KT (KT) AI Stock Analysis

• Market Cap: $8.07B
• Dividend Yield: 3.27%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.37
• Revenue Growth: -1.56%
• EPS Growth: -18.33%
• Country: US
• Employees: 18,617
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.99
• Shares Outstanding: 504,043,370
• 10 Day Avg. Volume: 1,018,063
• 30 Day Avg. Volume: 1,252,694
• PEG Ratio: -0.46
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 5.22
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $22.38
• Price Target Upside: 17.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $21.00 ▲(10.47% Upside)

KT's overall stock score reflects strong earnings call performance and stable financials, offset by neutral technical indicators and moderate valuation. The company's growth initiatives, particularly in AI and cloud services, and shareholder-friendly actions enhance its attractiveness, despite some concerns over cash flow and debt levels.

Positive Factors

AI and IT Business Growth

The growth in AI and IT business indicates KT's successful expansion into high-demand technology sectors, enhancing its competitive edge and future revenue potential.

Cloud Business Expansion

Significant growth in cloud services showcases KT's ability to capitalize on increasing demand for cloud solutions, strengthening its market position and diversifying revenue streams.

Shareholder-Friendly Initiatives

The share buyback and dividend increase reflect KT's commitment to returning value to shareholders, potentially boosting investor confidence and long-term stockholder value.

Negative Factors

BC Card Revenue Decline

The decline in BC Card revenue highlights challenges in KT's financial services segment, potentially affecting overall revenue stability and growth.

Rising Debt Levels

Increased debt levels may strain KT's financial flexibility, impacting its ability to invest in growth initiatives and manage economic downturns effectively.

Operating Expense Increase

Rising operating expenses could pressure KT's profit margins, limiting its ability to improve profitability despite revenue growth.

KT Business Overview & Revenue Model

Company Description

KT Corporation, commonly known as KT, is a leading South Korean telecommunications company that provides a wide range of services including fixed-line and mobile telecommunications, broadband Internet, and digital media services. Established in 1981, KT operates in various sectors, including telecommunications infrastructure, information technology, and smart city solutions, positioning itself as a major player in the digital transformation and convergence of technologies.

How the Company Makes Money

KT generates revenue primarily through its telecommunications services, which include mobile and fixed-line voice services, broadband Internet, and data services. The company earns money from subscription fees for mobile plans and internet services, as well as from the sale of devices such as smartphones. Additionally, KT has diversified its revenue streams through its involvement in the IT services sector, offering cloud, big data, and IoT solutions to businesses. Significant partnerships with content providers and technology firms enhance its service offerings and create additional advertising and content revenue. Furthermore, KT invests in smart city projects and other infrastructure development, which can lead to long-term revenue generation through government contracts and public-private partnerships.

KT Financial Statement Overview

Summary

KT shows solid revenue growth and effective cost management with improving gross margins. However, declining net and operational margins highlight potential profitability challenges. The balance sheet reflects a stable leverage position, but reduced ROE suggests profitability issues. Cash flow is improving, but significant capital expenditures impact free cash flow.

Income Statement

KT has shown a steady revenue growth trajectory with a 5.2% increase from 2022 to 2023. The gross profit margin improved from 32.5% in 2023 to 34.6% in 2024, indicating better cost management. However, the net profit margin has declined to 1.8% in 2024 from 3.8% in 2023, suggesting increased expenses or lower operational efficiency. EBIT and EBITDA margins also saw declines, highlighting potential challenges in operational profitability.

Balance Sheet

KT maintains a stable financial position with a moderate debt-to-equity ratio of 0.71 in 2024, reflecting balanced leverage. Stockholders' equity remains robust, supporting an equity ratio of 38.7%, indicating strong asset backing. However, the overall asset base slightly decreased, and the return on equity dropped to 2.9%, suggesting reduced profitability from shareholder investments.

Cash Flow

Free cash flow showed significant growth, rising by 62% from 2023 to 2024, indicating improved cash generation. However, the operating cash flow to net income ratio is high, at 10.8, pointing towards strong cash flow relative to earnings, which may indicate non-operational adjustments. Despite this, the free cash flow to net income ratio is lower, suggesting significant capital expenditures impacting cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.50T	26.43T	26.29T	25.65T	24.90T	24.10T
Gross Profit	13.72T	9.15T	16.72T	9.63T	14.86T	9.83T
EBITDA	5.25T	4.24T	5.53T	5.86T	4.77T	4.38T
Net Income	974.87B	470.29B	993.33B	1.26T	1.36T	700.89B
Balance Sheet
Total Assets	42.19T	42.00T	42.79T	40.99T	37.16T	33.66T
Cash, Cash Equivalents and Short-Term Investments	3.79T	5.06T	4.32T	3.77T	4.21T	3.84T
Total Debt	10.75T	11.58T	11.40T	10.01T	8.44T	7.32T
Total Liabilities	23.32T	24.04T	24.25T	22.58T	20.59T	18.11T
Stockholders Equity	18.88T	16.18T	16.73T	16.61T	14.98T	14.01T
Cash Flow
Free Cash Flow	392.75B	2.16T	1.33T	-390.07B	1.31T	1.02T
Operating Cash Flow	4.52T	5.07T	5.50T	3.60T	5.56T	4.74T
Investing Cash Flow	-4.10T	-2.85T	-4.62T	-4.84T	-5.14T	-3.76T
Financing Cash Flow	-411.99B	-1.39T	-452.79B	669.33B	-41.28B	-647.59B

KT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KT, the sentiment is Negative. The current price of 19.01 is above the 20-day moving average (MA) of 18.74, below the 50-day MA of 19.37, and below the 200-day MA of 19.09, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 40.13 is Neutral, neither overbought nor oversold. The STOCH value of 31.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KT.

KT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	81 Outperform	$5.00B	11.43	7.38%	5.53%	19.25%	5.69%
TIMB	81 Outperform	$11.01B	17.38	14.93%	6.38%	-4.90%	14.83%
TLK	74 Outperform	$20.77B	15.22	15.54%	6.26%	-5.21%	-7.45%
KT	70 Outperform	$8.07B	13.77	5.22%	3.27%	-1.56%	-18.33%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	60 Neutral	$7.72B	19.11	―	4.96%	-8.16%	-51.97%
TEO	54 Neutral	$5.42B	―	-0.27%	1.69%	3.89%	-107.44%

KT Corporate Events

KT Corporation Announces Quarterly Cash Dividend for October 2025

On October 21, 2025, KT Corporation announced a decision to distribute a quarterly cash dividend of 600 KRW per common stock, with a total payment amounting to 144,657,037,800 KRW. The dividend yield is set at 1.2%, with the record date on November 5, 2025, and the payment date on November 20, 2025. This move, approved by the Board of Directors, reflects KT’s commitment to providing shareholder value and may positively impact investor sentiment.

KT Corporation Releases Positive Interim Financial Report for June 2025

On September 5, 2025, KT Corporation released its consolidated interim financial statements for the period ending June 30, 2025. The review, conducted by Deloitte Anjin LLC, found no significant issues, affirming the company’s stable financial position and performance. This report provides stakeholders with confidence in KT’s financial health and operational stability, reflecting positively on its market position.

KT Corporation Concludes Treasury Share Trust Agreement

On August 13, 2025, KT Corporation announced the termination of its treasury share trust agreement with Shinhan Securities Co., Ltd., involving a termination amount of 250 billion KRW. The agreement, which facilitated the acquisition of treasury shares, saw a total of 4,840,517 shares acquired, closely aligning with the planned amount. This move is part of KT’s strategic financial management, potentially impacting its shareholder value and market positioning.

KT Corporation Reports Strong Q2 2025 Financial Results

KT Corporation reported its second-quarter 2025 financial results, showcasing significant growth in operating profit, which increased by 105.4% year-over-year, driven by real estate projects and a diversified group portfolio. The company’s revenue also grew by 13.5% year-over-year, supported by telecom, real estate, and cloud/DC businesses. KT announced a shareholder return plan with a KRW 600 share dividend and a KRW 250 billion dividend amount. The company is advancing its AI capabilities, securing large-scale AI/IT project orders, and strengthening its competitive edge through partnerships, notably with Microsoft. These developments are expected to enhance KT’s industry positioning and provide value to its stakeholders.

KT Corporation Schedules Q2 2025 Earnings Call for August 11

KT Corporation announced that it will hold its 2025 Q2 Earnings Release Conference Call on August 11, 2025. The event will involve analysts and institutional investors, and will cover the earnings results for the second quarter of 2025, followed by a Q&A session. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction.