NYSE:KT

Stock Analysis Report

Executive Summary

KT Corporation provides telecommunications services in Korea and internationally.

Snowflake

Fundamentals

Very undervalued with excellent balance sheet and pays a dividend.


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


Market Performance


7 Day Return

2.3%

NYSE:KT

3.1%

US Telecom

1.2%

US Market


1 Year Return

-17.8%

NYSE:KT

8.4%

US Telecom

1.7%

US Market

KT underperformed the Telecom industry which returned 8.4% over the past year.

KT underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

KTIndustryMarket
7 Day2.3%3.1%1.2%
30 Day5.3%7.5%4.9%
90 Day-3.4%9.8%3.7%
1 Year-15.5%-17.8%14.1%8.4%3.9%1.7%
3 Year-18.6%-22.8%18.1%0.9%47.2%37.7%
5 Year-28.4%-32.1%35.1%4.2%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

KT's share price is below the future cash flow value, and at a moderate discount (> 20%).

KT's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

KT is good value based on earnings compared to the US Telecom industry average.

KT is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

KT is good value based on expected growth next year.


Price Based on Value of Assets

KT is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is KT expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

KT's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

KT's earnings are expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).

KT's revenue growth is positive but not above the United States of America market average.

KT's earnings growth is expected to exceed the United States of America market average.

KT's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

KT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has KT performed over the past 5 years?

53.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

KT has delivered over 20% year on year earnings growth in the past 5 years.

KT's 1-year earnings growth is less than its 5-year average (23.8% vs 53.4%)

KT's earnings growth has exceeded the US Telecom industry average in the past year (23.8% vs -18%).


Return on Equity

KT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

KT used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

KT's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is KT's financial position?


Financial Position Analysis

KT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

KT's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

KT's level of debt (41.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (110.8% vs 41.7% today).

Debt is well covered by operating cash flow (68.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 28x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

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

4.19%

Expected Dividend Yield


Dividend Yield and Payments Analysis

KT's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

KT's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of KT's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Chang-Gyu Hwang (66yo)

5.7yrs

Tenure

₩1,450,000,000

Compensation

Mr. Chang-Gyu Hwang has been the Chief Executive Officer of KT Corporation since January 27, 2014. Mr. Hwang served as the President of Semiconductor Business at Samsung Electronics Co. Ltd. from January 2 ...


CEO Compensation Analysis

Chang-Gyu's remuneration is lower than average for companies of similar size in United States of America.

Chang-Gyu's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.7yrs

Average Tenure

57yo

Average Age

The average tenure for the KT management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

1.5yrs

Average Tenure

64.5yo

Average Age

The average tenure for the KT board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Dong-Myun Lee (57yo)

    Head of Future Platform Business Group & Inside Director

    • Tenure: 0.5yrs
  • Chang-Gyu Hwang (66yo)

    CEO & Director

    • Tenure: 5.7yrs
    • Compensation: ₩1.45b
  • Hyeon Mo Ku (55yo)

    President of Customer & Media Business Group

    • Tenure: 3.8yrs
    • Compensation: ₩709.00m
  • Kyu-Taek Nam (58yo)

    Chief of Operating Office for Corporate Mgmt Group & HR Office

    • Tenure: 0yrs
  • Seong Oh (59yo)

    President of Network Group

    • Tenure: 10.3yrs
    • Compensation: ₩658.00m
  • Pill-Jai Lee (58yo)

    Senior EVP of Marketing Group

    • Tenure: 9yrs
  • Byung-Sam Park (53yo)

    Senior Executive Vice President of Legal Affairs Office

    • Tenure: 0yrs
  • Kyung-Keun Yoon (56yo)

    CFO & Executive VP

    • Tenure: 0yrs
  • Jong-Jin Yoon (55yo)

    Senior EVP of Public Relations Office

    • Tenure: 4.6yrs
  • Seung-Hoon Chi

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Gye-Min Lee (73yo)

    Outside Director

    • Tenure: 2.5yrs
  • Dong-Myun Lee (57yo)

    Head of Future Platform Business Group & Inside Director

    • Tenure: 0.5yrs
  • Chang-Gyu Hwang (66yo)

    CEO & Director

    • Tenure: 5.7yrs
    • Compensation: ₩1.45b
  • Jong-Goo Kim (78yo)

    Chairman

    • Tenure: 0yrs
  • Suk-Gwon Chang (63yo)

    Independent Director

    • Tenure: 5.5yrs
  • In-Hoe Kim (55yo)

    Senior EVP of CEO Office & Inside Director

    • Tenure: 0.5yrs
  • Il Im (53yo)

    Outside Director

    • Tenure: 2.5yrs
  • Dae-You Kim (68yo)

    Outside Director

    • Tenure: 1.5yrs
  • Gang-Chul Lee (72yo)

    Independent Director

    • Tenure: 1.5yrs
  • Tae-Yoon Sung (49yo)

    Outside Director

    • Tenure: 0.5yrs

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: ₩6.692t
  • Listing Market Cap: ₩5.686b
  • Shares outstanding: 245.14m
  • Website: https://www.kt.com

Number of Employees


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)SPONSORED ADRUSUSDMay 1999
KTCDB (Deutsche Boerse AG)SPONSORED ADRDEEURMay 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 Analysis2019/09/14 23:38
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.