KT CORP-SP ADR (KT)
US48268K1016 - ADR
KT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 industry peers in the Diversified Telecommunication Services industry. KT scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on KT. KT also has an excellent dividend rating. This makes KT very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year KT was profitable.
KT had a positive operating cash flow in the past year.
Each year in the past 5 years KT has been profitable.
In the past 5 years KT always reported a positive cash flow from operatings.
1.2 Ratios
KT has a Return On Assets of 2.76%. This is in the better half of the industry: KT outperforms 71.88% of its industry peers.
KT has a Return On Equity of 6.81%. This is in the better half of the industry: KT outperforms 65.63% of its industry peers.
With a decent Return On Invested Capital value of 4.49%, KT is doing good in the industry, outperforming 62.50% of the companies in the same industry.
KT had an Average Return On Invested Capital over the past 3 years of 4.21%. This is in line with the industry average of 5.42%.
The 3 year average ROIC (4.21%) for KT is below the current ROIC(4.49%), indicating increased profibility in the last year.
| 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 better Profit Margin (4.44%) than 62.50% of its industry peers.
In the last couple of years the Profit Margin of KT has grown nicely.
The Operating Margin of KT (6.52%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KT has grown nicely.
With a decent Gross Margin value of 64.83%, KT is doing good in the industry, outperforming 75.00% 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 | 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.
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 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.
KT has a Altman-Z score of 1.52. This is amongst the best in the industry. KT outperforms 84.38% of its industry peers.
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 Debt to FCF ratio of 5.87. This is amongst the best in the industry. KT outperforms 84.38% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that KT is not too dependend on debt financing.
The Debt to Equity ratio of KT (0.38) is better than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.89
WACC5.04%
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.
KT's Current ratio of 1.04 is in line compared to the rest of the industry. KT outperforms 43.75% of its industry peers.
A Quick Ratio of 0.98 indicates that KT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, KT is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.56% over the past year.
Measured over the past 5 years, KT shows a small growth in Earnings Per Share. The EPS has been growing by 7.53% on average per year.
The Revenue has been growing slightly by 1.03% in the past year.
KT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.37% yearly.
EPS 1Y (TTM)1.56%
EPS 3Y14.59%
EPS 5Y7.53%
EPS Q2Q%36.7%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.32%
Revenue growth 5Y2.37%
Sales Q2Q%-0.64%
3.2 Future
The Earnings Per Share is expected to grow by 13.84% on average over the next years. This is quite good.
Based on estimates for the next years, KT will show a small growth in Revenue. The Revenue will grow by 1.77% on average per year.
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
The Price/Earnings ratio is 9.70, which indicates a very decent valuation of KT.
Based on the Price/Earnings ratio, KT is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. KT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.88, the valuation of KT can be described as very cheap.
KT's Price/Forward Earnings ratio is rather cheap when compared to the industry. KT is cheaper than 100.00% of the companies in the same industry.
KT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 7.88 |
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.
Based on the Price/Free Cash Flow ratio, KT is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 2.8 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as KT's earnings are expected to grow with 13.84% in the coming years.
PEG (NY)0.8
PEG (5Y)1.29
EPS Next 2Y21.14%
EPS Next 3Y13.84%
5. Dividend
5.1 Amount
KT has a Yearly Dividend Yield of 7.70%, which is a nice return.
Compared to an average industry Dividend Yield of 5.31, KT pays a better dividend. On top of this KT pays more dividend than 90.63% of the companies listed in the same industry.
KT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.7% |
5.2 History
On average, the dividend of KT grows each year by 11.46%, which is quite nice.
KT has paid a dividend for at least 10 years, which is 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 (12/26/2024, 2:59:55 PM)
16
-0.14 (-0.87%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners37.95%
Inst Owner Change3.73%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap7.87B
Analysts84.44
Price Target19.26 (20.38%)
Short Float %1.55%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.7% |
Dividend Growth(5Y)11.46%
DP63.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)9.86%
PT rev (3m)9.39%
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%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 7.88 | ||
| P/S | 0.43 | ||
| P/FCF | 6.2 | ||
| P/OCF | 2.11 | ||
| P/B | 0.66 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 2.8 |
EPS(TTM)1.65
EY10.31%
EPS(NY)2.03
Fwd EY12.7%
FCF(TTM)2.58
FCFY16.14%
OCF(TTM)7.59
OCFY47.42%
SpS37.02
BVpS24.13
TBVpS21.09
PEG (NY)0.8
PEG (5Y)1.29
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 | 1.52 |
F-Score8
WACC5.04%
ROIC/WACC0.89
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)1.56%
EPS 3Y14.59%
EPS 5Y7.53%
EPS Q2Q%36.7%
EPS Next Y12.13%
EPS Next 2Y21.14%
EPS Next 3Y13.84%
EPS Next 5YN/A
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.32%
Revenue growth 5Y2.37%
Sales Q2Q%-0.64%
Revenue Next Year1.13%
Revenue Next 2Y1.97%
Revenue Next 3Y1.77%
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%