KT CORP-SP ADR (KT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KT - US48268K1016 - ADR
19.94 USD
+0.03 (+0.15%)
20.16 USD
+0.22 (+1.1%)
Overall KT gets a fundamental rating of 5 out of 10. We evaluated KT against 36 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of KT get a neutral evaluation. Nothing too spectacular is happening here. KT may be a bit undervalued, certainly considering the very reasonable score on growth Finally KT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year KT was profitable.
- 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
- Looking at the Return On Assets, with a value of 2.24%, KT is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
- KT has a better Return On Equity (5.52%) than 61.11% of its industry peers.
- KT has a Return On Invested Capital (3.68%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KT is below the industry average of 6.71%.
- The last Return On Invested Capital (3.68%) for KT is above the 3 year average (3.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 5.52% | ||
| ROIC | 3.68% |
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
- KT has a Profit Margin (3.44%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of KT has declined.
- The Operating Margin of KT (5.67%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of KT has declined.
- Looking at the Gross Margin, with a value of 64.86%, KT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- KT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.67% | ||
| PM (TTM) | 3.44% | ||
| GM | 64.86% |
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.
- KT has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for KT has been increased compared to 5 years ago.
- KT has a worse debt/assets ratio than last year.
2.2 Solvency
- KT has an Altman-Z score of 1.67. This is a bad value and indicates that KT is not financially healthy and even has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.67, KT is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- The Debt to FCF ratio of KT is 20.23, which is on the high side as it means it would take KT, 20.23 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 20.23, KT perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
- A Debt/Equity ratio of 0.54 indicates that KT is somewhat dependend on debt financing.
- KT's Debt to Equity ratio of 0.54 is fine compared to the rest of the industry. KT outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 20.23 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.47
WACC2.51%
2.3 Liquidity
- A Current Ratio of 1.24 indicates that KT should not have too much problems paying its short term obligations.
- KT has a Current ratio (1.24) which is comparable to the rest of the industry.
- A Quick Ratio of 1.20 indicates that KT should not have too much problems paying its short term obligations.
- KT has a Quick ratio (1.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- The earnings per share for KT have decreased strongly by -52.83% 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.
- Looking at the last year, KT shows a small growth in Revenue. The Revenue has grown by 5.39% in the last year.
- KT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.66% yearly.
EPS 1Y (TTM)-52.83%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%11.63%
Revenue 1Y (TTM)5.39%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%7.09%
3.2 Future
- The Earnings Per Share is expected to grow by 49.59% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 3.89% on average over the next years.
EPS Next Y272.5%
EPS Next 2Y79.45%
EPS Next 3Y51.02%
EPS Next 5Y49.59%
Revenue Next Year5.7%
Revenue Next 2Y2.3%
Revenue Next 3Y2.35%
Revenue Next 5Y3.89%
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
- KT is valuated quite expensively with a Price/Earnings ratio of 30.21.
- Based on the Price/Earnings ratio, KT is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
- KT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 9.40 indicates a reasonable valuation of KT.
- KT's Price/Forward Earnings ratio is rather cheap when compared to the industry. KT is cheaper than 91.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. KT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.21 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KT is valued cheaper than 100.00% of the companies 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 | 24.3 | ||
| EV/EBITDA | 3.25 |
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.
- KT has a very decent profitability rating, which may justify a higher PE ratio.
- KT's earnings are expected to grow with 51.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y79.45%
EPS Next 3Y51.02%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.19%, KT is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.29, KT pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, KT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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 57.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
- KT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.77%
EPS Next 2Y79.45%
EPS Next 3Y51.02%
KT CORP-SP ADR / KT FAQ
What is the ChartMill fundamental rating of KT CORP-SP ADR (KT) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KT.
Can you provide the valuation status for KT CORP-SP ADR?
ChartMill assigns a valuation rating of 7 / 10 to KT CORP-SP ADR (KT). This can be considered as Undervalued.
Can you provide the profitability details for KT CORP-SP ADR?
KT CORP-SP ADR (KT) has a profitability rating of 6 / 10.
What is the valuation of KT CORP-SP ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KT CORP-SP ADR (KT) is 30.21 and the Price/Book (PB) ratio is 0.8.
How sustainable is the dividend of KT CORP-SP ADR (KT) stock?
The dividend rating of KT CORP-SP ADR (KT) is 7 / 10 and the dividend payout ratio is 57.77%.