Why KT Corp (KT) Stock Is A Buy? Acquirer’s Multiple Stock Screener Analysis

As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.

One of the cheapest stocks in our Stock Screeners is:

KT Corp (KT)

KT is South Korea’s largest fixed-line telecom operator, with around 9.0 million fixed-line broadband customers and 9.4 million IPTV customers, and is the second-largest wireless operator with 25 million subscribers. Additionally, it has a number of nontelecom businesses, including real estate, payment processing, artificial intelligence, and IDC/cloud services, many of which are the focus of its growth strategy. The company was formed from the previously government-owned, monopoly telecom business and was listed in 1998. After selling its mobile business in 1994 (forming its mobile competitor, SK Telecom) KT created its own mobile operator in 1997.

A quick look at the share price history (below) over the past twelve months shows that the price is up 10.92%. Here’s why the company is undervalued.

Source: Google Finance

Key Stats

Market Cap: $6.56 Billion

Enterprise Value: $13.03 Billion

Operating Earnings

Operating Earnings: $1.19 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 10.90

Free Cash Flow (TTM)

Free Cash Flow: $1.69 Billion

FCF/MC Yield %:

FCF/MC Yield: 25.07

Shareholder Yield %:

Shareholder Yield: 8.10

Other Indicators

Piotroski F Score: 6.00

Dividend Yield: 6.10

ROA (5 Year Avge%): 4