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 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!
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 2.22 |
ROIC/WACC2.5
WACC2.74%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.86 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 8.13 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.26 | ||
| EV/EBITDA | 3.41 |
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. 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 Rank | Sector 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
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%
21.75
-1.83 (-7.76%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.54
Dividend Growth(5Y)-17.54%
DP64.77%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%