    • Tenure: 0.5yrs
  • Serkan Öztürk (43yo)

    Executive Vice President of Customer Experience & Information Technologies

    • Tenure: 2.1yrs
  • Ali Türk (42yo)

    Executive Vice President of Supply Chain Management

    • Tenure: 3.3yrs
  • Osman Yilmaz (36yo)

    Executive VP of Finance & CFO

    • Tenure: 1.1yrs
  • Ömer Barbaros Yis (39yo)

    Executive Vice President of Marketing

    • Tenure: 0.8yrs

Board Members

  • Hüseyin Aydin (60yo)

    Director

    • Tenure: 0.5yrs
  • Atilla Koç (73yo)

    Independent Director

    • Tenure: 6.5yrs
  • Ahmet Akça (63yo)

    Chairman of the Board

    • Tenure: 6.1yrs
  • Mehmet Güler (70yo)

    Independent Director

    • Tenure: 6.5yrs
  • Bülent Aksu (45yo)

    Director

    • Tenure: 0.5yrs
  • Ingrid Stenmark (53yo)

    Director

    • Tenure: 1.5yrs
  • Mustafa Kiral (41yo)

    Director

    • Tenure: 1.5yrs

Company Information

Turkcell Iletisim Hizmetleri A.S.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Turkcell Iletisim Hizmetleri A.S.
  • Ticker: TKC
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: YTL26.220b
  • Listing Market Cap: YTL4.620b
  • Shares outstanding: 2.05b
  • Website: https://www.turkcell.com.tr

Number of Employees


Location

  • Turkcell Iletisim Hizmetleri A.S.
  • Turkcell Kucukyali Plaza
  • Aydinevler Mahallesi Inonu Caddesi No:20
  • Istanbul
  • Turkey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TKCNYSE (New York Stock Exchange)ADS EACH REPR 2.5 TRADABLE SHS TRY1USUSDJul 2000
TUL1DB (Deutsche Boerse AG)ADS EACH REPR 2.5 TRADABLE SHS TRY1DEEURJul 2000
TCELLIBSE (Borsa Istanbul (BIST))YesCommon StockTRTRYJul 2000
TKCZ.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 2000
TKC NBMV (Bolsa Mexicana de Valores)ADS EACH REPR 2.5 TRADABLE SHS TRY1MXMXNJul 2000

Biography

Turkcell Iletisim Hizmetleri A.S. provides digital services in Turkey, Ukraine, Belarus, Azerbaijan, Cyprus, Germany, and the Netherlands. It operates in two segments, Turkcell Turkey and Turkcell Internat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:41
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.