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TKC

Turkcell Iletisim HizmetleriNYSE:TKC Stock Report

Last Price

₺3.66

Market Cap

₺3.1b

7D

1.7%

1Y

-34.3%

Updated

16 Jan, 2022

Data

Company Financials +
TKC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance5/6
Financial Health5/6
Dividends5/6

TKC Stock Overview

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

Turkcell Iletisim Hizmetleri Competitors

Netflix

NasdaqGS:NFLX

US$232.9b

Deutsche Telekom

XTRA:DTE

€75.7b

Bharti Airtel

BSE:532454

₹4.3t

Spotify Technology

NYSE:SPOT

US$41.9b

Price History & Performance

Summary of all time highs, changes and price drops for Turkcell Iletisim Hizmetleri
Historical stock prices
Current Share Price₺3.66
52 Week High₺6.10
52 Week Low₺2.85
Beta0.69
1 Month Change8.61%
3 Month Change-12.23%
1 Year Change-34.29%
3 Year Change-44.46%
5 Year Change-48.88%
Change since IPO-89.96%

Recent News & Updates

Aug 20

Turkcell Continues To Execute Very Well, But Macro Issues Cancel Out The Benefits

Turkcell posted another typical "modest beat and raise" quarter, with very strong subscriber growth and healthy ARPU growth. The guidance does call for more capex to support growth projects like fiber. Management has a good set of growth priorities, including ongoing switches from pre-to-paid subscriptions, digital financial services to a meaningfully underbanked customer base, and more fiber/digital services. Turkcell shares are cheap on their standalone fundamentals, but the market wants nothing to do with Turkish stocks.

May 03

Turkcell Iletisim Hizmetleri A.S. 2021 Q1 - Results - Earnings Call Presentation

The following slide deck was published by Turkcell Iletisim Hizmetleri A.S. in conjunction with their 2021 Q1 earnings call.

Apr 26

Turkcell Offers A Nice Discount On Dependable Growth

Photo by Elen11/iStock Editorial via Getty Images I'm fond of giving my portfolio an international flavor. This is a nice way to diversify, spread your risk around, and limit the possibility that a single incident in one nation can clobber broad swathes of your investments. To that end, I tend

Shareholder Returns

TKCUS Wireless TelecomUS Market
7D1.7%-1.2%-0.5%
1Y-34.3%-14.6%13.7%

Return vs Industry: TKC underperformed the US Wireless Telecom industry which returned -14.6% over the past year.

Return vs Market: TKC underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is TKC's price volatile compared to industry and market?
TKC volatility
TKC Average Weekly Movement5.7%
Wireless Telecom Industry Average Movement5.5%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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

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

About the Company

FoundedEmployeesCEOWebsite
1993n/aMurat Erkanhttps://www.turkcell.com.tr

Turkcell Iletisim Hizmetleri A.S. provides digital services in Turkey, Ukraine, Belarus, Azerbaijan, Cyprus, Germany, and the Netherlands. It operates through two segments, Turkcell Turkey and Turkcell International. It offers voice, data, and video communication solutions to its individual and corporate customers; and broadband services.

Turkcell Iletisim Hizmetleri Fundamentals Summary

How do Turkcell Iletisim Hizmetleri's earnings and revenue compare to its market cap?
TKC fundamental statistics
Market Cap₺42.30b
Earnings (TTM)₺4.95b
Revenue (TTM)₺33.60b

8.5x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TKC income statement (TTM)
Revenue₺33.60b
Cost of Revenue₺23.70b
Gross Profit₺9.90b
Expenses₺4.95b
Earnings₺4.95b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.27
Gross Margin29.46%
Net Profit Margin14.73%
Debt/Equity Ratio103.3%

How did TKC perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

52%

Payout Ratio

Valuation

Is Turkcell Iletisim Hizmetleri undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TKC ($3.66) is trading below our estimate of fair value ($7.5)

Significantly Below Fair Value: TKC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TKC is good value based on its PE Ratio (8.5x) compared to the US Wireless Telecom industry average (40.4x).

PE vs Market: TKC is good value based on its PE Ratio (8.5x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: TKC is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: TKC is overvalued based on its PB Ratio (1.9x) compared to the US Wireless Telecom industry average (1.8x).


Future Growth

How is Turkcell Iletisim Hizmetleri forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TKC's forecast earnings growth (15.2% per year) is above the savings rate (2%).

Earnings vs Market: TKC's earnings (15.2% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: TKC's earnings are forecast to grow, but not significantly.

Revenue vs Market: TKC's revenue (13.8% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: TKC's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TKC's Return on Equity is forecast to be high in 3 years time (22.8%)


Past Performance

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

25.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TKC has high quality earnings.

Growing Profit Margin: TKC's current net profit margins (14.7%) are higher than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: TKC's earnings have grown significantly by 25.9% per year over the past 5 years.

Accelerating Growth: TKC's earnings growth over the past year (34.1%) exceeds its 5-year average (25.9% per year).

Earnings vs Industry: TKC earnings growth over the past year (34.1%) exceeded the Wireless Telecom industry 22.1%.


Return on Equity

High ROE: Whilst TKC's Return on Equity (22.58%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Turkcell Iletisim Hizmetleri's financial position?


Financial Position Analysis

Short Term Liabilities: TKC's short term assets (TRY22.9B) exceed its short term liabilities (TRY12.9B).

Long Term Liabilities: TKC's short term assets (TRY22.9B) exceed its long term liabilities (TRY22.5B).


Debt to Equity History and Analysis

Debt Level: TKC's net debt to equity ratio (37.5%) is considered satisfactory.

Reducing Debt: TKC's debt to equity ratio has increased from 52.8% to 103.3% over the past 5 years.

Debt Coverage: TKC's debt is well covered by operating cash flow (58.4%).

Interest Coverage: TKC's interest payments on its debt are well covered by EBIT (272.2x coverage).


Balance Sheet


Dividend

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

6.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TKC's dividend (6.06%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: TKC's dividend (6.06%) is in the top 25% of dividend payers in the US market (3.44%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.7%), TKC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TKC's dividends in 3 years are forecast to be covered by earnings (61% payout ratio).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Murat Erkan (52 yo)

2.83yrs

Tenure

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...


Leadership Team

Experienced Management: TKC's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: TKC's board of directors are not considered experienced ( 1.8 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.


Top Shareholders

Company Information

Turkcell Iletisim Hizmetleri A.S.'s 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
  • Implied Market Cap: ₺42.305b
  • Listing Market Cap: ₺3.132b
  • Shares outstanding: 2.18b
  • Website: https://www.turkcell.com.tr

Number of Employees


Location

  • Turkcell Iletisim Hizmetleri A.S.
  • Turkcell Küçükyali Plaza
  • Aydinevler Mahallesi Inönü Caddesi No:20
  • Istanbul
  • 34854
  • Turkey

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:25
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.