SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
NYSE:SKM - New York Stock Exchange, Inc. - US78440P3064 - ADR - Currency: USD
Taking everything into account, SKM scores 5 out of 10 in our fundamental rating. SKM was compared to 21 industry peers in the Wireless Telecommunication Services industry. SKM scores excellent on profitability, but there are some minor concerns on its financial health. SKM scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
SKM had positive earnings in each of the past 5 years.
SKM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.03%, SKM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of SKM (10.52%) is better than 61.90% of its industry peers.
SKM's Return On Invested Capital of 6.64% 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 6.12%.
The 3 year average ROIC (5.97%) for SKM is below the current ROIC(6.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 10.52% | ||
| ROIC | 6.64% |
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
Looking at the Profit Margin, with a value of 6.86%, SKM is in the better half of 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's Operating Margin of 10.16% is in line compared to the rest of the industry. SKM outperforms 52.38% of its industry peers.
In the last couple of years the Operating Margin of SKM has grown nicely.
With an excellent Gross Margin value of 96.14%, SKM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 | 10.16% | ||
| PM (TTM) | 6.86% | ||
| GM | 96.14% |
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 just above the Cost of Capital (WACC), so SKM is still creating some 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 2.17 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 (2.17) than 90.48% of its industry peers.
SKM has a debt to FCF ratio of 4.30. This is a neutral value as SKM would need 4.30 years to pay back of all of its debts.
SKM has a Debt to FCF ratio of 4.30. This is amongst the best in the industry. SKM outperforms 80.95% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that SKM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, SKM is in line with its industry, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.21
WACC5.49%
2.3 Liquidity
A Current Ratio of 0.81 indicates that SKM may have some problems paying its short term obligations.
SKM has a Current ratio of 0.81. This is in the lower half of the industry: SKM underperforms 71.43% of its industry peers.
A Quick Ratio of 0.79 indicates that SKM may have some problems paying its short term obligations.
The Quick ratio of SKM (0.79) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
SKM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.72%, 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 1.89%.
The Revenue has been growing slightly by 0.22% on average over the past years.
EPS 1Y (TTM)16.72%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%68.49%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-0.35%
3.2 Future
SKM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
The Revenue is expected to grow by 2.20% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue Next Year0.95%
Revenue Next 2Y1.39%
Revenue Next 3Y2.2%
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
With a Price/Earnings ratio of 10.20, the valuation of SKM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SKM indicates a somewhat cheap valuation: SKM is cheaper than 76.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.63, SKM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.53, the valuation of SKM can be described as reasonable.
SKM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SKM is cheaper than 80.95% of the companies in the same industry.
SKM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 9.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKM is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SKM is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.02 | ||
| EV/EBITDA | 3.73 |
4.3 Compensation for Growth
SKM's 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)1.41
PEG (5Y)1.35
EPS Next 2Y6.72%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.11%, SKM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.53, 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
5.2 History
The dividend of SKM decreases each year by -17.54%.
SKM has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SKM decreased recently.
Dividend Growth(5Y)-17.54%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SKM pays out 65.37% of its income as dividend. This is not a sustainable payout ratio.
DP65.37%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
NYSE:SKM (4/22/2025, 12:31:41 PM)
23.155
+0.26 (+1.11%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners27.03%
Inst Owner Change0.08%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap8.88B
Analysts84
Price Target26.35 (13.8%)
Short Float %0.42%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
Yearly Dividend1.49
Dividend Growth(5Y)-17.54%
DP65.37%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.62%
Min EPS beat(2)-20.05%
Max EPS beat(2)39.29%
EPS beat(4)3
Avg EPS beat(4)6.71%
Min EPS beat(4)-20.05%
Max EPS beat(4)39.29%
EPS beat(8)5
Avg EPS beat(8)4.5%
EPS beat(12)5
Avg EPS beat(12)-3.83%
EPS beat(16)7
Avg EPS beat(16)-3.74%
Revenue beat(2)1
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)0.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.01%
Revenue beat(12)2
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)12.08%
PT rev (1m)-2.59%
PT rev (3m)-1.28%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)1.65%
EPS NY rev (3m)5%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 9.53 | ||
| P/S | 0.7 | ||
| P/FCF | 5.02 | ||
| P/OCF | 2.48 | ||
| P/B | 1.08 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 3.73 |
EPS(TTM)2.27
EY9.8%
EPS(NY)2.43
Fwd EY10.5%
FCF(TTM)4.61
FCFY19.91%
OCF(TTM)9.32
OCFY40.25%
SpS33.02
BVpS21.53
TBVpS13.68
PEG (NY)1.41
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 10.52% | ||
| ROCE | 8.56% | ||
| ROIC | 6.64% | ||
| ROICexc | 7.42% | ||
| ROICexgc | 9.56% | ||
| OM | 10.16% | ||
| PM (TTM) | 6.86% | ||
| GM | 96.14% | ||
| FCFM | 13.96% |
ROA(3y)3.49%
ROA(5y)4.26%
ROE(3y)9.3%
ROE(5y)10.97%
ROIC(3y)5.97%
ROIC(5y)5.01%
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 69.17% | ||
| Cap/Sales | 14.26% | ||
| Interest Coverage | 4.85 | ||
| Cash Conversion | 91.69% | ||
| Profit Quality | 203.61% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.17 |
F-Score7
WACC5.49%
ROIC/WACC1.21
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)16.72%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%68.49%
EPS Next Y7.24%
EPS Next 2Y6.72%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-0.35%
Revenue Next Year0.95%
Revenue Next 2Y1.39%
Revenue Next 3Y2.2%
Revenue Next 5YN/A
EBIT growth 1Y4%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year201.63%
EBIT Next 3Y46.51%
EBIT Next 5YN/A
FCF growth 1Y34.21%
FCF growth 3Y13.29%
FCF growth 5Y39.8%
OCF growth 1Y2.37%
OCF growth 3Y0.22%
OCF growth 5Y4.9%