OTCPK:TRKN.Y

Stock Analysis Report

Türk Telekomünikasyon Anonim Sirketi

Executive Summary

Türk Telekomünikasyon Anonim Sirketi, together with its subsidiaries, provides integrated telecommunication services in Turkey.

Rewards

Trading at 58.8% below its fair value

Earnings are forecast to grow 26.34% per year

Became profitable this year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Undervalued with high growth potential.


Similar Companies

Share Price & News

How has Türk Telekomünikasyon Anonim Sirketi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRKN.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

TRKN.Y

-0.3%

US Telecom

0.06%

US Market


1 Year Return

30.7%

TRKN.Y

13.5%

US Telecom

19.4%

US Market

Return vs Industry: TRKN.Y exceeded the US Telecom industry which returned 13.5% over the past year.

Return vs Market: TRKN.Y exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

TRKN.YIndustryMarket
7 Day-1.6%-0.3%0.06%
30 Day-2.4%-1.6%1.1%
90 Day5.3%-0.1%8.9%
1 Year30.7%30.7%19.1%13.5%21.9%19.4%
3 Year-19.8%-19.8%17.2%0.08%48.9%39.3%
5 Yearn/a38.6%7.3%71.9%53.1%

Price Volatility Vs. Market

How volatile is Türk Telekomünikasyon Anonim Sirketi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Türk Telekomünikasyon Anonim Sirketi 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: TRKN.Y ($2.6) is trading below our estimate of fair value ($6.32)

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


Price To Earnings Ratio

PE vs Industry: TRKN.Y is good value based on its PE Ratio (12.2x) compared to the Telecom industry average (18.2x).

PE vs Market: TRKN.Y is good value based on its PE Ratio (12.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: TRKN.Y is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: TRKN.Y is overvalued based on its PB Ratio (3.1x) compared to the US Telecom industry average (1.5x).


Next Steps

Future Growth

How is Türk Telekomünikasyon Anonim Sirketi forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRKN.Y's forecast earnings growth (26.3% per year) is above the savings rate (1.7%).

Earnings vs Market: TRKN.Y's earnings (26.3% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: TRKN.Y's revenue (8.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: TRKN.Y's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRKN.Y's Return on Equity is forecast to be very high in 3 years time (40.6%).


Next Steps

Past Performance

How has Türk Telekomünikasyon Anonim Sirketi performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRKN.Y has high quality earnings.

Growing Profit Margin: TRKN.Y became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TRKN.Y's earnings have declined by -14% per year over the past 5 years.

Accelerating Growth: TRKN.Y has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TRKN.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (-23.8%).


Return on Equity

High ROE: Whilst TRKN.Y's Return on Equity (25.49%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Türk Telekomünikasyon Anonim Sirketi's financial position?


Financial Position Analysis

Short Term Liabilities: TRKN.Y's short term assets (TRY12.1B) do not cover its short term liabilities (TRY13.7B).

Long Term Liabilities: TRKN.Y's short term assets (TRY12.1B) do not cover its long term liabilities (TRY16.8B).


Debt to Equity History and Analysis

Debt Level: TRKN.Y's debt to equity ratio (220.2%) is considered high.

Reducing Debt: TRKN.Y's debt to equity ratio has increased from 142.6% to 220.2% over the past 5 years.

Debt Coverage: TRKN.Y's debt is well covered by operating cash flow (53.8%).

Interest Coverage: TRKN.Y's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: TRKN.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: TRKN.Y's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Türk Telekomünikasyon Anonim Sirketi's current dividend yield, its reliability and sustainability?

11.02%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage4.9%forecastin3Years11.0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TRKN.Y's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TRKN.Y's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TRKN.Y's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TRKN.Y's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TRKN.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRKN.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Ümit Önal 0

0.6yrs

Tenure

0

Mr. Ümit Önal has been Chief Executive Officer and General Manager at Türk Telekomünikasyon Anonim Sirketi since July 31, 2019. He was Acting General Manager at Türk Telekomünikasyon Anonim Sirketi until O ...


Leadership Team

NamePositionTenureCompensationOwnership
Ümit Önal
CEO, GM and Acting Assistant GM of Marketing & Customer Care0.6yrsno datano data
Kaan Aktan
Assistant General Manager of Finance3.2yrsno datano data
Yusuf Kiraç
Assistant General Manager of Technology2.1yrsno datano data
Sabriye Çullas
Investor Relations Director0yrsno datano data
Süleyman Kisac
Corporate Governance and Compliance Manager0yrsno datano data
Ugur Yalçin
Assistant General Manger of Legal & Regulation1.1yrsno datano data
Mehmet Beytur
Assistant GM of Support Services & Procurement Management and Acting Assistant GM of Human Resources1.1yrsno datano data
Mehmet Vural
Assistant General Manager of Human Resources1.1yrsno datano data
Nazif Burca
CEO Advisor12.6yrsno datano data
Yavuz Türkmen
Head of Internal Audit3yrsno datano data

1.6yrs

Average Tenure

Experienced Management: TRKN.Y's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eyüp Engin
Vice Chairman0yrsno datano data
Muammer Sezgin
Director1.2yrsno datano data
Aclan Acar
Director0.9yrsno datano data
Hakan Aran
Director1.2yrsno datano data
Yigit Bulut
Independent Non-Executive Director5.8yrsno datano data
Ali Polat
Member of Statutory Audit Board3.8yrsno datano data
Ömer Sayan
Chairman0yrsno datano data
Nureddin Nebati
Independent Director1.2yrsno datano data
Selim Dursun
Independent Board Member0yrsno datano data
Ertugrul Altin
Director0.9yrsno datano data

1.2yrs

Average Tenure

51.5yo

Average Age

Experienced Board: TRKN.Y's board of directors are not considered experienced ( 1.2 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

Türk Telekomünikasyon Anonim Sirketi's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Türk Telekomünikasyon Anonim Sirketi
  • Ticker: TRKN.Y
  • Exchange: OTCPK
  • Founded: 1840
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₺29.295b
  • Listing Market Cap: ₺4.837b
  • Shares outstanding: 3.50b
  • Website: https://www.turktelekom.com.tr

Number of Employees


Location

  • Türk Telekomünikasyon Anonim Sirketi
  • Turgut Özal Bulvari
  • Aydinlikevler
  • Ankara
  • 6103
  • Turkey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTKOMIBSE (Borsa Istanbul (BIST))YesGroup D Bearer SharesTRTRYMay 2008
TRKN.FOTCPK (Pink Sheets LLC)YesGroup D Bearer SharesUSUSDMay 2008
TRKN.YOTCPK (Pink Sheets LLC)UNSPON ADR EACH REPR 2 SHSUSUSDAug 2011
4TTABST (Boerse-Stuttgart)UNSPON ADR EACH REPR 2 SHSDEEURAug 2011

Biography

Türk Telekomünikasyon Anonim Sirketi, together with its subsidiaries, provides integrated telecommunication services in Turkey. The company operates in two segments, Fixed Line and Mobile. It offers local, national, international, and mobile telecommunication services; Internet products and services; and call center and customer relationship management, and technology and information management services. The company also provides Web based learning solutions; Internet/data; infrastructure and wholesale voice; mobile service marketing; television and radio broadcasting; electrical energy trading; and mobile finance services. As of June 30, 2019, it had 14.5 million fixed access lines; 11.1 million broadband; 3.6 million TV; and 22.4 million mobile subscribers. The company was founded in 1840 and is headquartered in Ankara, Turkey. Türk Telekomünikasyon Anonim Sirketi is a subsidiary of Ojer Telekomunikasyon A.S. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:49
End of Day Share Price2020/02/13 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.