KT CORP-SP ADR (KT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KT - US48268K1016 - ADR
18.82 USD
-0.15 (-0.79%)
18.82 USD
0 (0%)
KT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 37 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 Finally KT also has an excellent dividend rating.
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.
KT had positive earnings in each of the past 5 years.
KT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KT (2.20%) is better than 64.86% of its industry peers.
KT's Return On Equity of 5.42% is fine compared to the rest of the industry. KT outperforms 64.86% of its industry peers.
With a Return On Invested Capital value of 3.60%, KT perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KT is below the industry average of 6.52%.
The 3 year average ROIC (3.37%) for KT is below the current ROIC(3.60%), indicating increased profibility in the last year.
| 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
KT's Profit Margin of 3.38% is fine compared to the rest of the industry. KT outperforms 62.16% of its industry peers.
In the last couple of years the Profit Margin of KT has declined.
With a Operating Margin value of 5.50%, KT perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
In the last couple of years the Operating Margin of KT has declined.
Looking at the Gross Margin, with a value of 65.13%, KT is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
In the last couple of years the Gross Margin of KT has grown nicely.
| 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
KT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for KT has been reduced compared to 1 year ago.
Compared to 5 years ago, KT has more shares outstanding
The debt/assets ratio for KT is higher compared to a year ago.
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 in the better half of the industry: KT outperforms 78.38% of its industry peers.
KT has a debt to FCF ratio of 35.52. This is a negative value and a sign of low solvency as KT would need 35.52 years to pay back of all of its debts.
With a Debt to FCF ratio value of 35.52, KT perfoms like the industry average, outperforming 45.95% 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.
KT's Debt to Equity ratio of 0.53 is fine compared to the rest of the industry. KT outperforms 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 35.52 | ||
| Altman-Z | 1.64 |
ROIC/WACC1.43
WACC2.51%
2.3 Liquidity
A Current Ratio of 1.19 indicates that KT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.19, KT is in line with its industry, outperforming 56.76% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that KT should not have too much problems paying its short term obligations.
KT's Quick ratio of 1.15 is in line compared to the rest of the industry. KT outperforms 59.46% 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 -52.83%.
Measured over the past years, KT shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.48% on average per year.
The Revenue has been growing slightly by 0.21% in the past year.
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)-52.83%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%N/A
Revenue 1Y (TTM)0.21%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%7.09%
3.2 Future
Based on estimates for the next years, KT will show a very strong growth in Earnings Per Share. The EPS will grow by 49.59% on average per year.
KT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y278.57%
EPS Next 2Y80.36%
EPS Next 3Y51.18%
EPS Next 5Y49.59%
Revenue Next Year5.7%
Revenue Next 2Y2.3%
Revenue Next 3Y2.35%
Revenue Next 5Y4.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 28.52, which means the current valuation is very expensive for KT.
64.86% of the companies in the same industry are more expensive than KT, based on the Price/Earnings ratio.
KT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
KT is valuated reasonably with a Price/Forward Earnings ratio of 8.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KT indicates a rather cheap valuation: KT is cheaper than 94.59% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KT to the average of the S&P500 Index (23.88), we can say KT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.52 | ||
| Fwd PE | 8.72 |
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.
KT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.82 | ||
| EV/EBITDA | 3.34 |
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 51.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y80.36%
EPS Next 3Y51.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.37%, KT is a good candidate for dividend investing.
KT's Dividend Yield is a higher than the industry average which is at 2.38.
KT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
5.2 History
The dividend of KT is nicely growing with an annual growth rate of 23.26%!
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.
KT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.55%
EPS Next 2Y80.36%
EPS Next 3Y51.18%
18.82
-0.15 (-0.79%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners34.05%
Inst Owner Change0%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap9.07B
Revenue(TTM)26.43T
Net Income(TTM)928.43B
Analysts85.71
Price Target22.1 (17.43%)
Short Float %0.94%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
Yearly Dividend1.24
Dividend Growth(5Y)23.26%
DP57.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-3.5%
PT rev (3m)-13.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)62.21%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.52 | ||
| Fwd PE | 8.72 | ||
| P/S | 0.48 | ||
| P/FCF | 39.82 | ||
| P/OCF | 2.92 | ||
| P/B | 0.77 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 3.34 |
EPS(TTM)0.66
EY3.51%
EPS(NY)2.16
Fwd EY11.47%
FCF(TTM)0.47
FCFY2.51%
OCF(TTM)6.45
OCFY34.26%
SpS39.27
BVpS24.45
TBVpS22.03
PEG (NY)0.1
PEG (5Y)N/A
Graham Number19.06
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)-52.83%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%N/A
EPS Next Y278.57%
EPS Next 2Y80.36%
EPS Next 3Y51.18%
EPS Next 5Y49.59%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%7.09%
Revenue Next Year5.7%
Revenue Next 2Y2.3%
Revenue Next 3Y2.35%
Revenue Next 5Y4.21%
EBIT growth 1Y-4.75%
EBIT growth 3Y-21.48%
EBIT growth 5Y-6.94%
EBIT Next Year546.75%
EBIT Next 3Y82.9%
EBIT Next 5Y44.65%
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%
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 28.52 and the Price/Book (PB) ratio is 0.77.
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 57.55%.