KT CORP-SP ADR (KT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KT - US48268K1016 - ADR
19.91 USD
+0.24 (+1.22%)
19.91 USD
0 (0%)
Taking everything into account, KT scores 5 out of 10 in our fundamental rating. KT was compared to 38 industry peers in the Diversified Telecommunication Services industry. KT has only an average score on both its financial health and profitability. KT is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
- Each year in the past 5 years KT has been profitable.
- KT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of KT (2.24%) is better than 64.86% of its industry peers.
- KT's Return On Equity of 5.52% is fine compared to the rest of the industry. KT outperforms 64.86% of its industry peers.
- KT has a Return On Invested Capital (3.68%) which is in line with 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 6.56%.
- 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 better Profit Margin (3.44%) than 62.16% of its industry peers.
- In the last couple of years the Profit Margin of KT has declined.
- Looking at the Operating Margin, with a value of 5.67%, KT is in line with its industry, outperforming 48.65% 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 64.86%, KT is in the better half of the industry, outperforming 75.68% 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
- KT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
- Compared to 1 year ago, KT has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.67, we must say that KT is in the distress zone and has some risk of bankruptcy.
- KT's Altman-Z score of 1.67 is fine compared to the rest of the industry. KT outperforms 78.38% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 20.23, KT is in line with its industry, outperforming 48.65% 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 78.38% 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
- KT has a Current Ratio of 1.24. 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 Current ratio (1.24) which is in line with its industry peers.
- 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 of 1.20. This is comparable to the rest of the industry: KT outperforms 59.46% of its industry peers.
| 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.
- 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.
- KT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.39%.
- The Revenue has been growing slightly by 1.66% on average over the past years.
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
- 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.
- 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
- 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
- A Price/Earnings ratio of 30.63 indicates a quite expensive valuation of KT.
- Based on the Price/Earnings ratio, KT is valued a bit cheaper than 62.16% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, KT is valued at the same level.
- A Price/Forward Earnings ratio of 9.52 indicates a reasonable valuation of KT.
- 94.59% of the companies in the same industry are more expensive than KT, based on the Price/Forward Earnings ratio.
- KT is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
- KT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KT is 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 | 24.6 | ||
| 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.
- The decent profitability rating of KT 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
- KT has a Yearly Dividend Yield of 4.32%, which is a nice return.
- KT's Dividend Yield is a higher than the industry average which is at 2.37.
- KT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
5.2 History
- On average, the dividend of KT grows each year by 23.26%, which is quite nice.
- 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
- 57.77% 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.
DP57.77%
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 30.63 and the Price/Book (PB) ratio is 0.81.
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%.