KT CORP-SP ADR (KT)
US48268K1016 - ADR
Overall KT gets a fundamental rating of 6 out of 10. We evaluated KT against 36 industry peers in the Diversified Telecommunication Services industry. KT scores excellent on profitability, but there are some minor concerns on its financial health. KT may be a bit undervalued, certainly considering the very reasonable score on growth KT also has an excellent dividend rating. These ratings would make KT suitable for value and dividend investing!
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.
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
KT has a better Return On Assets (2.36%) than 66.67% of its industry peers.
KT's Return On Equity of 6.02% is fine compared to the rest of the industry. KT outperforms 63.89% of its industry peers.
KT's Return On Invested Capital of 4.07% is in line compared to the rest of the industry. KT outperforms 58.33% of its industry peers.
KT had an Average Return On Invested Capital over the past 3 years of 4.21%. This is in line with the industry average of 5.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.02% | ||
| ROIC | 4.07% |
ROA(3y)3.03%
ROA(5y)2.57%
ROE(3y)7.56%
ROE(5y)6.37%
ROIC(3y)4.21%
ROIC(5y)3.94%
1.3 Margins
The Profit Margin of KT (3.82%) is better than 63.89% of its industry peers.
In the last couple of years the Profit Margin of KT has grown nicely.
Looking at the Operating Margin, with a value of 6.25%, KT is in line with its industry, outperforming 47.22% of the companies in the same industry.
KT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 64.38%, KT is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
KT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.25% | ||
| PM (TTM) | 3.82% | ||
| GM | 64.38% |
OM growth 3Y8.1%
OM growth 5Y3.07%
PM growth 3Y11.6%
PM growth 5Y5.44%
GM growth 3Y2.59%
GM growth 5Y1.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KT is destroying 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
Compared to 1 year ago, KT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that KT is in the distress zone and has some risk of bankruptcy.
KT's Altman-Z score of 1.45 is amongst the best of the industry. KT outperforms 83.33% of its industry peers.
The Debt to FCF ratio of KT is 8.57, which is on the high side as it means it would take KT, 8.57 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.57, KT is doing good in the industry, outperforming 69.44% of the companies in the same industry.
KT has a Debt/Equity ratio of 0.50. This is a neutral value indicating KT is somewhat dependend on debt financing.
KT has a Debt to Equity ratio of 0.50. This is in the better half of the industry: KT outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 8.57 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.84
WACC4.84%
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.
The Current ratio of KT (1.10) is comparable to the rest of the industry.
KT has a Quick Ratio of 1.03. 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 Quick ratio (1.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for KT have decreased strongly by -23.30% in the last year.
The Earnings Per Share has been growing slightly by 7.42% on average over the past years.
Looking at the last year, KT shows a small growth in Revenue. The Revenue has grown by 2.83% in the last year.
KT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.37% yearly.
EPS 1Y (TTM)-23.3%
EPS 3Y14.4%
EPS 5Y7.42%
EPS growth Q2Q-76.64%
Revenue 1Y (TTM)2.83%
Revenue growth 3Y3.32%
Revenue growth 5Y2.37%
Revenue growth Q2Q1.59%
3.2 Future
Based on estimates for the next years, KT will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.98% on average per year.
Based on estimates for the next years, KT will show a small growth in Revenue. The Revenue will grow by 1.91% on average per year.
EPS Next Y24%
EPS Next 2Y16.14%
EPS Next 3Y12.98%
EPS Next 5YN/A
Revenue Next Year2.25%
Revenue Next 2Y2.7%
Revenue Next 3Y1.91%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.69, the valuation of KT can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of KT indicates a rather cheap valuation: KT is cheaper than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, KT is valued rather cheaply.
KT is valuated cheaply with a Price/Forward Earnings ratio of 7.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KT indicates a rather cheap valuation: KT is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KT to the average of the S&P500 Index (21.63), we can say KT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 7 |
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.
Based on the Price/Free Cash Flow ratio, KT is valued cheaper than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.41 | ||
| EV/EBITDA | 2.49 |
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.
The decent profitability rating of KT may justify a higher PE ratio.
KT's earnings are expected to grow with 12.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)1.17
EPS Next 2Y16.14%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.82%, KT is a good candidate for dividend investing.
KT's Dividend Yield is a higher than the industry average which is at 4.92.
KT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.82% |
5.2 History
On average, the dividend of KT grows each year by 11.46%, which is quite nice.
KT has been paying a dividend for at least 10 years, so it has a reliable track record.
KT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)11.46%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
52.23% 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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP52.23%
EPS Next 2Y16.14%
EPS Next 3Y12.98%
KT CORP-SP ADR
NYSE:KT (4/26/2024, 10:03:39 AM)
12.595
+0.09 (+0.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.36
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.25% | ||
| PM (TTM) | 3.82% | ||
| GM | 64.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.3%
EPS 3Y14.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.83%
Revenue growth 3Y3.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y