SK TELECOM CO LTD-SPON ADR (SKM)
US78440P3064 - ADR
We assign a fundamental rating of 5 out of 10 to SKM. SKM was compared to 22 industry peers in the Wireless Telecommunication Services industry. SKM has only an average score on both its financial health and profitability. SKM may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
SKM had positive earnings in the past year.
SKM had a positive operating cash flow in the past year.
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's Return On Assets of 3.57% is in line compared to the rest of the industry. SKM outperforms 57.14% of its industry peers.
SKM has a Return On Equity of 9.45%. This is comparable to the rest of the industry: SKM outperforms 52.38% of its industry peers.
SKM's Return On Invested Capital of 5.83% is fine compared to the rest of the industry. SKM outperforms 66.67% of its industry peers.
SKM had an Average Return On Invested Capital over the past 3 years of 5.19%. This is below the industry average of 7.54%.
The 3 year average ROIC (5.19%) for SKM is below the current ROIC(5.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 9.45% | ||
| ROIC | 5.83% |
ROA(3y)4.73%
ROA(5y)3.84%
ROE(3y)12.68%
ROE(5y)9.63%
ROIC(3y)5.19%
ROIC(5y)4.09%
1.3 Margins
The Profit Margin of SKM (6.11%) is comparable to the rest of the industry.
SKM's Profit Margin has declined in the last couple of years.
SKM has a Operating Margin (9.96%) which is in line with its industry peers.
SKM's Operating Margin has improved in the last couple of years.
SKM has a better Gross Margin (96.15%) than 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 | 9.96% | ||
| PM (TTM) | 6.11% | ||
| GM | 96.15% |
OM growth 3Y11.18%
OM growth 5Y6.93%
PM growth 3Y-8.57%
PM growth 5Y-19.82%
GM growth 3Y0.1%
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SKM is still creating some value.
The number of shares outstanding for SKM has been reduced compared to 1 year ago.
SKM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SKM has about the same debt to assets ratio.
2.2 Solvency
SKM has an Altman-Z score of 2.18. 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.
Looking at the Altman-Z score, with a value of 2.18, SKM belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
The Debt to FCF ratio of SKM is 5.71, which is a neutral value as it means it would take SKM, 5.71 years of fcf income to pay off all of its debts.
SKM has a Debt to FCF ratio of 5.71. This is in the better half of the industry: SKM outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that SKM is somewhat dependend on debt financing.
The Debt to Equity ratio of SKM (0.76) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.71 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.09
WACC5.35%
2.3 Liquidity
A Current Ratio of 0.94 indicates that SKM may have some problems paying its short term obligations.
SKM has a Current ratio of 0.94. This is in the lower half of the industry: SKM underperforms 61.90% of its industry peers.
A Quick Ratio of 0.92 indicates that SKM may have some problems paying its short term obligations.
The Quick ratio of SKM (0.92) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.09% over the past year.
The earnings per share for SKM have been decreasing by -19.38% on average. This is quite bad
The Revenue has been growing slightly by 1.75% in the past year.
SKM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.86% yearly.
EPS 1Y (TTM)20.09%
EPS 3Y-9.81%
EPS 5Y-19.38%
EPS growth Q2Q-17.03%
Revenue 1Y (TTM)1.75%
Revenue growth 3Y-1.85%
Revenue growth 5Y0.86%
Revenue growth Q2Q3.02%
3.2 Future
SKM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.76% yearly.
Based on estimates for the next years, SKM will show a small growth in Revenue. The Revenue will grow by 1.88% on average per year.
EPS Next Y8.27%
EPS Next 2Y7.09%
EPS Next 3Y7.76%
EPS Next 5YN/A
Revenue Next Year2.06%
Revenue Next 2Y1.86%
Revenue Next 3Y1.88%
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 accelerating.
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
Based on the Price/Earnings ratio of 10.68, the valuation of SKM can be described as reasonable.
SKM's Price/Earnings ratio is a bit cheaper when compared to the industry. SKM is cheaper than 76.19% of the companies in the same industry.
SKM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.31.
A Price/Forward Earnings ratio of 9.85 indicates a reasonable valuation of SKM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SKM indicates a somewhat cheap valuation: SKM is cheaper than 76.19% of the companies listed in the same industry.
SKM is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKM is valued cheaper than 80.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SKM is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.08 | ||
| EV/EBITDA | 3.61 |
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)1.29
PEG (5Y)N/A
EPS Next 2Y7.09%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.90%, SKM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.21, SKM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, SKM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
5.2 History
The dividend of SKM decreases each year by -18.31%.
SKM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-18.31%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
71.89% of the earnings are spent on dividend by SKM. This is not a sustainable payout ratio.
DP71.89%
EPS Next 2Y7.09%
EPS Next 3Y7.76%
SK TELECOM CO LTD-SPON ADR
NYSE:SKM (5/9/2024, 7:18:36 PM)
21.26
+0.47 (+2.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 9.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 9.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.96% | ||
| PM (TTM) | 6.11% | ||
| GM | 96.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.09%
EPS 3Y-9.81%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.75%
Revenue growth 3Y-1.85%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y