SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - NYSE:SKM - US78440P3064 - ADR
21.21 USD
-0.28 (-1.3%)
21.21 USD
0 (0%)
Overall SKM gets a fundamental rating of 5 out of 10. We evaluated SKM against 22 industry peers in the Wireless Telecommunication Services industry. SKM scores excellent on profitability, but there are some minor concerns on its financial health. SKM has a bad growth rate and is valued cheaply. These ratings could make SKM a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year SKM was profitable.
SKM had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.39%, SKM is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
The Return On Equity of SKM (8.39%) is comparable to the rest of the industry.
SKM has a better Return On Invested Capital (5.96%) than 68.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SKM is in line with the industry average of 5.84%.
| 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 better Profit Margin (5.57%) than 63.64% of its industry peers.
SKM's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 9.49%, SKM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SKM's Operating Margin has improved in the last couple of years.
SKM has a better Gross Margin (96.23%) than 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
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 2.31 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SKM (2.31) 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's Debt to FCF ratio of 3.55 is amongst the best of 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.
SKM has a Debt to Equity ratio of 0.74. This is comparable to the rest of the industry: SKM outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.31 |
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.
Looking at the Current ratio, with a value of 1.03, SKM is doing worse than 68.18% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that SKM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.01, SKM is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| 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 -12.70%.
The Earnings Per Share has been growing slightly by 7.54% on average over the past years.
SKM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
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)-12.7%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-74.55%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-1.89%
3.2 Future
SKM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.55% yearly.
Based on estimates for the next years, SKM will show a small growth in Revenue. The Revenue will grow by 0.29% on average per year.
EPS Next Y-43.6%
EPS Next 2Y-2.37%
EPS Next 3Y0.55%
EPS Next 5YN/A
Revenue Next Year-4.08%
Revenue Next 2Y-0.46%
Revenue Next 3Y0.29%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
SKM is valuated reasonably with a Price/Earnings ratio of 11.65.
Based on the Price/Earnings ratio, SKM is valued cheaper than 81.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.77. SKM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.87, the valuation of SKM can be described as very reasonable.
86.36% 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 23.23. SKM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 9.87 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SKM indicates a rather cheap valuation: SKM is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.84 | ||
| EV/EBITDA | 3.67 |
4.3 Compensation for Growth
The decent profitability rating of SKM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.55
EPS Next 2Y-2.37%
EPS Next 3Y0.55%
5. Dividend
5.1 Amount
SKM has a Yearly Dividend Yield of 6.46%, which is a nice return.
Compared to an average industry Dividend Yield of 8.59, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
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-2.37%
EPS Next 3Y0.55%
21.21
-0.28 (-1.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner Change0.04%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap8.14B
Analysts75.33
Price Target24.48 (15.42%)
Short Float %0.32%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
Yearly Dividend1.48
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)-0.79%
PT rev (3m)-1.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-98.82%
EPS NY rev (1m)-6.71%
EPS NY rev (3m)-47.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 9.87 | ||
| P/S | 0.65 | ||
| P/FCF | 3.84 | ||
| P/OCF | 2.17 | ||
| P/B | 0.98 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 3.67 |
EPS(TTM)1.82
EY8.58%
EPS(NY)2.15
Fwd EY10.13%
FCF(TTM)5.52
FCFY26.03%
OCF(TTM)9.76
OCFY46.04%
SpS32.66
BVpS21.7
TBVpS14.4
PEG (NY)N/A
PEG (5Y)1.55
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%
ROICexcg growth 3Y13.93%
ROICexcg 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 | 2.31 |
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)-12.7%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-74.55%
EPS Next Y-43.6%
EPS Next 2Y-2.37%
EPS Next 3Y0.55%
EPS Next 5YN/A
Revenue 1Y (TTM)0.05%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-1.89%
Revenue Next Year-4.08%
Revenue Next 2Y-0.46%
Revenue Next 3Y0.29%
Revenue Next 5YN/A
EBIT growth 1Y-7.53%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year162.85%
EBIT Next 3Y41.58%
EBIT Next 5YN/A
FCF growth 1Y80.41%
FCF growth 3Y13.29%
FCF growth 5Y39.8%
OCF growth 1Y10.6%
OCF growth 3Y0.22%
OCF growth 5Y4.9%