KT CORP-SP ADR (KT) Stock Fundamental Analysis
USA - NYSE:KT - US48268K1016 - ADR
18.61 USD
-0.12 (-0.64%)
18.48 USD
-0.13 (-0.7%)
Taking everything into account, KT scores 5 out of 10 in our fundamental rating. KT was compared to 36 industry peers in the Diversified Telecommunication Services industry. KT has only an average score on both its financial health and profitability. KT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally KT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KT had positive earnings in the past year.
KT had a positive operating cash flow in the past year.
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 has a Return On Assets of 2.20%. This is in the better half of the industry: KT outperforms 72.22% of its industry peers.
The Return On Equity of KT (5.42%) is better than 69.44% of its industry peers.
KT has a Return On Invested Capital of 3.60%. This is comparable to the rest of the industry: KT outperforms 58.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KT is below the industry average of 5.84%.
The last Return On Invested Capital (3.60%) for KT is above the 3 year average (3.37%), which is a sign of increasing profitability.
| 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 of 3.38%. This is in the better half of the industry: KT outperforms 63.89% of its industry peers.
In the last couple of years the Profit Margin of KT has declined.
KT has a Operating Margin (5.50%) which is in line with its industry peers.
KT's Operating Margin has declined in the last couple of years.
KT has a Gross Margin of 65.13%. This is in the better half of the industry: KT outperforms 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
KT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for KT has been reduced compared to 1 year ago.
Compared to 5 years ago, KT has more shares outstanding
The debt/assets ratio for KT is higher compared to a year ago.
2.2 Solvency
KT has an Altman-Z score of 1.63. This is a bad value and indicates that KT is not financially healthy and even has some risk of bankruptcy.
KT's Altman-Z score of 1.63 is amongst the best of the industry. KT outperforms 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.
The Debt to FCF ratio of KT (35.52) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.53 indicates that 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 | 1.63 |
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.
The Current ratio of KT (1.19) is better than 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.
The Quick ratio of KT (1.15) is better than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
KT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.13%.
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.
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)-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
With a Price/Earnings ratio of 13.99, KT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of KT indicates a rather cheap valuation: KT is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KT to the average of the S&P500 Index (26.89), we can say KT is valued slightly cheaper.
A Price/Forward Earnings ratio of 8.62 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 94.44% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, KT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 8.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
KT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.02 | ||
| EV/EBITDA | 3.27 |
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 has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 4.62%, KT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.31, KT pays a bit more dividend than its industry peers.
KT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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 2Y79.64%
EPS Next 3Y50.9%
18.61
-0.12 (-0.64%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners36.98%
Inst Owner Change-2.46%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap8.97B
Revenue(TTM)27502.69B
Net Income(TTM)928.43B
Analysts85.71
Price Target24.75 (32.99%)
Short Float %0.93%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
Yearly Dividend1.25
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)-3.69%
PT rev (3m)5.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.07%
EPS NY rev (1m)0%
EPS NY rev (3m)3.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 8.62 | ||
| P/S | 0.47 | ||
| P/FCF | 39.02 | ||
| P/OCF | 2.86 | ||
| P/B | 0.75 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 3.27 |
EPS(TTM)1.33
EY7.15%
EPS(NY)2.16
Fwd EY11.61%
FCF(TTM)0.48
FCFY2.56%
OCF(TTM)6.51
OCFY34.97%
SpS39.63
BVpS24.67
TBVpS22.23
PEG (NY)0.05
PEG (5Y)N/A
Graham Number27.17
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 | 1.63 |
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%
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 8 / 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 13.99 and the Price/Book (PB) ratio is 0.75.
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%.