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 6 out of 10 to KT. KT was compared to 31 industry peers in the Diversified Telecommunication Services industry. While KT has a great profitability rating, there are some minor concerns on its financial health. KT is valued quite cheap, while showing a decent growth score. This is a good combination! KT also has an excellent dividend rating. This makes KT very considerable for value and dividend investing!
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 2.76% is fine compared to the rest of the industry. KT outperforms 66.67% of its industry peers.
The Return On Equity of KT (6.81%) is better than 63.33% of its industry peers.
KT has a Return On Invested Capital (4.49%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for KT is in line with the industry average of 5.65%.
The last Return On Invested Capital (4.49%) for KT is above the 3 year average (4.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 6.81% | ||
| ROIC | 4.49% |
ROA(3y)3.03%
ROA(5y)2.57%
ROE(3y)7.56%
ROE(5y)6.37%
ROIC(3y)4.21%
ROIC(5y)3.94%
1.3 Margins
KT has a Profit Margin (4.44%) which is in line with its industry peers.
In the last couple of years the Profit Margin of KT has grown nicely.
KT has a Operating Margin (6.52%) which is comparable to the rest of the industry.
KT's Operating Margin has improved in the last couple of years.
The Gross Margin of KT (64.83%) is better than 73.33% of its industry peers.
KT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| PM (TTM) | 4.44% | ||
| GM | 64.83% |
OM growth 3Y8.1%
OM growth 5Y3.07%
PM growth 3Y11.6%
PM growth 5Y5.44%
GM growth 3Y2.59%
GM growth 5Y1.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KT is destroying value.
KT has less shares outstanding than it did 1 year ago.
KT has more shares outstanding than it did 5 years ago.
KT has a better debt/assets ratio than last year.
2.2 Solvency
KT has an Altman-Z score of 1.54. This is a bad value and indicates that KT is not financially healthy and even has some risk of bankruptcy.
KT has a Altman-Z score of 1.54. This is amongst the best in the industry. KT outperforms 83.33% of its industry peers.
The Debt to FCF ratio of KT is 5.87, which is a neutral value as it means it would take KT, 5.87 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 5.87, KT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
KT has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
KT's Debt to Equity ratio of 0.38 is fine compared to the rest of the industry. KT outperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.9
WACC5.01%
2.3 Liquidity
A Current Ratio of 1.04 indicates that KT should not have too much problems paying its short term obligations.
The Current ratio of KT (1.04) is worse than 60.00% of its industry peers.
KT has a Quick Ratio of 1.04. This is a bad value and indicates that KT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.98, KT is in line with its industry, outperforming 43.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
KT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.50%.
The Earnings Per Share has been growing slightly by 7.53% on average over the past years.
Looking at the last year, KT shows a small growth in Revenue. The Revenue has grown by 1.03% in the last year.
Measured over the past years, KT shows a small growth in Revenue. The Revenue has been growing by 2.37% on average per year.
EPS 1Y (TTM)1.5%
EPS 3Y14.59%
EPS 5Y7.53%
EPS Q2Q%36.63%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.32%
Revenue growth 5Y2.37%
Sales Q2Q%-0.64%
3.2 Future
KT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.82% yearly.
The Revenue is expected to grow by 1.46% on average over the next years.
EPS Next Y12.06%
EPS Next 2Y21.11%
EPS Next 3Y13.82%
EPS Next 5YN/A
Revenue Next Year0.92%
Revenue Next 2Y2.04%
Revenue Next 3Y1.46%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.69, which indicates a very decent valuation of KT.
Based on the Price/Earnings ratio, KT is valued cheaper than 86.67% of the companies in the same industry.
KT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.58.
With a Price/Forward Earnings ratio of 8.69, the valuation of KT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, KT is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KT to the average of the S&P500 Index (24.47), we can say KT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.69 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than KT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KT is valued a bit cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.84 | ||
| EV/EBITDA | 2.95 |
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 13.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)1.42
EPS Next 2Y21.11%
EPS Next 3Y13.82%
5. Dividend
5.1 Amount
KT has a Yearly Dividend Yield of 7.58%, which is a nice return.
KT's Dividend Yield is rather good when compared to the industry average which is at 5.32. KT pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, KT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
5.2 History
On average, the dividend of KT grows each year by 11.46%, 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)11.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
KT pays out 63.55% 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.
DP63.55%
EPS Next 2Y21.11%
EPS Next 3Y13.82%
KT CORP-SP ADR
NYSE:KT (1/27/2025, 11:30:04 AM)
17.96
+0.3 (+1.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners37.95%
Inst Owner Change1.45%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap8.83B
Analysts84.44
Price Target19.06 (6.12%)
Short Float %1.19%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
Yearly Dividend2097
Dividend Growth(5Y)11.46%
DP63.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.32%
Min EPS beat(2)0.39%
Max EPS beat(2)6.24%
EPS beat(4)3
Avg EPS beat(4)-12.8%
Min EPS beat(4)-70.15%
Max EPS beat(4)12.31%
EPS beat(8)6
Avg EPS beat(8)-1.69%
EPS beat(12)8
Avg EPS beat(12)17.37%
EPS beat(16)11
Avg EPS beat(16)20.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.78%
Max Revenue beat(2)-1.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-2.78%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)1
Avg Revenue beat(12)-0.85%
Revenue beat(16)2
Avg Revenue beat(16)5.27%
PT rev (1m)-1.01%
PT rev (3m)9.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.69 | ||
| Fwd PE | 8.69 | ||
| P/S | 0.48 | ||
| P/FCF | 6.84 | ||
| P/OCF | 2.33 | ||
| P/B | 0.73 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 2.95 |
EPS(TTM)1.68
EY9.35%
EPS(NY)2.07
Fwd EY11.51%
FCF(TTM)2.63
FCFY14.62%
OCF(TTM)7.72
OCFY42.96%
SpS37.65
BVpS24.54
TBVpS21.45
PEG (NY)0.89
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 6.81% | ||
| ROCE | 6.16% | ||
| ROIC | 4.49% | ||
| ROICexc | 5.46% | ||
| ROICexgc | 6.02% | ||
| OM | 6.52% | ||
| PM (TTM) | 4.44% | ||
| GM | 64.83% | ||
| FCFM | 6.98% |
ROA(3y)3.03%
ROA(5y)2.57%
ROE(3y)7.56%
ROE(5y)6.37%
ROIC(3y)4.21%
ROIC(5y)3.94%
ROICexc(3y)4.9%
ROICexc(5y)4.59%
ROICexgc(3y)5.58%
ROICexgc(5y)5.22%
ROCE(3y)5.78%
ROCE(5y)5.39%
ROICexcg growth 3Y3.72%
ROICexcg growth 5Y-2.29%
ROICexc growth 3Y3.94%
ROICexc growth 5Y-0.48%
OM growth 3Y8.1%
OM growth 5Y3.07%
PM growth 3Y11.6%
PM growth 5Y5.44%
GM growth 3Y2.59%
GM growth 5Y1.5%
F-Score8
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 5.87 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 90.32% | ||
| Cap/Sales | 13.52% | ||
| Interest Coverage | 4.34 | ||
| Cash Conversion | 95.39% | ||
| Profit Quality | 157.03% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.54 |
F-Score8
WACC5.01%
ROIC/WACC0.9
Cap/Depr(3y)110.63%
Cap/Depr(5y)107.34%
Cap/Sales(3y)16.15%
Cap/Sales(5y)15.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.5%
EPS 3Y14.59%
EPS 5Y7.53%
EPS Q2Q%36.63%
EPS Next Y12.06%
EPS Next 2Y21.11%
EPS Next 3Y13.82%
EPS Next 5YN/A
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.32%
Revenue growth 5Y2.37%
Sales Q2Q%-0.64%
Revenue Next Year0.92%
Revenue Next 2Y2.04%
Revenue Next 3Y1.46%
Revenue Next 5YN/A
EBIT growth 1Y12.68%
EBIT growth 3Y11.69%
EBIT growth 5Y5.51%
EBIT Next Year209.63%
EBIT Next 3Y51.81%
EBIT Next 5YN/A
FCF growth 1Y344.55%
FCF growth 3Y9.43%
FCF growth 5Y5.81%
OCF growth 1Y18.05%
OCF growth 3Y5.1%
OCF growth 5Y6.53%