KT (KT) AI Stock Analysis

• Market Cap: $8.74B
• Dividend Yield: 3.11%
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.33
• Revenue Growth: -1.56%
• EPS Growth: -18.33%
• Country: US
• Employees: 18,617
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.01
• Shares Outstanding: 504,043,370
• 10 Day Avg. Volume: 1,464,475
• 30 Day Avg. Volume: 1,579,695
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $22.19
• Price Target Upside: 13.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $22.00 ▲(12.88% Upside)

KT's overall stock score is driven by strong earnings call results, highlighting significant revenue and profit growth, and shareholder-friendly initiatives. Financial performance shows solid revenue growth but faces profitability challenges. Technical analysis indicates a bearish trend, while valuation remains fair with an attractive dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates KT's expanding market presence and effective business strategies, enhancing its competitive position.

AI and IT Business Expansion

Growth in AI and IT sectors positions KT as a leader in digital transformation, leveraging technology for long-term competitive advantage.

Cloud Business Expansion

Expansion in cloud services strengthens KT's portfolio, capitalizing on rising demand for data solutions and enhancing revenue streams.

Negative Factors

Declining Profit Margins

Decreasing profit margins may indicate rising costs or inefficiencies, potentially impacting KT's long-term profitability and competitiveness.

Rising Debt Levels

Increased debt levels can strain KT's financial flexibility, potentially limiting investment in growth initiatives and affecting financial stability.

BC Card Revenue Decline

Declining revenue in BC Card could signal challenges in KT's payment services, affecting overall revenue diversification and growth potential.

KT Business Overview & Revenue Model

Company Description

KT Corporation provides integrated telecommunications and platform services in Korea and internationally. The company offers fixed-line telephone services, including local, domestic long-distance, international long-distance, and voice over Internet protocol telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services; and data communication services, such as fixed-line and leased line services, as well as broadband Internet connection services. It also provides media and content services, including IPTV, satellite TV, digital music, e-commerce, online advertising consulting, and digital comics and novels services; 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; offers 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, technology business finance, software development and supply, submarine cable construction and maintenance, and trunk radio systems businesses. As of December 31, 2020, the company served approximately 22.3 million mobile subscribers and 8.8 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.

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 improved gross margins, but declining net and operational margins indicate profitability challenges. The balance sheet is stable with moderate leverage, though 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	26.62T	26.43T	26.29T	25.65T	24.90T	24.10T
Gross Profit	13.34T	9.15T	9.87T	15.91T	14.86T	14.13T
EBITDA	4.72T	4.24T	5.53T	5.86T	5.73T	4.87T
Net Income	661.55B	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	3.13T	5.06T	4.32T	3.77T	4.21T	3.84T
Total Debt	11.17T	11.58T	11.40T	10.01T	8.44T	7.32T
Total Liabilities	23.85T	24.04T	24.25T	22.58T	20.59T	18.11T
Stockholders Equity	18.34T	16.18T	16.73T	16.61T	14.98T	14.01T
Cash Flow
Free Cash Flow	511.80B	2.16T	1.33T	-390.07B	1.31T	1.02T
Operating Cash Flow	4.58T	5.07T	5.50T	3.60T	5.56T	4.74T
Investing Cash Flow	-4.06T	-2.85T	-4.62T	-4.84T	-5.14T	-3.76T
Financing Cash Flow	-562.02B	-1.39T	-452.79B	669.33B	-41.28B	-647.59B

KT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 19.49 is below the 20-day moving average (MA) of 19.92, below the 50-day MA of 20.31, and above the 200-day MA of 18.65, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 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
TIMB	79 Outperform	10.44B	16.84	14.43%	5.51%	-7.99%	2.16%
TKC	79 Outperform	5.24B	12.06	11.17%	5.32%	19.25%	5.69%
TLK	74 Outperform	18.70B	13.55	17.30%	6.75%	-5.13%	-5.90%
KT	72 Outperform	$8.74B	14.45	5.22%	3.11%	-1.56%	-18.33%
SKM	67 Neutral	8.38B	11.78	11.13%	4.31%	-4.74%	-16.57%
TEO	54 Neutral	3.40B	-231.00	18.66%	2.68%	3.89%	-107.44%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

KT Corporate Events

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.

KT Corporation Sets Record Date for Quarterly Dividend

On July 15, 2025, KT Corporation’s Board of Directors resolved to set July 30, 2025, as the record date for determining shareholders entitled to receive the company’s quarterly dividend. This decision aligns with Article 49-2 of the company’s Articles of Incorporation, ensuring that shareholders of record will be determined based solely on the record date without closing the shareholders’ register. The resolution was unanimously supported by all eight outside directors, who also comprise the company’s Audit Committee.

KT Corporation Announces Quarterly Cash Dividend for July 2025

On July 15, 2025, KT Corporation announced a quarterly cash dividend of 600 KRW per share, with a total dividend payment of 144,657,523,800 KRW. The dividend yield for common stock is 1.1%, and the record date is set for July 30, 2025, with the payment date on August 14, 2025. The decision was approved by the Board of Directors with full attendance of outside directors, and no general shareholders’ meeting will be held. The company has been repurchasing treasury shares since February 14, 2025, which may affect the total number of shares eligible for the dividend.

KT Corporation Updates Dividend Record Date Procedure

On June 24, 2025, KT Corporation announced an amendment to its Articles of Incorporation regarding the procedure for setting quarterly dividend record dates. This change, approved at the Annual General Meeting on March 31, 2025, allows the Board of Directors to determine the record dates after confirming dividend amounts, providing shareholders with prior knowledge for investment decisions. The new procedure replaces the previous fixed dates of March 31, June 30, and September 30, with dates now set by the Board. Shareholders holding shares on June 30, 2025, must also hold shares on the official record date, yet to be announced, to receive the Q2 2025 dividend.

KT Corporation Releases Q1 2025 Financial Statements

On June 17, 2025, KT Corporation released its consolidated interim financial statements for the period ending March 31, 2025, which were reviewed by Deloitte Anjin LLC. The review concluded that the financial statements fairly represent the company’s financial position and performance in accordance with Korean International Financial Reporting Standards. This announcement underscores KT Corporation’s commitment to transparency and compliance, potentially reinforcing stakeholder confidence and solidifying its industry position.