KT CORP-SP ADR (KT) Stock Fundamental Analysis
NYSE:KT - New York Stock Exchange, Inc. - US48268K1016 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to KT. KT was compared to 33 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of KT while its profitability can be described as average. KT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KT had positive earnings in the past year.
In the past year KT had a positive cash flow from operations.
Each year in the past 5 years KT has been profitable.
Each year in the past 5 years KT had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.50%, KT perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.82%, KT is in line with its industry, outperforming 57.58% of the companies in the same industry.
KT's Return On Invested Capital of 2.44% is in line compared to the rest of the industry. KT outperforms 51.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KT is below the industry average of 7.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 3.82% | ||
| ROIC | 2.44% |
ROA(3y)2.19%
ROA(5y)2.43%
ROE(3y)5.51%
ROE(5y)6.05%
ROIC(3y)3.37%
ROIC(5y)3.61%
1.3 Margins
The Profit Margin of KT (2.38%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KT has declined.
KT has a Operating Margin of 3.73%. This is in the lower half of the industry: KT underperforms 60.61% of its industry peers.
KT's Operating Margin has declined in the last couple of years.
KT has a better Gross Margin (65.55%) than 72.73% of its industry peers.
In the last couple of years the Gross Margin of KT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.73% | ||
| PM (TTM) | 2.38% | ||
| GM | 65.55% |
OM growth 3Y-23.02%
OM growth 5Y-8.46%
PM growth 3Y-31.15%
PM growth 5Y-6.84%
GM growth 3Y2.62%
GM growth 5Y2.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KT is still creating some value.
Compared to 1 year ago, KT has less shares outstanding
KT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for KT is higher compared to a year ago.
2.2 Solvency
KT has an Altman-Z score of 1.55. This is a bad value and indicates that KT is not financially healthy and even has some risk of bankruptcy.
KT's Altman-Z score of 1.55 is amongst the best of the industry. KT outperforms 81.82% of its industry peers.
The Debt to FCF ratio of KT is 29.60, which is on the high side as it means it would take KT, 29.60 years of fcf income to pay off all of its debts.
KT has a worse Debt to FCF ratio (29.60) than 60.61% of its industry peers.
KT has a Debt/Equity ratio of 0.53. This is a neutral value indicating KT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, KT is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 29.6 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.97
WACC2.51%
2.3 Liquidity
A Current Ratio of 1.10 indicates that KT should not have too much problems paying its short term obligations.
KT has a Current ratio of 1.10. This is comparable to the rest of the industry: KT outperforms 54.55% of its industry peers.
KT has a Quick Ratio of 1.04. This is a normal value and indicates that KT is financially healthy and should not expect problems in meeting its short term obligations.
KT has a Quick ratio (1.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for KT have decreased strongly by -41.51% in the last year.
KT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.48% yearly.
KT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.13%.
Measured over the past years, KT shows a small growth in Revenue. The Revenue has been growing by 1.66% on average per year.
EPS 1Y (TTM)-41.51%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%44.06%
Revenue 1Y (TTM)0.13%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%2.86%
3.2 Future
KT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.39% yearly.
KT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.69% yearly.
EPS Next Y265.72%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
EPS Next 5YN/A
Revenue Next Year4.1%
Revenue Next 2Y1.47%
Revenue Next 3Y1.69%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.35, which indicates a rather expensive current valuation of KT.
Based on the Price/Earnings ratio, KT is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
KT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 9.28, the valuation of KT can be described as very reasonable.
KT's Price/Forward Earnings ratio is rather cheap when compared to the industry. KT is cheaper than 90.91% of the companies in the same industry.
KT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 9.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KT indicates a rather cheap valuation: KT is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.43 | ||
| EV/EBITDA | 3.97 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KT's earnings are expected to grow with 51.39% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y80.86%
EPS Next 3Y51.39%
5. Dividend
5.1 Amount
KT has a Yearly Dividend Yield of 3.54%.
Compared to an average industry Dividend Yield of 5.07, KT pays a bit more dividend than its industry peers.
KT's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
5.2 History
The dividend of KT is nicely growing with an annual growth rate of 23.26%!
KT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)23.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
KT pays out 137.69% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP137.69%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
21.23
+0.27 (+1.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners38.04%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap10.36B
Analysts86.21
Price Target23.35 (9.99%)
Short Float %0.97%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend1.31
Dividend Growth(5Y)23.26%
DP137.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-269.02%
Min EPS beat(2)-538.17%
Max EPS beat(2)0.12%
EPS beat(4)3
Avg EPS beat(4)-132.85%
Min EPS beat(4)-538.17%
Max EPS beat(4)6.24%
EPS beat(8)6
Avg EPS beat(8)-72.11%
EPS beat(12)7
Avg EPS beat(12)-46.96%
EPS beat(16)11
Avg EPS beat(16)-13.4%
Revenue beat(2)0
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-4.23%
Max Revenue beat(2)-3.1%
Revenue beat(4)0
Avg Revenue beat(4)-2.97%
Min Revenue beat(4)-4.23%
Max Revenue beat(4)-1.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)2
Avg Revenue beat(16)4.93%
PT rev (1m)2.13%
PT rev (3m)11.14%
EPS NQ rev (1m)5.68%
EPS NQ rev (3m)13.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 9.28 | ||
| P/S | 0.53 | ||
| P/FCF | 34.43 | ||
| P/OCF | 3.1 | ||
| P/B | 0.86 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 3.97 |
EPS(TTM)0.95
EY4.47%
EPS(NY)2.29
Fwd EY10.77%
FCF(TTM)0.62
FCFY2.9%
OCF(TTM)6.84
OCFY32.21%
SpS39.74
BVpS24.78
TBVpS22.1
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 3.82% | ||
| ROCE | 3.41% | ||
| ROIC | 2.44% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 3.11% | ||
| OM | 3.73% | ||
| PM (TTM) | 2.38% | ||
| GM | 65.55% | ||
| FCFM | 1.55% |
ROA(3y)2.19%
ROA(5y)2.43%
ROE(3y)5.51%
ROE(5y)6.05%
ROIC(3y)3.37%
ROIC(5y)3.61%
ROICexc(3y)3.92%
ROICexc(5y)4.24%
ROICexgc(3y)4.36%
ROICexgc(5y)4.78%
ROCE(3y)4.68%
ROCE(5y)5.01%
ROICexcg growth 3Y-23.85%
ROICexcg growth 5Y-9.88%
ROICexc growth 3Y-21.84%
ROICexc growth 5Y-8.78%
OM growth 3Y-23.02%
OM growth 5Y-8.46%
PM growth 3Y-31.15%
PM growth 5Y-6.84%
GM growth 3Y2.62%
GM growth 5Y2.31%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 29.6 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 106.23% | ||
| Cap/Sales | 15.66% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 93.2% | ||
| Profit Quality | 65.21% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.55 |
F-Score7
WACC2.51%
ROIC/WACC0.97
Cap/Depr(3y)100.32%
Cap/Depr(5y)103.81%
Cap/Sales(3y)14.7%
Cap/Sales(5y)15.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41.51%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%44.06%
EPS Next Y265.72%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
EPS Next 5YN/A
Revenue 1Y (TTM)0.13%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%2.86%
Revenue Next Year4.1%
Revenue Next 2Y1.47%
Revenue Next 3Y1.69%
Revenue Next 5YN/A
EBIT growth 1Y-40.62%
EBIT growth 3Y-21.48%
EBIT growth 5Y-6.94%
EBIT Next Year529.45%
EBIT Next 3Y83.22%
EBIT Next 5YN/A
FCF growth 1Y209.86%
FCF growth 3Y9.09%
FCF growth 5YN/A
OCF growth 1Y24.67%
OCF growth 3Y-3.07%
OCF growth 5Y6.23%