KOSE:A017670

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

SK Telecom Co., Ltd. provides wireless telecommunication services in South Korea. More Details


Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Share Price & News

How has SK TelecomLtd's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A017670 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

A017670

-0.3%

KR Wireless Telecom

-1.0%

KR Market


1 Year Return

-0.9%

A017670

2.7%

KR Wireless Telecom

13.6%

KR Market

Return vs Industry: A017670 underperformed the KR Wireless Telecom industry which returned 2.7% over the past year.

Return vs Market: A017670 underperformed the KR Market which returned 13.6% over the past year.


Shareholder returns

A017670IndustryMarket
7 Day0%-0.3%-1.0%
30 Day0.9%7.9%1.9%
90 Day7.6%-1.4%2.8%
1 Year3.4%-0.9%7.3%2.7%16.0%13.6%
3 Year-0.7%-11.7%4.7%-6.5%3.6%-3.6%
5 Year24.4%1.3%15.1%-4.9%23.9%9.5%

Price Volatility Vs. Market

How volatile is SK TelecomLtd's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

30.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: A017670 (₩233000) is trading below our estimate of fair value (₩334159.06)

Significantly Below Fair Value: A017670 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: A017670 is poor value based on its PE Ratio (17.5x) compared to the XA Wireless Telecom industry average (14x).

PE vs Market: A017670 is poor value based on its PE Ratio (17.5x) compared to the KR market (17x).


Price to Earnings Growth Ratio

PEG Ratio: A017670 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: A017670 is good value based on its PB Ratio (0.7x) compared to the XA Wireless Telecom industry average (1.9x).


Next Steps

Future Growth

How is SK TelecomLtd forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A017670's forecast earnings growth (27.3% per year) is above the savings rate (3.9%).

Earnings vs Market: A017670's earnings (27.3% per year) are forecast to grow slower than the KR market (30.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: A017670's revenue (4.3% per year) is forecast to grow slower than the KR market (9.7% per year).

High Growth Revenue: A017670's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: A017670's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has SK TelecomLtd performed over the past 5 years?

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A017670 has high quality earnings.

Growing Profit Margin: A017670's current net profit margins (5.4%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: A017670's earnings have declined by 0.2% per year over the past 5 years.

Accelerating Growth: A017670's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: A017670 had negative earnings growth (-54.6%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-0.2%).


Return on Equity

High ROE: A017670's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is SK TelecomLtd's financial position?


Financial Position Analysis

Short Term Liabilities: A017670's short term assets (₩8,261.3B) exceed its short term liabilities (₩7,435.4B).

Long Term Liabilities: A017670's short term assets (₩8,261.3B) do not cover its long term liabilities (₩14,505.0B).


Debt to Equity History and Analysis

Debt Level: A017670's debt to equity ratio (45%) is considered high.

Reducing Debt: A017670's debt to equity ratio has reduced from 53.5% to 45% over the past 5 years.

Debt Coverage: A017670's debt is well covered by operating cash flow (45.1%).

Interest Coverage: A017670's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

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

4.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: A017670's dividend (4.29%) is higher than the bottom 25% of dividend payers in the KR market (0.91%).

High Dividend: A017670's dividend (4.29%) is in the top 25% of dividend payers in the KR market (2.83%)


Stability and Growth of Payments

Stable Dividend: A017670's dividends per share have been stable in the past 10 years.

Growing Dividend: A017670's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.5%), A017670's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: A017670's dividends in 3 years are forecast to be well covered by earnings (32.7% payout ratio).


Next Steps

Management

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

2.6yrs

Average board tenure


CEO

Jung-ho Park (57 yo)

3.75yrs

Tenure

₩4,531,000,000

Compensation

Mr. Jung-Ho Park has been the Chief Executive Officer of SK Telecom Co., Ltd. since January 1, 2017 and has been its President and Executive Director since March 2017. Mr. Park serves as the Director at Na ...


CEO Compensation Analysis

Compensation vs Market: Jung-ho's total compensation ($USD4.00M) is above average for companies of similar size in the KR market ($USD1.78M).

Compensation vs Earnings: Jung-ho's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Jung-ho Park
President3.75yrs₩4.53b0.0034%
₩ 581.5m
Young Sang Ryu
President of Mobile Network Operations Division & Executive Director2.67yrs₩1.02b0.00068%
₩ 115.6m
Dae-Sik Cho
Non-Executive Director3.58yrsno datano data
Jung-Ho Ahn
Independent Non-executive Director3.58yrsno datano data
Young Min Yoon
Independent Non-Executive Director2.58yrsno datano data
Seok Dong Kim
Independent Non-executive Director1.58yrsno datano data
Yong Hak Kim
Independent Chairman of the Board0.58yrno datano data
Jun Mo Kim
Independent Non-executive Director0.58yrno datano data

2.6yrs

Average Tenure

57yo

Average Age

Experienced Board: A017670's board of directors are not considered experienced ( 2.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SK Telecom Co.,Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SK Telecom Co.,Ltd
  • Ticker: A017670
  • Exchange: KOSE
  • Founded: 1984
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₩17.004t
  • Shares outstanding: 73.14m
  • Website: https://www.sktelecom.com

Number of Employees


Location

  • SK Telecom Co.,Ltd
  • SK T-Tower
  • 65, Eulji-ro
  • Seoul
  • 4539
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A017670KOSE (Korea Stock Exchange)YesCommon StockKRKRWJan 1992
SKMNYSE (New York Stock Exchange)ADR EACH REPR 0.11111 KRW500USUSDJun 1996
SKMDLSE (London Stock Exchange)ADR EACH REPR 0.11111 KRW500GBUSDJun 1996
KMBMUN (Boerse Muenchen)ADR EACH REPR 0.11111 KRW500DEEURJun 1996
KMBDB (Deutsche Boerse AG)ADR EACH REPR 0.11111 KRW500DEEURJun 1996
SKM NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 0.11111 KRW500MXMXNJun 1996

Biography

SK Telecom Co., Ltd. provides wireless telecommunication services in South Korea. The Cellular Services segment offers wireless voice and data transmission, cellular global roaming, interconnection, Intern ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 14:48
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.