SK TELECOM CO LTD-SPON ADR (NYSE:SKM) – An Undervalued Stock Worth a Closer Look

SK TELECOM CO LTD-SPON ADR (NYSE:SKM) was identified by our Decent Value screener as a stock with an attractive valuation while maintaining solid fundamentals. The company operates in the wireless telecommunications sector and shows a combination of reasonable growth, profitability, and financial health, making it a potential candidate for value investors.

Valuation

SKM stands out with a Valuation Rating of 8/10, indicating it is priced attractively compared to its peers and broader market benchmarks. Key highlights include:

• A P/E ratio of 9.35, well below the S&P 500 average of 27.30.
• A Forward P/E of 8.27, suggesting continued reasonable pricing.
• An Enterprise Value/EBITDA and Price/Free Cash Flow that rank better than 90% of industry competitors.

Profitability

The company earns a Profitability Rating of 7/10, supported by:

• A Return on Equity (ROE) of 10.51%, outperforming 66.67% of industry peers.
• A Profit Margin of 6.93%, above the majority of competitors.
• Consistent operating cash flow over the past five years.

Financial Health

With a Health Rating of 5/10, SKM has some strengths but also areas to monitor:

• A Debt-to-Equity ratio of 0.69, in line with industry norms.
• A strong Altman-Z score of 2.23, indicating lower bankruptcy risk compared to peers.
• Liquidity concerns due to a Current Ratio of 0.88, which may require attention.

Growth

SKM’s Growth Rating of 4/10 reflects steady but modest expansion:

• EPS growth of 10.67% over the past year.
• Expected annual revenue growth of 1.38% in the coming years.
• Stable historical earnings growth, though not explosive.

For a deeper dive into SKM’s fundamentals, review the full report here.

Our Decent Value screener lists more stocks with strong valuations and solid fundamentals, updated daily.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.