SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKM - US78440P3064 - ADR
20.055 USD
-0.16 (-0.82%)
We assign a fundamental rating of 6 out of 10 to SKM. SKM was compared to 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. SKM has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SKM was profitable.
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 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 (8.39%) which is in line with its industry peers.
SKM has a better Return On Invested Capital (5.96%) than 68.18% of its industry peers.
SKM had an Average Return On Invested Capital over the past 3 years of 5.97%. This is in line with the industry average of 5.85%.
| 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 in the better half of the industry: SKM outperforms 63.64% of 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.
In the last couple of years the Operating Margin of SKM has grown nicely.
The Gross Margin of SKM (96.23%) is better 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 | 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.
Compared to 1 year ago, SKM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.30 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SKM's Altman-Z score of 2.30 is amongst the best of the industry. SKM outperforms 90.91% of its industry peers.
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.
SKM has a Debt/Equity ratio of 0.74. This is a neutral value indicating SKM is somewhat dependend on debt financing.
SKM's Debt to Equity ratio of 0.74 is in line compared to the rest of the industry. SKM outperforms 50.00% of 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.
With a Current ratio value of 1.03, SKM perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
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.
The Quick ratio of SKM (1.01) is better than 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.
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-57.48%
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
EPS Next 5Y3.62%
Revenue Next Year-4.31%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.16%
Revenue Next 5Y1.58%
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
Based on the Price/Earnings ratio of 19.86, the valuation of SKM can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SKM is on the same level as its industry peers.
SKM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
SKM is valuated reasonably with a Price/Forward Earnings ratio of 9.71.
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 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
90.91% of the companies in the same industry are more expensive than SKM, based on the Enterprise Value to EBITDA ratio.
90.91% 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 | 3.74 | ||
| 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)2.63
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.25%, SKM is a good candidate for dividend investing.
SKM's Dividend Yield is comparable with the industry average which is at 8.54.
SKM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
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-2.89%
EPS Next 3Y-0.05%
NYSE:SKM (12/2/2025, 2:02:02 PM)
20.055
-0.16 (-0.82%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner Change-2.59%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap7.69B
Revenue(TTM)17.94T
Net Income(TTM)994.02B
Analysts75.33
Price Target22.76 (13.49%)
Short Float %0.49%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
Yearly Dividend1.43
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)-7.02%
PT rev (3m)-9.26%
EPS NQ rev (1m)-1348.5%
EPS NQ rev (3m)-201.42%
EPS NY rev (1m)-24.62%
EPS NY rev (3m)-29.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.63 | ||
| P/FCF | 3.74 | ||
| P/OCF | 2.11 | ||
| P/B | 0.95 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 3.6 |
EPS(TTM)1.01
EY5.04%
EPS(NY)2.06
Fwd EY10.3%
FCF(TTM)5.36
FCFY26.75%
OCF(TTM)9.49
OCFY47.31%
SpS31.74
BVpS21.09
TBVpS13.99
PEG (NY)N/A
PEG (5Y)2.63
Graham Number21.89
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-57.48%
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
EPS Next 5Y3.62%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-12.22%
Revenue Next Year-4.31%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.16%
Revenue Next 5Y1.58%
EBIT growth 1Y-7.53%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year162.85%
EBIT Next 3Y41.58%
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 6 / 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 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%.