Aselsan Elektronik Sanayi ve Ticaret AS

Aselsan maintains a conservative capital structure with a debt-to-equity ratio of 0.17 and a current ratio of 1.39, indicating adequate short-term liquidity despite a medium liquidity risk rating. The balance sheet shows total assets of 431.6 billion TRY against total liabilities of 181.2 billion TRY, resulting in total equity of 250.4 billion TRY. Long-term debt stands at 43.1 billion TRY, while cash and equivalents are 28.7 billion TRY, leading to a negative net cash position as flagged in the risk assessment. The company generated 43.8 billion TRY in operating cash flow, but free cash flow was negative at -2.0 billion TRY due to significant capital expenditures of 38.2 billion TRY.

Profitability metrics show a return on equity of 6.9% and a return on assets of 4.0%, which are modest returns for the defense sector. The company reported revenue of 180.4 billion TRY with a gross profit of 56.9 billion TRY and operating income of 49.1 billion TRY, resulting in a net income of 29.9 billion TRY. Valuation multiples are elevated, with a price-to-earnings ratio of 97.67, a price-to-book ratio of 6.74, and an EV/EBITDA of 48.13, reflecting high growth expectations or market sentiment rather than current earnings power. The EV/Revenue ratio is 13.42, further indicating a premium valuation.

The company’s activities span electrical, electronics, microwave, electro-optics, guidance, computer, data processing, encryption, security, mechanics, and chemistry subjects within army, navy, air force, and aerospace applications. Management signals indicate organizational structure under vice presidencies for Defense Systems Technologies, Microelectronics, Guidance & Electro-Optics, and Transportation, Security, Energy, and Automation Systems. No specific segment or geographic revenue breakdown is provided in the available data, so concentration risks cannot be quantified from the input.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot provides a single-period view of revenue and net income, preventing a year-over-year or multi-year trend analysis. The high capital expenditure relative to operating cash flow suggests ongoing investment in production capacity or R&D, which may support future revenue growth but currently suppresses free cash flow.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which could constrain financial flexibility in a high-interest-rate environment. The absence of detailed risk factor disclosures in the input limits further analysis of operational or regulatory risks. The company’s reliance on government contracts, implied by its defense sector classification, may introduce cyclical or political risks not detailed in the provided data.

Recent events include analyst estimates with a mean price target of 411.49 TRY and a median of 402.00 TRY, suggesting upside potential from the current market price of 370.0 TRY. The mean recommendation is 2.25, with one strong buy, four buy, and three hold ratings, indicating a generally positive but cautious analyst sentiment. No specific filing, news, or transcript observations are provided in the input to detail recent corporate actions or market reactions.

Revenue grew at a 73% CAGR over four years, demonstrating exceptional top-line expansion momentum.

Net income surged 49.6% year-over-year in the latest fiscal period, indicating strong profitability growth.

Cash conversion ratio of 2.53 is best-in-class, significantly outperforming the cohort median of 0.91.

Free cash flow remains negative at -2.0 billion TRY, indicating persistent cash burn despite profits.

Long-term debt increased to 43.1 billion TRY, reflecting a significant rise in leverage obligations.

Analyst consensus suggests minimal upside of -0.8%, implying limited near-term price appreciation potential.

Revenue TRY 34.31B, +15,0% YoY; Operating income −11,8% YoY.

• ▍Revenue TRY 34.31B, +15,0% YoY
• ▍Operating income −11,8% YoY
• ▍Net income +86,1% YoY
• ▍Free cash flow −76,4% YoY
• ▍Net margin 16.1%

Revenue TRY 33.13B, +14,0% YoY; Operating income +33,3% YoY.

• ▍Revenue TRY 33.13B, +14,0% YoY
• ▍Operating income +33,3% YoY
• ▍Net income +78,4% YoY
• ▍Free cash flow −7,7% YoY
• ▍Net margin 14.4%

Revenue TRY 29.55B, +13,3% YoY; Operating income +59,7% YoY.

• ▍Revenue TRY 29.55B, +13,3% YoY
• ▍Operating income +59,7% YoY
• ▍Net income +29,9% YoY
• ▍Free cash flow +103,6% YoY
• ▍Net margin 13.5%

Revenue TRY 29.83B; Operating income TRY 9.69B.

• ▍Revenue TRY 29.83B
• ▍Operating income TRY 9.69B
• ▍Net margin 10.0%

Revenue TRY 76.41B; Operating income TRY 16.60B.

• ▍Revenue TRY 76.41B
• ▍Operating income TRY 16.60B
• ▍Net margin 15.5%

Revenue TRY 29.07B; Operating income TRY 5.63B.

• ▍Revenue TRY 29.07B
• ▍Operating income TRY 5.63B
• ▍Net margin 9.2%

Revenue TRY 26.07B; Operating income TRY 6.02B.

• ▍Revenue TRY 26.07B
• ▍Operating income TRY 6.02B
• ▍Net margin 11.8%

Revenue TRY 180.44B, +14,7% YoY; Operating income +37,5% YoY.

• ▍Revenue TRY 180.44B, +14,7% YoY
• ▍Operating income +37,5% YoY
• ▍Net income +49,6% YoY
• ▍Free cash flow +40,1% YoY
• ▍Net margin 16.6%

Revenue TRY 157.34B, +48,1% YoY; Operating income −0,8% YoY.

• ▍Revenue TRY 157.34B, +48,1% YoY
• ▍Operating income −0,8% YoY
• ▍Net income +90,2% YoY
• ▍Free cash flow −50,3% YoY
• ▍Net margin 12.7%

Revenue TRY 106.25B, +58,9% YoY; Operating income +100,8% YoY.

• ▍Revenue TRY 106.25B, +58,9% YoY
• ▍Operating income +100,8% YoY
• ▍Net income +721,1% YoY
• ▍Free cash flow +74,2% YoY
• ▍Net margin 9.9%

Revenue TRY 66.86B, +232,0% YoY; Operating income +90,7% YoY.

• ▍Revenue TRY 66.86B, +232,0% YoY
• ▍Operating income +90,7% YoY
• ▍Net income −82,0% YoY
• ▍Free cash flow −313,7% YoY
• ▍Net margin 1.9%

Revenue TRY 20.14B; Operating income TRY 9.42B.

• ▍Revenue TRY 20.14B
• ▍Operating income TRY 9.42B
• ▍Net margin 35.4%