Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Turkish telecom provider Turkcell Iletisim Hizmetleri (NYSE: TKC ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Turkcell's business and see what CAPS investors are saying about the stock right now.
Turkcell facts
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Headquarters (Founded)
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Istanbul, Turkey (1993)
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Market Cap
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$11.3 billion
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Industry
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Wireless telecom services
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Trailing-12-Month Revenue
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$6 billion
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Management
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CEO Sureyya Ciliv (since 2007)
CFO Serkan Okandan (since 2005)
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Return on Equity (Average, Past 3 Years)
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27%
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Cash/Debt
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$2.9 billion / $1.5 billion
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Dividend Yield
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4.6%
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Competitors
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Avea
Vodafone Group (Nasdaq: VOD )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 888 members who have rated Turkcell believe the stock will outperform the S&P 500 going forward. These bulls include bobsteinhagen and All-Star mrindependent, who is ranked in the top 1% of our community.
Just two months ago, bobsteinhagen tapped Turkcell's price weakness as an opportunity to pounce: "Recently dropped with Europe -- has greater than 50% of turkish market for cell coverage. Turkish market will add revenue with 3G. Also expanding into other emerging markets throughout eastern europe and the middle east."
Indeed, Turkcell owns 60% of the Turkish mobile phone market, but continues to face increasingly intense price competition. Turkcell's net income margins have dropped to 17% from the mid-20% range in just a few short years, reflecting the aggressive pricing that rivals like Avea and Vodafone are using to increase their share of the pie. Nevertheless, CAPS All-Stars like mrindependent feel that Turkcell's current valuation is just too cheap for a champion:
This goliath is the leading mobile telecom services provider in Turkey. The stock has been pummeled in recent months. ... Even after adjusting for this bad news, analysts are forecasting eps of $1.45 in 2010 and $1.52 in 2011. The current dividend yield is a whopping 4.9% and the company's conservative balance sheet boasts $0.80 cash per share. The management team seems capable. The company recently won an award for "Most Convincing and Coherent Business Strategy in the Telecoms - Cellular sector" in the Euromoney Best Managed Companies in CEE - 2010 survey.
What do you think about Turkcell, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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