SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKM - US78440P3064 - ADR
19.93 USD
+0.18 (+0.91%)
19.93 USD
0 (0%)
Taking everything into account, SKM scores 6 out of 10 in our fundamental rating. SKM was compared to 22 industry peers in the Wireless Telecommunication Services industry. While SKM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SKM has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
SKM had positive earnings in the past year.
SKM had a positive operating cash flow in the past year.
SKM had positive earnings in each of the past 5 years.
Each year in the past 5 years SKM had a positive operating cash flow.
1.2 Ratios
SKM has a Return On Assets of 3.39%. This is in the better half of the industry: SKM outperforms 63.64% of its industry peers.
The Return On Equity of SKM (8.39%) is comparable to the rest of the industry.
The Return On Invested Capital of SKM (5.96%) is better than 68.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SKM is in line with the industry average of 5.83%.
| 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
SKM's Profit Margin of 5.57% is fine compared to the rest of the industry. SKM outperforms 63.64% of its industry peers.
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.
SKM's Operating Margin has improved in the last couple of years.
SKM has a better Gross Margin (96.23%) than 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 | 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
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.
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
SKM has an Altman-Z score of 2.29. 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.
Looking at the Altman-Z score, with a value of 2.29, SKM belongs to the top 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.
With an excellent Debt to FCF ratio value of 3.55, SKM belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
SKM has a Debt/Equity ratio of 0.74. This is a neutral value indicating SKM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, SKM perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.29 |
ROIC/WACC2.18
WACC2.74%
2.3 Liquidity
A Current Ratio of 1.03 indicates that SKM should not have too much problems paying its short term obligations.
SKM's Current ratio of 1.03 is in line compared to the rest of the industry. SKM outperforms 40.91% of its industry peers.
A Quick Ratio of 1.01 indicates that SKM should not have too much problems paying its short term obligations.
SKM's Quick ratio of 1.01 is in line compared to the rest of the industry. SKM outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for SKM have decreased strongly by -55.59% in the last year.
SKM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.54% yearly.
The Revenue has been growing slightly by 1.89% in the past year.
The Revenue has been growing slightly by 0.22% on average over the past years.
EPS 1Y (TTM)-55.59%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-188.97%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-12.22%
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 4.28% on average per year.
The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y-57.48%
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
EPS Next 5Y4.28%
Revenue Next Year-4.31%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.16%
Revenue Next 5Y2%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 22.65 indicates a rather expensive valuation of SKM.
SKM's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.45. SKM is around the same levels.
Based on the Price/Forward Earnings ratio of 9.68, the valuation of SKM can be described as reasonable.
Based on the Price/Forward Earnings ratio, SKM is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
SKM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKM is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SKM is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.73 | ||
| EV/EBITDA | 3.56 |
4.3 Compensation for Growth
The decent profitability rating of SKM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
5. Dividend
5.1 Amount
SKM has a Yearly Dividend Yield of 5.31%, which is a nice return.
Compared to an average industry Dividend Yield of 8.26, SKM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, SKM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
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-2.89%
EPS Next 3Y-0.05%
19.93
+0.18 (+0.91%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner Change-2.53%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap7.64B
Revenue(TTM)17.94T
Net Income(TTM)994.02B
Analysts75.33
Price Target23.24 (16.61%)
Short Float %0.48%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
Yearly Dividend1.45
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)-5.05%
PT rev (3m)-6.17%
EPS NQ rev (1m)-1348.5%
EPS NQ rev (3m)-457.22%
EPS NY rev (1m)-24.62%
EPS NY rev (3m)-60.38%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 9.68 | ||
| P/S | 0.63 | ||
| P/FCF | 3.73 | ||
| P/OCF | 2.11 | ||
| P/B | 0.95 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 3.56 |
EPS(TTM)0.88
EY4.42%
EPS(NY)2.06
Fwd EY10.33%
FCF(TTM)5.35
FCFY26.84%
OCF(TTM)9.46
OCFY47.47%
SpS31.65
BVpS21.03
TBVpS13.95
PEG (NY)N/A
PEG (5Y)3
Graham Number20.4
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%
ROICexgc growth 3Y13.93%
ROICexgc 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 | 2.29 |
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)-55.59%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-188.97%
EPS Next Y-57.48%
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
EPS Next 5Y4.28%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-12.22%
Revenue Next Year-4.31%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.16%
Revenue Next 5Y2%
EBIT growth 1Y-7.53%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year162.85%
EBIT Next 3Y41.58%
EBIT Next 5Y25.72%
FCF growth 1Y80.41%
FCF growth 3Y13.29%
FCF growth 5Y39.8%
OCF growth 1Y10.6%
OCF growth 3Y0.22%
OCF growth 5Y4.9%
SK TELECOM CO LTD-SPON ADR / SKM FAQ
What is the fundamental rating for SKM stock?
ChartMill assigns a fundamental rating of 6 / 10 to SKM.
What is the valuation status of SK TELECOM CO LTD-SPON ADR (SKM) stock?
ChartMill assigns a valuation rating of 6 / 10 to SK TELECOM CO LTD-SPON ADR (SKM). This can be considered as Fairly Valued.
How profitable is SK TELECOM CO LTD-SPON ADR (SKM) stock?
SK TELECOM CO LTD-SPON ADR (SKM) has a profitability rating of 7 / 10.
What is the earnings growth outlook for SK TELECOM CO LTD-SPON ADR?
The Earnings per Share (EPS) of SK TELECOM CO LTD-SPON ADR (SKM) is expected to decline by -57.48% in the next year.
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 5 / 10 and the dividend payout ratio is 80.98%.