KT CORP-SP ADR (KT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KT - US48268K1016 - ADR
20.89 USD
+0.23 (+1.11%)
We assign a fundamental rating of 5 out of 10 to KT. KT was compared to 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 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.
- 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 in line with its industry peers.
- 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
- Looking at the Profit Margin, with a value of 3.44%, KT is in line with its industry, outperforming 58.33% of the companies in the same industry.
- In the last couple of years the Profit Margin of KT has declined.
- KT has a Operating Margin (5.67%) which is comparable to the rest of the industry.
- KT's Operating Margin has declined in the last couple of years.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KT is creating some 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 a worse debt to assets ratio.
2.2 Solvency
- KT has an Altman-Z score of 1.68. 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 1.68, KT is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- KT has a debt to FCF ratio of 20.23. This is a negative value and a sign of low solvency as KT would need 20.23 years to pay back of all of its debts.
- KT has a Debt to FCF ratio (20.23) which is comparable to the rest of the industry.
- KT has a Debt/Equity ratio of 0.54. This is a neutral value indicating 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 | 1.68 |
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.
- Looking at the Current ratio, with a value of 1.24, KT is in line with its industry, outperforming 55.56% of the companies in the same industry.
- A Quick Ratio of 1.20 indicates that KT should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.20, KT perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.2 |
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.
- 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
- KT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.89% yearly.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 31.65, which means the current valuation is very expensive for KT.
- 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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.82.
- KT is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KT indicates a rather cheap valuation: KT is cheaper than 91.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, KT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.65 | ||
| Fwd PE | 9.8 |
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.
- 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 | 25.35 | ||
| EV/EBITDA | 3.33 |
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.
- KT has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as KT's earnings are expected to grow with 51.02% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y79.45%
EPS Next 3Y51.02%
5. Dividend
5.1 Amount
- KT has a Yearly Dividend Yield of 4.19%, which is a nice return.
- KT's Dividend Yield is a higher than the industry average which is at 2.29.
- 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 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
- 57.77% 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 31.65 and the Price/Book (PB) ratio is 0.83.
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%.