Is Finansal Kiralama Anonim Sirketi engages in leasing and factoring operations in Turkey and internationally. Its leasing products include sale and lease back, software leasing, and operational leasing. The company also provides secondhand market services, insurance transactions, and after sales services. Is Finansal Kiralama Anonim Sirketi was incorporated in 1988 and is headquartered in Istanbul, Turkey.

Turkey

Is Finansal Kiralama Anonim Sirketi

Financial Services

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

ISFIN.IS reported revenue of TRY 9 174mn in the last 12 months, up 8% from FY24. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS grew 8% from FY24 to TRY 2.25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 8ppts and its growth accelerated by 6ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported very strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 62.4% in the last 12 months, a decline from 67.5% in FY23. 

Historically, ISFIN.IS has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 22.2%, down from 22.7% in FY23. 

Is Finansal Kiralama Anonim Sirketi reported a return on equity (RoE) of 26.8% in the last 12 months, down from 40.4% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 3.3% in the last 12 months, a decrease from 4.4% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 3.3%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.3 in the past several years. This ratio implies a average shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are acceptable. In combination with good business standards, shareholder rights are protected.

ISFIN.IS has below average trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is usually very stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, excessive margin volatility, weak debt servicing capacity, inadequate interest coverage, and an unfavourable capital structure. We note resilient historical revenue growth, robust profitability, and solid return on capital, among the positive credit factors. 

In highly turbulent market conditions, ISFIN.IS is volatile. In other words, the stock will fall much more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be large. 

In normal market circumstances, ISFIN.IS is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to substantial. 

Considering past and projected metrics, the stock is 'cheaper' than its peers. Specifically, the stock is 'cheap' on P/E, neutral on EV/EBITDA, underpriced on P/FCF. 

Is Finansal Kiralama Anonim Sirketi

TRY 12.84

4

Is Finansal Kiralama Anonim Sirketi

TRY 12.84

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

TRY 12.84

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