KT CORP-SP ADR (KT) Stock Fundamental Analysis
USA - NYSE:KT - US48268K1016 - ADR
18.73 USD
-0.29 (-1.52%)
18.73 USD
0 (0%)
Overall KT gets a fundamental rating of 5 out of 10. We evaluated KT against 36 industry peers in the Diversified Telecommunication Services industry. KT has an average financial health and profitability rating. KT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
KT had positive earnings in the past year.
KT had a positive operating cash flow in the past year.
In the past 5 years KT has always been profitable.
Each year in the past 5 years KT had a positive operating cash flow.
1.2 Ratios
KT's Return On Assets of 2.20% is fine compared to the rest of the industry. KT outperforms 72.22% of its industry peers.
With a decent Return On Equity value of 5.42%, KT is doing good in the industry, outperforming 69.44% of the companies in the same industry.
KT has a Return On Invested Capital of 3.60%. This is comparable to the rest of the industry: KT outperforms 58.33% of its industry peers.
KT had an Average Return On Invested Capital over the past 3 years of 3.37%. This is below the industry average of 5.86%.
The last Return On Invested Capital (3.60%) for KT is above the 3 year average (3.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 5.42% | ||
| ROIC | 3.6% |
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
Looking at the Profit Margin, with a value of 3.38%, KT is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
KT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.50%, KT is in line with its industry, outperforming 44.44% of the companies in the same industry.
In the last couple of years the Operating Margin of KT has declined.
KT's Gross Margin of 65.13% is fine compared to the rest of the industry. KT outperforms 77.78% of its industry peers.
KT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.5% | ||
| PM (TTM) | 3.38% | ||
| GM | 65.13% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KT is creating some value.
Compared to 1 year ago, KT has less shares outstanding
The number of shares outstanding for KT has been increased compared to 5 years ago.
Compared to 1 year ago, KT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that KT is in the distress zone and has some risk of bankruptcy.
KT has a Altman-Z score of 1.64. This is amongst the best in the industry. KT outperforms 80.56% of its industry peers.
The Debt to FCF ratio of KT is 35.52, which is on the high side as it means it would take KT, 35.52 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 35.52, KT perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
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 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 35.52 | ||
| Altman-Z | 1.64 |
ROIC/WACC1.43
WACC2.51%
2.3 Liquidity
KT has a Current Ratio of 1.19. 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 better Current ratio (1.19) than 61.11% of its industry peers.
KT has a Quick Ratio of 1.15. 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 better Quick ratio (1.15) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
KT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.13%.
KT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.48% yearly.
Looking at the last year, KT shows a small growth in Revenue. The Revenue has grown by 3.45% in the last year.
The Revenue has been growing slightly by 1.66% on average over the past years.
EPS 1Y (TTM)-14.13%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%76.52%
Revenue 1Y (TTM)3.45%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%13.46%
3.2 Future
KT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.90% yearly.
Based on estimates for the next years, KT will show a small growth in Revenue. The Revenue will grow by 2.12% on average per year.
EPS Next Y275.84%
EPS Next 2Y79.64%
EPS Next 3Y50.9%
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y1.92%
Revenue Next 3Y2.12%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.98 indicates a correct valuation of KT.
Based on the Price/Earnings ratio, KT is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
KT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.67.
The Price/Forward Earnings ratio is 8.63, which indicates a very decent valuation of KT.
KT's Price/Forward Earnings ratio is rather cheap when compared to the industry. KT is cheaper than 94.44% 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 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 8.63 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as KT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.08 | ||
| EV/EBITDA | 3.32 |
4.3 Compensation for Growth
KT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of KT may justify a higher PE ratio.
KT's earnings are expected to grow with 50.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y79.64%
EPS Next 3Y50.9%
5. Dividend
5.1 Amount
KT has a Yearly Dividend Yield of 4.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.16, KT pays a bit more dividend than its industry peers.
KT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
5.2 History
On average, the dividend of KT grows each year by 23.26%, which is quite nice.
KT has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)23.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
57.55% of the earnings are spent on dividend by KT. This is a bit on the high side, but may be sustainable.
The dividend of KT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.55%
EPS Next 2Y79.64%
EPS Next 3Y50.9%
18.73
-0.29 (-1.52%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners36.98%
Inst Owner Change0.05%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap9.03B
Revenue(TTM)27502.69B
Net Income(TTM)928.43B
Analysts85.71
Price Target24.75 (32.14%)
Short Float %0.68%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend1.26
Dividend Growth(5Y)23.26%
DP57.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.49%
Min EPS beat(2)0.12%
Max EPS beat(2)6.85%
EPS beat(4)3
Avg EPS beat(4)-131.24%
Min EPS beat(4)-538.17%
Max EPS beat(4)6.85%
EPS beat(8)6
Avg EPS beat(8)-71.45%
EPS beat(12)8
Avg EPS beat(12)-45.86%
EPS beat(16)11
Avg EPS beat(16)-17.12%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-4.23%
Max Revenue beat(2)2.68%
Revenue beat(4)1
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-4.23%
Max Revenue beat(4)2.68%
Revenue beat(8)1
Avg Revenue beat(8)-1.41%
Revenue beat(12)1
Avg Revenue beat(12)-1.25%
Revenue beat(16)2
Avg Revenue beat(16)-0.94%
PT rev (1m)-3.69%
PT rev (3m)6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.07%
EPS NY rev (1m)0%
EPS NY rev (3m)3.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.98 | ||
| Fwd PE | 8.63 | ||
| P/S | 0.47 | ||
| P/FCF | 39.08 | ||
| P/OCF | 2.86 | ||
| P/B | 0.76 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 3.32 |
EPS(TTM)1.34
EY7.15%
EPS(NY)2.17
Fwd EY11.59%
FCF(TTM)0.48
FCFY2.56%
OCF(TTM)6.54
OCFY34.91%
SpS39.82
BVpS24.79
TBVpS22.33
PEG (NY)0.05
PEG (5Y)N/A
Graham Number27.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 5.42% | ||
| ROCE | 5.03% | ||
| ROIC | 3.6% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 4.61% | ||
| OM | 5.5% | ||
| PM (TTM) | 3.38% | ||
| GM | 65.13% | ||
| FCFM | 1.2% |
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%
ROICexgc growth 3Y-23.85%
ROICexgc 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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 35.52 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 106.32% | ||
| Cap/Sales | 15.22% | ||
| Interest Coverage | 3.93 | ||
| Cash Conversion | 82.88% | ||
| Profit Quality | 35.65% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 1.64 |
F-Score7
WACC2.51%
ROIC/WACC1.43
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)-14.13%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%76.52%
EPS Next Y275.84%
EPS Next 2Y79.64%
EPS Next 3Y50.9%
EPS Next 5YN/A
Revenue 1Y (TTM)3.45%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%13.46%
Revenue Next Year4.58%
Revenue Next 2Y1.92%
Revenue Next 3Y2.12%
Revenue Next 5YN/A
EBIT growth 1Y-4.75%
EBIT growth 3Y-21.48%
EBIT growth 5Y-6.94%
EBIT Next Year546.96%
EBIT Next 3Y83.81%
EBIT Next 5YN/A
FCF growth 1Y66.66%
FCF growth 3Y9.09%
FCF growth 5YN/A
OCF growth 1Y6.95%
OCF growth 3Y-3.07%
OCF growth 5Y6.23%