# KT&G (033780.KO)

Canonical: https://gigainvestors.com/s/033780.KO

Analysis as of: 2026-10-16T07:35:12.388Z. Financial observations: FY2000–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 189,000.00 per share; close as of 2026-10-15.

Estimated value: low KRW 120,590.95 per share, central KRW 135,988.99 per share, high KRW 155,642.80 per share. Buy at or below the central value KRW 135,988.99 per share. Valuation as of 2026-10-16T07:35:12.388Z; scenarios are not confidence intervals.

Expected annual return: 7.8% at the stated quote. About 7.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.31×

- FY2018: 0.28×

- FY2019: 0.28×

- FY2020: 0.28×

- FY2021: 0.26×

- FY2022: 0.22×

- FY2023: 0.20×

- FY2024: 0.20×

- FY2025: 0.20×

- LTM to Jun 2026: 0.21×

### moat: fail

- ROIC median below threshold

- Recent gross margin fell 7.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 14.5%

- ROIC, second-lowest year: 10.3%

- Typical minus recent gross margin: 7.7 pp

- Typical gross margin (annual median): 55.5%

- Recent gross margin (lower of latest and 3-year median): 47.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.8%

- ROIC including acquisitions, ten-year median: 12.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 24.0%

- FY2017: 23.6%

- FY2018: 15.2%

- FY2019: 15.7%

- FY2020: 16.3%

- FY2021: 13.7%

- FY2022: 12.0%

- FY2023: 10.7%

- FY2024: 10.0%

- FY2025: 10.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.79×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 4.06T

- Net income, five-year total: KRW 5.15T

- Return on incremental invested capital: 0.6%

- Working capital / revenue, annual change: -1.3 pp

- Working capital / revenue, change between three-year averages: -9.0 pp

- Working capital / revenue, final three-year average: 67.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.87×

- FY2022: 0.99×

- FY2023: 0.69×

- FY2024: 0.53×

- FY2025: 0.87×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 23.6% vs 10.3%

- Per-share earnings: 7140.93 to 10220.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -3.0%

- Market cap gain: KRW -11.66T

- Cumulative retained earnings: KRW 1.82T

- Diluted shares, 5-year annual growth: -3.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.2%

- Per-share value change: KRW 3K

- Per-share value, starting three-year median: KRW 7K

- Per-share value, ending three-year median: KRW 10K

- Buybacks concentrated in cheaper years (correlation): -0.31

- Average buyback yield: 3.4%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: KRW 95B

- Cumulative net income, 10 years: KRW 10.66T

- ROIC, first three-year median: 23.6%

- ROIC, last three-year median: 10.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: KRW 5K

- FY2018: KRW 7K

- FY2019: KRW 8K

- FY2020: KRW 9K

- FY2021: KRW 8K

- FY2022: KRW 8K

- FY2023: KRW 8K

- FY2024: KRW 10K

- FY2025: KRW 10K

### accounting: pass

- Sloan accruals: 3.6%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.53×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.6%

- FY2017: 0.2%

- FY2018: 0.8%

- FY2019: -0.1%

- FY2020: -0.8%

- FY2021: -3.8%

- FY2022: 1.0%

- FY2023: -2.8%

- FY2024: 2.5%

- FY2025: 3.6%

## Holders

## Price story

Price needs cash profits to grow 5.6% a year for ten years · sales +5.6%

Story as of 2026-10-16T10:00:04.085Z; price observation 2026-10-15.

Price needs cash profits to grow 5.6% a year for ten years

### Sales · FY2025–2026

sales +5.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 4.67T 

- FY2018: KRW 4.47T 

- FY2019: KRW 4.96T 

- FY2020: KRW 5.30T 

- FY2021: KRW 5.23T 

- FY2022: KRW 5.85T 

- FY2023: KRW 5.86T 

- FY2024: KRW 5.91T 

- FY2025: KRW 6.58T 

- FY2026: KRW 6.95T 

### Gross margin · FY2025

gross margin 47.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 60.1% 

- FY2017: 59.1% 

- FY2018: 58.9% 

- FY2019: 57.9% 

- FY2020: 56.0% 

- FY2021: 55.0% 

- FY2022: 50.6% 

- FY2023: 47.9% 

- FY2024: 49.1% 

- FY2025: 47.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in tobacco; annual sales are KRW 6.6 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2025: revenue 6579707000000; grossProfit 3144395000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 033780.KO: KT&G Corporation, together with its subsidiaries, engages in the production, distribution, and sale of tobacco products in South Korea, Europe, and internationally. It provides reconstituent tobacco sheets, red ginseng, red ginseng products, other health foods, food and beverage products, health functional food products, and cosmetic and related products. The company also offers leaf tobacco cultivation support services; and develops, manufactures, and distributes drugs, bio-pharmaceuticals, over-the-counter medicines, and medical supplies and equipment. In addition, it engages in the trading, real estate, leasing, and housing businesses. Further, the company engages in hotel development and management activities. The company was formerly known as Korea Tobacco and Ginseng Corporation and changed its name to KT&G Corporation in December 2002. KT&G Corporation was founded in 1987 and is headquartered in Daejeon, South Korea.

### Why customers stay

Margins ranged from 47.8% to 49.1% during 2023–25; it earns 14.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2023: grossProfit / revenue = 47.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2024: grossProfit / revenue = 49.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2025: grossProfit / revenue = 47.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); 10-year return on capital observations [[2016,0.23978907279290362],[2017,0.23609527946805492],[2018,0.15249832789725934],[2019,0.15696873125385566],[2020,0.16339664161580764],[2021,0.13685812331878341],[2022,0.11966381562485419],[2023,0.10716559035064689],[2024,0.09983515979663882],[2025,0.10345551265367534]]; median 0.14467822560802138. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 27.2% of cash earnings on expansion; earns 0.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2016: growth capex 0; upkeep 170966657510; owner earnings 1317846746060. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2017: growth capex 0; upkeep 319949739150; owner earnings 821535331850. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2018: growth capex 0; upkeep 393869913940; owner earnings 659608522180. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2019: growth capex 178242596285.16418; upkeep 300290802954.8358; owner earnings 912745026123.1642. Growth capex / owner earnings = 0.19528191464624037.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2020: growth capex 99418501510; upkeep 203321000000; owner earnings 1162592721324. Growth capex / owner earnings = 0.08551447096346762.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2021: growth capex 0; upkeep 334273929940; owner earnings 852833220324. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2022: growth capex 47127766240; upkeep 225455000000; owner earnings 1008263099264. Growth capex / owner earnings = 0.0467415362859176.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2023: growth capex 3859323363.9052734; upkeep 510962676636.0947; owner earnings 623476723363.9053. Growth capex / owner earnings = 0.006190003923615121.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2024: growth capex 16807402310.531738; upkeep 783534597689.4683; owner earnings 622703202310.5317. Growth capex / owner earnings = 0.026991032402223246.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2025: growth capex 258262072754.69727; upkeep 422061927245.30273; owner earnings 949235272754.6973. Growth capex / owner earnings = 0.2720738263394029.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); Incremental return on capital 0.006225749111402612, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); Dividend observations: [[2016,428284032800],[2017,454554457000],[2018,505060508000],[2019,505060508000],[2020,556951661200],[2021,595583630400],[2022,575903630400],[2023,776434000000],[2024,586620000000],[2025,603832000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); FY2025: cash repurchases 560112000000 KRW.

### Are managers owners

Insiders own 5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 033780.KO SharesStats.PercentInsiders = 5.048 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:12.388Z); Ten-year compound average after fade. Initial solved rate 0.06707279275960765. Price 189000; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 113,000.00 per share

- 2016-11: KRW 105,000.00 per share

- 2016-12: KRW 101,000.00 per share

- 2017-01: KRW 100,500.00 per share

- 2017-02: KRW 102,500.00 per share

- 2017-03: KRW 97,500.00 per share

- 2017-04: KRW 101,500.00 per share

- 2017-05: KRW 111,000.00 per share

- 2017-06: KRW 117,000.00 per share

- 2017-07: KRW 114,000.00 per share

- 2017-08: KRW 114,500.00 per share

- 2017-09: KRW 105,500.00 per share

- 2017-10: KRW 106,000.00 per share

- 2017-11: KRW 122,000.00 per share

- 2017-12: KRW 115,500.00 per share

- 2018-01: KRW 106,500.00 per share

- 2018-02: KRW 99,800.00 per share

- 2018-03: KRW 100,000.00 per share

- 2018-04: KRW 97,800.00 per share

- 2018-05: KRW 96,000.00 per share

- 2018-06: KRW 107,000.00 per share

- 2018-07: KRW 110,500.00 per share

- 2018-08: KRW 101,000.00 per share

- 2018-09: KRW 104,000.00 per share

- 2018-10: KRW 101,500.00 per share

- 2018-11: KRW 104,000.00 per share

- 2018-12: KRW 101,500.00 per share

- 2019-01: KRW 99,100.00 per share

- 2019-02: KRW 105,500.00 per share

- 2019-03: KRW 103,500.00 per share

- 2019-04: KRW 102,000.00 per share

- 2019-05: KRW 101,000.00 per share

- 2019-06: KRW 98,500.00 per share

- 2019-07: KRW 96,300.00 per share

- 2019-08: KRW 102,000.00 per share

- 2019-09: KRW 105,500.00 per share

- 2019-10: KRW 100,000.00 per share

- 2019-11: KRW 97,800.00 per share

- 2019-12: KRW 93,800.00 per share

- 2020-01: KRW 95,100.00 per share

- 2020-02: KRW 84,700.00 per share

- 2020-03: KRW 74,700.00 per share

- 2020-04: KRW 81,100.00 per share

- 2020-05: KRW 83,900.00 per share

- 2020-06: KRW 78,200.00 per share

- 2020-07: KRW 80,900.00 per share

- 2020-08: KRW 83,100.00 per share

- 2020-09: KRW 82,400.00 per share

- 2020-10: KRW 81,000.00 per share

- 2020-11: KRW 82,500.00 per share

- 2020-12: KRW 83,100.00 per share

- 2021-01: KRW 80,200.00 per share

- 2021-02: KRW 78,300.00 per share

- 2021-03: KRW 81,400.00 per share

- 2021-04: KRW 82,400.00 per share

- 2021-05: KRW 84,300.00 per share

- 2021-06: KRW 84,400.00 per share

- 2021-07: KRW 82,300.00 per share

- 2021-08: KRW 81,600.00 per share

- 2021-09: KRW 81,200.00 per share

- 2021-10: KRW 81,100.00 per share

- 2021-11: KRW 81,900.00 per share

- 2021-12: KRW 79,000.00 per share

- 2022-01: KRW 77,600.00 per share

- 2022-02: KRW 79,900.00 per share

- 2022-03: KRW 80,700.00 per share

- 2022-04: KRW 82,600.00 per share

- 2022-05: KRW 85,000.00 per share

- 2022-06: KRW 82,200.00 per share

- 2022-07: KRW 81,900.00 per share

- 2022-08: KRW 83,200.00 per share

- 2022-09: KRW 86,600.00 per share

- 2022-10: KRW 95,700.00 per share

- 2022-11: KRW 99,900.00 per share

- 2022-12: KRW 91,500.00 per share

- 2023-01: KRW 92,500.00 per share

- 2023-02: KRW 88,700.00 per share

- 2023-03: KRW 83,900.00 per share

- 2023-04: KRW 85,800.00 per share

- 2023-05: KRW 83,600.00 per share

- 2023-06: KRW 82,800.00 per share

- 2023-07: KRW 82,600.00 per share

- 2023-08: KRW 86,900.00 per share

- 2023-09: KRW 86,300.00 per share

- 2023-10: KRW 85,300.00 per share

- 2023-11: KRW 88,200.00 per share

- 2023-12: KRW 86,900.00 per share

- 2024-01: KRW 90,600.00 per share

- 2024-02: KRW 93,000.00 per share

- 2024-03: KRW 93,500.00 per share

- 2024-04: KRW 89,400.00 per share

- 2024-05: KRW 83,500.00 per share

- 2024-06: KRW 88,200.00 per share

- 2024-07: KRW 93,300.00 per share

- 2024-08: KRW 108,200.00 per share

- 2024-09: KRW 108,900.00 per share

- 2024-10: KRW 109,700.00 per share

- 2024-11: KRW 121,800.00 per share

- 2024-12: KRW 107,100.00 per share

- 2025-01: KRW 110,600.00 per share

- 2025-02: KRW 98,300.00 per share

- 2025-03: KRW 101,100.00 per share

- 2025-04: KRW 114,700.00 per share

- 2025-05: KRW 120,200.00 per share

- 2025-06: KRW 127,700.00 per share

- 2025-07: KRW 130,700.00 per share

- 2025-08: KRW 134,700.00 per share

- 2025-09: KRW 133,600.00 per share

- 2025-10: KRW 134,200.00 per share

- 2025-11: KRW 145,500.00 per share

- 2025-12: KRW 142,100.00 per share

- 2026-01: KRW 153,900.00 per share

- 2026-02: KRW 163,100.00 per share

- 2026-03: KRW 159,200.00 per share

- 2026-04: KRW 178,300.00 per share

- 2026-05: KRW 184,700.00 per share

- 2026-06: KRW 169,700.00 per share

- 2026-07: KRW 179,100.00 per share

- 2026-08: KRW 178,100.00 per share

- 2026-09: KRW 176,200.00 per share

- 2026-10: KRW 181,400.00 per share

## Annual estimated value (KRW per share)

- FY2017: low KRW 50,388.85 per share, central KRW 55,721.72 per share, high KRW 62,820.90 per share

- FY2018: low KRW 88,607.13 per share, central KRW 98,001.49 per share, high KRW 110,507.38 per share

- FY2019: low KRW 98,251.92 per share, central KRW 109,135.73 per share, high KRW 123,624.38 per share

- FY2020: low KRW 105,790.81 per share, central KRW 117,632.67 per share, high KRW 133,396.70 per share

- FY2021: low KRW 102,714.57 per share, central KRW 114,274.42 per share, high KRW 129,663.03 per share

- FY2022: low KRW 112,207.07 per share, central KRW 131,059.73 per share, high KRW 150,027.51 per share

- FY2023: low KRW 115,212.55 per share, central KRW 136,604.93 per share, high KRW 156,942.57 per share

- FY2024: low KRW 111,713.17 per share, central KRW 127,120.65 per share, high KRW 145,266.89 per share

- FY2025: low KRW 108,607.72 per share, central KRW 122,804.28 per share, high KRW 140,924.55 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:01.317Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations