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SK Telecom Co Ltd ADR SKM

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Stock XNYS Rating as of
$20.82 −0.13 (0.62%)
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As of Delayed Price Closed
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Company Report

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SKT Earnings: Core Telco Business Steady; Fair Value Estimate Up to USD 31 From USD 30

Dan Baker

SK Telecom’s first-quarter 2024 result showed steady operating profit from its core telecom businesses, with continued signs of revenue growth slowing as 5G penetration matures. Management continues aggressively pursuing growth in data centers, cloud, and artificial intelligence to offset the core business slowdown. First-quarter revenue increased by 1.8%, with mobile growth of 0.9% and other revenue growth of 4.3%. Other revenue growth was helped by data center revenue growth of 30% and cloud revenue growth of 37%. Cost control and operating leverage assisted in increasing operating income by 8.8%, with most of it generated from the mobile business.

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Price vs Fair Value

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SKM is trading at a 48% premium.
Price
$20.82
Fair Value
$88.00
Uncertainty
Medium
1-Star Price
$45.22
5-Star Price
$15.90
Economic Moat
Vlcm
Capital Allocation
Qwffrlfq

Bulls Say, Bears Say

Bulls

Telecom leads the South Korean wireless telecom market with around 45% share and this gives it some scale efficiency benefits.

Bears

SK Telecom has gradually lost mobile market share over the past five years and this could continue.

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News

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Trading Information

Previous Close Price
$20.95
Day Range
$20.69–20.90
52-Week Range
$18.52–22.71
Bid/Ask
$20.51 / $21.11
Market Cap
$7.99 Bil
Volume/Avg
226,361 / 267,907

Key Statistics

Price/Earnings (Normalized)
9.99
Price/Sales
0.60
Dividend Yield (Trailing)
5.38%
Dividend Yield (Forward)
5.38%
Total Yield
8.17%

Company Profile

SK Telecom is South Korea's largest wireless telecom operator, with 31 million mobile customers. The firm also owns SK Broadband (formerly Hanaro Telecom), which has 6.9 million broadband customers and 9.5 million pay TV customers (6.8 million IPTV and 2.7 million Cable TV). While the firm also purchased stakes in businesses in security and semiconductor memory production as well as developing e-commerce and internet platform businesses, these were all spun off into the separate, SK Square business in November 2021. The company was formed after SK Group purchased KT’s mobile business in 1994.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
26,195
Website
https://www.sktelecom.com

Competitors

Valuation

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Metric
SKM
KT
9433
Price/Earnings (Normalized)
 9.996.5314.67
Price/Book Value
 0.960.531.74
Price/Sales
 0.600.331.62
Price/Cash Flow
 2.09—6.51
Price/Earnings
SKM
KT
9433

Financial Strength

Metric
SKM
KT
9433
Quick Ratio
 0.650.840.67
Current Ratio
 0.981.070.71
Interest Coverage
 4.56—96.04
Quick Ratio
SKM
KT
9433

Profitability

Metric
SKM
KT
9433
Return on Assets (Normalized)
 4.14%—5.13%
Return on Equity (Normalized)
 11.25%—12.78%
Return on Invested Capital (Normalized)
 6.40%—8.34%
Return on Assets
SKM
KT
9433
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