Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Turkcell Iletisim Hizmetleri AS (NYSE: TKC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- TKC's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.56, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 57.26% to -$77.93 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 12.79%.
- The gross profit margin for TURKCELL ILETISIM HIZMET is rather high; currently it is at 52.90%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, TKC's net profit margin of 12.64% significantly trails the industry average.
- TKC, with its decline in revenue, underperformed when compared the industry average of 2.4%. Since the same quarter one year prior, revenues fell by 14.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Wireless Telecommunication Services industry and the overall market, TURKCELL ILETISIM HIZMET's return on equity exceeds that of both the industry average and the S&P 500.