SK TELECOM CO LTD-SPON ADR (SKM) Fundamental Analysis & Valuation
NYSE:SKM • US78440P3064
Current stock price
35.61 USD
+1.21 (+3.52%)
At close:
36.7 USD
+1.09 (+3.06%)
After Hours:
This SKM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SKM Profitability Analysis
1.1 Basic Checks
- In the past year SKM was profitable.
- SKM had a positive operating cash flow in the past year.
- SKM had positive earnings in each of the past 5 years.
- In the past 5 years SKM always reported a positive cash flow from operatings.
1.2 Ratios
- SKM's Return On Assets of 1.29% is in line compared to the rest of the industry. SKM outperforms 50.00% of its industry peers.
- Looking at the Return On Equity, with a value of 3.02%, SKM is in line with its industry, outperforming 45.45% of the companies in the same industry.
- SKM has a Return On Invested Capital (2.96%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for SKM is below the industry average of 7.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 3.02% | ||
| ROIC | 2.96% |
ROA(3y)2.97%
ROA(5y)3.9%
ROE(3y)7.66%
ROE(5y)10.32%
ROIC(3y)4.49%
ROIC(5y)4.35%
1.3 Margins
- Looking at the Profit Margin, with a value of 2.27%, SKM is doing worse than 68.18% of the companies in the same industry.
- In the last couple of years the Profit Margin of SKM has declined.
- SKM's Operating Margin of 6.28% is in line compared to the rest of the industry. SKM outperforms 40.91% of its industry peers.
- In the last couple of years the Operating Margin of SKM has declined.
- SKM's Gross Margin of 96.29% is amongst the best of 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 | 6.28% | ||
| PM (TTM) | 2.27% | ||
| GM | 96.29% |
OM growth 3Y-12.33%
OM growth 5Y-2.83%
PM growth 3Y-24.05%
PM growth 5Y-22.25%
GM growth 3Y0.15%
GM growth 5Y0.09%
2. SKM Health Analysis
2.1 Basic Checks
- SKM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for SKM remains at a similar level compared to 1 year ago.
- SKM has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for SKM has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.46 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SKM has a better Altman-Z score (2.46) than 90.91% of its industry peers.
- SKM has a debt to FCF ratio of 6.50. This is a slightly negative value and a sign of low solvency as SKM would need 6.50 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.50, SKM is in line with its industry, outperforming 50.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.69 indicates that SKM is somewhat dependend on debt financing.
- The Debt to Equity ratio of SKM (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.22
WACC2.43%
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 Current ratio (1.03) which is comparable to the rest of the industry.
- A Quick Ratio of 1.00 indicates that SKM should not have too much problems paying its short term obligations.
- The Quick ratio of SKM (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1 |
3. SKM Growth Analysis
3.1 Past
- SKM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -68.42%.
- SKM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.01% yearly.
- The Revenue has decreased by -4.69% in the past year.
- The Revenue has been decreasing by -1.69% on average over the past years.
EPS 1Y (TTM)-68.42%
EPS 3Y-23.79%
EPS 5Y-23.01%
EPS Q2Q%-62.14%
Revenue 1Y (TTM)-4.69%
Revenue growth 3Y-0.4%
Revenue growth 5Y-1.69%
Sales Q2Q%-4.05%
3.2 Future
- SKM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.53% yearly.
- SKM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y205.81%
EPS Next 2Y80.17%
EPS Next 3Y52.43%
EPS Next 5Y29.53%
Revenue Next Year3.34%
Revenue Next 2Y2.59%
Revenue Next 3Y2.83%
Revenue Next 5Y2.69%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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. SKM Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 52.37, which means the current valuation is very expensive for SKM.
- The rest of the industry has a similar Price/Earnings ratio as SKM.
- Compared to an average S&P500 Price/Earnings ratio of 26.91, SKM is valued quite expensively.
- The Price/Forward Earnings ratio is 17.03, which indicates a rather expensive current valuation of SKM.
- 63.64% of the companies in the same industry are cheaper than SKM, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.68, SKM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.37 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
- 72.73% of the companies in the same industry are more expensive than SKM, based on the Enterprise Value to EBITDA ratio.
- SKM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.66 | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SKM's earnings are expected to grow with 52.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y80.17%
EPS Next 3Y52.43%
5. SKM Dividend Analysis
5.1 Amount
- SKM has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 6.26, SKM has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.89, SKM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
- The dividend of SKM decreases each year by -22.13%.
- SKM has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of SKM decreased recently.
Dividend Growth(5Y)-22.13%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 161.69% of the earnings are spent on dividend by SKM. This is not a sustainable payout ratio.
DP161.69%
EPS Next 2Y80.17%
EPS Next 3Y52.43%
SKM Fundamentals: All Metrics, Ratios and Statistics
35.61
+1.21 (+3.52%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-11 2026-05-11
Inst Owners22.28%
Inst Owner Change-0.06%
Ins Owners0.04%
Ins Owner Change0%
Market Cap13.66B
Revenue(TTM)17.10T
Net Income(TTM)388.61B
Analysts71.33
Price Target28.19 (-20.84%)
Short Float %1.41%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend1.08
Dividend Growth(5Y)-22.13%
DP161.69%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-134.54%
Min EPS beat(2)-260.14%
Max EPS beat(2)-8.95%
EPS beat(4)0
Avg EPS beat(4)-83.83%
Min EPS beat(4)-260.14%
Max EPS beat(4)-2.38%
EPS beat(8)3
Avg EPS beat(8)-38.56%
EPS beat(12)5
Avg EPS beat(12)-24.95%
EPS beat(16)5
Avg EPS beat(16)-23.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-2.18%
Max Revenue beat(4)-1.54%
Revenue beat(8)1
Avg Revenue beat(8)-1.37%
Revenue beat(12)2
Avg Revenue beat(12)-1.3%
Revenue beat(16)2
Avg Revenue beat(16)-1.3%
PT rev (1m)0%
PT rev (3m)27.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)0%
EPS NY rev (3m)2.84%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.37 | ||
| Fwd PE | 17.03 | ||
| P/S | 1.18 | ||
| P/FCF | 12.66 | ||
| P/OCF | 5.16 | ||
| P/B | 1.57 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)0.68
EY1.91%
EPS(NY)2.09
Fwd EY5.87%
FCF(TTM)2.81
FCFY7.9%
OCF(TTM)6.91
OCFY19.39%
SpS30.13
BVpS22.67
TBVpS16
PEG (NY)0.25
PEG (5Y)N/A
Graham Number18.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 3.02% | ||
| ROCE | 4.55% | ||
| ROIC | 2.96% | ||
| ROICexc | 3.17% | ||
| ROICexgc | 3.82% | ||
| OM | 6.28% | ||
| PM (TTM) | 2.27% | ||
| GM | 96.29% | ||
| FCFM | 9.33% |
ROA(3y)2.97%
ROA(5y)3.9%
ROE(3y)7.66%
ROE(5y)10.32%
ROIC(3y)4.49%
ROIC(5y)4.35%
ROICexc(3y)4.91%
ROICexc(5y)4.73%
ROICexgc(3y)6.26%
ROICexgc(5y)6.16%
ROCE(3y)6.9%
ROCE(5y)6.68%
ROICexgc growth 3Y-16.63%
ROICexgc growth 5Y4.84%
ROICexc growth 3Y-13.69%
ROICexc growth 5Y5.87%
OM growth 3Y-12.33%
OM growth 5Y-2.83%
PM growth 3Y-24.05%
PM growth 5Y-22.25%
GM growth 3Y0.15%
GM growth 5Y0.09%
F-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 6.5 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 64.71% | ||
| Cap/Sales | 13.59% | ||
| Interest Coverage | 2.74 | ||
| Cash Conversion | 84.04% | ||
| Profit Quality | 410.7% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.46 |
F-Score5
WACC2.43%
ROIC/WACC1.22
Cap/Depr(3y)72%
Cap/Depr(5y)75.51%
Cap/Sales(3y)15.12%
Cap/Sales(5y)16.54%
Profit Quality(3y)262.57%
Profit Quality(5y)219.02%
High Growth Momentum
Growth
EPS 1Y (TTM)-68.42%
EPS 3Y-23.79%
EPS 5Y-23.01%
EPS Q2Q%-62.14%
EPS Next Y205.81%
EPS Next 2Y80.17%
EPS Next 3Y52.43%
EPS Next 5Y29.53%
Revenue 1Y (TTM)-4.69%
Revenue growth 3Y-0.4%
Revenue growth 5Y-1.69%
Sales Q2Q%-4.05%
Revenue Next Year3.34%
Revenue Next 2Y2.59%
Revenue Next 3Y2.83%
Revenue Next 5Y2.69%
EBIT growth 1Y-41.14%
EBIT growth 3Y-12.68%
EBIT growth 5Y-4.48%
EBIT Next Year388.72%
EBIT Next 3Y71.4%
EBIT Next 5Y39.22%
FCF growth 1Y-36.29%
FCF growth 3Y-8.93%
FCF growth 5Y-5.65%
OCF growth 1Y-22.61%
OCF growth 3Y-8.76%
OCF growth 5Y-7.61%
SK TELECOM CO LTD-SPON ADR / SKM Fundamental Analysis FAQ
What is the fundamental rating for SKM stock?
ChartMill assigns a fundamental rating of 4 / 10 to SKM.
Can you provide the valuation status for SK TELECOM CO LTD-SPON ADR?
ChartMill assigns a valuation rating of 4 / 10 to SK TELECOM CO LTD-SPON ADR (SKM). This can be considered as Fairly Valued.
Can you provide the profitability details for SK TELECOM CO LTD-SPON ADR?
SK TELECOM CO LTD-SPON ADR (SKM) has a profitability rating of 4 / 10.
Can you provide the financial health for SKM stock?
The financial health rating of SK TELECOM CO LTD-SPON ADR (SKM) is 5 / 10.
How sustainable is the dividend of SK TELECOM CO LTD-SPON ADR (SKM) stock?
The dividend rating of SK TELECOM CO LTD-SPON ADR (SKM) is 3 / 10 and the dividend payout ratio is 161.69%.