The average target price of YATAS.IS is 49 and suggests 101% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 55.0. This translates into 127% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 36.5. This suggests 50% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Yatas Yatak ve Yorgan Sanayi ve Ticaret A.S., together with its subsidiaries, engages in the producing and selling of beds, modular furniture, quilts armchairs, sofas, home textiles, and home furniture in Turkey. It also exports its products. The company sells its products under the Yatas brands. It operates 91 retail stores in Turkey. The company was founded in 1976 and is headquartered in Istanbul, Turkey.

Turkey

Yatas Yatak ve Yorgan Sanayi ve Ticaret A.S.

Consumer Cyclical

The company tries to pay dividends regularly but only sometimes does so. It has paid dividends in roughly half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends annually. 

YATAS.IS reported revenue of TRY 15 525mn in the last 12 months, up 15% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 76% from FY23 to TRY 1.16. Market expects EPS to reach TRY 2.20 in FY25.

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). Over the past six months the stock has exceeded the performance of this peer group by 2ppts and its growth decelerated by 12ppts 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 modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 15.5% in the last 12 months, up from 6.7% in FY23. 

Historically, YATAS.IS has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 1.1%, down from 5.2% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 2.1%, below the peers. The consensus estimate for FY24 for RoCE is 3.3%, again behind the peers. 

Yatas Yatak ve Yorgan Sanayi ve Ticaret A.S. reported a return on equity (RoE) of 2.7% in the last 12 months, down from 23.0% in FY23. The market consensus projects an RoE of 7.7% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to 1.2% in the last 12 months, a decrease from 9.2% in FY23. The market analysts predict that RoA will be 3.2% in FY24, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.0 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.

YATAS.IS has poor trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is usually quite 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 tiny 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 and we point to weak positions in its industry, poor working capital management. We note resilient historical revenue growth and solid return on capital, among the positive credit factors. 

In highly turbulent market conditions, YATAS.IS is not overly volatile. In other words, the stock will fall less 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 low. 

In normal market circumstances, YATAS.IS is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from low to mild. We would also like to highlight the mild intraday volatility of the instrument. 

From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, underpriced on P/FCF. 

Yatas Yatak ve Yorgan Sanayi ve Ticaret A.S.

TRY 23.9

5

Yatas Yatak ve Yorgan Sanayi ve Ticaret A.S.

TRY 23.9

5

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

TRY 23.9

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