NYSE:KT

Stock Analysis Report

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Executive Summary

KT Corporation provides telecommunications services in Korea and internationally. More Details


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has KT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

KT

0.9%

US Telecom

1.0%

US Market


1 Year Return

-14.1%

KT

-11.2%

US Telecom

13.6%

US Market

Return vs Industry: KT underperformed the US Telecom industry which returned -9.8% over the past year.

Return vs Market: KT underperformed the US Market which returned 14.5% over the past year.


Shareholder returns

KTIndustryMarket
7 Day1.5%0.9%1.0%
30 Day-0.4%-0.04%-0.4%
90 Day1.4%2.1%8.9%
1 Year-14.1%-14.1%-6.7%-11.2%16.2%13.6%
3 Year-27.2%-31.0%8.0%-7.5%40.2%30.8%
5 Year-16.6%-20.9%32.8%3.0%89.6%68.2%

Price Volatility Vs. Market

How volatile is KT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is KT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KT ($9.95) is trading below our estimate of fair value ($81.06)

Significantly Below Fair Value: KT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KT is good value based on its PE Ratio (9.1x) compared to the US Telecom industry average (11.5x).

PE vs Market: KT is good value based on its PE Ratio (9.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: KT is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: KT is good value based on its PB Ratio (0.4x) compared to the US Telecom industry average (1.3x).


Next Steps

Future Growth

How is KT forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KT's forecast earnings growth (9.7% per year) is above the savings rate (2.2%).

Earnings vs Market: KT's earnings (9.7% per year) are forecast to grow slower than the US market (23.3% per year).

High Growth Earnings: KT's earnings are forecast to grow, but not significantly.

Revenue vs Market: KT's revenue (2.2% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: KT's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KT's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

How has KT performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KT has high quality earnings.

Growing Profit Margin: KT's current net profit margins (2.5%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: KT's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: KT's earnings growth over the past year (4.4%) is below its 5-year average (10.5% per year).

Earnings vs Industry: KT earnings growth over the past year (4.4%) exceeded the Telecom industry -12.9%.


Return on Equity

High ROE: KT's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is KT's financial position?


Financial Position Analysis

Short Term Liabilities: KT's short term assets (₩12,397.5B) exceed its short term liabilities (₩9,909.9B).

Long Term Liabilities: KT's short term assets (₩12,397.5B) exceed its long term liabilities (₩8,719.8B).


Debt to Equity History and Analysis

Debt Level: KT's debt to equity ratio (47.4%) is considered high.

Reducing Debt: KT's debt to equity ratio has reduced from 72.4% to 47.4% over the past 5 years.

Debt Coverage: KT's debt is well covered by operating cash flow (53.6%).

Interest Coverage: KT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is KT current dividend yield, its reliability and sustainability?

4.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KT's dividend (4.7%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: KT's dividend (4.7%) is low compared to the top 25% of dividend payers in the US market (4.71%).


Stability and Growth of Payments

Stable Dividend: KT's dividend payments have been volatile in the past 10 years.

Growing Dividend: KT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.9%), KT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KT's dividends in 3 years are forecast to be well covered by earnings (32.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.5yrs

Average management tenure


CEO

Hyeon-Mo Ku (56 yo)

0.50

Tenure

₩892,000,000

Compensation

Mr. Hyun Mo Ku serves as Chief Executive Officer and Representative Director of KT Corporation since March 30, 2020. He served as President of Customer & Media Business Group of KT Corporation until March ...


CEO Compensation Analysis

Compensation vs Market: Hyeon-Mo's total compensation ($USD760.72K) is below average for companies of similar size in the US market ($USD7.38M).

Compensation vs Earnings: Hyeon-Mo's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hyeon-Mo Ku
CEO & Representative Director0.50yr₩892.00m0.0074%
₩ 364.2k
Yoon-Young Park
President0.50yrno data0.0034%
₩ 168.4k
Kyung-Keun Yoon
CFO & Executive VP of Financial Management Officeno datano data0.0026%
₩ 129.2k
Seung-Hoon Chi
Senior VP & Investor Relations Officerno datano datano data
Sang-Don Ahn
Senior Executive Vice President of Legal Affairs Officeno datano datano data
Kook-Hyun Kang
Senior Executive Vice President of Customer Business Groupno datano data0.0032%
₩ 155.2k
Hyoung-Wook Kim
Executive Vice President of Future Value TF10.67yrsno data0.0026%
₩ 128.3k
Dong-Sik Yun
Executive Vice President of Cloud/DX Business Unit10.42yrsno data0.00095%
₩ 46.5k
Hee-Su Kim
Executive Vice President of KT Institute of Economics & Business Research9.5yrsno data0.0018%
₩ 87.6k
Cheol-Gyu Lee
Senior Executive Vice President of Network Group8.67yrsno data0.0024%
₩ 119.5k
Sang-Yong Lee
SVP-Enterprise Sales Business Group - Business Consulting - ICT Convergence Business Consulting9.83yrsno datano data
Byung-Sam Park
Senior Executive Vice President of Ethics Office7.5yrsno data0.0022%
₩ 107.2k

9.5yrs

Average Tenure

57yo

Average Age

Experienced Management: KT's management team is seasoned and experienced (9.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hyeon-Mo Ku
CEO & Representative Director0.50yr₩892.00m0.0074%
₩ 364.2k
Yoon-Young Park
President0.50yrno data0.0034%
₩ 168.4k
Jong-Ook Park
Senior EVP0.50yrno data0.0037%
₩ 183.6k
Keuk Je Sung
External Directorno datano datano data
Eung-han Kim
Chairman of the Board11.5yrsno datano data
Dae-You Kim
Independent Chairman0.67yrno data0.00038%
₩ 18.6k
Gang-Chul Lee
Independent Director2.5yrsno data0.00038%
₩ 18.6k
Tae-Yoon Sung
Independent Outside Director1.5yrsno data0.00019%
₩ 9.3k
Hee-Yol Yu
Independent Outside Director1.5yrsno data0.00019%
₩ 9.3k
Chung-Gu Kang
Independent Outside Director0.50yrno datano data
Chan-Hi Park
Independent Outside Director0.50yrno datano data
Eun-Jung Yeo
Independent Outside Director0.50yrno datano data

0.7yrs

Average Tenure

58yo

Average Age

Experienced Board: KT's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

KT Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KT Corporation
  • Ticker: KT
  • Exchange: NYSE
  • Founded: 1981
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₩5.739t
  • Listing Market Cap: ₩4.896b
  • Shares outstanding: 245.25m
  • Website: https://www.kt.com

Location

  • KT Corporation
  • 90, Buljeong-ro
  • Bundang-gu
  • Seongnam
  • Gyeonggi-do
  • 13606
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A030200KOSE (Korea Stock Exchange)YesCommon StockKRKRWJan 1999
KTNYSE (New York Stock Exchange)SPON ADR EACH REP 1/2 ORD SHS KRW5000USUSDMay 1999
KTCDB (Deutsche Boerse AG)SPON ADR EACH REP 1/2 ORD SHS KRW5000DEEURMay 1999

Biography

KT Corporation provides telecommunications services in Korea and internationally. The company offers local, domestic long-distance, and international long-distance fixed-line and voice over Internet protoc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 05:51
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.