KT CORP-SP ADR (KT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KT - US48268K1016 - ADR
18.56 USD
0 (0%)
18.56 USD
0 (0%)
Overall KT gets a fundamental rating of 5 out of 10. We evaluated KT 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 KT also has an excellent dividend rating.
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
Looking at the Return On Assets, with a value of 2.20%, KT is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.42%, KT is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
KT has a Return On Invested Capital (3.60%) which is comparable to the rest of the industry.
KT had an Average Return On Invested Capital over the past 3 years of 3.37%. This is below the industry average of 6.50%.
The last Return On Invested Capital (3.60%) for KT is above the 3 year average (3.37%), which is a sign of increasing profitability.
| 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.
KT's Operating Margin of 5.50% is in line compared to the rest of the industry. KT outperforms 45.95% of its industry peers.
KT's Operating Margin has declined in the last couple of years.
The Gross Margin of KT (65.13%) is better than 78.38% of its industry peers.
KT's Gross Margin has improved in the last couple of years.
| 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
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.
Compared to 5 years ago, KT has more shares outstanding
Compared to 1 year ago, KT has a worse debt to assets ratio.
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 better Altman-Z score (1.64) than 78.38% of its industry peers.
The Debt to FCF ratio of KT is 35.52, which is on the high side as it means it would take KT, 35.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KT (35.52) is comparable to the rest of the industry.
KT has a Debt/Equity ratio of 0.53. This is a neutral value indicating KT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, KT is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
| 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.
With a decent Current ratio value of 1.19, KT is doing good in the industry, outperforming 62.16% 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.
With a decent Quick ratio value of 1.15, KT is doing good in the industry, outperforming 62.16% of the companies in the same industry.
| 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%.
The Earnings Per Share has been decreasing by -5.48% on average over the past years.
Looking at the last year, KT shows a small growth in Revenue. The Revenue has grown by 0.21% 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%N/A
Revenue 1Y (TTM)0.21%
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
The Revenue is expected to grow by 4.21% on average over the next years.
EPS Next Y274.39%
EPS Next 2Y78.51%
EPS Next 3Y50.78%
EPS Next 5Y49.59%
Revenue Next Year4.6%
Revenue Next 2Y1.87%
Revenue Next 3Y2.12%
Revenue Next 5Y4.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 28.55, KT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of KT indicates a somewhat cheap valuation: KT is cheaper than 64.86% of the companies listed in the same industry.
KT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.46.
With a Price/Forward Earnings ratio of 8.90, the valuation of KT can be described as very reasonable.
KT's Price/Forward Earnings ratio is rather cheap when compared to the industry. KT is cheaper than 94.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. KT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than KT, based on the Enterprise Value to EBITDA ratio.
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 | 39.79 | ||
| EV/EBITDA | 3.32 |
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.
KT's earnings are expected to grow with 50.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y78.51%
EPS Next 3Y50.78%
5. Dividend
5.1 Amount
KT has a Yearly Dividend Yield of 4.56%, which is a nice return.
KT's Dividend Yield is a higher than the industry average which is at 5.67.
KT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
5.2 History
The dividend of KT is nicely growing with an annual growth rate of 23.26%!
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
57.55% 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.
DP57.55%
EPS Next 2Y78.51%
EPS Next 3Y50.78%
18.56
0 (0%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners36.98%
Inst Owner Change18.74%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap8.95B
Revenue(TTM)26.43T
Net Income(TTM)928.43B
Analysts85.71
Price Target22.9 (23.38%)
Short Float %0.58%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend1.22
Dividend Growth(5Y)23.26%
DP57.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-7.45%
PT rev (3m)-6.24%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)57.95%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 8.9 | ||
| P/S | 0.48 | ||
| P/FCF | 39.79 | ||
| P/OCF | 2.92 | ||
| P/B | 0.77 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 3.32 |
EPS(TTM)0.65
EY3.5%
EPS(NY)2.09
Fwd EY11.24%
FCF(TTM)0.47
FCFY2.51%
OCF(TTM)6.36
OCFY34.29%
SpS38.76
BVpS24.13
TBVpS21.74
PEG (NY)0.1
PEG (5Y)N/A
Graham Number18.79
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 Y274.39%
EPS Next 2Y78.51%
EPS Next 3Y50.78%
EPS Next 5Y49.59%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%7.09%
Revenue Next Year4.6%
Revenue Next 2Y1.87%
Revenue Next 3Y2.12%
Revenue Next 5Y4.21%
EBIT growth 1Y-4.75%
EBIT growth 3Y-21.48%
EBIT growth 5Y-6.94%
EBIT Next Year546.96%
EBIT Next 3Y83.81%
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.
What is the valuation status for KT stock?
ChartMill assigns a valuation rating of 7 / 10 to KT CORP-SP ADR (KT). This can be considered as Undervalued.
What is the profitability of KT stock?
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 28.55 and the Price/Book (PB) ratio is 0.77.
Can you provide the dividend sustainability for KT stock?
The dividend rating of KT CORP-SP ADR (KT) is 7 / 10 and the dividend payout ratio is 57.55%.