SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
NYSE:SKM - New York Stock Exchange, Inc. - US78440P3064 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to SKM. SKM was compared to 21 industry peers in the Wireless Telecommunication Services industry. While SKM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SKM may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make SKM a good candidate for value investing.
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.
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 4.15%, SKM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
SKM's Return On Equity of 10.51% is fine compared to the rest of the industry. SKM outperforms 66.67% of its industry peers.
The Return On Invested Capital of SKM (6.86%) is better than 61.90% 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 6.34%.
The last Return On Invested Capital (6.86%) for SKM is above the 3 year average (5.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 10.51% | ||
| ROIC | 6.86% |
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
Looking at the Profit Margin, with a value of 6.93%, SKM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of SKM has grown nicely.
SKM has a Operating Margin of 10.56%. This is comparable to the rest of the industry: SKM outperforms 52.38% of its industry peers.
In the last couple of years the Operating Margin of SKM has grown nicely.
With an excellent Gross Margin value of 96.21%, SKM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 | 10.56% | ||
| PM (TTM) | 6.93% | ||
| GM | 96.21% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SKM is creating value.
The number of shares outstanding for SKM remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SKM has more shares outstanding
Compared to 1 year ago, SKM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.25 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SKM's Altman-Z score of 2.25 is amongst the best of the industry. SKM outperforms 90.48% of its industry peers.
SKM has a debt to FCF ratio of 3.99. This is a good value and a sign of high solvency as SKM would need 3.99 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.99, SKM belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that SKM is somewhat dependend on debt financing.
SKM's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. SKM outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 2.25 |
ROIC/WACC2.5
WACC2.74%
2.3 Liquidity
A Current Ratio of 0.88 indicates that SKM may have some problems paying its short term obligations.
The Current ratio of SKM (0.88) is worse than 76.19% of its industry peers.
SKM has a Quick Ratio of 0.88. This is a bad value and indicates that SKM is not financially healthy enough and could expect problems in meeting its short term obligations.
SKM has a worse Quick ratio (0.86) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.67% over the past year.
The Earnings Per Share has been growing slightly by 7.54% on average over the past years.
The Revenue has been growing slightly by 1.18% in the past 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)10.67%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%3.37%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-0.47%
3.2 Future
SKM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
Based on estimates for the next years, SKM will show a small growth in Revenue. The Revenue will grow by 1.38% on average per year.
EPS Next Y7.24%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue Next Year0.6%
Revenue Next 2Y1.09%
Revenue Next 3Y1.38%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 9.91 indicates a reasonable valuation of SKM.
SKM's Price/Earnings ratio is rather cheap when compared to the industry. SKM is cheaper than 80.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. SKM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.79, the valuation of SKM can be described as very reasonable.
80.95% of the companies in the same industry are more expensive than SKM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SKM to the average of the S&P500 Index (21.90), we can say SKM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 8.79 |
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 90.48% of the companies listed 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 90.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.61 | ||
| EV/EBITDA | 3.58 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SKM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)1.31
EPS Next 2Y6.72%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
SKM has a Yearly Dividend Yield of 4.26%, which is a nice return.
SKM's Dividend Yield is comparable with the industry average which is at 4.87.
Compared to an average S&P500 Dividend Yield of 2.38, SKM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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 64.77% of its income as dividend. This is not a sustainable payout ratio.
DP64.77%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
NYSE:SKM (7/3/2025, 8:09:23 PM)
23.58
-0.21 (-0.88%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.14%
Inst Owner Change-77.52%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap9.05B
Analysts80
Price Target25.94 (10.01%)
Short Float %0.24%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.54
Dividend Growth(5Y)-17.54%
DP64.77%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)18.6%
Min EPS beat(2)-2.09%
Max EPS beat(2)39.29%
EPS beat(4)2
Avg EPS beat(4)4.41%
Min EPS beat(4)-20.05%
Max EPS beat(4)39.29%
EPS beat(8)5
Avg EPS beat(8)4.49%
EPS beat(12)5
Avg EPS beat(12)-1.55%
EPS beat(16)6
Avg EPS beat(16)-7.07%
Revenue beat(2)0
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-2.18%
Revenue beat(4)1
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)2
Avg Revenue beat(12)-1.18%
Revenue beat(16)3
Avg Revenue beat(16)11.99%
PT rev (1m)-7.37%
PT rev (3m)-1.56%
EPS NQ rev (1m)-2.94%
EPS NQ rev (3m)-9.42%
EPS NY rev (1m)0%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 8.79 | ||
| P/S | 0.69 | ||
| P/FCF | 4.61 | ||
| P/OCF | 2.37 | ||
| P/B | 1.04 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 3.58 |
EPS(TTM)2.38
EY10.09%
EPS(NY)2.68
Fwd EY11.37%
FCF(TTM)5.12
FCFY21.7%
OCF(TTM)9.94
OCFY42.15%
SpS34.26
BVpS22.6
TBVpS14.67
PEG (NY)1.37
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 10.51% | ||
| ROCE | 8.93% | ||
| ROIC | 6.86% | ||
| ROICexc | 7.78% | ||
| ROICexgc | 9.96% | ||
| OM | 10.56% | ||
| PM (TTM) | 6.93% | ||
| GM | 96.21% | ||
| FCFM | 14.93% |
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-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.99 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 68.81% | ||
| Cap/Sales | 14.07% | ||
| Interest Coverage | 5.15 | ||
| Cash Conversion | 93.52% | ||
| Profit Quality | 215.46% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.25 |
F-Score7
WACC2.74%
ROIC/WACC2.5
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)10.67%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%3.37%
EPS Next Y7.24%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue 1Y (TTM)1.18%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-0.47%
Revenue Next Year0.6%
Revenue Next 2Y1.09%
Revenue Next 3Y1.38%
Revenue Next 5YN/A
EBIT growth 1Y7.71%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year196.44%
EBIT Next 3Y44.17%
EBIT Next 5YN/A
FCF growth 1Y47.22%
FCF growth 3Y13.29%
FCF growth 5Y39.8%
OCF growth 1Y6.3%
OCF growth 3Y0.22%
OCF growth 5Y4.9%