TKCTurkcell Iletisim Hizmetleri A.S.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (4.4×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 7% = 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 9.3% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 0.35 points above what the capital costs: growth creates value
- Operating margin
- 16%
Operating margin · Telecom Services median 14% · fiscal year to FY2025
- Cash conversion
- 4.42×
Cash conversion · 4.57× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.12%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | 11% |
| FY2022 | 3.2% |
| FY2023 | 7.3% |
| FY2024 | 12% |
| FY2025 | 16% |
Details›
- Gross marginfiscal year to FY2025
- 28%
- Operating marginfiscal year to FY2025
- 16%
- Net marginfiscal year to FY2025
- 7.3%
- Free cash flow margin
- 22%
- R&D as % of revenue
- 0.19%
- Revenue, trailing twelve months
- $241.5B
- Free cash flow, trailing twelve months
- $52.7B
- Net income, trailing twelve months
- $17.6B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.