SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKM - US78440P3064 - ADR
19.77 USD
+0.08 (+0.41%)
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 an average financial health and profitability rating. 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.
Each year in the past 5 years SKM has been profitable.
In the past 5 years SKM always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.39%, SKM perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
SKM has a Return On Equity (8.39%) which is comparable to the rest of the industry.
The Return On Invested Capital of SKM (5.96%) is better than 63.64% 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 6.45%.
| 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
SKM has a Profit Margin (5.57%) which is in line with its industry peers.
SKM's Profit Margin has improved in the last couple of years.
SKM has a Operating Margin of 9.49%. This is comparable to the rest of the industry: SKM outperforms 54.55% of its industry peers.
SKM's Operating Margin has improved in the last couple of years.
SKM's Gross Margin of 96.23% is amongst the best of the industry. SKM outperforms 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.
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.
The debt/assets ratio for SKM has been reduced compared to a year ago.
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.
With an excellent Altman-Z score value of 2.30, SKM belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
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.
SKM has a better Debt to FCF ratio (3.55) than 68.18% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that 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 50.00% 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.
The Current ratio of SKM (1.03) is better than 63.64% 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 better Quick ratio (1.01) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for SKM have decreased strongly by -49.20% in the last year.
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.
SKM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.22% yearly.
EPS 1Y (TTM)-49.2%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-161.97%
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 3.62% yearly.
The Revenue is expected to grow by 1.58% on average over the next years.
EPS Next Y-64.56%
EPS Next 2Y-3.22%
EPS Next 3Y0.44%
EPS Next 5Y3.62%
Revenue Next Year-4.65%
Revenue Next 2Y-0.83%
Revenue Next 3Y0.06%
Revenue Next 5Y1.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 19.77 indicates a rather expensive valuation of SKM.
Based on the Price/Earnings ratio, SKM is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.61, SKM is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.74, which indicates a very decent valuation of SKM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SKM indicates a rather cheap valuation: SKM is cheaper than 81.82% of the companies listed in the same industry.
SKM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SKM indicates a rather cheap valuation: SKM is cheaper than 86.36% of the companies listed in the same industry.
SKM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SKM is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.72 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
The decent profitability rating of SKM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.62
EPS Next 2Y-3.22%
EPS Next 3Y0.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.68%, SKM is a good candidate for dividend investing.
SKM's Dividend Yield is a higher than the industry average which is at 5.50.
SKM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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-3.22%
EPS Next 3Y0.44%
NYSE:SKM (12/23/2025, 2:47:17 PM)
19.77
+0.08 (+0.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner Change-2.58%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap7.58B
Revenue(TTM)17.94T
Net Income(TTM)994.02B
Analysts73.33
Price Target22.31 (12.85%)
Short Float %0.72%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
Yearly Dividend1.42
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)-4.03%
PT rev (3m)-9.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1348.5%
EPS NY rev (1m)-16.64%
EPS NY rev (3m)-41.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 9.74 | ||
| P/S | 0.63 | ||
| P/FCF | 3.72 | ||
| P/OCF | 2.11 | ||
| P/B | 0.95 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 3.57 |
EPS(TTM)1
EY5.06%
EPS(NY)2.03
Fwd EY10.27%
FCF(TTM)5.31
FCFY26.85%
OCF(TTM)9.39
OCFY47.49%
SpS31.41
BVpS20.87
TBVpS13.85
PEG (NY)N/A
PEG (5Y)2.62
Graham Number21.67
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)-49.2%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-161.97%
EPS Next Y-64.56%
EPS Next 2Y-3.22%
EPS Next 3Y0.44%
EPS Next 5Y3.62%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-12.22%
Revenue Next Year-4.65%
Revenue Next 2Y-0.83%
Revenue Next 3Y0.06%
Revenue Next 5Y1.58%
EBIT growth 1Y-7.53%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year150.47%
EBIT Next 3Y40.4%
EBIT Next 5Y25.17%
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 6 / 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 -64.56% 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%.