KT CORP-SP ADR (KT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KT - US48268K1016 - ADR
18.56 USD
-0.01 (-0.05%)
18.56 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KT. KT was compared to 37 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. KT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KT was profitable.
In the past year KT had a positive cash flow from operations.
In the past 5 years KT has always been profitable.
Each year in the past 5 years KT had a positive operating cash flow.
1.2 Ratios
KT's Return On Assets of 2.20% is fine compared to the rest of the industry. KT outperforms 64.86% of its industry peers.
KT has a better Return On Equity (5.42%) than 64.86% of its industry peers.
KT's Return On Invested Capital of 3.60% is in line compared to the rest of the industry. KT outperforms 54.05% of its industry peers.
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 3 year average ROIC (3.37%) for KT is below the current ROIC(3.60%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (3.38%) than 62.16% of its industry peers.
In the last couple of years the Profit Margin of KT has declined.
KT has a Operating Margin of 5.50%. This is comparable 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.
KT has a better Gross Margin (65.13%) 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
KT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KT has more shares outstanding
KT has a worse debt/assets ratio than last year.
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.
With a decent Altman-Z score value of 1.64, KT is doing good in the industry, outperforming 78.38% of the companies in the same industry.
KT has a debt to FCF ratio of 35.52. This is a negative value and a sign of low solvency as KT would need 35.52 years to pay back of all of its debts.
KT has a Debt to FCF ratio (35.52) which is in line with its industry peers.
A Debt/Equity ratio of 0.53 indicates that KT is somewhat dependend on debt financing.
KT has a better Debt to Equity ratio (0.53) than 78.38% of its industry peers.
| 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.
KT has a better Current ratio (1.19) than 62.16% of its industry peers.
KT has a Quick Ratio of 1.15. This is a normal value and indicates that KT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KT (1.15) is better than 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.15 |
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.
The Revenue has been growing slightly by 1.66% on average over the past years.
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
KT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 49.59% yearly.
Based on estimates for the next years, KT will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
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
The Price/Earnings ratio is 28.12, which means the current valuation is very expensive for KT.
Based on the Price/Earnings ratio, KT is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
KT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.41.
The Price/Forward Earnings ratio is 8.85, which indicates a very decent valuation of KT.
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.
KT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.12 | ||
| Fwd PE | 8.85 |
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 | 39.6 | ||
| EV/EBITDA | 3.31 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as KT's earnings are expected to grow with 50.78% in the coming years.
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.
Compared to an average S&P500 Dividend Yield of 2.32, KT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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
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
-0.01 (-0.05%)
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 | 28.12 | ||
| Fwd PE | 8.85 | ||
| P/S | 0.48 | ||
| P/FCF | 39.6 | ||
| P/OCF | 2.9 | ||
| P/B | 0.77 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 3.31 |
EPS(TTM)0.66
EY3.56%
EPS(NY)2.1
Fwd EY11.29%
FCF(TTM)0.47
FCFY2.53%
OCF(TTM)6.39
OCFY34.45%
SpS38.95
BVpS24.25
TBVpS21.84
PEG (NY)0.1
PEG (5Y)N/A
Graham Number18.98
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 28.12 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%.