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%)
Taking everything into account, SKM scores 6 out of 10 in our fundamental rating. SKM was compared to 22 industry peers in the Wireless Telecommunication Services industry. While SKM has a great profitability rating, there are some minor concerns on its financial health. SKM has a valuation in line with the averages, 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.
SKM had positive earnings in each of the past 5 years.
SKM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.39%, SKM is doing good in the industry, outperforming 63.64% of the companies in the same industry.
SKM has a Return On Equity of 8.39%. This is comparable to the rest of the industry: SKM outperforms 54.55% of its industry peers.
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 5.83%.
| 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
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.
SKM's Profit Margin has improved in the last couple of years.
The Operating Margin of SKM (9.49%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SKM has grown nicely.
Looking at the Gross Margin, with a value of 96.23%, SKM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
SKM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SKM has about the same amount of shares outstanding.
SKM has more shares outstanding than it did 5 years ago.
SKM has a better debt/assets ratio than last year.
2.2 Solvency
SKM has an Altman-Z score of 2.30. 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.
The Altman-Z score of SKM (2.30) is better than 90.91% 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.
SKM has a Debt to FCF ratio of 3.55. This is amongst the best in the industry. SKM outperforms 90.91% of its industry peers.
SKM has a Debt/Equity ratio of 0.74. This is a neutral value indicating SKM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, SKM is in line with its industry, outperforming 54.55% of the companies in the same industry.
| 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's Current ratio of 1.03 is in line compared to the rest of the industry. SKM outperforms 40.91% 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.
SKM has a Quick ratio (1.01) which is in line with 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%.
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 1.89% in the last year.
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
SKM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.28% yearly.
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
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
With a Price/Earnings ratio of 22.91, SKM is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as SKM.
SKM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 9.78, which indicates a very decent valuation of SKM.
Based on the Price/Forward Earnings ratio, SKM is valued cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SKM to the average of the S&P500 Index (34.59), we can say SKM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
SKM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SKM is cheaper than 90.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SKM is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.77 | ||
| EV/EBITDA | 3.6 |
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)3.04
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.
Compared to an average industry Dividend Yield of 8.27, SKM pays a bit more dividend than its industry peers.
SKM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| 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-2.53%
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)-5.05%
PT rev (3m)-6.17%
EPS NQ rev (1m)-1348.5%
EPS NQ rev (3m)-457.22%
EPS NY rev (1m)-24.62%
EPS NY rev (3m)-60.38%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.64 | ||
| P/FCF | 3.77 | ||
| P/OCF | 2.13 | ||
| P/B | 0.96 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 3.6 |
EPS(TTM)0.89
EY4.36%
EPS(NY)2.08
Fwd EY10.22%
FCF(TTM)5.41
FCFY26.55%
OCF(TTM)9.58
OCFY46.97%
SpS32.03
BVpS21.29
TBVpS14.12
PEG (NY)N/A
PEG (5Y)3.04
Graham Number20.65
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%.