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Turkcell Iletisim Hizmetleri A.S.

TKC
52
Telecommunications Services · Communication Services
Price
$5.72
-0.25 (-4.19%)
Market Cap
$4.98B
Exchange
New York Stock Exchange
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

1.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 873.2M (2021) → 861.8M (2025)

Turkcell is Turkey's largest mobile phone network operator. It sells wireless phone plans, internet data, and digital services to tens of millions of individual customers and businesses across Turkey. The company also owns and operates networks in Ukraine and a handful of other countries in the region.

Turkcell makes most of its money by charging monthly fees for mobile and broadband subscriptions. It also earns revenue from digital services like its own streaming, payments, and cloud platforms. The company's size gives it a strong position in Turkey, where it holds the leading share of the mobile market. However, Turkey's high inflation environment is a significant ongoing risk — it erodes the real value of revenues and makes long-term financial planning difficult, even as subscriber growth and digital service expansion remain the key drivers the company is betting on.

Winston Score History

Score breakdown

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Quality

Gross Margin
26.8%
Modest — 26.8% gross margin
Operating Margin
15.8%
Healthy — 15.8% operating margin
ROCE
2.2%
Weak — 2.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-2.5%
Shrinking sales (-2.5% YoY)
EPS YoY
-19.3%
Earnings shrinking (-19.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
370%
Turns 370% of profit into real cash
FCF Margin
13.2%
Converts sales into free cash efficiently (13.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.67
Moderate — manageable debt (0.67)
Interest Cover
3.04x
Tight — interest eats into profit (3.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
0.3x
Attractive valuation — P/E 0.3

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
-8.2
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
3.39%
Moderate income — 3.39% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+23.5%
Dividend growing fast (23.5% YoY)

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