KT CORP-SP ADR (KT) Stock Fundamental Analysis
NYSE:KT - New York Stock Exchange, Inc. - US48268K1016 - ADR - Currency: USD
Overall KT gets a fundamental rating of 4 out of 10. We evaluated KT 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years KT always reported a positive cash flow from operatings.
1.2 Ratios
KT's Return On Assets of 1.50% is in line compared to the rest of the industry. KT outperforms 57.58% of its industry peers.
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 has a Return On Invested Capital (2.44%) which is in line with 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 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's Profit Margin of 2.38% 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.
KT has a Operating Margin of 3.73%. This is in the lower half of the industry: KT underperforms 60.61% of its industry peers.
In the last couple of years the Operating Margin of KT has declined.
Looking at the Gross Margin, with a value of 65.55%, KT is in the better half of the industry, outperforming 72.73% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KT is still 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
KT has an Altman-Z score of 1.53. This is a bad value and indicates that KT is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.53, KT belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
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.
KT has a worse Debt to FCF ratio (29.60) than 60.61% of its industry peers.
KT has a Debt/Equity ratio of 0.53. This is a neutral value indicating KT is somewhat dependend on debt financing.
The Debt to Equity ratio of KT (0.53) is better than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 29.6 | ||
| Altman-Z | 1.53 |
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's Current ratio of 1.10 is in line compared to the rest of the industry. KT outperforms 54.55% of its industry peers.
A Quick Ratio of 1.04 indicates that KT should not have too much problems paying its short term obligations.
The Quick ratio of KT (1.04) is comparable to the rest of the industry.
| 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.
Looking at the last year, KT shows a small growth in Revenue. The Revenue has grown by 0.13% in the last 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
KT is valuated rather expensively with a Price/Earnings ratio of 21.04.
Compared to the rest of the industry, the Price/Earnings ratio of KT indicates a somewhat cheap valuation: KT is cheaper than 69.70% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.32. KT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 8.72 indicates a reasonable valuation of KT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KT indicates a rather cheap valuation: KT is cheaper than 90.91% of the companies listed in the same industry.
KT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.04 | ||
| Fwd PE | 8.72 |
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.
KT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.35 | ||
| 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.
KT's earnings are expected to grow with 51.39% in the coming years. This may justify a more expensive valuation.
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 3.86%. Purely for dividend investing, there may be better candidates out there.
KT's Dividend Yield is a higher than the industry average which is at 4.99.
Compared to an average S&P500 Dividend Yield of 2.40, KT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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 137.69% 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.
DP137.69%
EPS Next 2Y80.86%
EPS Next 3Y51.39%
19.99
-0.14 (-0.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners38.04%
Inst Owner Change11.99%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap9.75B
Analysts86.21
Price Target22.73 (13.71%)
Short Float %1.01%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend1.3
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)-0.57%
PT rev (3m)6.05%
EPS NQ rev (1m)6.7%
EPS NQ rev (3m)30.75%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)2.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.04 | ||
| Fwd PE | 8.72 | ||
| P/S | 0.5 | ||
| P/FCF | 32.35 | ||
| P/OCF | 2.92 | ||
| P/B | 0.8 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 3.83 |
EPS(TTM)0.95
EY4.75%
EPS(NY)2.29
Fwd EY11.47%
FCF(TTM)0.62
FCFY3.09%
OCF(TTM)6.85
OCFY34.29%
SpS39.82
BVpS24.84
TBVpS22.15
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 | 1.53 |
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%