Operating Margin - Turkcell Iletisim Hizmetleri AS (IST:TCELL.E)

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Price: 104.2 TRY 3.68%

Market Cap: 229.2B TRY

10.6%

Current

16%

Average

9.7%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

10.6%

Operating Profit

20.5B

Revenue

193.2B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
TR		Turkcell Iletisim Hizmetleri AS IST:TCELL.E	228.9B TRY	11%
ZA	M	MTN Group Ltd JSE:MTN	285.5B Zac	24%
ZA	V	Vodacom Group Ltd JSE:VOD	256.5B Zac	22%
US		T-Mobile US Inc NASDAQ:TMUS	218.3B USD	23%
CN		China Mobile Ltd SSE:600941	1.4T CNY	14%
JP		SoftBank Group Corp TSE:9984	25.5T JPY	10%
IN		Bharti Airtel Ltd NSE:BHARTIARTL	11.9T INR	30%
JP		KDDI Corp TSE:9433	10.7T JPY	18%
JP		SoftBank Corp TSE:9434	10.3T JPY	14%
MX		America Movil SAB de CV BMV:AMXB	1.2T MXN	20%
UK		Vodafone Group PLC LSE:VOD	23.6B GBP	12%

Turkcell Iletisim Hizmetleri AS
Glance View

Economic Moat

Narrow

Market Cap

228.9B TRY

Industry

Telecommunication

In the vibrant and rapidly evolving Turkish telecommunications market, Turkcell Iletisim Hizmetleri AS stands as a formidable player, casting its influence far beyond the nation’s borders. Born in 1994 amidst Turkey's economic reforms, Turkcell quickly carved a niche for itself by offering a suite of mobile voice and data services, laying the groundwork for the massive telecom infrastructure it controls today. As it expanded, the company embraced cutting-edge technology to deliver more than just cellular services. Turkcell evolved into a digital operator, capitalizing on emerging trends like internet of things (IoT), mobile banking, and cloud services. By diversifying its service portfolio, Turkcell not only catered to consumers’ communication demands but also ventured into solutions for corporate clients and government entities, anchoring its business model on both consumer and enterprise markets. However, the story of Turkcell is not solely about the services it provides; it's also about the robust network and efficient monetization strategies that sustain its growth. The company generates revenue primarily through its subscription-based mobile and internet packages, which attract a wide spectrum of users—from everyday consumers to large businesses. Beyond connectivity, Turkcell extracts value by bundling digital services such as television, music streaming, and digital wallet services, thus enhancing user engagement and loyalty. These offerings are meticulously integrated into the Turkcell ecosystem, encouraging customers to spend more time within its digital landscape. Additionally, strategic partnerships and investments in regional markets have expanded Turkcell’s footprint, driving international revenue streams. At its core, Turkcell’s success narrative is crafted on innovation and adaptation, weaving technology and customer need into a seamless tapestry of telecommunications service.

View TCELL.E Analysis

TCELL.E Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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Turkcell Iletisim Hizmetleri AS
IST:TCELL.E