KT CORP-SP ADR (KT) Stock Fundamental Analysis
NYSE:KT - New York Stock Exchange, Inc. - US48268K1016 - ADR - Currency: USD
Taking everything into account, KT scores 6 out of 10 in our fundamental rating. KT was compared to 31 industry peers in the Diversified Telecommunication Services industry. While KT has a great profitability rating, there are some minor concerns on its financial health. KT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. KT also has an excellent dividend rating. These ratings would make KT suitable for value and dividend investing!
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.
In the past 5 years KT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.76%, KT is doing good in the industry, outperforming 73.33% of the companies in the same industry.
KT's Return On Equity of 6.81% is fine compared to the rest of the industry. KT outperforms 63.33% of its industry peers.
With a decent Return On Invested Capital value of 4.49%, KT is doing good in the industry, outperforming 63.33% 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 5.71%.
The last Return On Invested Capital (4.49%) for KT is above the 3 year average (4.21%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 4.44%, KT perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of KT has grown nicely.
KT has a Operating Margin (6.52%) which is comparable to the rest of the industry.
KT's Operating Margin has improved in the last couple of years.
KT's Gross Margin of 64.83% is fine compared to the rest of the industry. KT outperforms 73.33% of its industry peers.
KT's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for KT has been reduced compared to 1 year ago.
KT has more shares outstanding than it did 5 years ago.
KT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that KT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KT (1.55) is better than 83.33% 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.
With an excellent Debt to FCF ratio value of 5.87, KT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
KT has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.38, KT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 1.55 |
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.
Looking at the Current ratio, with a value of 1.04, KT is doing worse than 60.00% of the companies in the same industry.
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 43.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
KT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.50%.
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)1.5%
EPS 3Y14.59%
EPS 5Y7.53%
EPS Q2Q%36.63%
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 13.96% 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 1.72% on average per year.
EPS Next Y-23.55%
EPS Next 2Y31.69%
EPS Next 3Y15.67%
EPS Next 5Y13.96%
Revenue Next Year0.83%
Revenue Next 2Y2.46%
Revenue Next 3Y1.35%
Revenue Next 5Y1.72%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KT is valuated reasonably with a Price/Earnings ratio of 10.52.
Based on the Price/Earnings ratio, KT is valued cheaper than 86.67% of the companies in the same industry.
KT is valuated cheaply when we compare the Price/Earnings ratio to 29.36, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.24 indicates a rather cheap valuation of KT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KT indicates a rather cheap valuation: KT is cheaper than 100.00% of the companies listed 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 22.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KT indicates a somewhat cheap valuation: KT is cheaper than 76.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.73 | ||
| EV/EBITDA | 2.97 |
4.3 Compensation for Growth
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 15.67% in the coming years.
PEG (NY)N/A
PEG (5Y)1.4
EPS Next 2Y31.69%
EPS Next 3Y15.67%
5. Dividend
5.1 Amount
KT has a Yearly Dividend Yield of 4.20%, which is a nice return.
Compared to an average industry Dividend Yield of 4.81, KT pays a bit more dividend than its industry peers.
KT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
On average, the dividend of KT grows each year by 11.46%, which is quite nice.
KT has been paying a dividend for at least 10 years, so it has 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.
KT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.55%
EPS Next 2Y31.69%
EPS Next 3Y15.67%
17.68
-0.12 (-0.67%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners37.43%
Inst Owner Change-87.44%
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap8.69B
Analysts84.44
Price Target21.11 (19.4%)
Short Float %1.06%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend2097
Dividend Growth(5Y)11.46%
DP63.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)10.75%
PT rev (3m)20.43%
EPS NQ rev (1m)-12.53%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)-31.78%
EPS NY rev (3m)-31.74%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.47 | ||
| P/FCF | 6.73 | ||
| P/OCF | 2.29 | ||
| P/B | 0.72 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 2.97 |
EPS(TTM)1.68
EY9.5%
EPS(NY)2.44
Fwd EY13.82%
FCF(TTM)2.63
FCFY14.86%
OCF(TTM)7.72
OCFY43.65%
SpS37.65
BVpS24.55
TBVpS21.45
PEG (NY)N/A
PEG (5Y)1.4
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 | 1.55 |
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)1.5%
EPS 3Y14.59%
EPS 5Y7.53%
EPS Q2Q%36.63%
EPS Next Y-23.55%
EPS Next 2Y31.69%
EPS Next 3Y15.67%
EPS Next 5Y13.96%
Revenue 1Y (TTM)1.03%
Revenue growth 3Y3.32%
Revenue growth 5Y2.37%
Sales Q2Q%-0.64%
Revenue Next Year0.83%
Revenue Next 2Y2.46%
Revenue Next 3Y1.35%
Revenue Next 5Y1.72%
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%