10 companies in durable goods consumption exceeded a market value of 140 billion TL.

Market Value Analysis in the Durable Goods Sector

The durable goods sector is drawing attention as its total market value is expected to exceed 140 billion TL by 2025. However, the decline in profitability ratios within the sector is causing concern among investors. While the equity sizes of large companies are maintained, the deterioration observed on the net profit side poses a significant risk factor.

Issues in Profitability

The divergence between market values and financial performance indicates that pricing in the sector is largely based on off-balance-sheet expectations. Particularly, the loss situation frequently encountered in companies focused on white goods and electronics is catching the attention of investors. Additionally, it is observed that some niche producers and industrial-focused firms are managing to sustain profitability.

Dispersion in Valuation Perception

The wide spectrum of P/E and P/B ratios reveals that the perception of valuation in the sector is not homogeneous. The distinction among investors is notably evident in the durable goods field. Reporting losses in some companies with high market values raises the question, “scale or profitability?”

Company-Specific Performance Evaluation

Arçelik (#ARCLK), holding a market value of 70.5 billion TL, is in a leading position; however, it reported 23.7 billion TL in losses over the last four quarters. Vestel White Goods (#VESBE), on the other hand, has a market value of 12.6 billion TL and stands out with a 3.5 billion TL net loss.

Özata Denizcilik (#OZATD) presents a limited loss profile with a relatively high P/E ratio; the differences between Vestel (#VESTL) and Alarko Carrier (#ALCAR) become evident in terms of profitability, as Alarko Carrier stands out with a 389 million TL net profit.

On the other hand, Hatsan Gemi (#HATSN) appears profitable but is under pricing pressure due to its high P/E ratio. Safkar Ege Soğutmacılık (#SAFKR) stands out with positive net profit, yet its high multiples are noteworthy. İmaş Makina (#IMASM), however, is among the companies reporting losses.

These dynamics suggest that size is insufficient in the durable goods sector, and profitability and balance sheet strength have become determining factors in company valuations.