SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKM - US78440P3064 - ADR
20.4 USD
+0.09 (+0.44%)
SKM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. Both the profitability and the financial health of SKM get a neutral evaluation. Nothing too spectacular is happening here. SKM is valued correctly, but it does not seem to be growing.
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.
In the past 5 years SKM has always been profitable.
SKM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SKM (3.39%) is comparable to the rest of the industry.
SKM has a Return On Equity (8.39%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.96%, SKM is in the better half of the industry, outperforming 63.64% 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 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 of 5.57%. This is comparable to the rest of the industry: SKM outperforms 54.55% of its industry peers.
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'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.
Compared to 1 year ago, SKM has about the same amount of shares outstanding.
Compared to 5 years ago, SKM has more shares outstanding
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.
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.
The Debt to FCF ratio of SKM (3.55) is better than 68.18% of its industry peers.
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
SKM has a Current Ratio of 1.03. 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 Current ratio of 1.03. This is in the better half of the industry: SKM outperforms 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's Quick ratio of 1.01 is fine compared to the rest of the industry. SKM outperforms 63.64% 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 -49.20%.
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%.
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)-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.
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 20.00, SKM is valued on the expensive side.
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 26.59, SKM is valued a bit cheaper.
A Price/Forward Earnings ratio of 9.83 indicates a reasonable valuation of SKM.
Based on the Price/Forward Earnings ratio, SKM is valued cheaper than 81.82% of the companies in the same industry.
SKM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 9.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKM is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SKM is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.76 | ||
| EV/EBITDA | 3.58 |
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)2.65
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.
Compared to an average S&P500 Dividend Yield of 1.88, SKM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
5.2 History
The dividend of SKM decreases each year by -17.54%.
SKM has been paying a dividend for at least 10 years, so it has 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-3.22%
EPS Next 3Y0.44%
NYSE:SKM (12/26/2025, 1:34:08 PM)
20.4
+0.09 (+0.44%)
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 Cap7.83B
Revenue(TTM)17.94T
Net Income(TTM)994.02B
Analysts73.33
Price TargetN/A
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 | 20 | ||
| Fwd PE | 9.83 | ||
| P/S | 0.64 | ||
| P/FCF | 3.76 | ||
| P/OCF | 2.13 | ||
| P/B | 0.96 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 3.58 |
EPS(TTM)1.02
EY5%
EPS(NY)2.07
Fwd EY10.17%
FCF(TTM)5.43
FCFY26.6%
OCF(TTM)9.6
OCFY47.05%
SpS32.11
BVpS21.33
TBVpS14.15
PEG (NY)N/A
PEG (5Y)2.65
Graham Number22.13
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%.