KT CORP-SP ADR (KT) Stock Fundamental Analysis
NYSE:KT - US48268K1016 - ADR
20.06 USD
+0.32 (+1.62%)
20.06 USD
0 (0%)
Overall KT gets a fundamental rating of 5 out of 10. We evaluated KT against 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 is valued quite cheap, while showing a decent growth score. This is a good 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
Looking at the Return On Assets, with a value of 2.20%, KT is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.42%, KT is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.60%, KT is doing good in the industry, outperforming 61.11% of the companies in the same industry.
KT had an Average Return On Invested Capital over the past 3 years of 3.37%. This is below the industry average of 6.32%.
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 Profit Margin (3.38%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KT has declined.
Looking at the Operating Margin, with a value of 5.50%, KT is in line with its industry, outperforming 44.44% of the companies in the same industry.
KT's Operating Margin has declined in the last couple of years.
KT's Gross Margin of 65.13% is fine compared to the rest of the industry. KT outperforms 77.78% of its industry peers.
In the last couple of years the Gross Margin of KT has grown nicely.
| 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.
KT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KT has more shares outstanding
Compared to 1 year ago, KT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that KT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.65, KT belongs to the top of the industry, outperforming 80.56% 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.
The Debt to FCF ratio of KT (35.52) is comparable to the rest of the industry.
KT has a Debt/Equity ratio of 0.53. This is a neutral value indicating KT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, KT is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 35.52 | ||
| Altman-Z | 1.65 |
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 Current ratio of 1.19. This is in the better half of the industry: KT outperforms 61.11% of its industry peers.
A Quick Ratio of 1.15 indicates that KT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, KT is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
| 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
The Earnings Per Share is expected to grow by 50.65% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.07% on average over the next years.
EPS Next Y274.46%
EPS Next 2Y79.37%
EPS Next 3Y50.65%
EPS Next 5YN/A
Revenue Next Year4.36%
Revenue Next 2Y1.86%
Revenue Next 3Y2.07%
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
The Price/Earnings ratio is 14.54, which indicates a correct valuation of KT.
KT's Price/Earnings ratio is rather cheap when compared to the industry. KT is cheaper than 80.56% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.43. KT is valued slightly cheaper when compared to this.
KT is valuated reasonably with a Price/Forward Earnings ratio of 9.01.
Based on the Price/Forward Earnings ratio, KT is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.87. KT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 9.01 |
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.
KT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.7 | ||
| EV/EBITDA | 3.38 |
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.
KT's earnings are expected to grow with 50.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y79.37%
EPS Next 3Y50.65%
5. Dividend
5.1 Amount
KT has a Yearly Dividend Yield of 3.78%.
KT's Dividend Yield is a higher than the industry average which is at 4.80.
KT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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
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 2Y79.37%
EPS Next 3Y50.65%
20.06
+0.32 (+1.62%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners38.04%
Inst Owner Change-3.08%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap9.67B
Analysts85.71
Price Target24.43 (21.78%)
Short Float %0.52%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend1.29
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)4%
PT rev (3m)6.85%
EPS NQ rev (1m)-5.61%
EPS NQ rev (3m)13.95%
EPS NY rev (1m)2.76%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.54 | ||
| Fwd PE | 9.01 | ||
| P/S | 0.49 | ||
| P/FCF | 40.7 | ||
| P/OCF | 2.98 | ||
| P/B | 0.79 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 3.38 |
EPS(TTM)1.38
EY6.88%
EPS(NY)2.23
Fwd EY11.09%
FCF(TTM)0.49
FCFY2.46%
OCF(TTM)6.72
OCFY33.52%
SpS40.95
BVpS25.5
TBVpS22.97
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 | 1.65 |
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 Y274.46%
EPS Next 2Y79.37%
EPS Next 3Y50.65%
EPS Next 5YN/A
Revenue 1Y (TTM)3.45%
Revenue growth 3Y2.01%
Revenue growth 5Y1.66%
Sales Q2Q%13.46%
Revenue Next Year4.36%
Revenue Next 2Y1.86%
Revenue Next 3Y2.07%
Revenue Next 5YN/A
EBIT growth 1Y-4.75%
EBIT growth 3Y-21.48%
EBIT growth 5Y-6.94%
EBIT Next Year529.45%
EBIT Next 3Y83.22%
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%