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KT

DB:KTC
Snowflake Description

Very undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KTC
DB
₩4,893B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

KT Corporation provides telecommunications services in Korea and internationally. The last earnings update was 17 days ago. More info.


Add to Portfolio Compare Print
  • KT has significant price volatility in the past 3 months.
KTC Share Price and Events
7 Day Returns
-7.5%
DB:KTC
3.7%
DE Telecom
14.8%
DE Market
1 Year Returns
-38.6%
DB:KTC
-22.7%
DE Telecom
-14.1%
DE Market
KTC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
KT (KTC) -7.5% -23.2% -35.8% -38.6% -56.5% -44.4%
DE Telecom 3.7% -22.8% -18.2% -22.7% -31.2% -35.3%
DE Market 14.8% -20% -23.5% -14.1% -22.8% -26.7%
1 Year Return vs Industry and Market
  • KTC underperformed the Telecom industry which returned -22.7% over the past year.
  • KTC underperformed the Market in Germany which returned -14.1% over the past year.
Price Volatility
KTC
Industry
5yr Volatility vs Market

KTC Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of KT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for KT.

DB:KTC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:KTC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.359 (1 + (1- 30%) (164.09%))
0.847
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.847 * 6.07%)
4.75%

Discounted Cash Flow Calculation for DB:KTC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for KT is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:KTC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (KRW, Millions) Source Present Value
Discounted (@ 4.75%)
2020 900,876.94 Analyst x17 860,034.92
2021 1,179,394.88 Analyst x16 1,074,881.19
2022 1,669,500.00 Analyst x2 1,452,573.99
2023 2,037,693.26 Est @ 22.05% 1,692,549.05
2024 2,349,885.64 Est @ 15.32% 1,863,372.99
2025 2,599,152.37 Est @ 10.61% 1,967,593.69
2026 2,789,106.93 Est @ 7.31% 2,015,670.13
2027 2,928,529.63 Est @ 5% 2,020,479.89
2028 3,027,577.79 Est @ 3.38% 1,994,117.90
2029 3,095,714.22 Est @ 2.25% 1,946,556.43
Present value of next 10 years cash flows ₩16,887,830.00
DB:KTC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₩3,095,714.22 × (1 + -0.39%) ÷ (4.75% – -0.39%)
₩60,006,094.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₩60,006,094.48 ÷ (1 + 4.75%)10
₩37,731,276.48
DB:KTC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₩16,887,830.00 + ₩37,731,276.48
₩54,619,106.48
Equity Value per Share
(KRW)
= Total value / Shares Outstanding
= ₩54,619,106.48 / 245.24
₩222715.55
DB:KTC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:KTC represents 0.00034x of KOSE:A030200
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00034x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (KRW) x Listing Adjustment Factor
= ₩ 222,715.55 x 0.00034
€75.91
Value per share (EUR) From above. €75.91
Current discount Discount to share price of €6.80
= -1 x (€6.80 - €75.91) / €75.91
91%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price KT is available for.
Intrinsic value
>50%
Share price is €6.8 vs Future cash flow value of €75.91
Current Discount Checks
For KT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for KT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are KT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:KTC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in KRW ₩2,525.51
KOSE:A030200 Share Price ** KOSE (2020-03-27) in KRW ₩19950
Europe Telecom Industry PE Ratio Median Figure of 61 Publicly-Listed Telecom Companies 17.13x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of KT.

DB:KTC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= KOSE:A030200 Share Price ÷ EPS (both in KRW)

= 19950 ÷ 2,525.51

7.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KT is good value based on earnings compared to the Europe Telecom industry average.
  • KT is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does KT's expected growth come at a high price?
Raw Data
DB:KTC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
12.4%per year
Europe Telecom Industry PEG Ratio Median Figure of 33 Publicly-Listed Telecom Companies 1.35x
Germany Market PEG Ratio Median Figure of 251 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

DB:KTC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.9x ÷ 12.4%

0.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KT is good value based on expected growth next year.
Price based on value of assets
What value do investors place on KT's assets?
Raw Data
DB:KTC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in KRW ₩55,727.89
KOSE:A030200 Share Price * KOSE (2020-03-27) in KRW ₩19950
Germany Telecom Industry PB Ratio Median Figure of 7 Publicly-Listed Telecom Companies 1.12x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.43x
DB:KTC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= KOSE:A030200 Share Price ÷ Book Value per Share (both in KRW)

= 19950 ÷ 55,727.89

0.36x

* Primary Listing of KT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • KT is good value based on assets compared to the DE Telecom industry average.
X
Value checks
We assess KT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. KT has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KTC Future Performance

 How is KT expected to perform in the next 1 to 3 years based on estimates from 27 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is KT expected to grow at an attractive rate?
  • KT's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • KT's earnings growth is positive but not above the Germany market average.
  • KT's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:KTC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:KTC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts 12.4%
DB:KTC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts 3%
Germany Telecom Industry Earnings Growth Rate Market Cap Weighted Average 19.2%
Germany Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:KTC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in KRW Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:KTC Future Estimates Data
Date (Data in KRW Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 26,841,384 4,682,000 1,026,305 4
2021-12-31 25,787,042 4,517,676 788,517 25
2020-12-31 25,010,265 4,374,765 712,409 27
2020-03-27
DB:KTC Past Financials Data
Date (Data in KRW Millions) Revenue Cash Flow Net Income *
2019-12-31 24,342,064 3,745,173 619,182
2019-09-30 24,117,015 3,903,660 569,875
2019-06-30 23,851,821 4,309,363 602,616
2019-03-31 23,560,226 4,306,889 679,704
2018-12-31 23,460,143 4,010,464 688,464
2018-09-30 23,731,798 4,053,517 529,166
2018-06-30 23,609,917 3,976,953 486,586
2018-03-31 23,645,453 4,130,085 457,763
2017-12-31 23,546,929 3,877,749 461,559
2017-09-30 23,678,996 4,090,989 683,671
2017-06-30 23,382,360 4,004,611 715,183
2017-03-31 23,217,514 4,385,972 723,074
2017-01-01 23,164,202 4,770,750 745,090

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • KT's earnings are expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).
  • KT's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:KTC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below

All data from KT Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:KTC Future Estimates Data
Date (Data in KRW Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 3,931.21 4,207.43 3,655.00 2.00
2021-12-31 3,093.52 3,941.06 2,035.00 23.00
2020-12-31 2,764.46 3,480.00 1,935.00 25.00
2020-03-27
DB:KTC Past Financials Data
Date (Data in KRW Millions) EPS *
2019-12-31 2,525.51
2019-09-30 2,324.62
2019-06-30 2,458.92
2019-03-31 2,773.61
2018-12-31 2,809.49
2018-09-30 2,161.11
2018-06-30 1,985.12
2018-03-31 1,868.05
2017-12-31 1,883.78
2017-09-30 2,790.74
2017-06-30 2,919.72
2017-03-31 2,952.25
2017-01-01 3,042.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • KT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess KT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
KT has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KTC Past Performance

  How has KT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare KT's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • KT has delivered over 20% year on year earnings growth in the past 5 years.
  • KT's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • KT's 1-year earnings growth is negative, it can't be compared to the Europe Telecom industry average.
Earnings and Revenue History
KT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from KT Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:KTC Past Revenue, Cash Flow and Net Income Data
Date (Data in KRW Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 24,342,064.00 619,182.00 3,857,135.00 165,028.00
2019-09-30 24,117,015.00 569,875.00 3,761,432.00 169,775.00
2019-06-30 23,851,821.00 602,616.00 3,787,652.00 173,438.00
2019-03-31 23,560,226.00 679,704.00 3,688,044.00 173,418.00
2018-12-31 23,460,143.00 688,464.00 3,714,715.00 176,758.00
2018-09-30 23,731,798.00 529,166.00 1,745,651.00 216,196.00
2018-06-30 23,609,917.00 486,586.00 -2,676,001.00 172,184.00
2018-03-31 23,645,453.00 457,763.00 3,991,917.00 169,743.00
2017-12-31 23,546,929.00 461,559.00 4,002,913.00 168,635.00
2017-09-30 23,678,996.00 683,671.00 4,366,654.00 163,402.00
2017-06-30 23,382,360.00 715,183.00 4,055,445.00 164,451.00
2017-03-31 23,217,514.00 723,074.00 3,858,747.00 165,582.00
2017-01-01 23,164,202.00 745,090.00 3,886,712.00 167,881.00
2016-09-30 23,100,182.00 495,637.00 4,007,002.00 177,603.00
2016-06-30 23,062,467.00 419,051.00 4,033,479.00 180,119.00
2016-03-31 22,816,179.00 328,844.00 3,800,185.00 182,229.00
2015-12-31 22,699,856.00 404,045.00 3,751,849.00 183,821.00
2015-09-30 22,047,400.00 319,653.00 2,663,486.00 190,766.00
2015-06-30 22,212,602.00 208,484.00 2,910,462.00 189,918.00
2015-03-31 22,414,868.00 -733,396.00 7,578,409.00 195,646.00
2014-12-31 22,612,713.00 -1,116,640.00 4,798,345.00 192,034.00
2014-09-30 23,349,346.00 -1,462,736.00 5,462,943.00 181,786.00
2014-06-30 23,426,543.00 -1,380,327.00 5,445,153.00 178,789.00
2014-03-31 23,549,981.00 -465,823.00 5,698,687.00 214,020.00
2013-12-31 23,146,020.00 -215,843.00 4,382,257.00 171,487.00
2013-09-30 24,345,890.00 497,965.00 4,215,838.00 275,430.00
2013-06-30 24,799,503.00 762,535.00 4,753,818.00 235,270.00
2013-03-31 24,774,760.00 874,725.00 4,871,827.00 186,703.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • KT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • KT used its assets less efficiently than the Europe Telecom industry average last year based on Return on Assets.
  • KT's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess KT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
KT has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KTC Health

 How is KT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up KT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of KT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from KT Company Filings, last reported 2 months ago.

DB:KTC Past Debt and Equity Data
Date (Data in KRW Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 15,186,953.00 7,298,867.00 3,144,010.00
2019-09-30 15,231,146.00 6,410,161.00 2,903,418.00
2019-06-30 15,004,619.00 6,256,849.00 2,925,829.00
2019-03-31 14,738,500.00 6,790,100.00 2,765,000.00
2018-12-31 14,731,280.00 6,648,293.00 3,673,092.00
2018-09-30 14,567,200.00 6,370,200.00 2,718,100.00
2018-06-30 14,302,782.00 6,604,467.00 3,087,160.00
2018-03-31 14,009,800.00 6,689,300.00 1,777,500.00
2017-12-31 13,183,354.00 6,683,662.00 2,898,099.00
2017-09-30 13,287,063.00 6,848,199.00 2,910,071.00
2017-06-30 13,054,354.00 6,524,948.00 2,347,881.00
2017-03-31 12,783,300.00 7,345,200.00 2,002,100.00
2017-01-01 12,916,942.00 8,120,791.00 3,620,866.00
2016-09-30 12,667,681.00 8,236,181.00 3,928,144.00
2016-06-30 12,430,060.00 8,227,495.00 3,482,151.00
2016-03-31 12,192,300.00 8,842,800.00 2,791,900.00
2015-12-31 12,156,131.00 8,634,897.00 2,852,407.00
2015-09-30 12,360,535.00 8,639,511.00 3,157,748.00
2015-06-30 12,232,772.00 8,832,131.00 2,342,253.00
2015-03-31 12,041,933.00 11,267,042.00 2,366,823.00
2014-12-31 11,787,557.00 12,937,397.00 2,221,371.00
2014-09-30 11,926,081.00 12,926,705.00 2,435,346.00
2014-06-30 11,831,590.00 13,113,143.00 2,687,308.00
2014-03-31 12,603,600.00 11,758,500.00 1,694,800.00
2013-12-31 12,837,416.00 11,634,505.00 2,550,931.00
2013-09-30 13,233,068.00 11,651,167.00 2,444,642.00
2013-06-30 13,080,795.00 11,810,337.00 2,231,437.00
2013-03-31 12,939,497.00 11,587,624.00 1,797,208.00
  • KT's level of debt (48.1%) 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 (109.6% vs 48.1% today).
  • Debt is well covered by operating cash flow (51.3%, greater than 20% of total debt).
  • KT earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess KT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. KT has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KTC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.51%
Current annual income from KT dividends. Estimated to be 5.74% next year.
If you bought €2,000 of KT shares you are expected to receive €110 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • KT's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.66%).
  • KT's dividend is above the markets top 25% of dividend payers in Germany (4.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:KTC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
Germany Telecom Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 5.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 319 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:KTC Future Dividends Estimate Data
Date (Data in ₩) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1,351.67 3.00
2021-12-31 1,156.38 24.00
2020-12-31 1,112.33 27.00
2020-03-27
DB:KTC Past Annualized Dividends Data
Date (Data in ₩) Dividend per share (annual) Avg. Yield (%)
2020-03-10 1,100.000 5.526
2019-04-30 1,100.000 4.091
2019-03-11 1,100.000 3.987
2018-02-06 1,000.000 3.505
2017-02-01 800.000 2.571
2016-04-29 500.000 1.616
2016-03-04 500.000 1.685
2016-01-29 0.000 0.000
2015-10-30 0.000 0.000
2015-08-17 0.000 0.000
2015-07-31 0.000 0.000
2015-05-15 0.000 0.000
2015-04-30 0.000 0.000
2015-04-29 0.000 0.000
2015-02-24 0.000 0.000
2014-04-28 800.000 2.510
2014-04-23 800.000 2.465
2014-04-14 800.000 2.500
2014-04-11 800.000 2.483
2014-02-25 800.000 2.703
2014-02-21 800.000 2.718
2013-02-01 2,000.000 5.757
2012-02-06 2,000.000 6.005
2011-01-28 2,410.000 6.429
2010-06-29 2,000.000 4.498
2010-03-31 2,000.000 4.271
2010-03-30 2,000.000 4.267
2009-06-29 1,120.000 2.720
2009-03-30 1,120.000 3.036

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of KT's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess KT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can KT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. KT has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KTC Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chang-Gyu Hwang
COMPENSATION ₩1,450,000,000
AGE 66
TENURE AS CEO 6.2 years
CEO Bio

Mr. Chang-Gyu Hwang has been the Chief Executive Officer of KT Corporation since January 27, 2014 and serves as Chairman. Mr. Hwang served as the President of Semiconductor Business at Samsung Electronics Co. Ltd. from January 2004 to May 2008. He served as Chief Technology Officer of Samsung Electronics Co. Ltd. since May 2008. He has been Standing Director of KT Corporation since March 2014. He serves as a Board Member at Gsma Ltd. Mr. Hwang holds a Bachelor’s Degree and Master’s Degree in electric engineering from Seoul National University and a Ph.D. in electronic and computer engineering from the University of Massachusetts, Amherst.

CEO Compensation
  • Chang-Gyu's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Chang-Gyu's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the KT management team in years:

7.8
Average Tenure
56
Average Age
  • The average tenure for the KT management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Chang-Gyu Hwang

TITLE
Chairman & CEO
COMPENSATION
₩1B
AGE
66
TENURE
6.2 yrs

Hyeon Mo Ku

TITLE
President of Customer & Media Business Group
COMPENSATION
₩709M
AGE
55
TENURE
4.3 yrs

Seong Oh

TITLE
President of Network Group
COMPENSATION
₩658M
AGE
59
TENURE
10.8 yrs

Kyung-Keun Yoon

TITLE
CFO & Executive VP
AGE
56

Seung-Hoon Chi

TITLE
Investor Relations Officer

Byung-Sam Park

TITLE
Senior Executive Vice President of Legal Affairs Office
AGE
53

Jong-Jin Yoon

TITLE
Senior EVP of Public Relations Office
AGE
55
TENURE
5.1 yrs

Pill-Jai Lee

TITLE
Senior EVP of Marketing Group
AGE
58
TENURE
9.5 yrs

Kyu-Taek Nam

TITLE
Chief of Operating Office for Corporate Mgmt Group & HR Office
AGE
58

Mun-Whan Lee

TITLE
Senior Executive Vice President of Enterprise Business Group
AGE
56
TENURE
12.3 yrs
Board of Directors Tenure

Average tenure and age of the KT board of directors in years:

2
Average Tenure
67
Average Age
  • The average tenure for the KT board of directors is less than 3 years, this suggests a new board.
Board of Directors

In-Hoe Kim

TITLE
Head of Corporate Planning Group & Inside Director
AGE
55
TENURE
1 yrs

Suk-Gwon Chang

TITLE
Independent Director
AGE
63
TENURE
6 yrs

Chang-Gyu Hwang

TITLE
Chairman & CEO
COMPENSATION
₩1B
AGE
66

Gye-Min Lee

TITLE
Outside Director
AGE
73
TENURE
3 yrs

Dae-You Kim

TITLE
Outside Director
AGE
68
TENURE
2 yrs

Jong-Goo Kim

TITLE
Independent Director
AGE
78
TENURE
6 yrs

Il Im

TITLE
Outside Director
AGE
53
TENURE
3 yrs

Gang-Chul Lee

TITLE
Independent Director
AGE
72
TENURE
2 yrs

Tae-Yoon Sung

TITLE
Outside Director
AGE
49
TENURE
1 yrs

Hee-Yol Yu

TITLE
Outside Director
AGE
72
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess KT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. KT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KTC News

Simply Wall St News

KTC Company Info

Description

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 protocol fixed-line telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services; and data communication services, such as leased line and broadband Internet connection services. It also provides media and content services, including IPTV, satellite TV, TV home shopping, digital contents distribution, information and communication technology platform consulting, digital music streaming, and downloading and online advertising; and credit card processing and other financial services. In addition, the company offers information technology and network services, and satellite services; sells handsets and miscellaneous telecommunications equipment; develops and sells residential units and commercial real estate; and rents real estate properties. Further, it maintains public telephones; security, B2C and B2B, investment fund, software development and data processing, value added network, system integration and maintenance, mobile marketing, PCS distribution, satellite broadcasting, cloud system implementation, network installation and management, and data center development and related services. Additionally, the company is involved in the Internet banking ASP and security solutions, residential building development and supply, sports group management, music contents investment, technology business finance, software development and supply, foreign investment, and electronic communication businesses. As of December 31, 2018, the company served approximately 21,120,000 mobile subscribers and 7.9 million IPTV subscribers. The company was formerly known as Korea Telecom Corp. and changed its name to KT Corporation in March 2002. KT Corporation was founded in 1981 and is headquartered in Seongnam, South Korea.

Details
Name: KT Corporation
KTC
Exchange: DB
Founded: 1981
₩3,617,158,570
245,241,550
Website: http://www.kt.com
Address: KT Corporation
90, Buljeong-ro,
Bundang-gu,
Seongnam,
Gyeonggi-do, 13606,
South Korea
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
KOSE A030200 Common Stock Korea Stock Exchange KR KRW 07. Jan 1999
NYSE KT SPON ADR EACH REP 1/2 ORD SHS KRW5000 New York Stock Exchange US USD 26. May 1999
DB KTC SPON ADR EACH REP 1/2 ORD SHS KRW5000 Deutsche Boerse AG DE EUR 26. May 1999
Number of employees
Current staff
Staff numbers
0
KT employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/27 22:06
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2020/03/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.