SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - NYSE:SKM - US78440P3064 - ADR
20.36 USD
+0.04 (+0.2%)
20.36 USD
0 (0%)
SKM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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
In the past year SKM was profitable.
In the past year SKM had a positive cash flow from operations.
Each year in the past 5 years SKM has been profitable.
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 3.39%, SKM is doing good in the industry, outperforming 63.64% of the companies in the same industry.
SKM has a Return On Equity (8.39%) which is comparable to the rest of the industry.
SKM has a Return On Invested Capital of 5.96%. This is in the better half of the industry: SKM outperforms 68.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 5.57%, SKM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
SKM's Profit Margin has improved in the last couple of years.
The Operating Margin of SKM (9.49%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SKM has grown nicely.
Looking at the Gross Margin, with a value of 96.23%, SKM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SKM's Gross Margin has been stable in the last couple of years.
| 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.
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
SKM has an Altman-Z score of 2.30. 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.
The Altman-Z score of SKM (2.30) is better than 90.91% of its industry peers.
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.
The Debt to FCF ratio of SKM (3.55) is better than 90.91% of its industry peers.
SKM has a Debt/Equity ratio of 0.74. This is a neutral value indicating SKM is somewhat dependend on debt financing.
SKM's Debt to Equity ratio of 0.74 is in line compared to the rest of the industry. SKM outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.3 |
ROIC/WACC2.18
WACC2.74%
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 of 1.03. This is comparable 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.
The Quick ratio of SKM (1.01) is comparable to the rest of the industry.
| 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.
Measured over the past 5 years, SKM shows a small growth in Earnings Per Share. The EPS has been growing by 7.54% on average per year.
Looking at the last year, SKM shows a small growth in Revenue. The Revenue has grown by 1.89% in the last 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
SKM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.28% yearly.
Based on estimates for the next years, SKM will show a small growth in Revenue. The Revenue will grow by 2.00% on average per year.
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.
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. Valuation
4.1 Price/Earnings Ratio
SKM is valuated rather expensively with a Price/Earnings ratio of 22.88.
SKM's Price/Earnings ratio is in line with the industry average.
SKM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.35.
With a Price/Forward Earnings ratio of 9.79, the valuation of SKM can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SKM is valued cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SKM to the average of the S&P500 Index (33.72), we can say SKM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 9.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKM is valued cheaper than 90.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SKM indicates a rather cheap valuation: SKM is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.77 | ||
| EV/EBITDA | 3.59 |
4.3 Compensation for Growth
SKM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.03
EPS Next 2Y-2.89%
EPS Next 3Y-0.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.62%, SKM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.92, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
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.
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%
20.36
+0.04 (+0.2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner Change-2.85%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap7.81B
Revenue(TTM)17.94T
Net Income(TTM)994.02B
Analysts75.33
Price Target24.11 (18.42%)
Short Float %0.43%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Yearly Dividend1.44
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)-1.49%
PT rev (3m)-2.65%
EPS NQ rev (1m)-1348.5%
EPS NQ rev (3m)-153.85%
EPS NY rev (1m)-24.62%
EPS NY rev (3m)-60.38%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-3.16%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 9.79 | ||
| P/S | 0.64 | ||
| P/FCF | 3.77 | ||
| P/OCF | 2.13 | ||
| P/B | 0.96 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 3.59 |
EPS(TTM)0.89
EY4.37%
EPS(NY)2.08
Fwd EY10.22%
FCF(TTM)5.4
FCFY26.54%
OCF(TTM)9.56
OCFY46.95%
SpS31.98
BVpS21.25
TBVpS14.1
PEG (NY)N/A
PEG (5Y)3.03
Graham Number20.63
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 | 2.3 |
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%.