SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
NYSE:SKM - US78440P3064 - ADR
21.51 USD
-0.03 (-0.14%)
SKM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is cheap, but on the other hand it scores bad on growth. With these ratings, SKM could be worth investigating further 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.
Each year in the past 5 years SKM has been profitable.
Each year in the past 5 years SKM had a positive operating cash flow.
1.2 Ratios
SKM has a better Return On Assets (3.39%) than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 8.39%, SKM is in line with its industry, outperforming 52.38% of the companies in the same industry.
SKM's Return On Invested Capital of 5.96% 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 6.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 8.39% | ||
| ROIC | 5.96% |
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
SKM has a better Profit Margin (5.57%) than 61.90% of its industry peers.
In the last couple of years the Profit Margin of SKM has grown nicely.
SKM has a Operating Margin of 9.49%. This is comparable to the rest of the industry: SKM outperforms 47.62% of its industry peers.
SKM's Operating Margin has improved in the last couple of years.
SKM has a better Gross Margin (96.23%) than 100.00% of its industry peers.
SKM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.49% | ||
| PM (TTM) | 5.57% | ||
| GM | 96.23% |
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.
SKM has a better debt/assets ratio than last year.
2.2 Solvency
SKM has an Altman-Z score of 2.31. This is not the best score and indicates that SKM is in the grey zone with still only limited risk for bankruptcy at the moment.
SKM's Altman-Z score of 2.31 is amongst the best of the industry. SKM outperforms 90.48% of its industry peers.
SKM has a debt to FCF ratio of 3.55. This is a good value and a sign of high solvency as SKM would need 3.55 years to pay back of all of its debts.
The Debt to FCF ratio of SKM (3.55) is better than 90.48% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that SKM is somewhat dependend on debt financing.
SKM has a Debt to Equity ratio (0.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.31 |
ROIC/WACC2.18
WACC2.74%
2.3 Liquidity
SKM has a Current Ratio of 1.03. This is a normal value and indicates that SKM is financially healthy and should not expect problems in meeting its short term obligations.
SKM's Current ratio of 1.03 is on the low side compared to the rest of the industry. SKM is outperformed by 71.43% of its industry peers.
SKM has a Quick Ratio of 1.01. This is a normal value and indicates that SKM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SKM (1.01) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
SKM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.70%.
Measured over the past 5 years, SKM shows a small growth in Earnings Per Share. The EPS has been growing by 7.54% on average per year.
SKM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
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)-12.7%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-74.55%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-1.89%
3.2 Future
SKM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.07% yearly.
SKM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.37% yearly.
EPS Next Y-39.54%
EPS Next 2Y-1.95%
EPS Next 3Y1.07%
EPS Next 5YN/A
Revenue Next Year-3.55%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.37%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
SKM is valuated reasonably with a Price/Earnings ratio of 11.56.
SKM's Price/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/Earnings ratio is at 27.13. SKM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.72, the valuation of SKM can be described as reasonable.
Based on the Price/Forward Earnings ratio, SKM is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.76. SKM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 9.72 |
4.2 Price Multiples
SKM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SKM is cheaper than 90.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SKM is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.81 | ||
| EV/EBITDA | 3.63 |
4.3 Compensation for Growth
SKM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.53
EPS Next 2Y-1.95%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
SKM has a Yearly Dividend Yield of 4.58%, which is a nice return.
SKM's Dividend Yield is comparable with the industry average which is at 8.15.
SKM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
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.
Dividend Growth(5Y)-17.54%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
80.98% of the earnings are spent on dividend by SKM. This is not a sustainable payout ratio.
DP80.98%
EPS Next 2Y-1.95%
EPS Next 3Y1.07%
NYSE:SKM (9/2/2025, 11:55:07 AM)
21.51
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.14%
Inst Owner Change6.11%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap8.25B
Analysts76
Price Target25.08 (16.6%)
Short Float %0.4%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
Yearly Dividend1.51
Dividend Growth(5Y)-17.54%
DP80.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-33.12%
Min EPS beat(2)-63.85%
Max EPS beat(2)-2.38%
EPS beat(4)1
Avg EPS beat(4)-11.75%
Min EPS beat(4)-63.85%
Max EPS beat(4)39.29%
EPS beat(8)4
Avg EPS beat(8)-4.79%
EPS beat(12)5
Avg EPS beat(12)-5.02%
EPS beat(16)5
Avg EPS beat(16)-14.91%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-2.18%
Max Revenue beat(2)-2.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)2
Avg Revenue beat(12)-1.23%
Revenue beat(16)3
Avg Revenue beat(16)12.84%
PT rev (1m)0.84%
PT rev (3m)-10.44%
EPS NQ rev (1m)-117.87%
EPS NQ rev (3m)-103.99%
EPS NY rev (1m)-43.66%
EPS NY rev (3m)-43.66%
Revenue NQ rev (1m)-3.37%
Revenue NQ rev (3m)-13.47%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 9.72 | ||
| P/S | 0.64 | ||
| P/FCF | 3.81 | ||
| P/OCF | 2.16 | ||
| P/B | 0.97 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 3.63 |
EPS(TTM)1.86
EY8.65%
EPS(NY)2.21
Fwd EY10.29%
FCF(TTM)5.64
FCFY26.22%
OCF(TTM)9.98
OCFY46.38%
SpS33.37
BVpS22.17
TBVpS14.71
PEG (NY)N/A
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 8.39% | ||
| ROCE | 7.69% | ||
| ROIC | 5.96% | ||
| ROICexc | 6.74% | ||
| ROICexgc | 8.46% | ||
| OM | 9.49% | ||
| PM (TTM) | 5.57% | ||
| GM | 96.23% | ||
| FCFM | 16.9% |
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-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.55 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 63.63% | ||
| Cap/Sales | 12.99% | ||
| Interest Coverage | 4.57 | ||
| Cash Conversion | 99.94% | ||
| Profit Quality | 303.26% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 2.31 |
F-Score6
WACC2.74%
ROIC/WACC2.18
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)-12.7%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-74.55%
EPS Next Y-39.54%
EPS Next 2Y-1.95%
EPS Next 3Y1.07%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-1.89%
Revenue Next Year-3.55%
Revenue Next 2Y-0.38%
Revenue Next 3Y0.37%
Revenue Next 5YN/A
EBIT growth 1Y-7.53%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year196.44%
EBIT Next 3Y44.17%
EBIT Next 5YN/A
FCF growth 1Y80.41%
FCF growth 3Y13.29%
FCF growth 5Y39.8%
OCF growth 1Y10.6%
OCF growth 3Y0.22%
OCF growth 5Y4.9%