SK Telecom Co., Ltd. provides wireless telecommunication services in South Korea.
Undervalued established dividend payer.
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: SKM's share price has been volatile over the past 3 months.
7 Day Return
US Wireless Telecom
1 Year Return
US Wireless Telecom
Return vs Industry: SKM underperformed the US Wireless Telecom industry which returned 14.6% over the past year.
Return vs Market: SKM underperformed the US Market which returned -8.1% over the past year.
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
Is SK TelecomLtd undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SKM ($17.85) is trading below our estimate of fair value ($27.05)
Significantly Below Fair Value: SKM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SKM is good value based on its PE Ratio (16x) compared to the Wireless Telecom industry average (20.6x).
PE vs Market: SKM is poor value based on its PE Ratio (16x) compared to the US market (13.3x).
Price to Earnings Growth Ratio
PEG Ratio: SKM is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: SKM is good value based on its PB Ratio (0.6x) compared to the US Wireless Telecom industry average (1.5x).
How is SK TelecomLtd forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SKM's forecast earnings growth (33.3% per year) is above the savings rate (1.7%).
Earnings vs Market: SKM's earnings (33.3% per year) are forecast to grow faster than the US market (13.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SKM's revenue (4% per year) is forecast to grow slower than the US market (6.9% per year).
High Growth Revenue: SKM's revenue (4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SKM's Return on Equity is forecast to be low in 3 years time (8.4%).
How has SK TelecomLtd performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SKM has high quality earnings.
Growing Profit Margin: SKM's current net profit margins (4.9%) are lower than last year (18.4%).
Past Earnings Growth Analysis
Earnings Trend: SKM's earnings have grown by 6.5% per year over the past 5 years.
Accelerating Growth: SKM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SKM had negative earnings growth (-71.9%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-10.4%).
Return on Equity
High ROE: SKM's Return on Equity (3.8%) is considered low.
How is SK TelecomLtd's financial position?
Financial Position Analysis
Short Term Liabilities: SKM's short term assets (₩8,102.3B) exceed its short term liabilities (₩7,787.7B).
Long Term Liabilities: SKM's short term assets (₩8,102.3B) do not cover its long term liabilities (₩14,000.4B).
Debt to Equity History and Analysis
Debt Level: SKM's debt to equity ratio (45%) is considered high.
Reducing Debt: SKM's debt to equity ratio has reduced from 50.7% to 45% over the past 5 years.
Debt Coverage: SKM's debt is well covered by operating cash flow (38.8%).
Interest Coverage: SKM's interest payments on its debt are well covered by EBIT (3.4x coverage).
What is SK TelecomLtd's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SKM's dividend (5.15%) is higher than the bottom 25% of dividend payers in the US market (1.89%).
High Dividend: SKM's dividend (5.15%) is low compared to the top 25% of dividend payers in the US market (5.26%).
Stability and Growth of Payments
Stable Dividend: SKM's dividends per share have been stable in the past 10 years.
Growing Dividend: SKM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (82.3%), SKM's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SKM's dividends in 3 years are forecast to be well covered by earnings (31.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Jung-ho Park (56yo)
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
Compensation vs Market: Jung-ho's total compensation ($USD2.89M) is below average for companies of similar size in the US market ($USD11.77M).
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.
|Executive Director & Head of MNO Business||2.17yrs||₩579.00m||0.00068% ₩79.2k|
|Non-Executive Director||3.08yrs||no data||no data|
|Independent Director||3.08yrs||no data||no data|
|Independent Non-Executive Director||2.08yrs||no data||no data|
|Independent Director||1.08yrs||no data||no data|
|Independent Chairman of the Board||0.083yr||no data||no data|
|Independent Director||0.083yr||no data||no data|
Experienced Board: SKM's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.
SK Telecom Co.,Ltd's company bio, employee growth, exchange listings and data sources
- Name: SK Telecom Co.,Ltd
- Ticker: SKM
- Exchange: NYSE
- Founded: 1984
- Industry: Wireless Telecommunication Services
- Sector: Telecom
- Market Cap: ₩14.152t
- Listing Market Cap: ₩11.648b
- Shares outstanding: 73.14m
- Website: https://www.sktelecom.com
Number of Employees
- SK Telecom Co.,Ltd
- SK T-Tower
- 65, Eulji-ro
- South Korea
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|A017670||KOSE (Korea Stock Exchange)||Yes||Common Stock||KR||KRW||Jan 1992|
|SKM||NYSE (New York Stock Exchange)||SPONSORED ADR||US||USD||Jun 1996|
|SKMD||LSE (London Stock Exchange)||SPONSORED ADR||GB||USD||Jun 1996|
|KMB||MUN (Boerse Muenchen)||SPONSORED ADR||DE||EUR||Jun 1996|
|SKMDL||BATS-CHIXE (BATS 'Chi-X Europe')||SPONSORED ADR||GB||USD||Jun 1996|
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 Businesses. The Cellular Services segment offers wireless voice and data transmission, cellular global roaming, interconnection, Internet of Things, and platform services, as well as sells smartphones, basic phones, tablets and other Internet access devices, and wearable devices. As of December 31, 2018, it had 30.9 million wireless subscribers. The Fixed-Line Telecommunication Services segment provides local, domestic and international long distance, and voice over Internet protocol services; broadband Internet access services; Internet protocol TV and mobile over-the-top services; and leased line solutions, Internet data center solutions, and network solution services, as well as operates television shopping network. The E-Commerce Services operates 11st, an online open marketplace; and 11Pay, a payment service. The Other Businesses segment provides portal services; residential and small business electronic security, and other related alarm monitoring services; and audio devices. It also operates Syrup Wallet, a mobile wallet service; OK Cashbag, a loyalty points program; and One Store, a mobile application marketplace. The company also provides call center management, base station maintenance, information gathering and consulting, system software development and supply, quantum information and communications, data base and Internet Website, and digital contents sourcing services; manufactures and sells e-book; sells contents and mastering quality sound album; sells and trades in anti-theft devices; operates information and communications facilities; and retails communications devices, and agro-fisheries and livestock. SK Telecom Co., Ltd. has a strategic partnership with Microsoft Corp. The company was founded in 1984 and is headquartered in Seoul, South Korea.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/10 10:00|
|End of Day Share Price||2020/04/09 00:00|
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.