KT CORP-SP ADR (KT) Stock Fundamental Analysis
USA - NYSE:KT - US48268K1016 - ADR
19.88 USD
+0.12 (+0.61%)
19.88 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KT. KT was compared to 36 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of KT get a neutral evaluation. Nothing too spectacular is happening here. KT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
KT had positive earnings in the past year.
In the past year KT had a positive cash flow from operations.
Each year in the past 5 years KT has been profitable.
KT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.20%, KT is doing good in the industry, outperforming 63.89% of the companies in the same industry.
The Return On Equity of KT (5.42%) is better than 61.11% of its industry peers.
KT has a better Return On Invested Capital (3.60%) than 61.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KT is below the industry average of 6.38%.
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
Looking at the Profit Margin, with a value of 3.38%, KT is in line with its industry, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Profit Margin of KT has declined.
With a Operating Margin value of 5.50%, KT perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
In the last couple of years the Operating Margin of KT has declined.
KT has a better Gross Margin (65.13%) than 77.78% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KT is creating some value.
The number of shares outstanding for KT has been reduced compared to 1 year ago.
The number of shares outstanding for KT has been increased compared to 5 years ago.
KT has a worse debt/assets ratio than last year.
2.2 Solvency
KT has an Altman-Z score of 1.64. This is a bad value and indicates that KT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KT (1.64) is better than 80.56% of its industry peers.
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's Debt to FCF ratio of 35.52 is in line compared to the rest of the industry. KT outperforms 44.44% 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.
KT has a Debt to Equity ratio of 0.53. This is in the better half of the industry: KT outperforms 77.78% 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's Current ratio of 1.19 is fine compared to the rest of the industry. KT outperforms 61.11% 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.
KT has a better Quick ratio (1.15) than 61.11% 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 -14.13% 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 3.45% in the past year.
The Revenue has been growing slightly by 1.66% on average over the past years.
EPS 1Y (TTM)-14.13%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%76.52%
Revenue 1Y (TTM)3.45%
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 50.90% on average per year.
KT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.12% yearly.
EPS Next Y275.84%
EPS Next 2Y79.64%
EPS Next 3Y50.9%
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y1.92%
Revenue Next 3Y2.12%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.51, the valuation of KT can be described as correct.
Based on the Price/Earnings ratio, KT is valued cheaper than 80.56% of the companies in the same industry.
KT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 8.99, which indicates a very decent valuation of KT.
94.44% of the companies in the same industry are more expensive than KT, based on the Price/Forward Earnings ratio.
KT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 8.99 |
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 | 40.69 | ||
| EV/EBITDA | 3.36 |
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.
The decent profitability rating of KT may justify a higher PE ratio.
KT's earnings are expected to grow with 50.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y79.64%
EPS Next 3Y50.9%
5. Dividend
5.1 Amount
KT has a Yearly Dividend Yield of 3.94%. 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 5.17.
Compared to an average S&P500 Dividend Yield of 2.41, KT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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
57.55% of the earnings are spent on dividend by KT. This is a bit on the high side, but may be sustainable.
KT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.55%
EPS Next 2Y79.64%
EPS Next 3Y50.9%
19.88
+0.12 (+0.61%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners36.98%
Inst Owner Change-3.08%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap9.58B
Analysts85.71
Price Target25.69 (29.23%)
Short Float %0.68%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend1.27
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)5.19%
PT rev (3m)10.06%
EPS NQ rev (1m)-2.97%
EPS NQ rev (3m)10.56%
EPS NY rev (1m)0.37%
EPS NY rev (3m)3.14%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 8.99 | ||
| P/S | 0.49 | ||
| P/FCF | 40.69 | ||
| P/OCF | 2.98 | ||
| P/B | 0.79 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 3.36 |
EPS(TTM)1.37
EY6.89%
EPS(NY)2.21
Fwd EY11.13%
FCF(TTM)0.49
FCFY2.46%
OCF(TTM)6.67
OCFY33.53%
SpS40.59
BVpS25.28
TBVpS22.77
PEG (NY)0.05
PEG (5Y)N/A
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%
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 Turnover0.65
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)-14.13%
EPS 3Y-30.81%
EPS 5Y-5.48%
EPS Q2Q%76.52%
EPS Next Y275.84%
EPS Next 2Y79.64%
EPS Next 3Y50.9%
EPS Next 5YN/A
Revenue 1Y (TTM)3.45%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%13.46%
Revenue Next Year4.58%
Revenue Next 2Y1.92%
Revenue Next 3Y2.12%
Revenue Next 5YN/A
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 5YN/A
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%