SK (KOSE:A034730) - Share price, News & Analysis

A034730 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	4/6
Financial Health	2/6
Dividends	3/6

A034730 Stock Overview

SK Inc. focuses on operating in energy, chemicals, information and communications, biopharmaceutical, mobility, materials, logistics, and service business areas.

Rewards

Trading at 72.3% below our estimate of its fair value

Earnings are forecast to grow 13.22% per year

Earnings grew by 432.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.25% is not well covered by earnings

Shareholders have been diluted in the past year

SK Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SK
Historical stock prices
Current Share Price	₩246,000.00
52 Week High	₩293,000.00
52 Week Low	₩203,500.00
Beta	0.85
1 Month Change	-7.17%
3 Month Change	8.37%
1 Year Change	-8.72%
3 Year Change	2.93%
5 Year Change	-9.89%
Change since IPO	590.04%

Shareholder Returns

	A034730	KR Industrials	KR Market
7D	-1.6%	0.3%	1.6%
1Y	-8.7%	-11.7%	-14.2%

Return vs Industry: A034730 exceeded the KR Industrials industry which returned -11.7% over the past year.

Return vs Market: A034730 exceeded the KR Market which returned -14.2% over the past year.

Price Volatility

Is A034730's price volatile compared to industry and market?
A034730 volatility
A034730 Average Weekly Movement	3.7%
Industrials Industry Average Movement	3.7%
Market Average Movement	5.5%
10% most volatile stocks in KR Market	10.4%
10% least volatile stocks in KR Market	3.2%

Stable Share Price: A034730 is less volatile than 75% of KR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: A034730's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1991	4,193	Jae Won Chey	https://www.sk-inc.com

SK Inc. focuses on operating in energy, chemicals, information and communications, biopharmaceutical, mobility, materials, logistics, and service business areas. The company was formerly known as SK Holdings Co., Ltd and changed its name to SK Inc. in March 2021. SK Inc. was founded in 1991 and is headquartered in Seoul, South Korea.

SK Fundamentals Summary

How do SK's earnings and revenue compare to its market cap?
A034730 fundamental statistics
Market Cap	₩13.80t
Earnings (TTM)	₩2.08t
Revenue (TTM)	₩107.08t

6.6x

P/E Ratio

0.1x

P/S Ratio

Is A034730 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A034730 income statement (TTM)
Revenue	₩107.08t
Cost of Revenue	₩94.30t
Gross Profit	₩12.77t
Other Expenses	₩10.69t
Earnings	₩2.08t

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	37.12k
Gross Margin	11.93%
Net Profit Margin	1.94%
Debt/Equity Ratio	89.9%

How did A034730 perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

21%

Payout Ratio

Valuation

Is SK undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: A034730 (₩246000) is trading below our estimate of fair value (₩889091.84)

Significantly Below Fair Value: A034730 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: A034730 is good value based on its PE Ratio (6.6x) compared to the KR Industrials industry average (6.8x).

PE vs Market: A034730 is good value based on its PE Ratio (6.6x) compared to the KR market (14x).

Price to Earnings Growth Ratio

PEG Ratio: A034730 is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: A034730's PB Ratio (0.6x) is in line with the KR Industrials industry average.

Future Growth

How is SK forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: A034730's forecast earnings growth (13.2% per year) is above the savings rate (3.5%).

Earnings vs Market: A034730's earnings (13.2% per year) are forecast to grow slower than the KR market (14.7% per year).

High Growth Earnings: A034730's earnings are forecast to grow, but not significantly.

Revenue vs Market: A034730's revenue (9.1% per year) is forecast to grow slower than the KR market (9.7% per year).

High Growth Revenue: A034730's revenue (9.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: A034730's Return on Equity is forecast to be low in 3 years time (9.6%).

Past Performance

How has SK performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-16.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A034730 has high quality earnings.

Growing Profit Margin: A034730's current net profit margins (1.9%) are higher than last year (0.5%).

Past Earnings Growth Analysis

Earnings Trend: A034730's earnings have declined by 16.1% per year over the past 5 years.

Accelerating Growth: A034730's earnings growth over the past year (432.2%) exceeds its 5-year average (-16.1% per year).

Earnings vs Industry: A034730 earnings growth over the past year (432.2%) exceeded the Industrials industry 59.4%.

Return on Equity

High ROE: A034730's Return on Equity (10.6%) is considered low.

Financial Health

How is SK's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: A034730's short term assets (₩53,804.0B) exceed its short term liabilities (₩48,575.2B).

Long Term Liabilities: A034730's short term assets (₩53,804.0B) do not cover its long term liabilities (₩56,529.6B).

Debt to Equity History and Analysis

Debt Level: A034730's net debt to equity ratio (61.7%) is considered high.

Reducing Debt: A034730's debt to equity ratio has increased from 76.1% to 89.9% over the past 5 years.

Debt Coverage: A034730's debt is not well covered by operating cash flow (8.8%).

Interest Coverage: A034730's interest payments on its debt are well covered by EBIT (5x coverage).

Balance Sheet

Dividend

What is SK current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.25%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A034730's dividend (3.25%) is higher than the bottom 25% of dividend payers in the KR market (0.85%).

High Dividend: A034730's dividend (3.25%) is in the top 25% of dividend payers in the KR market (2.75%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, A034730 has been paying a dividend for less than 10 years.

Growing Dividend: A034730's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.5%), A034730's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: A034730 is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average board tenure

CEO

Jae Won Chey (58 yo)

0.42

Tenure

Mr. Jae-Won Choi has been Chief Executive Officer of SK Inc. since December 2021. He served as an Executive Vice Chairperson of SK Inc (formerly SK Holdings Co., Ltd) (Public Company). Mr. Choi served as V...

Board Members

Experienced Board: A034730's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31