TKCTurkcell Iletisim Hizmetleri A.S.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (6.8×).
Operating profit is fully backed by cash.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TKC?
Turkcell Iletisim Hizmetleri A.S. earns 4.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.8 points below what the capital costs: growth destroys value
- Operating margin
- 7.3%
Operating margin · Telecom Services median 11% · fiscal year to FY2023
- Cash conversion
- 6.76×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.05%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2018 | 20% |
| FY2019 | 20% |
| FY2020 | 13% |
| FY2021 | 11% |
| FY2022 | 3.2% |
| FY2023 | 7.3% |
Details›
- Gross marginfiscal year to FY2023
- 21%
- Operating marginfiscal year to FY2023
- 7.3%
- Net marginfiscal year to FY2023
- 12%
- Free cash flow margin
- 26%
- R&D as % of revenue
- 0.12%
- Revenue, trailing twelve months
- $107.1B
- Free cash flow, trailing twelve months
- $27.5B
- Net income, trailing twelve months
- $12.6B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.