NEW YORK ( TheStreet) -- KT Corporation (NYSE: KT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good. Highlights from the ratings report include:
- The gross profit margin for KT CORP is rather high; currently it is at 68.60%. It has increased significantly from the same period last year.
- The debt-to-equity ratio is somewhat low, currently at 0.88, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.77 is somewhat weak and could be cause for future problems.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Diversified Telecommunication Services industry average, but is less than that of the S&P 500. The net income has significantly decreased by 79.9% when compared to the same quarter one year ago, falling from $1,033.08 million to $207.29 million.
- KT CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, KT CORP increased its bottom line by earning $2.44 versus $2.12 in the prior year. For the next year, the market is expecting a contraction of 7.8% in earnings ($2.25 versus $2.44).
-- Written by a member of TheStreet RatingsStaff