SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
NYSE:SKM - New York Stock Exchange, Inc. - US78440P3064 - ADR
SKM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SKM.
1. Profitability
1.1 Basic Checks
In the past year SKM was profitable.
In the past year SKM had a positive cash flow from operations.
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
With a decent Return On Assets value of 3.78%, SKM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of SKM (9.50%) is better than 66.67% of its industry peers.
SKM has a Return On Invested Capital of 6.69%. This is comparable to the rest of the industry: SKM outperforms 57.14% 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 6.49%.
The 3 year average ROIC (5.19%) for SKM is below the current ROIC(6.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.5% | ||
| ROIC | 6.69% |
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
SKM has a better Profit Margin (6.21%) than 66.67% of its industry peers.
SKM's Profit Margin has declined in the last couple of years.
SKM has a Operating Margin (10.39%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SKM has grown nicely.
SKM has a better Gross Margin (96.11%) 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 | 10.39% | ||
| PM (TTM) | 6.21% | ||
| GM | 96.11% |
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
SKM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SKM has less shares outstanding
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
An Altman-Z score of 2.28 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SKM's Altman-Z score of 2.28 is amongst the best of the industry. SKM outperforms 90.48% of its industry peers.
The Debt to FCF ratio of SKM is 4.19, which is a neutral value as it means it would take SKM, 4.19 years of fcf income to pay off all of its debts.
SKM has a better Debt to FCF ratio (4.19) than 85.71% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that SKM is somewhat dependend on debt financing.
The Debt to Equity ratio of SKM (0.62) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.32
WACC5.08%
2.3 Liquidity
A Current Ratio of 0.91 indicates that SKM may have some problems paying its short term obligations.
SKM has a Current ratio of 0.91. This is in the lower half of the industry: SKM underperforms 71.43% of its industry peers.
A Quick Ratio of 0.88 indicates that SKM may have some problems paying its short term obligations.
SKM has a Quick ratio of 0.88. This is in the lower half of the industry: SKM underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
SKM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.37%.
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 2.75% in the past year.
Measured over the past years, SKM shows a small growth in Revenue. The Revenue has been growing by 0.86% on average per year.
EPS 1Y (TTM)2.37%
EPS 3Y-9.81%
EPS 5Y-19.38%
EPS Q2Q%-8.1%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y-1.85%
Revenue growth 5Y0.86%
Sales Q2Q%2.94%
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 7.66% on average per year.
Based on estimates for the next years, SKM will show a small growth in Revenue. The Revenue will grow by 1.95% on average per year.
EPS Next Y14.36%
EPS Next 2Y9.18%
EPS Next 3Y7.66%
EPS Next 5YN/A
Revenue Next Year2.4%
Revenue Next 2Y2.06%
Revenue Next 3Y1.95%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 10.59, the valuation of SKM can be described as very reasonable.
SKM's Price/Earnings ratio is rather cheap when compared to the industry. SKM is cheaper than 85.71% 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 28.29.
A Price/Forward Earnings ratio of 9.41 indicates a reasonable valuation of SKM.
61.90% of the companies in the same industry are more expensive than SKM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.44. SKM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
SKM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SKM is cheaper than 85.71% of the companies in the same industry.
85.71% of the companies in the same industry are more expensive than SKM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.88 | ||
| EV/EBITDA | 3.48 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SKM may justify a higher PE ratio.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y9.18%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.40%, SKM is a good candidate for dividend investing.
SKM's Dividend Yield is a higher than the industry average which is at 5.35.
SKM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.4% |
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.
The dividend of SKM decreased recently.
Dividend Growth(5Y)-18.31%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
72.33% of the earnings are spent on dividend by SKM. This is not a sustainable payout ratio.
DP72.33%
EPS Next 2Y9.18%
EPS Next 3Y7.66%
SK TELECOM CO LTD-SPON ADR
NYSE:SKM (1/21/2025, 8:26:52 PM)
After market: 21.39 0 (0%)21.39
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners25.27%
Inst Owner Change-0.39%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap8.20B
Analysts84.14
Price Target26.7 (24.82%)
Short Float %0.22%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.4% |
Yearly Dividend3592.98
Dividend Growth(5Y)-18.31%
DP72.33%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.79%
Min EPS beat(2)-20.05%
Max EPS beat(2)0.48%
EPS beat(4)3
Avg EPS beat(4)-2.13%
Min EPS beat(4)-20.05%
Max EPS beat(4)7.24%
EPS beat(8)4
Avg EPS beat(8)-0.92%
EPS beat(12)4
Avg EPS beat(12)-11.46%
EPS beat(16)7
Avg EPS beat(16)-1.99%
Revenue beat(2)1
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-1.25%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-1.25%
Max Revenue beat(4)0.69%
Revenue beat(8)2
Avg Revenue beat(8)-0.85%
Revenue beat(12)3
Avg Revenue beat(12)18.92%
Revenue beat(16)4
Avg Revenue beat(16)12.22%
PT rev (1m)-2.35%
PT rev (3m)-4.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.91%
EPS NY rev (1m)0%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 9.41 | ||
| P/S | 0.66 | ||
| P/FCF | 4.88 | ||
| P/OCF | 2.35 | ||
| P/B | 1.01 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 3.48 |
EPS(TTM)2.02
EY9.44%
EPS(NY)2.27
Fwd EY10.63%
FCF(TTM)4.38
FCFY20.49%
OCF(TTM)9.09
OCFY42.52%
SpS32.47
BVpS21.23
TBVpS13.23
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.5% | ||
| ROCE | 8.74% | ||
| ROIC | 6.69% | ||
| ROICexc | 7.47% | ||
| ROICexgc | 9.7% | ||
| OM | 10.39% | ||
| PM (TTM) | 6.21% | ||
| GM | 96.11% | ||
| FCFM | 13.5% |
ROA(3y)4.73%
ROA(5y)3.84%
ROE(3y)12.68%
ROE(5y)9.63%
ROIC(3y)5.19%
ROIC(5y)4.09%
ROICexc(3y)5.59%
ROICexc(5y)4.4%
ROICexgc(3y)7.43%
ROICexgc(5y)5.79%
ROCE(3y)6.77%
ROCE(5y)5.33%
ROICexcg growth 3Y31.93%
ROICexcg growth 5Y16.67%
ROICexc growth 3Y30.85%
ROICexc growth 5Y17.5%
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%
F-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 70.19% | ||
| Cap/Sales | 14.51% | ||
| Interest Coverage | 4.89 | ||
| Cash Conversion | 90.17% | ||
| Profit Quality | 217.36% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.28 |
F-Score7
WACC5.08%
ROIC/WACC1.32
Cap/Depr(3y)81.22%
Cap/Depr(5y)84.29%
Cap/Sales(3y)18.28%
Cap/Sales(5y)18.9%
Profit Quality(3y)160.27%
Profit Quality(5y)135.55%
High Growth Momentum
Growth
EPS 1Y (TTM)2.37%
EPS 3Y-9.81%
EPS 5Y-19.38%
EPS Q2Q%-8.1%
EPS Next Y14.36%
EPS Next 2Y9.18%
EPS Next 3Y7.66%
EPS Next 5YN/A
Revenue 1Y (TTM)2.75%
Revenue growth 3Y-1.85%
Revenue growth 5Y0.86%
Sales Q2Q%2.94%
Revenue Next Year2.4%
Revenue Next 2Y2.06%
Revenue Next 3Y1.95%
Revenue Next 5YN/A
EBIT growth 1Y9.1%
EBIT growth 3Y9.12%
EBIT growth 5Y7.85%
EBIT Next Year218.42%
EBIT Next 3Y47.43%
EBIT Next 5YN/A
FCF growth 1Y28.86%
FCF growth 3Y-4.37%
FCF growth 5Y12.48%
OCF growth 1Y-2.1%
OCF growth 3Y-5.28%
OCF growth 5Y2.69%