SK TELECOM CO LTD-SPON ADR (SKM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKM - US78440P3064 - ADR
20.275 USD
-0.03 (-0.12%)
We assign a fundamental rating of 5 out of 10 to SKM. SKM was compared to 22 industry peers in the Wireless Telecommunication Services industry. SKM has only an average score on both its financial health and profitability. SKM has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years SKM had a positive operating cash flow.
1.2 Ratios
SKM has a Return On Assets (3.39%) which is comparable to the rest of the industry.
SKM's Return On Equity of 8.39% is in line compared to the rest of the industry. SKM outperforms 54.55% of its industry peers.
With a decent Return On Invested Capital value of 5.96%, SKM is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SKM is in line with the industry average of 6.44%.
| 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 has a Profit Margin (5.57%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SKM has grown nicely.
SKM's Operating Margin of 9.49% is in line compared to the rest of the industry. SKM outperforms 54.55% of its industry peers.
SKM's Operating Margin has improved in the last couple of years.
SKM has a Gross Margin of 96.23%. This is amongst the best in 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SKM is creating value.
Compared to 1 year ago, SKM has about the same amount of shares outstanding.
The number of shares outstanding for SKM has been increased compared to 5 years ago.
SKM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.30 indicates that SKM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SKM's Altman-Z score of 2.30 is amongst the best of the industry. SKM outperforms 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.
With a decent Debt to FCF ratio value of 3.55, SKM is doing good in the industry, outperforming 68.18% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that SKM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, SKM is in line with its industry, outperforming 50.00% of the companies in the same industry.
| 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.
Looking at the Current ratio, with a value of 1.03, SKM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that SKM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, SKM is in the better half of the industry, outperforming 63.64% of the companies in the same 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 -49.20% in the last year.
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%.
SKM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.22% yearly.
EPS 1Y (TTM)-49.2%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-161.97%
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 3.62% yearly.
Based on estimates for the next years, SKM will show a small growth in Revenue. The Revenue will grow by 1.58% on average per year.
EPS Next Y-64.56%
EPS Next 2Y-3.22%
EPS Next 3Y0.44%
EPS Next 5Y3.62%
Revenue Next Year-4.65%
Revenue Next 2Y-0.83%
Revenue Next 3Y0.06%
Revenue Next 5Y1.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 20.07, which indicates a rather expensive current valuation of SKM.
The rest of the industry has a similar Price/Earnings ratio as SKM.
SKM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.89, the valuation of SKM can be described as reasonable.
81.82% of the companies in the same industry are more expensive than SKM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SKM to the average of the S&P500 Index (23.56), we can say SKM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
SKM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SKM is cheaper than 86.36% 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 90.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.78 | ||
| EV/EBITDA | 3.61 |
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)2.66
EPS Next 2Y-3.22%
EPS Next 3Y0.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.26%, SKM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.54, SKM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, SKM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
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
80.98% of the earnings are spent on dividend by SKM. This is not a sustainable payout ratio.
DP80.98%
EPS Next 2Y-3.22%
EPS Next 3Y0.44%
NYSE:SKM (12/9/2025, 3:58:39 PM)
20.275
-0.03 (-0.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner Change-2.58%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap7.78B
Revenue(TTM)17.94T
Net Income(TTM)994.02B
Analysts73.33
Price Target22.31 (10.04%)
Short Float %0.49%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
Yearly Dividend1.43
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)-7.5%
PT rev (3m)-11.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-201.42%
EPS NY rev (1m)-16.64%
EPS NY rev (3m)-41.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 9.89 | ||
| P/S | 0.64 | ||
| P/FCF | 3.78 | ||
| P/OCF | 2.14 | ||
| P/B | 0.96 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 3.61 |
EPS(TTM)1.01
EY4.98%
EPS(NY)2.05
Fwd EY10.11%
FCF(TTM)5.36
FCFY26.44%
OCF(TTM)9.48
OCFY46.76%
SpS31.71
BVpS21.07
TBVpS13.98
PEG (NY)N/A
PEG (5Y)2.66
Graham Number21.88
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)-49.2%
EPS 3Y-10.72%
EPS 5Y7.54%
EPS Q2Q%-161.97%
EPS Next Y-64.56%
EPS Next 2Y-3.22%
EPS Next 3Y0.44%
EPS Next 5Y3.62%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y2.32%
Revenue growth 5Y0.22%
Sales Q2Q%-12.22%
Revenue Next Year-4.65%
Revenue Next 2Y-0.83%
Revenue Next 3Y0.06%
Revenue Next 5Y1.58%
EBIT growth 1Y-7.53%
EBIT growth 3Y9.54%
EBIT growth 5Y10.47%
EBIT Next Year150.47%
EBIT Next 3Y40.4%
EBIT Next 5Y25.17%
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 5 / 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 6 / 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 -64.56% 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%.