KOSE:A017670

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.3%

A017670

0.9%

KR Wireless Telecom

1.6%

KR Market


1 Year Return

-13.1%

A017670

-6.6%

KR Wireless Telecom

-5.1%

KR Market


Shareholder returns

A017670IndustryMarket
7 Day1.3%0.9%1.6%
30 Day-0.4%-0.4%1.0%
90 Day-8.3%-4.7%0.3%
1 Year-9.8%-13.1%-1.2%-6.6%-3.0%-5.1%
3 Year17.0%3.9%-4.6%-18.3%7.1%-1.5%
5 Year8.4%-11.0%-13.1%-30.6%16.7%3.2%

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

No news available

Valuation

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

18.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued:

Significantly Undervalued: A017670 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: A017670 is good value based on its PE Ratio (7.9x) compared to the Wireless Telecom industry average (13.7x).

PE vs Market: A017670 is good value based on its PE Ratio (7.9x) compared to the KR market (15.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: A017670 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: A017670 is good value based on its PB Ratio (0.8x) compared to the XA Wireless Telecom industry average (1.7x).


Next Steps

Future Growth

How is SK TelecomLtd forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A017670's forecast earnings growth (24.2% per year) is above the savings rate (2.7%).

Earnings vs Market: A017670's earnings (24.2% per year) are forecast to grow faster than the KR market (22.5% per year).

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

Revenue vs Market: A017670's revenue (3.9% per year) is forecast to grow slower than the KR market (7.7% per year).

High Growth Revenue: A017670's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has SK TelecomLtd performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: A017670's earnings have grown by 14.3% 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 (-28.7%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-3%).


Return on Equity

High ROE: A017670's Return on Equity (9.6%) is considered low.


Return on Assets

ROA vs Industry: A017670's Return on Assets is below or equal to the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: A017670's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is SK TelecomLtd's financial position?


Financial Position Analysis

Short Term Liabilities: A017670's short term assets (₩7,586.0B) exceeds its short term liabilities (₩6,940.8B)

Long Term Liabilities: A017670's short term assets (7,586.0B) do not cover its long term liabilities (13,219.9B)


Debt to Equity History and Analysis

Debt Level: A017670's debt to equity ratio (43.8%) is considered high

Reducing Debt: A017670's debt to equity ratio has reduced from 57.2% to 43.8% over the past 5 years.

Debt Coverage: A017670's debt is well covered by operating cash flow (42%).

Interest Coverage: A017670's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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

4.20%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.1%markettop25%3.1%industryaverage4.1%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: A017670's dividend (4.2%) is higher than the bottom 25% of dividend payers in the KR market (1.12%).

High Dividend: A017670's dividend (4.2%) is in the top 25% of dividend payers in the KR market (3.1%)

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: With its reasonably low payout ratio (33.3%), A017670's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: A017670's dividends in 3 years are forecast to be well covered by earnings (28% payout ratio).


Next Steps

Management

What is the CEO of SK TelecomLtd's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average board tenure


CEO

Jung-ho Park (56yo)

2.8yrs

Tenure

₩3,506,000,000

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 served as the Chief Executiv ...


CEO Compensation Analysis

Information is not available.

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 Age and Tenure

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.


Insider Trading

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


Ownership Breakdown


Management Team

  • Jung-ho Park (56yo)

    President

    • Tenure: 2.8yrs
    • Compensation: ₩3.51b
  • Yeongsang Yoo (49yo)

    Executive Director & Head of MNO Business

    • Tenure: 1.7yrs
    • Compensation: ₩579.00m
  • Jeong Choi

    Senior VP & IRO

    • Tenure: 0yrs
  • Poong Yoon (45yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Yong Park (54yo)

    Head of Legal Group

    • Tenure: 0yrs
  • Eunah Hyun (45yo)

    SVP of Strategy Legal

    • Tenure: 0yrs
  • Man Ra (47yo)

    Head of HR Group

    • Tenure: 0yrs
  • Seong Ha (51yo)

    Head of Corporate Relation Center

    • Tenure: 0yrs
  • Hyoung Ha (49yo)

    Head of Integrated Service Innovation Center

    • Tenure: 0yrs
  • Jin Park (49yo)

    Head of ICT R&D Center

    • Tenure: 0yrs

Board Members

  • Dae-Sik Cho (59yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Jae-Hyeon Ahn (58yo)

    Independent Director

    • Tenure: 5.6yrs
  • Jae-Hoon Lee (64yo)

    Independent Chairman of the Board

    • Tenure: 2.6yrs
  • Jung-ho Park (56yo)

    President

    • Tenure: 2.8yrs
    • Compensation: ₩3.51b
  • Jung-Ho Ahn (41yo)

    Independent Director

    • Tenure: 2.6yrs
  • Yeongsang Yoo (49yo)

    Executive Director & Head of MNO Business

    • Tenure: 1.7yrs
    • Compensation: ₩579.00m
  • Young Min Yoon (56yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
  • Seok Dong Kim (66yo)

    Independent Director

    • Tenure: 0.6yrs

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: ₩17.033t
  • Shares outstanding: 71.87m
  • 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

Biography

SK Telecom Co., Ltd. provides wireless telecommunication services in South Korea. It operates in four segments: Cellular Services, Fixed-Line Telecommunication Services, E-Commerce Services, and Other Busi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 14:35
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.