SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
NYSE:SKM - New York Stock Exchange, Inc. - US78440P3064 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to SKM. SKM was compared to 21 industry peers in the Wireless Telecommunication Services industry. SKM has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SKM. This makes SKM very considerable for value investing!
1. Profitability
1.1 Basic Checks
SKM had positive earnings in the past year.
In the past year SKM had a positive cash flow from operations.
In the past 5 years SKM has always been profitable.
SKM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.15%, SKM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
SKM has a Return On Equity of 10.51%. This is in the better half of the industry: SKM outperforms 61.90% of its industry peers.
The Return On Invested Capital of SKM (6.86%) is better than 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SKM is in line with the industry average of 6.35%.
The 3 year average ROIC (5.97%) for SKM is below the current ROIC(6.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 10.51% | ||
| ROIC | 6.86% |
ROA(3y)3.49%
ROA(5y)4.26%
ROE(3y)9.3%
ROE(5y)10.97%
ROIC(3y)5.97%
ROIC(5y)5.01%
1.3 Margins
Looking at the Profit Margin, with a value of 6.93%, SKM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SKM's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 10.56%, SKM perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Operating Margin of SKM has grown nicely.
SKM has a Gross Margin of 96.21%. This is amongst the best in the industry. SKM outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of SKM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.56% | ||
| PM (TTM) | 6.93% | ||
| GM | 96.21% |
OM growth 3Y7.06%
OM growth 5Y10.23%
PM growth 3Y-21.7%
PM growth 5Y6.84%
GM growth 3Y0.21%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SKM is creating value.
The number of shares outstanding for SKM remains at a similar level compared to 1 year ago.
The number of shares outstanding for SKM has been increased compared to 5 years ago.
Compared to 1 year ago, SKM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.24 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SKM (2.24) is better than 90.48% of its industry peers.
The Debt to FCF ratio of SKM is 3.99, which is a good value as it means it would take SKM, 3.99 years of fcf income to pay off all of its debts.
SKM has a Debt to FCF ratio of 3.99. This is amongst the best in the industry. SKM outperforms 80.95% of its industry peers.
SKM has a Debt/Equity ratio of 0.69. This is a neutral value indicating SKM is somewhat dependend on debt financing.
SKM has a Debt to Equity ratio (0.69) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 2.24 |
ROIC/WACC2.5
WACC2.74%
2.3 Liquidity
SKM has a Current Ratio of 0.88. This is a bad value and indicates that SKM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.88, SKM is doing worse than 76.19% of the companies in the same industry.
SKM has a Quick Ratio of 0.88. This is a bad value and indicates that SKM is not financially healthy enough and could expect problems in meeting its short term obligations.
SKM has a worse Quick ratio (0.86) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
SKM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.98%.
The Earnings Per Share has been growing slightly by 7.54% on average over the past years.
Looking at the last year, SKM shows a small growth in Revenue. The Revenue has grown by 1.89% in the last year.
The Revenue has been growing slightly by 0.22% on average over the past years.
EPS 1Y (TTM)-15.98%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-85.74%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-2.49%
3.2 Future
SKM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
The Revenue is expected to grow by 0.63% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue Next Year-2.44%
Revenue Next 2Y0.1%
Revenue Next 3Y0.63%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.59 indicates a correct valuation of SKM.
SKM's Price/Earnings ratio is a bit cheaper when compared to the industry. SKM is cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. SKM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.57 indicates a reasonable valuation of SKM.
SKM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SKM is cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SKM to the average of the S&P500 Index (34.04), we can say SKM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.59 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SKM indicates a rather cheap valuation: SKM is cheaper than 85.71% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SKM indicates a rather cheap valuation: SKM is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.5 | ||
| EV/EBITDA | 3.5 |
4.3 Compensation for Growth
SKM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SKM may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)1.67
EPS Next 2Y6.72%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
SKM has a Yearly Dividend Yield of 6.29%, which is a nice return.
Compared to an average industry Dividend Yield of 54.95, SKM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, SKM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
5.2 History
The dividend of SKM decreases each year by -17.54%.
SKM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-17.54%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
64.77% of the earnings are spent on dividend by SKM. This is not a sustainable payout ratio.
DP64.77%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
22.66
+0.26 (+1.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.14%
Inst Owner Change-2.07%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap8.69B
Analysts76
Price Target24.77 (9.31%)
Short Float %0.39%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
Yearly Dividend1.52
Dividend Growth(5Y)-17.54%
DP64.77%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)18.45%
Min EPS beat(2)-2.38%
Max EPS beat(2)39.29%
EPS beat(4)2
Avg EPS beat(4)4.33%
Min EPS beat(4)-20.05%
Max EPS beat(4)39.29%
EPS beat(8)5
Avg EPS beat(8)4.46%
EPS beat(12)5
Avg EPS beat(12)-1.57%
EPS beat(16)6
Avg EPS beat(16)-7.09%
Revenue beat(2)0
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-2.18%
Revenue beat(4)1
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)2
Avg Revenue beat(12)-1.18%
Revenue beat(16)3
Avg Revenue beat(16)11.99%
PT rev (1m)-4.11%
PT rev (3m)-10.32%
EPS NQ rev (1m)-30.08%
EPS NQ rev (3m)-36.8%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)-3.02%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.59 | ||
| Fwd PE | 8.57 | ||
| P/S | 0.67 | ||
| P/FCF | 4.5 | ||
| P/OCF | 2.31 | ||
| P/B | 1.02 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 3.5 |
EPS(TTM)1.8
EY7.94%
EPS(NY)2.64
Fwd EY11.66%
FCF(TTM)5.04
FCFY22.25%
OCF(TTM)9.79
OCFY43.22%
SpS33.76
BVpS22.27
TBVpS14.46
PEG (NY)1.74
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 10.51% | ||
| ROCE | 8.93% | ||
| ROIC | 6.86% | ||
| ROICexc | 7.78% | ||
| ROICexgc | 9.96% | ||
| OM | 10.56% | ||
| PM (TTM) | 6.93% | ||
| GM | 96.21% | ||
| FCFM | 14.93% |
ROA(3y)3.49%
ROA(5y)4.26%
ROE(3y)9.3%
ROE(5y)10.97%
ROIC(3y)5.97%
ROIC(5y)5.01%
ROICexc(3y)6.55%
ROICexc(5y)5.45%
ROICexgc(3y)8.56%
ROICexgc(5y)7.15%
ROCE(3y)7.69%
ROCE(5y)6.45%
ROICexcg growth 3Y13.93%
ROICexcg growth 5Y24.85%
ROICexc growth 3Y15.91%
ROICexc growth 5Y24.81%
OM growth 3Y7.06%
OM growth 5Y10.23%
PM growth 3Y-21.7%
PM growth 5Y6.84%
GM growth 3Y0.21%
GM growth 5Y0.08%
F-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.99 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 68.81% | ||
| Cap/Sales | 14.07% | ||
| Interest Coverage | 5.15 | ||
| Cash Conversion | 93.52% | ||
| Profit Quality | 215.46% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.24 |
F-Score7
WACC2.74%
ROIC/WACC2.5
Cap/Depr(3y)77.48%
Cap/Depr(5y)80.25%
Cap/Sales(3y)16.45%
Cap/Sales(5y)17.78%
Profit Quality(3y)204.14%
Profit Quality(5y)165.54%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.98%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-85.74%
EPS Next Y7.24%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-2.49%
Revenue Next Year-2.44%
Revenue Next 2Y0.1%
Revenue Next 3Y0.63%
Revenue Next 5YN/A
EBIT growth 1Y7.71%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year196.44%
EBIT Next 3Y44.17%
EBIT Next 5YN/A
FCF growth 1Y47.22%
FCF growth 3Y13.29%
FCF growth 5Y39.8%
OCF growth 1Y6.3%
OCF growth 3Y0.22%
OCF growth 5Y4.9%