SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - NYSE:SKM - US78440P3064 - ADR
21.96 USD
+0.08 (+0.37%)
21.96 USD
0 (0%)
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. While SKM has a great profitability rating, there are some minor concerns on its financial health. SKM is cheap, but on the other hand it scores bad on growth. This makes SKM very considerable for value investing!
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.
Each year in the past 5 years SKM has been profitable.
SKM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SKM has a better Return On Assets (3.39%) than 68.18% of its industry peers.
The Return On Equity of SKM (8.39%) is comparable to the rest of the industry.
SKM has a Return On Invested Capital of 5.96%. This is in the better half of the industry: SKM outperforms 63.64% 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 6.09%.
| 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
With a decent Profit Margin value of 5.57%, SKM is doing good in the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Profit Margin of SKM has grown nicely.
The Operating Margin of SKM (9.49%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SKM has grown nicely.
With an excellent Gross Margin value of 96.23%, SKM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
SKM has more shares outstanding than it did 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.
With an excellent Altman-Z score value of 2.31, SKM belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
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 has a Debt to FCF ratio of 3.55. This is amongst the best in 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 (0.74) which is in line with 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.
SKM has a worse Current ratio (1.03) than 68.18% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.01, SKM is doing worse than 63.64% of the companies in the same industry.
| 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.
Looking at the last year, SKM shows a small growth in Revenue. The Revenue has grown by 0.05% 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)-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
The Earnings Per Share is expected to grow by 1.07% on average over the next years.
SKM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.29% yearly.
EPS Next Y-39.54%
EPS Next 2Y-1.95%
EPS Next 3Y1.07%
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
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
With a Price/Earnings ratio of 11.74, the valuation of SKM can be described as very reasonable.
Based on the Price/Earnings ratio, SKM is valued cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of SKM to the average of the S&P500 Index (27.20), we can say SKM is valued rather cheaply.
The Price/Forward Earnings ratio is 9.88, which indicates a very decent valuation of SKM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SKM indicates a rather cheap valuation: SKM is cheaper than 90.91% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SKM to the average of the S&P500 Index (22.71), we can say SKM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 9.88 |
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 90.91% of the companies listed in the same industry.
SKM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SKM is cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.88 | ||
| EV/EBITDA | 3.65 |
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)1.56
EPS Next 2Y-1.95%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
SKM has a Yearly Dividend Yield of 4.66%, which is a nice return.
Compared to an average industry Dividend Yield of 5.28, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
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 80.98% of its income as dividend. This is not a sustainable payout ratio.
DP80.98%
EPS Next 2Y-1.95%
EPS Next 3Y1.07%
21.96
+0.08 (+0.37%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.14%
Inst Owner Change6.11%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap8.42B
Analysts75.33
Price Target24.67 (12.34%)
Short Float %0.4%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
Yearly Dividend1.51
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)-0.39%
PT rev (3m)-5.32%
EPS NQ rev (1m)-71.39%
EPS NQ rev (3m)-99.04%
EPS NY rev (1m)-43.66%
EPS NY rev (3m)-43.66%
Revenue NQ rev (1m)-1.53%
Revenue NQ rev (3m)-13.47%
Revenue NY rev (1m)-1.68%
Revenue NY rev (3m)-4.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 9.88 | ||
| P/S | 0.66 | ||
| P/FCF | 3.88 | ||
| P/OCF | 2.19 | ||
| P/B | 0.99 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 3.65 |
EPS(TTM)1.87
EY8.52%
EPS(NY)2.22
Fwd EY10.12%
FCF(TTM)5.66
FCFY25.78%
OCF(TTM)10.01
OCFY45.6%
SpS33.5
BVpS22.26
TBVpS14.77
PEG (NY)N/A
PEG (5Y)1.56
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-39.54%
EPS Next 2Y-1.95%
EPS Next 3Y1.07%
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 Year196.44%
EBIT Next 3Y44.17%
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%