KT CORP-SP ADR (KT)
US48268K1016 - ADR
KT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 34 industry peers in the Diversified Telecommunication Services industry. KT has an excellent profitability rating, but there are some minor concerns on its financial health. KT may be a bit undervalued, certainly considering the very reasonable score on growth KT also has an excellent dividend rating. These ratings could make KT a good candidate for value and dividend investing.
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.
KT had positive earnings in each of the past 5 years.
Each year in the past 5 years KT had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.76%, KT is doing good in the industry, outperforming 69.70% of the companies in the same industry.
KT has a better Return On Equity (6.81%) than 63.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.49%, KT is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KT is in line with the industry average of 6.10%.
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 of 4.44%. This is in the better half of the industry: KT outperforms 60.61% of its industry peers.
KT's Profit Margin has improved in the last couple of years.
KT's Operating Margin of 6.52% is in line compared to the rest of the industry. KT outperforms 51.52% of its industry peers.
In the last couple of years the Operating Margin of KT has grown nicely.
Looking at the Gross Margin, with a value of 64.83%, KT is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
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
KT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KT has been reduced compared to 1 year ago.
The number of shares outstanding for KT has been increased compared to 5 years ago.
Compared to 1 year ago, KT has an improved debt to assets ratio.
2.2 Solvency
KT has an Altman-Z score of 1.52. This is a bad value and indicates that KT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.52, KT belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
KT has a debt to FCF ratio of 5.87. This is a neutral value as KT would need 5.87 years to pay back of all of its debts.
KT has a better Debt to FCF ratio (5.87) than 84.85% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that KT is not too dependend on debt financing.
KT has a Debt to Equity ratio of 0.38. This is in the better half of the industry: KT outperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.89
WACC5.06%
2.3 Liquidity
KT has a Current 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.
With a Current ratio value of 1.04, KT perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that KT may have some problems paying its short term obligations.
The Quick ratio of KT (0.98) is comparable to the rest of the 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 1.56%.
The Earnings Per Share has been growing slightly by 7.53% on average over the past years.
The Revenue has been growing slightly by 1.03% in the past 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)1.56%
EPS 3Y14.59%
EPS 5Y7.53%
EPS Q2Q%36.71%
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 13.84% yearly.
KT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
EPS Next Y12.13%
EPS Next 2Y21.14%
EPS Next 3Y13.84%
EPS Next 5YN/A
Revenue Next Year1.13%
Revenue Next 2Y1.97%
Revenue Next 3Y1.77%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.71, the valuation of KT can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of KT indicates a rather cheap valuation: KT is cheaper than 87.88% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.20. KT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.88, which indicates a rather cheap valuation of KT.
Based on the Price/Forward Earnings ratio, KT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
KT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 7.88 |
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.
KT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KT is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 2.78 |
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 13.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)1.29
EPS Next 2Y21.14%
EPS Next 3Y13.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.86%, KT is a good candidate for dividend investing.
KT's Dividend Yield is rather good when compared to the industry average which is at 4.99. KT pays more dividend than 93.94% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.21, KT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.86% |
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 2Y21.14%
EPS Next 3Y13.84%
KT CORP-SP ADR
NYSE:KT (11/22/2024, 8:04:00 PM)
After market: 16.6 0 (0%)16.6
+0.26 (+1.59%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 7.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.8
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 6.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.52% | ||
| PM (TTM) | 4.44% | ||
| GM | 64.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.56%
EPS 3Y14.59%
EPS 5Y
EPS Q2Q%
EPS Next Y12.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.32%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y