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
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