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KT Corp ADR KT Stock Quote

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NYSE: KT

Morningstar‘s Stock Analysis KT

Valuation
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Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

KT Generating Strong Growth From B2B and Subsidiaries; FVE Decreased to USD 19.30

Analyst Note

| Dan Baker |

We reduce our fair value estimate for KT to USD 19.30 per ADR from USD 19.70 per ADR based on a weaker Korean won partially offset by slightly increased earnings forecasts on the back of a strong third-quarter 2022 result. Third-quarter revenue growth of 4.2% year on year drove operating profit growth of 18.4%. Revenue from the large, core telco B2C business grew at 0.6% year on year, with higher growth generated from the telco B2B business of 9.5% year on year and major subsidiaries such as Skylife, Content, and kt cloud all growing at double-digit rates. Our forecasts incorporate consolidated operating earnings growing at only around 1% per year for the four years following 2022 which we think is conservative. Despite this, the stock trades at a price/fair value of around 0.7 times and we think it is undervalued. We believe that the stronger revenue and earnings growth may provide catalysts for share price improvement. At our fair value estimate, KT would trade on a P/E ratio of 8.5 times and a dividend yield of 5.7%, which we believe is attractive compared with many international telecom services companies trading at low-teens multiples. KT’s dividend payout ratio is only 50% for 2022, but we see some possibility of this increasing in future years if it can continue to grow earnings and cash flow near current rates. We also retain our narrow moat rating based on efficient scale with the incumbent mobile operators having many advantages over any credible potential new entrants considering joining the market.

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Key Statistics KT

Company Profile KT

Business Description

KT is South Korea's largest fixed-line telecom operator, with around 13 million customers. It is the largest broadband firm in the country, with 9.6 million customers, and the second-largest wireless operator with 23.4 million subscribers; the company also has 9.3 million IPTV customers. Additionally, it has about 30 nontelecom businesses. These nontelecom businesses, including artificial intelligence and IDC/cloud services, are the focus of its growth strategy.

Contact
KT Gwanghwamun Building East, 33, Jong-ro 3-Gil, Jongno-gu
Seoul, 03155, KOR
Industry Telecom Services
Employees 21,759

Related Articles KT

FAQs for KT Corp ADR Stock

No. KT does not currently have a forward dividend yield.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

KT’s market cap is 7.31 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

KT’s stock style is Large Value.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

KT’s price/sales is 0.34.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

KT’s price/forward earnings is 7.71.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

KT’s price/book is 0.59.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See KT’s valuation ratios compared to the Market Index.

KT’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare KT’s historical performance against its industry peers and the overall market.