NYSE:SKM

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

2.2%

NYSE:SKM

0.2%

US Wireless Telecom

1.3%

US Market


1 Year Return

-18.0%

NYSE:SKM

7.6%

US Wireless Telecom

2.0%

US Market

SKM underperformed the Wireless Telecom industry which returned 6.9% over the past year.

SKM underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

SKMIndustryMarket
7 Day2.2%0.2%1.3%
30 Day5.8%2.0%3.9%
90 Day-7.7%-0.7%3.4%
1 Year-15.5%-18.0%8.8%7.6%4.2%2.0%
3 Year17.1%6.7%35.8%30.6%47.2%37.6%
5 Year-18.4%-27.7%37.2%23.7%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

SK TelecomLtd's share price is below the future cash flow value, but not at a moderate discount (< 20%).

SK TelecomLtd's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

SK TelecomLtd is good value based on earnings compared to the US Wireless Telecom industry average.

SK TelecomLtd is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

SK TelecomLtd is good value based on expected growth next year.


Price Based on Value of Assets

SK TelecomLtd is good value based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

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

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SK TelecomLtd's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

SK TelecomLtd's earnings are expected to grow significantly at over 20% yearly.

SK TelecomLtd's revenue growth is positive but not above the United States of America market average.

SK TelecomLtd's earnings growth is expected to exceed the United States of America market average.

SK TelecomLtd's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

SK TelecomLtd is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

SK TelecomLtd's year on year earnings growth rate has been positive over the past 5 years.

SK TelecomLtd's 1-year earnings growth is negative, it can't be compared to the 5-year average.

SK TelecomLtd's 1-year earnings growth is negative, it can't be compared to the US Wireless Telecom industry average.


Return on Equity

SK TelecomLtd has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

SK TelecomLtd used its assets more efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

SK TelecomLtd's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SK TelecomLtd's financial position?


Financial Position Analysis

SK TelecomLtd is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SK TelecomLtd's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

SK TelecomLtd's level of debt (43.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (57.2% vs 43.8% today).

Debt is well covered by operating cash flow (42%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

4.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

SK TelecomLtd's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

SK TelecomLtd's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).


Next Steps

Management

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

2.5yrs

Average board tenure


CEO

Jung-ho Park (56yo)

2.7yrs

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

Jung-ho's remuneration is lower than average for companies of similar size in United States of America.

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

2.5yrs

Average Tenure

57yo

Average Age

The average tenure for the SK TelecomLtd board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jung-ho Park (56yo)

    President

    • Tenure: 2.7yrs
    • Compensation: ₩3.51b
  • Young Sang Ryu (49yo)

    Executive Director & Head of MNO Business

    • Tenure: 1.6yrs
    • 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: 2.5yrs
  • Jae-Hyeon Ahn (58yo)

    Independent Director

    • Tenure: 5.5yrs
  • Jae-Hoon Lee (64yo)

    Chairman of the Board

    • Tenure: 2.5yrs
  • Jung-ho Park (56yo)

    President

    • Tenure: 2.7yrs
    • Compensation: ₩3.51b
  • Jung-Ho Ahn (41yo)

    Independent Director

    • Tenure: 2.5yrs
  • Young Sang Ryu (49yo)

    Executive Director & Head of MNO Business

    • Tenure: 1.6yrs
    • Compensation: ₩579.00m
  • Young Min Yoon (56yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
  • Seok Dong Kim (66yo)

    Independent Director

    • Tenure: 0.5yrs

Company Information

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


Key Information

  • Name: SK Telecom Co.,Ltd
  • Ticker: SKM
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₩17.105t
  • Listing Market Cap: ₩14.532b
  • 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 Analysis2019/09/15 23:43
End of Day Share Price2019/09/13 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.