SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - NYSE:SKM - US78440P3064 - ADR
20.165 USD
+0.23 (+1.18%)
Overall SKM gets a fundamental rating of 6 out of 10. We evaluated SKM against 22 industry peers in the Wireless Telecommunication Services industry. SKM has an excellent profitability rating, but there are some minor concerns on its financial health. SKM has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
SKM had positive earnings in each of the past 5 years.
In the past 5 years SKM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SKM (3.39%) is better than 63.64% of its industry peers.
With a Return On Equity value of 8.39%, SKM perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.96%, SKM is doing good in the industry, outperforming 68.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SKM is in line with the industry average of 5.80%.
| 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
With a decent Profit Margin value of 5.57%, SKM is doing good in the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Profit Margin of SKM has grown nicely.
SKM has a Operating Margin (9.49%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SKM has grown nicely.
SKM has a Gross Margin of 96.23%. This is amongst the best in the industry. SKM outperforms 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 | 9.49% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SKM is creating value.
SKM has about the same amout of shares outstanding than it did 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
An Altman-Z score of 2.29 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SKM (2.29) is better than 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.
SKM has a Debt/Equity ratio of 0.74. This is a neutral value indicating SKM is somewhat dependend on debt financing.
SKM has a Debt to Equity ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.29 |
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 comparable to the rest of the industry.
A Quick Ratio of 1.01 indicates that SKM should not have too much problems paying its short term obligations.
SKM has a Quick ratio of 1.01. This is comparable 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.
Looking at the last year, SKM shows a small growth in Revenue. The Revenue has grown by 1.89% 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)-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
SKM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.28% yearly.
The Revenue is expected to grow by 2.00% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 22.41, which indicates a rather expensive current valuation of SKM.
SKM's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SKM to the average of the S&P500 Index (26.03), we can say SKM is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 9.59, the valuation of SKM can be described as reasonable.
SKM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SKM is cheaper than 81.82% of the companies in the same industry.
SKM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
90.91% of the companies in the same industry are more expensive than SKM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SKM is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.69 | ||
| EV/EBITDA | 3.53 |
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)2.97
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
5. Dividend
5.1 Amount
SKM has a Yearly Dividend Yield of 6.76%, which is a nice return.
SKM's Dividend Yield is a higher than the industry average which is at 8.69.
SKM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
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
SKM pays out 80.98% of its income as dividend. This is not a sustainable payout ratio.
DP80.98%
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
NYSE:SKM (11/5/2025, 1:14:43 PM)
20.165
+0.23 (+1.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner Change-1.45%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap7.74B
Revenue(TTM)17940.61B
Net Income(TTM)994.02B
Analysts75.33
Price Target24.11 (19.56%)
Short Float %0.43%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
Yearly Dividend1.46
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)-2.27%
PT rev (3m)-3.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-95.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-47.44%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-3.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.62 | ||
| P/FCF | 3.69 | ||
| P/OCF | 2.09 | ||
| P/B | 0.94 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 3.53 |
EPS(TTM)0.9
EY4.46%
EPS(NY)2.1
Fwd EY10.42%
FCF(TTM)5.46
FCFY27.08%
OCF(TTM)9.66
OCFY47.9%
SpS32.31
BVpS21.47
TBVpS14.24
PEG (NY)N/A
PEG (5Y)2.97
Graham Number20.85
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 | 2.29 |
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 6 / 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%.