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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SKM.
1. Profitability
1.1 Basic Checks
In the past year SKM was profitable.
SKM had a positive operating cash flow in the past year.
SKM had positive earnings in each of the past 5 years.
Each year in the past 5 years SKM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.15%, SKM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SKM has a better Return On Equity (10.51%) than 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.
Measured over the past 3 years, the Average Return On Invested Capital for SKM is in line with the industry average of 6.28%.
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
SKM's Profit Margin of 6.93% is fine compared to the rest of the industry. SKM outperforms 66.67% of its industry peers.
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.
SKM's Operating Margin has improved in the last couple of years.
SKM has a better Gross Margin (96.21%) 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 | 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
SKM has an Altman-Z score of 2.21. 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 has a better Altman-Z score (2.21) than 85.71% of its industry peers.
SKM has a debt to FCF ratio of 3.99. This is a good value and a sign of high solvency as SKM would need 3.99 years to pay back of all of its debts.
SKM has a better Debt to FCF ratio (3.99) than 85.71% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that SKM is somewhat dependend on debt financing.
SKM's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. SKM outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.24
WACC5.53%
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.
The Current ratio of SKM (0.88) is worse than 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 strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.67%, which is quite good.
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.
Looking at the last year, SKM shows a small growth in Revenue. The Revenue has grown by 1.18% in the last 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)10.67%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%3.37%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-0.47%
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 8.95, the valuation of SKM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SKM indicates a rather cheap valuation: SKM is cheaper than 85.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SKM to the average of the S&P500 Index (26.55), we can say SKM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.92, the valuation of SKM can be described as very cheap.
Based on the Price/Forward Earnings ratio, SKM is valued cheaper than 80.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.30. SKM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 7.92 |
4.2 Price Multiples
90.48% of the companies in the same industry are more expensive than SKM, based on the Enterprise Value to EBITDA ratio.
SKM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SKM is cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.15 | ||
| EV/EBITDA | 3.36 |
4.3 Compensation for Growth
SKM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SKM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)1.19
EPS Next 2Y6.72%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
SKM has a Yearly Dividend Yield of 6.73%, which is a nice return.
SKM's Dividend Yield is rather good when compared to the industry average which is at 5.22. SKM pays more dividend than 85.71% of the companies in the same industry.
SKM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.73% |
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%
21.3
+0.04 (+0.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners27.03%
Inst Owner Change13.42%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap8.17B
Analysts80
Price Target26.06 (22.35%)
Short Float %0.29%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.73% |
Yearly Dividend1.55
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)18.6%
Min EPS beat(2)-2.09%
Max EPS beat(2)39.29%
EPS beat(4)2
Avg EPS beat(4)4.41%
Min EPS beat(4)-20.05%
Max EPS beat(4)39.29%
EPS beat(8)5
Avg EPS beat(8)4.49%
EPS beat(12)5
Avg EPS beat(12)-1.55%
EPS beat(16)6
Avg EPS beat(16)-7.07%
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)-6.05%
PT rev (3m)-3.68%
EPS NQ rev (1m)-6.87%
EPS NQ rev (3m)-6.12%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.64%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 7.92 | ||
| P/S | 0.62 | ||
| P/FCF | 4.15 | ||
| P/OCF | 2.14 | ||
| P/B | 0.94 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 3.36 |
EPS(TTM)2.38
EY11.17%
EPS(NY)2.69
Fwd EY12.63%
FCF(TTM)5.13
FCFY24.09%
OCF(TTM)9.97
OCFY46.8%
SpS34.37
BVpS22.67
TBVpS14.72
PEG (NY)1.24
PEG (5Y)1.19
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
WACC5.53%
ROIC/WACC1.24
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)10.67%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%3.37%
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%-0.47%
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 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%