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KT
(NYSE:KT)
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Rating:68Neutral
Price Target:
$20.50
▲(10.45% Upside)
Action:Reiterated
Date:06/11/26
The score is driven by improving financial performance (revenue acceleration and profitability rebound) and attractive valuation (low P/E and solid dividend yield). Offsetting these positives are weaker technicals (below key moving averages with negative MACD) and uneven cash-flow conversion/consistency.
Positive Factors
Revenue Acceleration
A sharp top-line acceleration (48.1% TTM) reflects stronger underlying demand and effective monetization across wireless, broadband and IPTV. Durable revenue growth improves scale, supports network investment and makes recurring-subscription cash flows a more reliable base for medium-term profitability.
Negative Factors
Weak FCF Conversion
Free-cash-flow conversion is modest and volatile, with FCF ≈43% of net income and history of negative FCF. Persistent working-capital and capex demands can constrain reinvestment, reduce buffer for cyclical earnings, and limit sustainable dividend/buyback capacity during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Acceleration
A sharp top-line acceleration (48.1% TTM) reflects stronger underlying demand and effective monetization across wireless, broadband and IPTV. Durable revenue growth improves scale, supports network investment and makes recurring-subscription cash flows a more reliable base for medium-term profitability.
Read all positive factors
KT (KT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.98B
Dividend Yield4.32%
Average Volume (3M)1.44M
Price to Earnings (P/E)9.2
Beta (1Y)0.24
Revenue Growth5.40%
EPS Growth37.27%
CountryUS
Employees14,701
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)3169.00
Shares Outstanding504,043,370
10 Day Avg. Volume1,280,999
30 Day Avg. Volume1,436,374
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.78
Price to Sales (P/S)0.49
P/FCF Ratio10.10
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.97
Revenue Forecast (FY)$18.69B
KT Business Overview & Revenue Model
Company Description
KT Corporation provides integrated telecommunications and platform services in South Korea, rest of Asia, and internationally. The company offers mobile voice and data telecommunications services based on 5G, 4G LTE and 3G W-CDMA technology; fixed...
How the Company Makes Money
KT primarily generates revenue by selling telecommunications and connectivity services on a recurring subscription and usage basis. Key revenue streams include: (1) Wireless/mobile services: monthly service fees from postpaid subscribers, prepaid ...
KT Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operational and strategic positives (subscriber growth, 5G penetration, broadband/media gains, a strong KT Estate quarter, a clear AX platform strategy, shareholder returns policy and AIDC ambitions) are counterbalanced by meaningful near-term financial weaknesses—notably a sharp decline in operating income, net income and EBITDA, plus rising operating expenses and B2B softness. Management emphasized expense discipline, continued investments in AX and data center capacity targets, and maintained shareholder-return commitments, but the sizable profit contractions and execution risks around AIDC and expense amortization temper the outlook.Positive Updates
Shareholder Return Policy & Buyback
Announced new midterm shareholder return policy (2026-2028) to allocate 50% of stand-alone adjusted net income for returns; 2026 annual dividend per share set at a minimum KRW 2,400 with Q1 dividend of KRW 600; share buyback program of KRW 250 billion to be completed by September 2026.
Negative Updates
Significant Decline in Profitability
Operating income fell 29.9% Y-o-Y to KRW 482.7 billion; net income declined 31.5% Y-o-Y to KRW 388.3 billion; EBITDA decreased 13.1% to KRW 1,440 billion; operating revenue down 1.0% Y-o-Y to KRW 6,778.4 billion.
Read all updates
Q1-2026 Updates
Positive
Negative
Shareholder Return Policy & Buyback
Announced new midterm shareholder return policy (2026-2028) to allocate 50% of stand-alone adjusted net income for returns; 2026 annual dividend per share set at a minimum KRW 2,400 with Q1 dividend of KRW 600; share buyback program of KRW 250 billion to be completed by September 2026.
Read all positive updates
Company Guidance
Management guided a continuation of the prior shareholder return policy (2026–2028) of returning 50% of stand‑alone adjusted net income, with a minimum 2026 dividend of KRW 2,400 per share (Q1 DPS KRW 600; record date May 27, payment June 11) and a KRW 250 billion buyback to be completed by September. Q1 financials: operating revenue KRW 6,778.4 billion (‑1.0% YoY), operating income KRW 482.7 billion (‑29.9%), net income KRW 388.3 billion (‑31.5%), EBITDA KRW 1,440 billion (‑13.1%), and operating expenses KRW 6,295.7 billion (+2.3%). Balance sheet and investment: debt‑to‑equity 117.6%, net D/E 39.9% (‑3.9 pp YoY), total CapEx KRW 363.7 billion (stand‑alone KRW 304.2 billion; subsidiaries KRW 59.5 billion). Business KPIs: wireless revenue KRW 1,683 billion (+0.4%), subscribers 29.16 million (+2.72m YoY), 5G penetration 82.7%; broadband KRW 640.2 billion (+1.8%); media +1.3%; B2B ‑2.2%; KT Cloud KRW 250.1 billion; KT Estate KRW 237.4 billion (+72.9%); content +1.9%. Targets/expectations: aim to restore adjusted operating income to ~KRW 1.5 trillion, double‑digit revenue growth at KT Cloud, strict Q2 cost control (focus on sales costs), and a ~500 MW AIDC capacity goal within five years.KT Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.19T | 28.25T | 26.38T | 26.29T | 25.64T | 24.90T |
| Gross Profit | 17.92T | 18.10T | 17.02T | 16.72T | 15.90T | 14.86T |
| EBITDA | 6.50T | 6.70T | 4.88T | 5.53T | 5.90T | 5.89T |
| Net Income | 1.53T | 1.72T | 459.86B | 993.33B | 1.26T | 1.36T |
Balance Sheet | ||||||
| Total Assets | 42.87T | 42.95T | 42.01T | 42.78T | 40.64T | 37.14T |
| Cash, Cash Equivalents and Short-Term Investments | 4.64T | 5.02T | 4.89T | 4.27T | 3.70T | 4.17T |
| Total Debt | 12.05T | 12.21T | 11.62T | 11.39T | 11.08T | 9.59T |
| Total Liabilities | 23.17T | 23.49T | 23.96T | 24.24T | 22.38T | 20.58T |
| Stockholders Equity | 17.92T | 17.65T | 16.26T | 16.72T | 16.47T | 14.97T |
Cash Flow | ||||||
| Free Cash Flow | 2.04T | 1.36T | 2.16T | 1.33T | -390.07B | 1.31T |
| Operating Cash Flow | 4.98T | 5.01T | 5.07T | 5.50T | 3.60T | 5.56T |
| Investing Cash Flow | -4.00T | -4.56T | -2.85T | -4.62T | -4.84T | -5.14T |
| Financing Cash Flow | -1.27T | -655.68B | -1.39T | -452.79B | 669.33B | -41.28B |
KT Technical Analysis
Positive
18.56
Price Trends
18.16
Positive
19.49
Negative
19.80
Negative
Market Momentum
0.14
Negative
60.53
Neutral
73.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KT, the sentiment is Positive. The current price of 18.56 is above the 20-day moving average (MA) of 18.35, above the 50-day MA of 18.16, and below the 200-day MA of 19.80, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.53 is Neutral, neither overbought nor oversold. The STOCH value of 73.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KT.
KT Risk Analysis
KT disclosed 26 risk factors in its most recent earnings report. KT reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KT Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.16B | 12.56 | 5.46% | 0.33% | 33.24% | ― | |
71 Outperform | $14.38B | 14.95 | 13.16% | 8.52% | -3.37% | -27.49% | |
70 Outperform | $8.62B | 9.97 | 17.54% | 6.52% | 13.99% | 29.93% | |
68 Neutral | $8.98B | 9.22 | 8.77% | 4.42% | 5.40% | 37.27% | |
62 Neutral | $13.10B | 27.56 | 6.07% | 1.78% | -7.65% | -31.60% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $4.75B | 12.07 | 7.27% | 4.01% | 18.57% | 5.36% |
* Communication Services Sector Average
KT
KT
19.12
-1.47
-7.14%
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TIMB
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KT Corporate Events
KT Sets July 29 Record Date for Quarterly Dividend
Jul 14, 2026
KT Corporation announced on July 14, 2026, that its board of directors has set July 29, 2026, as the record date for determining shareholders entitled to receive its quarterly cash dividend. The decision was made in accordance with Article 49-2 of...
KT Corporation Board Approves Quarterly Cash Dividend for July 2026
Jul 14, 2026
KT Corporation’s board of directors resolved on July 14, 2026 to declare a quarterly cash dividend to shareholders, underscoring its ongoing commitment to shareholder returns. The decision, which does not require a general shareholders’...
KT Corporation Moves to Reacquire Treasury Shares Tied to Long-Term Incentives
Jul 14, 2026
On July 14, 2026, KT Corporation’s board approved the acquisition of 3,532 treasury shares, with an estimated transaction value of KRW 186.1 million based on the prior day’s closing price. The shares, to be bought over the counter betw...
KT Corporation to Dispose Treasury Shares for RSU Grant on July 24, 2026
Jul 14, 2026
KT Corporation’s board resolved on July 14, 2026, to dispose of 3,109 treasury common shares via an over-the-counter transaction, scheduled for July 24, 2026, at a reference price of KRW 52,700 per share, implying an estimated total of KRW 1...
KT Unveils Multi-Trillion Won AX Platform Strategy to Power AI and Network Growth
Jul 6, 2026
KT Corporation has unveiled a mid-term growth strategy to transform itself into an “AX Platform Company,” outlining an implementation period running from January 1, 2026, to December 31, 2031. The plan is designed to reinforce its core...
KT Corporation Details April–May 2026 Share Buybacks Under Repurchase Trust
Jun 10, 2026
KT Corporation reported that, under a share repurchase trust agreement with NH Investment Securities dated March 10, 2026, it bought back its own common shares on the market throughout April and early May 2026. The purchases, typically around 40,...
KT Corporation Posts Lower Q1 2026 Profit as Auditor Confirms Compliance with Korean IFRS
May 29, 2026
KT Corporation has filed its May 2026 Form 6-K with the U.S. Securities and Exchange Commission, providing investors with independently reviewed condensed consolidated and separate interim financial statements for the quarter ended March 31, 2026....
KT Sets FY2026–FY2028 Shareholder Return Policy Tied to Net Income
May 12, 2026
KT Corporation, the South Korean telecommunications operator, has announced a new shareholder return policy for fiscal years 2026 through 2028, as disclosed in a Form 6-K dated May 12, 2026. The company plans to base shareholder returns on 50% of ...
KT Sets May 27, 2026 Record Date for Quarterly Dividend Eligibility
May 12, 2026
KT Corporation’s board of directors on May 12, 2026, approved the setting of May 27, 2026, as the record date for determining shareholders eligible to receive a quarterly cash dividend. All seven outside directors were present, and the move ...
KT Corporation Board Approves Quarterly Cash Dividend for May 2026
May 12, 2026
KT Corporation’s board of directors on May 12, 2026 approved a quarterly cash dividend for common shareholders, reflecting its continued focus on shareholder returns within the telecom sector. The decision underscores the company’s pra...
KT Corporation Posts Lower Q1 2026 Profit but Boosts Dividends and Buybacks
May 12, 2026
KT Corporation reported its first-quarter 2026 results on May 12, 2026, showing consolidated revenue of KRW 6.78 trillion, down 1.0% year on year, and operating profit of KRW 482.7 billion, down 29.9% due mainly to a high base from a prior real es...
KT to Hold May 12 Conference Call on Q1 2026 Earnings
May 4, 2026
KT Corporation has scheduled a conference call for May 12, 2026, at 15:00 KST to present its financial results for the first quarter of 2026 to analysts and institutional investors. The company plans to release detailed investor relations material...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.