Yayla Enerji Üretim Turizm ve Insaat Ticaret A.S. operates in the building construction industry in Turkey. It undertakes energy and tourism construction projects. The company was founded in 1950 and is headquartered in Ankara, Turkey.

Turkey

Yayla Enerji Üretim Turizm ve Insaat Ticaret A.S.

Industrials

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. 

YAYLA.IS reported revenue of TRY 37mn in the last 12 months, up 131% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 31% from FY23 to TRY 0.69.

Over the past six months, the stock has consistently climbed, resulting in 53% total increase. When compared to its international counterparts in the same sector and industry (as shown above), the stock has exceeded their performances, leading by 61ppts in total. 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 mildly favourable.

Yayla Enerji Üretim Turizm ve Insaat Ticaret A.S. reported a return on equity (RoE) of 8.0% in the last 12 months, down from 35.9% in FY22. 

Another important profitability metric, return on assets (RoA), amounted to 7.0% in the last 12 months, a decrease from 26.8% in FY22. 

In the last 12 months, the return on capital employed (RoCE) declined to 7.3%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 3.0 in the past several years. This ratio implies a excellent 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.

YAYLA.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 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, excessive margin volatility. We note resilient historical revenue growth, robust profitability, solid return on capital, strong debt servicing capacity, solid cash flow generation, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, YAYLA.IS is moderately volatile. In other words, the stock will fall 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 moderate. 

In normal market circumstances, YAYLA.IS is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from large to immense. We would also like to highlight the immense intraday volatility of the instrument. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITDA, overpriced on P/FCF. 

Yayla Enerji Üretim Turizm ve Insaat Ticaret A.S.

TRY 21.4

2

Yayla Enerji Üretim Turizm ve Insaat Ticaret A.S.

TRY 21.4

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

TRY 21.4

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