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 33 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of KT while its profitability can be described as average. KT has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years KT had a positive operating cash flow.
1.2 Ratios
KT has a Return On Assets (1.50%) which is comparable to the rest of the industry.
KT's Return On Equity of 3.82% is in line compared to the rest of the industry. KT outperforms 57.58% of its industry peers.
KT's Return On Invested Capital of 2.44% is in line compared to the rest of the industry. KT outperforms 51.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KT is below the industry average of 7.13%.
| 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
KT has a Profit Margin (2.38%) which is comparable to the rest of the industry.
KT's Profit Margin has declined in the last couple of years.
KT has a worse Operating Margin (3.73%) than 60.61% of its industry peers.
In the last couple of years the Operating Margin of KT has declined.
The Gross Margin of KT (65.55%) is better than 72.73% of its industry peers.
KT's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KT is creating some value.
Compared to 1 year ago, KT has less shares outstanding
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 1.55, we must say that KT is in the distress zone and has some risk of bankruptcy.
KT has a Altman-Z score of 1.55. This is amongst the best in the industry. KT outperforms 81.82% of its industry peers.
KT has a debt to FCF ratio of 29.60. This is a negative value and a sign of low solvency as KT would need 29.60 years to pay back of all of its debts.
The Debt to FCF ratio of KT (29.60) is worse than 60.61% 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 75.76% 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.
With a Current ratio value of 1.10, KT perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
KT has a Quick 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.
KT's Quick ratio of 1.04 is in line compared to the rest of the industry. KT outperforms 48.48% 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 -41.51% in the last year.
KT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.48% yearly.
The Revenue has been growing slightly by 0.13% 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)-41.51%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%44.06%
Revenue 1Y (TTM)0.13%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%2.86%
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
The Revenue is expected to grow by 1.69% on average over the next years.
EPS Next Y265.72%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
EPS Next 5YN/A
Revenue Next Year4.1%
Revenue Next 2Y1.47%
Revenue Next 3Y1.69%
Revenue Next 5YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.35, which indicates a rather expensive current valuation of KT.
Based on the Price/Earnings ratio, KT is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, KT is valued at the same level.
Based on the Price/Forward Earnings ratio of 9.28, the valuation of KT can be described as reasonable.
Based on the Price/Forward Earnings ratio, KT is valued cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. KT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 9.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KT is valued 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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.43 | ||
| EV/EBITDA | 3.97 |
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)0.08
PEG (5Y)N/A
EPS Next 2Y80.86%
EPS Next 3Y51.39%
5. Dividend
5.1 Amount
KT has a Yearly Dividend Yield of 3.54%.
Compared to an average industry Dividend Yield of 5.07, KT pays a bit more dividend than its industry peers.
KT's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
5.2 History
On average, the dividend of KT grows each year by 23.26%, which is quite nice.
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 137.69% 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.
DP137.69%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
21.23
+0.27 (+1.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners38.04%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap10.36B
Analysts86.21
Price Target23.35 (9.99%)
Short Float %0.97%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend1.31
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)2.13%
PT rev (3m)11.14%
EPS NQ rev (1m)5.68%
EPS NQ rev (3m)13.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 9.28 | ||
| P/S | 0.53 | ||
| P/FCF | 34.43 | ||
| P/OCF | 3.1 | ||
| P/B | 0.86 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 3.97 |
EPS(TTM)0.95
EY4.47%
EPS(NY)2.29
Fwd EY10.77%
FCF(TTM)0.62
FCFY2.9%
OCF(TTM)6.84
OCFY32.21%
SpS39.74
BVpS24.78
TBVpS22.1
PEG (NY)0.08
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)-41.51%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%44.06%
EPS Next Y265.72%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
EPS Next 5YN/A
Revenue 1Y (TTM)0.13%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%2.86%
Revenue Next Year4.1%
Revenue Next 2Y1.47%
Revenue Next 3Y1.69%
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%