SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
NYSE:SKM - New York Stock Exchange, Inc. - US78440P3064 - ADR - Currency: USD
Taking everything into account, SKM scores 6 out of 10 in our fundamental rating. SKM was compared to 21 industry peers in the Wireless Telecommunication Services industry. SKM scores excellent on profitability, but there are some minor concerns on its financial health. SKM scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year SKM was profitable.
SKM had a positive operating cash flow in the past year.
Each year in the past 5 years SKM has been profitable.
In the past 5 years SKM always reported a positive cash flow from operatings.
1.2 Ratios
SKM has a Return On Assets of 4.15%. This is in the better half of the industry: SKM outperforms 66.67% of its industry peers.
SKM has a Return On Equity of 10.51%. This is in the better half of the industry: SKM outperforms 66.67% of its industry peers.
SKM's Return On Invested Capital of 6.86% is fine compared to the rest of the industry. SKM outperforms 61.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SKM is in line with the industry average of 6.26%.
The last Return On Invested Capital (6.86%) for SKM is above the 3 year average (5.97%), which is a sign of increasing profitability.
| 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
The Profit Margin of SKM (6.93%) is better than 66.67% of its industry peers.
SKM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.56%, SKM is in line with its industry, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Operating Margin of SKM has grown nicely.
With an excellent Gross Margin value of 96.21%, SKM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SKM's Gross Margin has been stable in the last couple of years.
| 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
SKM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SKM has about the same amount of shares outstanding.
Compared to 5 years ago, SKM has more shares outstanding
SKM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.21 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SKM (2.21) is better than 85.71% 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 85.71% 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.
The Debt to Equity ratio of SKM (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.25
WACC5.5%
2.3 Liquidity
A Current Ratio of 0.88 indicates that SKM may have some problems paying its short term obligations.
SKM has a Current ratio of 0.88. This is in the lower half of the industry: SKM underperforms 76.19% of its industry peers.
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.
With a Quick ratio value of 0.86, SKM is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
SKM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.92%.
SKM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.54% yearly.
The Revenue has been growing slightly by 1.18% in the past year.
Measured over the past years, SKM shows a small growth in Revenue. The Revenue has been growing by 0.22% on average per year.
EPS 1Y (TTM)-3.92%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-43.62%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-2.92%
3.2 Future
Based on estimates for the next years, SKM will show a small growth in Earnings Per Share. The EPS will grow by 7.74% on average per year.
The Revenue is expected to grow by 1.38% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue Next Year0.6%
Revenue Next 2Y1.09%
Revenue Next 3Y1.38%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.14, the valuation of SKM can be described as very reasonable.
Based on the Price/Earnings ratio, SKM is valued a bit cheaper than 76.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.68. SKM is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.83, which indicates a rather cheap valuation of SKM.
SKM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SKM is cheaper than 80.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.50. SKM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKM is valued cheaper than 90.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SKM is valued cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.1 | ||
| EV/EBITDA | 3.34 |
4.3 Compensation for Growth
The 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)1.4
PEG (5Y)1.35
EPS Next 2Y6.72%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
SKM has a Yearly Dividend Yield of 6.78%, which is a nice return.
Compared to an average industry Dividend Yield of 5.44, SKM pays a better dividend. On top of this SKM pays more dividend than 80.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SKM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
5.2 History
The dividend of SKM decreases each year by -17.54%.
SKM has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SKM decreased recently.
Dividend Growth(5Y)-17.54%
Div Incr Years1
Div Non Decr Years1
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%
NYSE:SKM (5/19/2025, 2:32:05 PM)
20.4899
-0.05 (-0.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners27.03%
Inst Owner Change13.75%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap7.86B
Analysts84
Price Target28.01 (36.7%)
Short Float %0.42%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
Yearly Dividend1.51
Dividend Growth(5Y)-17.54%
DP64.77%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.68%
Min EPS beat(2)-46.65%
Max EPS beat(2)39.29%
EPS beat(4)2
Avg EPS beat(4)-6.73%
Min EPS beat(4)-46.65%
Max EPS beat(4)39.29%
EPS beat(8)5
Avg EPS beat(8)-1.08%
EPS beat(12)5
Avg EPS beat(12)-5.26%
EPS beat(16)6
Avg EPS beat(16)-9.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.42%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)-2.25%
Revenue beat(4)1
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.41%
Revenue beat(12)2
Avg Revenue beat(12)-1.38%
Revenue beat(16)3
Avg Revenue beat(16)11.84%
PT rev (1m)6.27%
PT rev (3m)0.95%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)1.39%
EPS NY rev (1m)0%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 7.83 | ||
| P/S | 0.61 | ||
| P/FCF | 4.1 | ||
| P/OCF | 2.11 | ||
| P/B | 0.93 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 3.34 |
EPS(TTM)2.02
EY9.86%
EPS(NY)2.62
Fwd EY12.78%
FCF(TTM)5
FCFY24.38%
OCF(TTM)9.7
OCFY47.36%
SpS33.45
BVpS22.07
TBVpS14.33
PEG (NY)1.4
PEG (5Y)1.35
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 | 2.21 |
F-Score7
WACC5.5%
ROIC/WACC1.25
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)-3.92%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-43.62%
EPS Next Y7.24%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue 1Y (TTM)1.18%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-2.92%
Revenue Next Year0.6%
Revenue Next 2Y1.09%
Revenue Next 3Y1.38%
Revenue Next 5YN/A
EBIT growth 1Y7.71%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year201.63%
EBIT Next 3Y46.51%
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%