KT CORP-SP ADR (KT) Stock Fundamental Analysis
NYSE:KT - New York Stock Exchange, Inc. - US48268K1016 - ADR - Currency: USD
KT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Diversified Telecommunication Services industry. KT has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on KT.
1. Profitability
1.1 Basic Checks
In the past year KT was profitable.
KT had a positive operating cash flow in the past year.
KT had positive earnings in each of the past 5 years.
Each year in the past 5 years KT had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.12%, KT is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.89%, KT is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
With a Return On Invested Capital value of 2.08%, KT perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
KT had an Average Return On Invested Capital over the past 3 years of 3.37%. This is below the industry average of 6.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.89% | ||
| ROIC | 2.08% |
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 Profit Margin of 1.78%. This is in the better half of the industry: KT outperforms 63.64% of its industry peers.
KT's Profit Margin has declined in the last couple of years.
The Operating Margin of KT (3.06%) is worse than 60.61% of its industry peers.
In the last couple of years the Operating Margin of KT has declined.
KT has a Gross Margin of 65.17%. This is in the better half of the industry: KT outperforms 75.76% of its industry peers.
In the last couple of years the Gross Margin of KT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.06% | ||
| PM (TTM) | 1.78% | ||
| GM | 65.17% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KT is destroying value.
KT has less shares outstanding than it did 1 year ago.
KT has more shares outstanding than it did 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 1.48, we must say that KT is in the distress zone and has some risk of bankruptcy.
KT has a Altman-Z score of 1.48. This is amongst the best in the industry. KT outperforms 81.82% of its industry peers.
KT has a debt to FCF ratio of 6.81. This is a slightly negative value and a sign of low solvency as KT would need 6.81 years to pay back of all of its debts.
KT's Debt to FCF ratio of 6.81 is fine compared to the rest of the industry. KT outperforms 69.70% of its industry peers.
KT has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.48, KT is doing good in the industry, outperforming 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 6.81 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.4
WACC5.15%
2.3 Liquidity
A Current Ratio of 1.03 indicates that KT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.03, KT is doing worse than 60.61% of the companies in the same industry.
KT has a Quick Ratio of 1.03. This is a bad value and indicates that KT is not financially healthy enough and could expect problems in meeting its short term obligations.
KT has a Quick ratio (0.96) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for KT have decreased strongly by -52.83% in the last year.
The Earnings Per Share has been decreasing by -5.48% on average over the past years.
The Revenue has been growing slightly by 0.21% in the past year.
Measured over the past years, KT shows a small growth in Revenue. The Revenue has been growing by 1.66% on average per year.
EPS 1Y (TTM)-52.83%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%-1206.22%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%-1.68%
3.2 Future
The Earnings Per Share is expected to grow by 51.39% 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 1.69% yearly.
EPS Next Y265.72%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
EPS Next 5YN/A
Revenue Next Year4.1%
Revenue Next 2Y1.52%
Revenue Next 3Y1.69%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.21, the valuation of KT can be described as expensive.
KT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of KT to the average of the S&P500 Index (28.98), we can say KT is valued inline with the index average.
A Price/Forward Earnings ratio of 7.74 indicates a rather cheap valuation of KT.
Based on the Price/Forward Earnings ratio, KT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
KT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.21 | ||
| Fwd PE | 7.74 |
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.
Based on the Price/Free Cash Flow ratio, KT is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.8 | ||
| EV/EBITDA | 3.83 |
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.
A more expensive valuation may be justified as KT's earnings are expected to grow with 51.39% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y80.86%
EPS Next 3Y51.39%
5. Dividend
5.1 Amount
KT has a Yearly Dividend Yield of 4.07%, which is a nice return.
KT's Dividend Yield is a higher than the industry average which is at 5.13.
KT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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
KT pays out 185.91% 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.
DP185.91%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
18.9
-0.08 (-0.42%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners37.43%
Inst Owner Change0.33%
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap9.24B
Analysts86.43
Price Target22.43 (18.68%)
Short Float %1.14%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend1.24
Dividend Growth(5Y)23.26%
DP185.91%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-265.96%
Min EPS beat(2)-538.17%
Max EPS beat(2)6.24%
EPS beat(4)3
Avg EPS beat(4)-129.81%
Min EPS beat(4)-538.17%
Max EPS beat(4)12.31%
EPS beat(8)5
Avg EPS beat(8)-73.76%
EPS beat(12)7
Avg EPS beat(12)-43.94%
EPS beat(16)11
Avg EPS beat(16)-10.82%
Revenue beat(2)0
Avg Revenue beat(2)-2.44%
Min Revenue beat(2)-3.1%
Max Revenue beat(2)-1.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-1.47%
Revenue beat(12)0
Avg Revenue beat(12)-1.27%
Revenue beat(16)2
Avg Revenue beat(16)5.15%
PT rev (1m)4.65%
PT rev (3m)17.66%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)35.68%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)18.24%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)3.59%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.21 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.5 | ||
| P/FCF | 7.8 | ||
| P/OCF | 2.62 | ||
| P/B | 0.82 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 3.83 |
EPS(TTM)0.67
EY3.54%
EPS(NY)2.44
Fwd EY12.91%
FCF(TTM)2.42
FCFY12.83%
OCF(TTM)7.22
OCFY38.19%
SpS37.66
BVpS23.1
TBVpS20.44
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.89% | ||
| ROCE | 2.89% | ||
| ROIC | 2.08% | ||
| ROICexc | 2.51% | ||
| ROICexgc | 2.73% | ||
| OM | 3.06% | ||
| PM (TTM) | 1.78% | ||
| GM | 65.17% | ||
| FCFM | 6.44% |
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%
ROICexcg growth 3Y-23.85%
ROICexcg 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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 6.81 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 85.62% | ||
| Cap/Sales | 12.73% | ||
| Interest Coverage | 2.05 | ||
| Cash Conversion | 106.9% | ||
| Profit Quality | 362.55% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.48 |
F-Score7
WACC5.15%
ROIC/WACC0.4
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%-1206.22%
EPS Next Y265.72%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
EPS Next 5YN/A
Revenue 1Y (TTM)0.21%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%-1.68%
Revenue Next Year4.1%
Revenue Next 2Y1.52%
Revenue Next 3Y1.69%
Revenue Next 5YN/A
EBIT growth 1Y-50.93%
EBIT growth 3Y-21.48%
EBIT growth 5Y-6.94%
EBIT Next Year531.07%
EBIT Next 3Y85.06%
EBIT Next 5YN/A
FCF growth 1Y27.86%
FCF growth 3Y9.09%
FCF growth 5YN/A
OCF growth 1Y-7.95%
OCF growth 3Y-3.07%
OCF growth 5Y6.23%