SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
NYSE:SKM - New York Stock Exchange, Inc. - US78440P3064 - ADR - Currency: USD
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 cheap, 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.
Of the past 5 years SKM 4 years were profitable.
SKM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SKM has a better Return On Assets (3.78%) than 66.67% of its industry peers.
With a decent Return On Equity value of 9.50%, SKM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
SKM has a Return On Invested Capital (6.69%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SKM is in line with the industry average of 6.52%.
The last Return On Invested Capital (6.69%) for SKM is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.5% | ||
| ROIC | 6.69% |
ROA(3y)4.73%
ROA(5y)3.84%
ROE(3y)12.68%
ROE(5y)9.63%
ROIC(3y)5.19%
ROIC(5y)4.09%
1.3 Margins
Looking at the Profit Margin, with a value of 6.21%, SKM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SKM's Profit Margin has declined in the last couple of years.
The Operating Margin of SKM (10.39%) is comparable to the rest of the industry.
SKM's Operating Margin has improved in the last couple of years.
SKM has a Gross Margin of 96.11%. This is amongst the best in the industry. SKM outperforms 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 | 10.39% | ||
| PM (TTM) | 6.21% | ||
| GM | 96.11% |
OM growth 3Y11.18%
OM growth 5Y6.93%
PM growth 3Y-8.57%
PM growth 5Y-19.82%
GM growth 3Y0.1%
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
SKM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SKM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SKM has an Altman-Z score of 2.31. 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 2.31, SKM belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
The Debt to FCF ratio of SKM is 4.19, which is a neutral value as it means it would take SKM, 4.19 years of fcf income to pay off all of its debts.
SKM has a better Debt to FCF ratio (4.19) than 85.71% of its industry peers.
SKM has a Debt/Equity ratio of 0.62. This is a neutral value indicating SKM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, SKM is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.22
WACC5.48%
2.3 Liquidity
A Current Ratio of 0.91 indicates that SKM may have some problems paying its short term obligations.
SKM has a Current ratio of 0.91. This is in the lower half of the industry: SKM underperforms 76.19% of its industry peers.
A Quick Ratio of 0.88 indicates that SKM may have some problems paying its short term obligations.
SKM has a worse Quick ratio (0.88) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
SKM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.15%, which is quite good.
SKM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.91% yearly.
EPS 1Y (TTM)8.15%
EPS 3Y-12.96%
EPS 5Y5.91%
EPS Q2Q%15.23%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.63%
3.2 Future
Based on estimates for the next years, SKM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.63% on average per year.
The Revenue is expected to grow by 3.08% on average over the next years.
EPS Next Y13.85%
EPS Next 2Y9.52%
EPS Next 3Y11.63%
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y1.5%
Revenue Next 3Y3.08%
Revenue Next 5YN/A
3.3 Evolution
The EPS 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
With a Price/Earnings ratio of 10.97, the valuation of SKM can be described as very reasonable.
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 29.63. SKM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.63, the valuation of SKM can be described as reasonable.
66.67% 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 (22.68), we can say SKM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.63 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than SKM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SKM is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.16 | ||
| EV/EBITDA | 3.63 |
4.3 Compensation for Growth
SKM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SKM may justify a higher PE ratio.
PEG (NY)0.79
PEG (5Y)1.85
EPS Next 2Y9.52%
EPS Next 3Y11.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.99%, SKM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.05, 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
5.2 History
The dividend of SKM decreases each year by -18.31%.
SKM has paid a dividend for at least 10 years, which is a reliable track record.
SKM has decreased its dividend recently.
Dividend Growth(5Y)-18.31%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
72.33% of the earnings are spent on dividend by SKM. This is not a sustainable payout ratio.
DP72.33%
EPS Next 2Y9.52%
EPS Next 3Y11.63%
22.7
-0.35 (-1.52%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners27.03%
Inst Owner Change2.72%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap8.71B
Analysts84.67
Price Target27.74 (22.2%)
Short Float %0.3%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
Yearly Dividend3592.98
Dividend Growth(5Y)-18.31%
DP72.33%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.79%
Min EPS beat(2)-20.05%
Max EPS beat(2)0.48%
EPS beat(4)3
Avg EPS beat(4)-2.17%
Min EPS beat(4)-20.05%
Max EPS beat(4)7.11%
EPS beat(8)4
Avg EPS beat(8)-0.94%
EPS beat(12)4
Avg EPS beat(12)-11.47%
EPS beat(16)7
Avg EPS beat(16)-2%
Revenue beat(2)1
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-1.25%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-1.25%
Max Revenue beat(4)0.69%
Revenue beat(8)2
Avg Revenue beat(8)-0.85%
Revenue beat(12)3
Avg Revenue beat(12)18.92%
Revenue beat(16)4
Avg Revenue beat(16)12.22%
PT rev (1m)3.93%
PT rev (3m)0.17%
EPS NQ rev (1m)-6.12%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)-4.48%
EPS NY rev (3m)-4.33%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.63 | ||
| P/S | 0.7 | ||
| P/FCF | 5.16 | ||
| P/OCF | 2.49 | ||
| P/B | 1.07 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 3.63 |
EPS(TTM)2.07
EY9.12%
EPS(NY)2.36
Fwd EY10.38%
FCF(TTM)4.4
FCFY19.38%
OCF(TTM)9.13
OCFY40.2%
SpS32.58
BVpS21.3
TBVpS13.28
PEG (NY)0.79
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.5% | ||
| ROCE | 8.74% | ||
| ROIC | 6.69% | ||
| ROICexc | 7.47% | ||
| ROICexgc | 9.7% | ||
| OM | 10.39% | ||
| PM (TTM) | 6.21% | ||
| GM | 96.11% | ||
| FCFM | 13.5% |
ROA(3y)4.73%
ROA(5y)3.84%
ROE(3y)12.68%
ROE(5y)9.63%
ROIC(3y)5.19%
ROIC(5y)4.09%
ROICexc(3y)5.59%
ROICexc(5y)4.4%
ROICexgc(3y)7.43%
ROICexgc(5y)5.79%
ROCE(3y)6.77%
ROCE(5y)5.33%
ROICexcg growth 3Y31.93%
ROICexcg growth 5Y16.67%
ROICexc growth 3Y30.85%
ROICexc growth 5Y17.5%
OM growth 3Y11.18%
OM growth 5Y6.93%
PM growth 3Y-8.57%
PM growth 5Y-19.82%
GM growth 3Y0.1%
GM growth 5Y0.2%
F-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 1.31 | ||
| Cap/Depr | 70.19% | ||
| Cap/Sales | 14.51% | ||
| Interest Coverage | 4.89 | ||
| Cash Conversion | 90.17% | ||
| Profit Quality | 217.36% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.31 |
F-Score7
WACC5.48%
ROIC/WACC1.22
Cap/Depr(3y)81.22%
Cap/Depr(5y)84.29%
Cap/Sales(3y)18.28%
Cap/Sales(5y)18.9%
Profit Quality(3y)160.27%
Profit Quality(5y)135.55%
High Growth Momentum
Growth
EPS 1Y (TTM)8.15%
EPS 3Y-12.96%
EPS 5Y5.91%
EPS Q2Q%15.23%
EPS Next Y13.85%
EPS Next 2Y9.52%
EPS Next 3Y11.63%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.63%
Revenue Next Year1.2%
Revenue Next 2Y1.5%
Revenue Next 3Y3.08%
Revenue Next 5YN/A
EBIT growth 1Y9.1%
EBIT growth 3Y9.12%
EBIT growth 5Y7.85%
EBIT Next Year218.42%
EBIT Next 3Y47.43%
EBIT Next 5YN/A
FCF growth 1Y28.86%
FCF growth 3Y-4.37%
FCF growth 5Y12.48%
OCF growth 1Y-2.1%
OCF growth 3Y-5.28%
OCF growth 5Y2.69%