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 4 out of 10. The analysis compared the fundamentals against 35 industry peers in the Diversified Telecommunication Services industry. While KT is still in line with the averages on profitability rating, there are concerns on its financial health. KT has a correct valuation and a medium growth rate. Finally 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.
In the past 5 years KT has always been profitable.
KT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KT (1.50%) is comparable to the rest of the industry.
KT has a Return On Equity of 3.82%. This is comparable to the rest of the industry: KT outperforms 54.29% of its industry peers.
KT has a Return On Invested Capital of 2.44%. This is comparable to the rest of the industry: KT outperforms 48.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KT is below the industry average of 6.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 3.82% | ||
| ROIC | 2.44% |
ROA(3y)2.19%
ROA(5y)2.43%
ROE(3y)5.51%
ROE(5y)6.05%
ROIC(3y)3.37%
ROIC(5y)3.61%
1.3 Margins
The Profit Margin of KT (2.38%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KT has declined.
KT has a worse Operating Margin (3.73%) than 60.00% of its industry peers.
KT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 65.55%, KT is in the better half of the industry, outperforming 74.29% 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 | 3.73% | ||
| PM (TTM) | 2.38% | ||
| GM | 65.55% |
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
KT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 1.55, we must say that KT is in the distress zone and has some risk of bankruptcy.
KT's Altman-Z score of 1.55 is amongst the best of the industry. KT outperforms 82.86% of its industry peers.
The Debt to FCF ratio of KT is 29.60, which is on the high side as it means it would take KT, 29.60 years of fcf income to pay off all of its debts.
KT's Debt to FCF ratio of 29.60 is on the low side compared to the rest of the industry. KT is outperformed by 62.86% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that KT is somewhat dependend on debt financing.
KT has a Debt to Equity ratio of 0.53. This is in the better half of the industry: KT outperforms 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 29.6 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.97
WACC2.51%
2.3 Liquidity
KT has a Current Ratio of 1.10. This is a normal value and indicates that KT is financially healthy and should not expect problems in meeting its short term obligations.
KT has a Current ratio (1.10) which is in line with its industry peers.
A Quick Ratio of 1.04 indicates that KT should not have too much problems paying its short term obligations.
KT has a Quick ratio of 1.04. This is comparable to the rest of the industry: KT outperforms 48.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for KT have decreased strongly by -14.13% in the last year.
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)-14.13%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%76.52%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%13.46%
3.2 Future
Based on estimates for the next years, KT will show a very strong growth in Earnings Per Share. The EPS will grow by 51.39% on average per year.
The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y265.72%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
EPS Next 5YN/A
Revenue Next Year3.83%
Revenue Next 2Y1.69%
Revenue Next 3Y2.02%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.95, KT is valued correctly.
74.29% of the companies in the same industry are more expensive than KT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.76. KT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.12 indicates a reasonable valuation of KT.
Based on the Price/Forward Earnings ratio, KT is valued cheaper than 91.43% of the companies in the same industry.
KT is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
KT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KT is cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KT indicates a slightly more expensive valuation: KT is more expensive than 62.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.83 | ||
| EV/EBITDA | 3.96 |
4.3 Compensation for Growth
KT's 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)0.06
PEG (5Y)N/A
EPS Next 2Y80.86%
EPS Next 3Y51.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 26989.17%, KT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1691.89, KT pays a better dividend. On top of this KT pays more dividend than 100.00% 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 | 26989.17% |
5.2 History
On average, the dividend of KT grows each year by 23.26%, 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)23.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
137.69% of the earnings are spent on dividend by KT. This is not a sustainable payout ratio.
The dividend of KT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP137.69%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
20.48
-0.47 (-2.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners38.04%
Inst Owner Change-3.08%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap9.99B
Analysts85.71
Price Target24.3 (18.65%)
Short Float %0.62%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 26989.17% |
Yearly Dividend1.29
Dividend Growth(5Y)23.26%
DP137.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-269.02%
Min EPS beat(2)-538.17%
Max EPS beat(2)0.12%
EPS beat(4)3
Avg EPS beat(4)-132.85%
Min EPS beat(4)-538.17%
Max EPS beat(4)6.24%
EPS beat(8)6
Avg EPS beat(8)-72.11%
EPS beat(12)7
Avg EPS beat(12)-46.96%
EPS beat(16)11
Avg EPS beat(16)-13.4%
Revenue beat(2)0
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-4.23%
Max Revenue beat(2)-3.1%
Revenue beat(4)0
Avg Revenue beat(4)-2.97%
Min Revenue beat(4)-4.23%
Max Revenue beat(4)-1.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)2
Avg Revenue beat(16)4.93%
PT rev (1m)4.08%
PT rev (3m)6.3%
EPS NQ rev (1m)3.07%
EPS NQ rev (3m)16.22%
EPS NY rev (1m)0%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 9.12 | ||
| P/S | 0.52 | ||
| P/FCF | 33.83 | ||
| P/OCF | 3.05 | ||
| P/B | 0.84 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 3.96 |
EPS(TTM)1.37
EY6.69%
EPS(NY)2.25
Fwd EY10.96%
FCF(TTM)0.61
FCFY2.96%
OCF(TTM)6.71
OCFY32.79%
SpS39.01
BVpS24.33
TBVpS21.7
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 3.82% | ||
| ROCE | 3.41% | ||
| ROIC | 2.44% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 3.11% | ||
| OM | 3.73% | ||
| PM (TTM) | 2.38% | ||
| GM | 65.55% | ||
| FCFM | 1.55% |
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 | 0.53 | ||
| Debt/FCF | 29.6 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 106.23% | ||
| Cap/Sales | 15.66% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 93.2% | ||
| Profit Quality | 65.21% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.55 |
F-Score7
WACC2.51%
ROIC/WACC0.97
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)-14.13%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%76.52%
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%13.46%
Revenue Next Year3.83%
Revenue Next 2Y1.69%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
EBIT growth 1Y-40.62%
EBIT growth 3Y-21.48%
EBIT growth 5Y-6.94%
EBIT Next Year529.45%
EBIT Next 3Y83.22%
EBIT Next 5YN/A
FCF growth 1Y209.86%
FCF growth 3Y9.09%
FCF growth 5YN/A
OCF growth 1Y24.67%
OCF growth 3Y-3.07%
OCF growth 5Y6.23%