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SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis

NYSE:SKM - New York Stock Exchange, Inc. - US78440P3064 - ADR - Currency: USD

21.75  -1.83 (-7.76%)

After market: 22.3401 +0.59 (+2.71%)

Fundamental Rating

6

SKM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. SKM has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SKM. This makes SKM very considerable for value investing!


Dividend Valuation Growth Profitability Health

7

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.
In the past 5 years SKM has always been profitable.
SKM had a positive operating cash flow in each of the past 5 years.
SKM Yearly Net Income VS EBIT VS OCF VS FCFSKM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1T 2T 3T 4T 5T

1.2 Ratios

SKM has a Return On Assets of 4.15%. This is in the better half of the industry: SKM outperforms 66.67% of its industry peers.
With a decent Return On Equity value of 10.51%, SKM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
SKM's Return On Invested Capital of 6.86% is fine compared to the rest of the industry. SKM outperforms 61.90% 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 6.34%.
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 RankSector 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%
SKM Yearly ROA, ROE, ROICSKM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

With a decent Profit Margin value of 6.93%, SKM is doing good in 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 (10.56%) which is in line with its industry peers.
SKM's Operating Margin has improved in the last couple of years.
SKM's Gross Margin of 96.21% is amongst the best of the industry. SKM outperforms 100.00% of its industry peers.
SKM's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SKM Yearly Profit, Operating, Gross MarginsSKM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SKM is creating value.
SKM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, SKM has more shares outstanding
The debt/assets ratio for SKM has been reduced compared to a year ago.
SKM Yearly Shares OutstandingSKM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
SKM Yearly Total Debt VS Total AssetsSKM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10T 20T 30T 40T

2.2 Solvency

An Altman-Z score of 2.22 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SKM's Altman-Z score of 2.22 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.
SKM has a Debt to FCF ratio of 3.99. This is amongst the best in the industry. SKM outperforms 80.95% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that SKM is somewhat dependend on debt financing.
SKM has a Debt to Equity ratio (0.69) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.69
Debt/FCF 3.99
Altman-Z 2.22
ROIC/WACC2.5
WACC2.74%
SKM Yearly LT Debt VS Equity VS FCFSKM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5T 10T 15T 20T

2.3 Liquidity

SKM has a Current 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 Current ratio of 0.88. This is in the lower half of the industry: SKM underperforms 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's Quick ratio of 0.86 is on the low side compared to the rest of the industry. SKM is outperformed by 76.19% of its industry peers.
Industry RankSector Rank
Current Ratio 0.88
Quick Ratio 0.86
SKM Yearly Current Assets VS Current LiabilitesSKM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2T 4T 6T 8T

4

3. Growth

3.1 Past

SKM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.67%, which is quite good.
The Earnings Per Share has been growing slightly by 7.54% on average over the past years.
SKM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.18%.
Measured over the past years, SKM shows a small growth in Revenue. The Revenue has been growing by 0.22% on average per year.
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

Based on estimates for the next years, SKM will show a small growth in Earnings Per Share. The EPS will grow by 7.74% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SKM Yearly Revenue VS EstimatesSKM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5T 10T 15T
SKM Yearly EPS VS EstimatesSKM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2K 4K 6K 8K

8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.18 indicates a reasonable valuation of SKM.
Based on the Price/Earnings ratio, SKM is valued cheaper than 80.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of SKM to the average of the S&P500 Index (27.29), we can say SKM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.13, the valuation of SKM can be described as reasonable.
Based on the Price/Forward Earnings ratio, SKM is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SKM to the average of the S&P500 Index (21.74), we can say SKM is valued rather cheaply.
Industry RankSector Rank
PE 9.18
Fwd PE 8.13
SKM Price Earnings VS Forward Price EarningsSKM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

90.48% of the companies in the same industry are more expensive than SKM, based on the Enterprise Value to EBITDA ratio.
90.48% of the companies in the same industry are more expensive than SKM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.26
EV/EBITDA 3.41
SKM Per share dataSKM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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)1.27
PEG (5Y)1.22
EPS Next 2Y6.72%
EPS Next 3Y7.74%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.26%, SKM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.06, SKM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, SKM pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.26%

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
SKM Yearly Dividends per shareSKM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2K 4K 6K 8K

5.3 Sustainability

64.77% of the earnings are spent on dividend by SKM. This is not a sustainable payout ratio.
DP64.77%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
SKM Yearly Income VS Free CF VS DividendSKM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1T 2T 3T
SKM Dividend Payout.SKM Dividend Payout, showing the Payout Ratio.SKM Dividend Payout.PayoutRetained Earnings

SK TELECOM CO LTD-SPON ADR

NYSE:SKM (7/7/2025, 8:04:00 PM)

After market: 22.3401 +0.59 (+2.71%)

21.75

-1.83 (-7.76%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)05-12 2025-05-12/bmo
Earnings (Next)08-04 2025-08-04/bmo
Inst Owners26.14%
Inst Owner Change0%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap8.34B
Analysts80
Price Target25.94 (19.26%)
Short Float %0.24%
Short Ratio1.26
Dividend
Industry RankSector Rank
Dividend Yield 4.26%
Yearly Dividend1.54
Dividend Growth(5Y)-17.54%
DP64.77%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-28 2025-02-28 (0.405109)
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 RankSector Rank
PE 9.18
Fwd PE 8.13
P/S 0.64
P/FCF 4.26
P/OCF 2.19
P/B 0.97
P/tB 1.49
EV/EBITDA 3.41
EPS(TTM)2.37
EY10.9%
EPS(NY)2.67
Fwd EY12.29%
FCF(TTM)5.1
FCFY23.45%
OCF(TTM)9.91
OCFY45.56%
SpS34.17
BVpS22.54
TBVpS14.63
PEG (NY)1.27
PEG (5Y)1.22
Profitability
Industry RankSector 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 RankSector 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 2.22
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%