SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKM - US78440P3064 - ADR
20.64 USD
+0.31 (+1.52%)
20.86 USD
+0.22 (+1.07%)
We assign a fundamental rating of 5 out of 10 to SKM. SKM was compared to 22 industry peers in the Wireless Telecommunication Services industry. SKM has only an average score on both its financial health and profitability. 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
SKM had positive earnings in the past year.
In the past year SKM had a positive cash flow from operations.
In the past 5 years SKM has always been profitable.
In the past 5 years SKM always reported a positive cash flow from operatings.
1.2 Ratios
SKM has a Return On Assets (1.96%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 4.84%, SKM is in line with its industry, outperforming 54.55% of the companies in the same industry.
SKM's Return On Invested Capital of 4.16% is in line compared to the rest of the industry. SKM outperforms 54.55% 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 6.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 4.84% | ||
| ROIC | 4.16% |
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
With a Profit Margin value of 3.28%, SKM perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
SKM's Profit Margin has improved in the last couple of years.
SKM has a Operating Margin of 6.99%. This is comparable to the rest of the industry: SKM outperforms 45.45% of its industry peers.
In the last couple of years the Operating Margin of SKM has grown nicely.
SKM has a Gross Margin of 96.29%. This is amongst the best in 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 | 6.99% | ||
| PM (TTM) | 3.28% | ||
| GM | 96.29% |
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.
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 2.26 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SKM (2.26) is better than 90.91% of its industry peers.
The Debt to FCF ratio of SKM is 6.75, which is on the high side as it means it would take SKM, 6.75 years of fcf income to pay off all of its debts.
SKM has a Debt to FCF ratio of 6.75. This is comparable to the rest of the industry: SKM outperforms 50.00% of its industry peers.
SKM has a Debt/Equity ratio of 0.80. This is a neutral value indicating SKM is somewhat dependend on debt financing.
SKM has a Debt to Equity ratio of 0.80. This is comparable to the rest of the industry: SKM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.52
WACC2.74%
2.3 Liquidity
SKM has a Current Ratio of 1.07. 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 1.07, SKM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
SKM has a Quick 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's Quick ratio of 1.03 is fine compared to the rest of the industry. SKM outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for SKM have decreased strongly by -49.20% in the last year.
Measured over the past 5 years, SKM shows a small growth in Earnings Per Share. The EPS has been growing by 7.54% on average per year.
The Revenue has decreased by -3.76% 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)-49.2%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-161.97%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-12.22%
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 3.30% on average per year.
SKM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.27% yearly.
EPS Next Y-64.48%
EPS Next 2Y-3.17%
EPS Next 3Y0.4%
EPS Next 5Y3.3%
Revenue Next Year-4.61%
Revenue Next 2Y-0.85%
Revenue Next 3Y0.06%
Revenue Next 5Y1.27%
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
The Price/Earnings ratio is 20.64, which indicates a rather expensive current valuation of SKM.
SKM's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, SKM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 10.08, the valuation of SKM can be described as very reasonable.
81.82% 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 24.04. SKM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKM is valued cheaper than 86.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SKM is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.24 | ||
| EV/EBITDA | 4.16 |
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)2.74
EPS Next 2Y-3.17%
EPS Next 3Y0.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.11%, SKM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.49, 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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 142.08% of its income as dividend. This is not a sustainable payout ratio.
DP142.08%
EPS Next 2Y-3.17%
EPS Next 3Y0.4%
20.64
+0.31 (+1.52%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners23.96%
Inst Owner Change-0.09%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap7.92B
Revenue(TTM)17.28T
Net Income(TTM)566.92B
Analysts73.33
Price Target22.05 (6.83%)
Short Float %0.61%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
Yearly Dividend1.44
Dividend Growth(5Y)-17.54%
DP142.08%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-162%
Min EPS beat(2)-260.14%
Max EPS beat(2)-63.85%
EPS beat(4)1
Avg EPS beat(4)-71.77%
Min EPS beat(4)-260.14%
Max EPS beat(4)39.29%
EPS beat(8)4
Avg EPS beat(8)-36.97%
EPS beat(12)5
Avg EPS beat(12)-24.55%
EPS beat(16)5
Avg EPS beat(16)-26.54%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-2.02%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)-1.54%
Revenue beat(8)2
Avg Revenue beat(8)-1.08%
Revenue beat(12)2
Avg Revenue beat(12)-1.24%
Revenue beat(16)3
Avg Revenue beat(16)13.69%
PT rev (1m)-1.14%
PT rev (3m)-9.92%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-19.91%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-37.12%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 10.08 | ||
| P/S | 0.67 | ||
| P/FCF | 7.24 | ||
| P/OCF | 2.85 | ||
| P/B | 0.99 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 4.16 |
EPS(TTM)1
EY4.84%
EPS(NY)2.05
Fwd EY9.92%
FCF(TTM)2.85
FCFY13.81%
OCF(TTM)7.23
OCFY35.05%
SpS30.71
BVpS20.8
TBVpS13.97
PEG (NY)N/A
PEG (5Y)2.74
Graham Number21.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 4.84% | ||
| ROCE | 5.39% | ||
| ROIC | 4.16% | ||
| ROICexc | 4.5% | ||
| ROICexgc | 5.51% | ||
| OM | 6.99% | ||
| PM (TTM) | 3.28% | ||
| GM | 96.29% | ||
| FCFM | 9.28% |
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-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 6.75 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 68.18% | ||
| Cap/Sales | 14.27% | ||
| Interest Coverage | 3.2 | ||
| Cash Conversion | 84.35% | ||
| Profit Quality | 282.99% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.26 |
F-Score5
WACC2.74%
ROIC/WACC1.52
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-64.48%
EPS Next 2Y-3.17%
EPS Next 3Y0.4%
EPS Next 5Y3.3%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-12.22%
Revenue Next Year-4.61%
Revenue Next 2Y-0.85%
Revenue Next 3Y0.06%
Revenue Next 5Y1.27%
EBIT growth 1Y-35.26%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year150.47%
EBIT Next 3Y40.4%
EBIT Next 5Y24.79%
FCF growth 1Y-24.89%
FCF growth 3Y13.29%
FCF growth 5Y39.8%
OCF growth 1Y-20.23%
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.
Can you provide the valuation status for SK TELECOM CO LTD-SPON ADR?
ChartMill assigns a valuation rating of 5 / 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 are the PE and PB ratios of SK TELECOM CO LTD-SPON ADR (SKM) stock?
The Price/Earnings (PE) ratio for SK TELECOM CO LTD-SPON ADR (SKM) is 20.64 and the Price/Book (PB) ratio is 0.99.
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 -64.48% in the next year.