SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - NYSE:SKM - US78440P3064 - ADR
20.39 USD
+0.01 (+0.05%)
20.3622 USD
-0.03 (-0.14%)
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 scores excellent on profitability, but there are some minor concerns on its financial health. SKM is valued correctly, but it does not seem to be growing.
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.
In the past 5 years SKM has always been profitable.
In the past 5 years SKM always reported a positive cash flow from operatings.
1.2 Ratios
SKM's Return On Assets of 3.39% is fine compared to the rest of the industry. SKM outperforms 63.64% of its industry peers.
The Return On Equity of SKM (8.39%) is comparable to the rest of the industry.
SKM has a Return On Invested Capital of 5.96%. This is in the better half of the industry: SKM outperforms 68.18% 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 5.83%.
| 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
Looking at the Profit Margin, with a value of 5.57%, SKM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
SKM's Profit Margin has improved in the last couple of years.
SKM has a Operating Margin (9.49%) 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 (96.23%) 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
SKM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SKM remains at a similar level compared to 1 year ago.
SKM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SKM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.30 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SKM has a Altman-Z score of 2.30. This is amongst the best in the industry. SKM outperforms 90.91% of its industry peers.
The Debt to FCF ratio of SKM is 3.55, which is a good value as it means it would take SKM, 3.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.55, SKM belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
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 | 2.3 |
ROIC/WACC2.18
WACC2.74%
2.3 Liquidity
A Current Ratio of 1.03 indicates that SKM should not have too much problems paying its short term obligations.
SKM has a Current ratio (1.03) which is in line with its industry peers.
A Quick Ratio of 1.01 indicates that SKM should not have too much problems paying its short term obligations.
SKM's Quick ratio of 1.01 is in line compared to the rest of the industry. SKM outperforms 45.45% 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 -55.59%.
SKM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.54% yearly.
SKM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.89%.
The Revenue has been growing slightly by 0.22% on average over the past years.
EPS 1Y (TTM)-55.59%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-188.97%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-12.22%
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 4.28% on average per year.
SKM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.00% yearly.
EPS Next Y-57.48%
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
EPS Next 5Y4.28%
Revenue Next Year-4.31%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.16%
Revenue Next 5Y2%
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
Based on the Price/Earnings ratio of 23.17, the valuation of SKM can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as SKM.
When comparing the Price/Earnings ratio of SKM to the average of the S&P500 Index (25.89), we can say SKM is valued inline with the index average.
SKM is valuated reasonably with a Price/Forward Earnings ratio of 9.86.
77.27% of the companies in the same industry are more expensive than SKM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, SKM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.17 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKM is valued cheaper than 90.91% of the companies 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 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.8 | ||
| EV/EBITDA | 3.61 |
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)3.07
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
5. Dividend
5.1 Amount
SKM has a Yearly Dividend Yield of 5.31%, which is a nice return.
SKM's Dividend Yield is a higher than the industry average which is at 8.86.
Compared to an average S&P500 Dividend Yield of 2.36, SKM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
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-2.89%
EPS Next 3Y-0.05%
20.39
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner Change-2.85%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap7.82B
Revenue(TTM)17.94T
Net Income(TTM)994.02B
Analysts75.33
Price Target23.24 (13.98%)
Short Float %0.43%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
Yearly Dividend1.45
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)-1.49%
PT rev (3m)-2.65%
EPS NQ rev (1m)-1348.5%
EPS NQ rev (3m)-153.85%
EPS NY rev (1m)-24.62%
EPS NY rev (3m)-60.38%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-3.16%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.17 | ||
| Fwd PE | 9.86 | ||
| P/S | 0.64 | ||
| P/FCF | 3.8 | ||
| P/OCF | 2.15 | ||
| P/B | 0.97 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 3.61 |
EPS(TTM)0.88
EY4.32%
EPS(NY)2.07
Fwd EY10.14%
FCF(TTM)5.37
FCFY26.34%
OCF(TTM)9.5
OCFY46.58%
SpS31.77
BVpS21.11
TBVpS14.01
PEG (NY)N/A
PEG (5Y)3.07
Graham Number20.45
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%
ROICexgc growth 3Y13.93%
ROICexgc 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 | 2.3 |
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)-55.59%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-188.97%
EPS Next Y-57.48%
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
EPS Next 5Y4.28%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-12.22%
Revenue Next Year-4.31%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.16%
Revenue Next 5Y2%
EBIT growth 1Y-7.53%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year162.85%
EBIT Next 3Y41.58%
EBIT Next 5Y25.72%
FCF growth 1Y80.41%
FCF growth 3Y13.29%
FCF growth 5Y39.8%
OCF growth 1Y10.6%
OCF growth 3Y0.22%
OCF growth 5Y4.9%
SK TELECOM CO LTD-SPON ADR / SKM FAQ
What is the fundamental rating for SKM stock?
ChartMill assigns a fundamental rating of 5 / 10 to SKM.
What is the valuation status of SK TELECOM CO LTD-SPON ADR (SKM) stock?
ChartMill assigns a valuation rating of 5 / 10 to SK TELECOM CO LTD-SPON ADR (SKM). This can be considered as Fairly Valued.
How profitable is SK TELECOM CO LTD-SPON ADR (SKM) stock?
SK TELECOM CO LTD-SPON ADR (SKM) has a profitability rating of 7 / 10.
What is the earnings growth outlook for SK TELECOM CO LTD-SPON ADR?
The Earnings per Share (EPS) of SK TELECOM CO LTD-SPON ADR (SKM) is expected to decline by -57.48% in the next year.
How sustainable is the dividend of SK TELECOM CO LTD-SPON ADR (SKM) stock?
The dividend rating of SK TELECOM CO LTD-SPON ADR (SKM) is 5 / 10 and the dividend payout ratio is 80.98%.