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 an average financial health and profitability rating. KT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
KT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KT's Return On Assets of 1.12% is in line compared to the rest of the industry. KT outperforms 57.58% of its industry peers.
KT has a Return On Equity (2.89%) which is comparable to the rest of the industry.
KT has a Return On Invested Capital (2.08%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KT is below the industry average of 7.60%.
| 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's Profit Margin of 1.78% is in line compared to the rest of the industry. KT outperforms 57.58% 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.
KT's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KT is destroying value.
Compared to 1 year ago, KT has less shares outstanding
KT has more shares outstanding than it did 5 years ago.
KT has a worse debt/assets ratio than last year.
2.2 Solvency
KT has an Altman-Z score of 1.47. This is a bad value and indicates that KT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.47, KT belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
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 has a better Debt to FCF ratio (6.81) than 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.
The Debt to Equity ratio of KT (0.48) is better than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 6.81 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.41
WACC5.08%
2.3 Liquidity
KT has a Current Ratio of 1.03. 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 (1.03) which is comparable to the rest of the industry.
A Quick Ratio of 0.96 indicates that KT may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, KT perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.96 |
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%.
Measured over the past years, KT shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.48% on average per year.
The Revenue has been growing slightly by 0.21% in the past 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%-1206.22%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%-1.68%
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.
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 2Y1.47%
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
A Price/Earnings ratio of 28.29 indicates a quite expensive valuation of KT.
KT's Price/Earnings ratio is a bit cheaper when compared to the industry. KT is cheaper than 60.61% of the companies in the same industry.
KT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
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 93.94% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, KT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 7.74 |
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 somewhat cheap valuation: KT is cheaper than 69.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 3.81 |
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.
KT's earnings are expected to grow with 51.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y80.86%
EPS Next 3Y51.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.92%, KT has a reasonable but not impressive dividend return.
KT's Dividend Yield is a higher than the industry average which is at 4.76.
Compared to an average S&P500 Dividend Yield of 2.36, KT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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
185.91% of the earnings are spent on dividend by KT. This is not a sustainable payout ratio.
KT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP185.91%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
19.52
+0.14 (+0.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners37.43%
Inst Owner Change11.29%
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap9.54B
Analysts86.43
Price Target22.86 (17.11%)
Short Float %0.95%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
Yearly Dividend1.28
Dividend Growth(5Y)23.26%
DP185.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)8.82%
PT rev (3m)8.29%
EPS NQ rev (1m)-2.77%
EPS NQ rev (3m)17.9%
EPS NY rev (1m)0%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.5 | ||
| P/FCF | 7.79 | ||
| P/OCF | 2.62 | ||
| P/B | 0.82 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 3.81 |
EPS(TTM)0.69
EY3.53%
EPS(NY)2.52
Fwd EY12.92%
FCF(TTM)2.51
FCFY12.84%
OCF(TTM)7.46
OCFY38.23%
SpS38.93
BVpS23.88
TBVpS21.13
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 | 1.47 |
F-Score7
WACC5.08%
ROIC/WACC0.41
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 2Y1.47%
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%