KT (KT) AI Stock Analysis

• Market Cap: $8.27B
• Dividend Yield: 4.16%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.33
• Revenue Growth: 0.63%
• EPS Growth: -21.51%
• Country: US
• Employees: 18,617
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.55
• Shares Outstanding: 504,043,370
• 10 Day Avg. Volume: 1,559,979
• 30 Day Avg. Volume: 1,314,915
• PEG Ratio: -0.45
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 5.22
• Enterprise Value/Market Cap: 1.84
• 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): 2.48
• Revenue Forecast (FY): $19.43B

• Rating: 68 Neutral
• Price Target: $20.00 ▲(5.21% Upside)

KT's overall stock score reflects stable financial performance and attractive valuation, tempered by mixed technical indicators and challenges highlighted in the earnings call. The company's strong revenue growth and dividend yield are significant positives, but potential risks from security issues and segment declines warrant caution.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates KT's expanding market reach and effective service offerings, supporting long-term business stability.

5G Subscriber Growth

High 5G penetration indicates strong adoption of advanced telecom services, positioning KT well in the evolving telecom landscape.

AICT Transformation Plan

The strategic shift towards AICT aims to enhance profitability and competitiveness, ensuring KT's relevance in future tech markets.

Negative Factors

Security Breach

Security issues can undermine customer trust and lead to increased costs for compensation and security enhancements, impacting profitability.

AI and IT Business Revenue Decline

A decline in AI and IT revenue suggests challenges in these segments, potentially affecting KT's growth in tech-driven markets.

Rising Debt Levels

Increased debt levels can strain financial resources and limit flexibility, posing risks to KT's long-term financial health.

KT Business Overview & Revenue Model

Company Description

KT Corporation, commonly known as KT, is a South Korean telecommunications company that provides a wide range of services including fixed-line and mobile telecommunications, broadband internet, and digital media services. As one of the leading telecom operators in South Korea, KT plays a crucial role in the country's ICT sector, offering services such as 5G mobile networks, Internet of Things (IoT) solutions, and cloud services. The company is also involved in smart city initiatives and various digital transformation projects, catering to both residential and enterprise customers.

How the Company Makes Money

KT generates revenue primarily through its telecommunications services, which include subscription fees from mobile and fixed-line phone services, broadband internet access, and data services. Key revenue streams include monthly charges from mobile users, fees for internet service subscriptions, and enterprise solutions. Additionally, KT earns income from value-added services such as cloud computing, IoT solutions, and digital content. The company benefits from partnerships with technology firms and content providers that enhance its service offerings. Moreover, government contracts and investments in smart city projects contribute to its earnings, as KT collaborates with municipal governments to implement advanced ICT solutions.

KT Financial Statement Overview

Summary

KT demonstrates stable financial performance with consistent revenue growth and efficient operations. However, there are areas for improvement in profitability and cash flow generation. The balance sheet shows moderate leverage, and the cash flow statement indicates concerns with declining free cash flow.

Income Statement

KT's income statement shows a solid performance with a consistent revenue growth rate of 3.31% in the TTM period. The gross profit margin improved significantly to 49.88%, indicating efficient cost management. However, the net profit margin remains relatively low at 3.54%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have shown positive trends, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.57, indicating moderate leverage. The return on equity is 5.65%, showing a reasonable return for shareholders, though it has room for enhancement. The equity ratio stands at 44.73%, suggesting a balanced capital structure.

Cash Flow

KT's cash flow statement reveals a decline in free cash flow growth by 23.26% in the TTM period, which could be a concern. The operating cash flow to net income ratio is 0.37, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio is low at 0.08, suggesting limited free cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.97T	26.43T	26.29T	25.65T	24.90T	24.10T
Gross Profit	14.53T	9.15T	16.72T	9.63T	14.86T	9.83T
EBITDA	5.18T	4.24T	5.53T	5.86T	4.77T	4.38T
Net Income	1.02T	470.29B	993.33B	1.26T	1.36T	700.89B
Balance Sheet
Total Assets	43.01T	42.00T	42.79T	40.99T	37.16T	33.66T
Cash, Cash Equivalents and Short-Term Investments	3.89T	5.06T	4.32T	3.77T	4.21T	3.84T
Total Debt	10.53T	11.58T	11.40T	10.01T	8.44T	7.32T
Total Liabilities	23.75T	24.04T	24.25T	22.58T	20.59T	18.11T
Stockholders Equity	19.26T	16.18T	16.73T	16.61T	14.98T	14.01T
Cash Flow
Free Cash Flow	695.09B	2.16T	1.33T	-390.07B	1.31T	1.02T
Operating Cash Flow	4.62T	5.07T	5.50T	3.60T	5.56T	4.74T
Investing Cash Flow	-4.29T	-2.85T	-4.62T	-4.84T	-5.14T	-3.76T
Financing Cash Flow	-392.95B	-1.39T	-452.79B	669.33B	-41.28B	-647.59B

KT Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KT, the sentiment is Neutral. The current price of 19.01 is above the 20-day moving average (MA) of 18.17, above the 50-day MA of 18.72, and below the 200-day MA of 19.17, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 93.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KT.

KT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	81 Outperform	$11.47B	16.00	14.93%	7.08%	-4.90%	14.83%
TLK	75 Outperform	$21.73B	16.27	15.54%	5.86%	-5.21%	-7.45%
TKC	74 Outperform	$5.00B	11.43	7.60%	5.71%	19.02%	9.26%
KT	68 Neutral	$8.27B	13.25	5.26%	4.16%	0.63%	-21.51%
TEO	61 Neutral	$5.66B	―	-2.95%	0.36%	15.38%	-292.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	60 Neutral	$7.76B	19.61	4.72%	4.94%	-8.16%	-52.52%

KT Corporate Events

KT Corporation’s Financial Stability Confirmed in Latest Review

KT Corporation released its consolidated interim financial statements for the period ending September 30, 2025, reviewed by Deloitte Anjin LLC. The report indicates no material misstatements, suggesting a stable financial position and performance for the company. This review, dated November 14, 2025, provides stakeholders with confidence in KT’s financial health, reflecting positively on its industry positioning.

KT Corporation Unveils Ambitious AICT Transformation Plan

On November 11, 2025, KT Corporation announced its Corporate Value-Up Plan, aiming to transform into an AICT (AI and ICT) company by 2028. The plan includes tripling AI/IT revenue from 2023 levels, enhancing profitability, and optimizing assets. KT has already strengthened its AI capabilities through strategic partnerships and aims to achieve a consolidated ROE of 9-10%. The company plans to liquidate non-core assets and conduct share buybacks to enhance capital efficiency. This strategic shift has already resulted in a 55% increase in market capitalization since early 2023, positioning KT as a competitive player in the global tech landscape.

KT Corporation Reports Strong Q3 2025 Results with Revenue and Profit Growth

KT Corporation reported a 7.1% year-over-year increase in revenue for the third quarter of 2025, driven by growth in its telecom, real estate, and cloud/data center businesses. The company’s operating profit rose by 16.0%, reflecting efforts to enhance profitability and gains from real estate development. KT has also launched new AI models and strengthened its security measures following hacking incidents, with plans to invest KRW 1 trillion over five years in security. The company announced a dividend payment scheduled for November 20, 2025, and is focusing on integrating AI into its core business areas to accelerate growth.

KT Corporation to Discuss Q3 2025 Earnings in Upcoming Conference Call

KT Corporation has announced a conference call scheduled for November 7, 2025, to discuss its financial results for the third quarter of 2025. The call will involve analysts and institutional investors, providing insights into the company’s performance and future outlook. This event is significant for stakeholders as it will offer detailed information on KT’s earnings and strategic direction, potentially impacting investor decisions and market perceptions.

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.