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Arcelik A.S. Unsponsored ADR (ACKAY)
:ACKAY
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Arcelik
(OTC:ACKAY)
57Neutral
Arcelik (ACKAY) vs. S&P 500 (SPY)
Market Cap
$2.37B
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)48.1
Beta (1Y)0.33
Revenue Growth17.72%
EPS Growth-85.01%
CountryUS
Employees51,443
SectorConsumer Cyclical
Sector Strength46
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.36
Shares Outstanding135,145,600
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.53
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Arcelik Business Overview & Revenue Model
Company DescriptionArcelik A.S. (ACKAY) is a leading global consumer durables and electronics manufacturer based in Turkey. The company operates in multiple sectors, including home appliances, consumer electronics, and small domestic appliances. Arcelik's core products include refrigerators, washing machines, dishwashers, televisions, and air conditioners, which are sold under well-known brand names such as Beko and Grundig. The company has a strong international presence, with operations in over 145 countries and manufacturing facilities in several countries, including Turkey, Romania, Russia, China, South Africa, and Thailand.
How the Company Makes MoneyArcelik makes money primarily through the sale of its diverse range of consumer electronics and home appliances. Its revenue streams are largely derived from the sale of major household appliances such as refrigerators, washing machines, and dishwashers. Additionally, Arcelik benefits from the sale of small domestic appliances and consumer electronics, including televisions and air conditioning units. The company leverages its extensive global distribution network and multiple brand strategy to drive sales across different markets. Significant partnerships with retailers and distributors enhance its market reach, while its investment in research and development ensures a steady pipeline of innovative products, contributing to sustained earnings. Arcelik's ability to adapt to local market needs and preferences also plays a crucial role in its revenue generation.
Arcelik Financial Statement Overview
Summary
Arcelik shows strong revenue growth but faces challenges with declining profit margins and high leverage. The balance sheet indicates increased reliance on debt, which could pose risks if not managed carefully. Cash flow issues persist, with negative free cash flow highlighting problems in cash generation. While growth is apparent, profitability and stability need improvement.Income Statement
Arcelik shows significant revenue growth, increasing from 31.9 trillion in 2019 to 428.5 trillion in 2024. However, net profit margin has decreased over time, from 2.9% in 2019 to 0.4% in 2024. The gross profit margin remains relatively stable, indicating efficient cost management. EBIT and EBITDA margins are declining, which could affect future profitability.74
Positive
Balance Sheet
The company's debt-to-equity ratio has increased from 1.55 in 2019 to 2.05 in 2024, suggesting higher leverage. While total assets have grown, stockholders' equity has not kept pace, indicating potential risks. The equity ratio has decreased, reflecting a higher reliance on debt financing.68
Positive
Cash Flow
Arcelik's free cash flow has been negative for several years, demonstrating challenges in generating surplus cash. The operating cash flow to net income ratio is volatile, indicating fluctuating operational efficiency. Despite some growth in operating cash flow, free cash flow remains a concern due to high capital expenditures.58
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 428.55B | 257.10B | 133.92B | 68.18B | 40.87B | Gross Profit |
| 118.10B | 75.38B | 39.49B | 20.48B | 13.81B | EBIT |
| 7.12B | 10.16B | 9.09B | 7.02B | 4.85B | EBITDA |
| 36.25B | 24.95B | 11.14B | 7.55B | 6.25B | Net Income Common Stockholders |
| 1.69B | 7.67B | 4.32B | 3.06B | 2.85B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 50.82B | 49.25B | 24.53B | 16.01B | 12.00B | Total Assets |
| 397.73B | 258.14B | 132.24B | 85.08B | 46.55B | Total Debt |
| 138.04B | 101.91B | 51.44B | 32.58B | 17.08B | Net Debt |
| 87.23B | 53.12B | 26.91B | 16.56B | 5.07B | Total Liabilities |
| 322.66B | 198.57B | 105.14B | 64.02B | 32.53B | Stockholders Equity |
| 67.17B | 53.17B | 24.95B | 19.38B | 13.82B |
| Cash Flow | Free Cash Flow | |||
| -9.41B | -22.43B | -811.47M | -3.14B | 4.69B | Operating Cash Flow |
| 14.39B | -8.64B | 5.10B | -627.45M | 6.42B | Investing Cash Flow |
| -14.72B | -14.41B | -4.62B | -4.38B | -1.32B | Financing Cash Flow |
| 1.06B | 31.54B | 4.07B | 4.80B | -1.31B |
Arcelik Technical Analysis
Negative
17.52
Price Trends
18.26
Negative
19.17
Negative
20.88
Negative
Market Momentum
-0.09
Positive
44.38
Neutral
9.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACKAY, the sentiment is Negative. The current price of 17.52 is below the 20-day moving average (MA) of 18.87, below the 50-day MA of 18.26, and below the 200-day MA of 20.88, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 9.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACKAY.
Arcelik Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $201.38B | 31.40 | 27.62% | 0.79% | -32.60% | -28.55% | |
63 Neutral | $9.14B | 17.55 | 28.63% | 2.07% | -0.90% | -1.69% | |
62 Neutral | $37.02M | 86.78 | 1.11% | ― | 28.82% | 60.24% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
57 Neutral | $2.37B | 48.13 | 2.38% | ― | 17.72% | -85.01% | |
48 Neutral | $117.93M | ― | -1.59% | ― | -11.61% | -22.20% | |
47 Neutral | $4.77B | 13.03 | -12.77% | 8.13% | -14.64% | -167.22% |
* Consumer Cyclical Sector Average
Performance Comparison
ACKAY
Arcelik
17.46
-8.62
-33.05%
GE
GE Aerospace
166.81
11.61
7.48%
KNDI
Kandi Technologies
1.32
-0.73
-35.61%
LGL
LGL Group
6.75
1.09
19.26%
AOS
A. O. Smith Corporation
61.99
-23.50
-27.49%
WHR
Whirlpool
85.66
-22.63
-20.90%
Arcelik Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: -3.04% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Negative
The earnings call highlighted substantial international revenue growth and recovery signs in key European markets, driven by inorganic growth and cost management strategies. However, these positives were overshadowed by significant challenges, including declining gross margins, increased financial expenses, a recorded net loss, and rising leverage. Despite some market recoveries, the financial pressures and operational costs presented a challenging quarter.Highlights
Revenue Growth
Achieved 13.8% revenue growth year-on-year, totaling TRY 105.4 billion in Q3, with significant contributions from inorganic growth in Europe and MENA.
International Revenue Surge
International revenues increased by 58.1% in euro terms year-on-year, largely driven by inorganic growth contributions.
European Market Recovery
Significant recovery in consumer demand in key Western European markets such as the U.K., Italy, Germany, Spain, Belgium, and Austria.
Cost Management
Implemented forward contracts for raw material costs, minimizing exposure to rising costs and anticipating stability in future pricing.
Lowlights
Gross Margin Decline
Gross profit margin decreased by 2.9 points year-on-year to 26.4%, impacted by unfavorable product mix and rising raw material costs.
Adjusted EBITDA Weakness
Adjusted EBITDA margin fell to 4.6% due to lower gross profitability and higher operating expenses.
Increased Financial Expenses
Net financial expenses grew by 57% year-over-year and 65% quarterly, primarily due to increased net interest expenses and higher hedging costs.
Net Loss
Recorded a net loss of TRY 5.6 billion in Q3, reflecting a negative 5.3% net margin.
Leverage Increase
Leverage ratio increased to 4.29x due to higher borrowings and weaker EBITDA performance.
Company Guidance
During the Q3 2024 earnings call for Arcelik, the company provided guidance indicating revised expectations for the full year. They anticipate a flat performance in local sales due to stagnant demand but foresee a 50% year-on-year increase in international revenues in euro terms, driven by inorganic growth. The adjusted EBITDA margin is projected to be between 5.8% and 6% for the full year. Additionally, Arcelik expects an improvement in the net working capital over sales ratio, updating the guidance to approximately 20%. The company also revised its CapEx guidance from EUR 350 million to EUR 400 million, factoring in costs related to maintenance, integration, and restructuring. With ongoing synergies and cost savings from recent acquisitions, Arcelik remains optimistic about achieving these targets, despite current leverage standing at 4.3%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.