(SKM) SK Telecom - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NYSE (USA) | Market Cap: 15.002m USD | Total Return: 87.5% in 12m
Avg Turnover: 73.0M
EPS Trend: -69.5%
Qual. Beats: 0
Rev. Trend: -49.2%
Qual. Beats: -1
Warnings
Below Avwap Earnings
Tailwinds
Rs(ibd) Leader, Idiosyncratic Leader
SK Telecom Co., Ltd. (SKM) is South Korea’s leading wireless telecommunications provider, operating a diversified business model across cellular services, fixed-line infrastructure, and digital platforms. The company maintains a dominant market position by integrating traditional voice and data transmission with emerging technologies, including Internet of Things (IoT) solutions, cloud computing, and smart factory applications.
The company’s revenue streams are categorized into three primary segments: Cellular Services, Fixed-Line Telecommunications, and Other Businesses. Beyond core connectivity, SK Telecom manages high-growth digital assets such as the Nate portal, the T Deal curated shopping brand, and various media platforms including IPTV and cable television. In mature telecommunications markets like South Korea, providers often diversify into semiconductors and e-commerce to offset the high capital expenditures required for 5G infrastructure maintenance.
The firm also maintains an extensive support ecosystem involving base station maintenance, call center management, and the manufacture of non-memory integrated circuits. For a deeper analysis of these operational segments, you may find further insights on ValueRay. Founded in 1984 and headquartered in Seoul, SK Telecom remains a central utility provider for South Korea’s digital economy.
- 5G subscriber growth and higher ARPU drive core wireless revenue expansion
- Artificial intelligence infrastructure investment scales cloud and enterprise data center margins
- Shareholder return policy increases through high dividend yields and share buybacks
- South Korean government regulatory pressure limits mobile service pricing and roaming fees
- South Korean Won exchange rate volatility impacts ADR valuation and dividend distributions
| Net Income: 44.2b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -4.66 > 1.0 |
| NWC/Revenue: 1.56% < 20% (prev -5.89%; Δ 7.45% < -1%) |
| CFO/TA 0.12 > 3% & CFO 3716b > Net Income 44.2b |
| Net Debt (10620b) to EBITDA (3160b): 3.36 < 3 |
| Current Ratio: 1.03 > 1.5 & < 3 |
| Outstanding Shares: last quarter (376.2m) vs 12m ago -2.18% < -2% |
| Gross Margin: 88.24% > 18% (prev 0.84%; Δ 8.74k% > 0.5%) |
| Asset Turnover: 42.14% > 50% (prev 59.89%; Δ -17.75% > 0%) |
| Interest Coverage Ratio: 1.74 > 6 (EBITDA TTM 3160b / Interest Expense TTM 287b) |
| A: 0.01 (Total Current Assets 6727b - Total Current Liabilities 6530b) / Total Assets 30107b |
| B: 0.26 (Retained Earnings 7919b / Total Assets 30107b) |
| C: 0.02 (EBIT TTM 500b / Avg Total Assets 30014b) |
| D: 0.61 (Book Value of Equity 10782b / Total Liabilities 17550b) |
| Altman-Z'' = 1.66 = BB |
| DSRI: 1.32 (Receivables 2467b/2640b, Revenue 12648b/17920b) |
| GMI: 0.96 (GM 88.24% / 84.30%) |
| AQI: 1.11 (AQ_t 0.38 / AQ_t-1 0.34) |
| SGI: 0.71 (Revenue 12648b / 17920b) |
| TATA: -0.12 (NI 44.2b - CFO 3716b) / TA 30107b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 37.76 with a total of 1,558,420 shares traded.
Over the past week, the price has changed by -1.31%,
over one month by -0.74%,
over three months by +20.14% and
over the past year by +87.46%.
SK Telecom has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy SKM.
- StrongBuy: 1
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 34.6 | -8.5% |
Market Cap KRW = 22669b (15.0b USD * 1511.03 USD.KRW)
P/E Trailing = 58.3284
P/E Forward = 22.5734
P/S = 0.0009
P/B = 1.759
P/EG = 0.8057
Revenue TTM = 12648b KRW
EBIT TTM = 500b KRW
EBITDA TTM = 3160b KRW
Long Term Debt = 7594b KRW (from longTermDebt, last fiscal year)
Short Term Debt = 1660b KRW (from shortTermDebt, last quarter)
Debt = 12297b KRW (from shortLongTermDebtTotal, last quarter) + Leases 1526b
Net Debt = 10620b KRW (calculated: Debt 12297b - CCE 1677b)
Enterprise Value = 33289b KRW (22669b + Debt 12297b - CCE 1677b)
Interest Coverage Ratio = 1.74 (Ebit TTM 500b / Interest Expense TTM 287b)
EV/FCF = 25.36x (Enterprise Value 33289b / FCF TTM 1313b)
FCF Yield = 3.94% (FCF TTM 1313b / Enterprise Value 33289b)
FCF Margin = 10.38% (FCF TTM 1313b / Revenue TTM 12648b)
Net Margin = 0.35% (Net Income TTM 44.2b / Revenue TTM 12648b)
Gross Margin = 88.24% ((Revenue TTM 12648b - Cost of Revenue TTM 1488b) / Revenue TTM)
Gross Margin QoQ = 22.85% (prev 87.52%)
Tobins Q-Ratio = 1.11 (Enterprise Value 33289b / Total Assets 30107b)
Interest Expense / Debt = 2.34% (Interest Expense 287b / Debt 12297b)
Taxrate = 32.04% (101.8m / 317.7m)
NOPAT = 340b (EBIT 500b * (1 - 32.04%))
Current Ratio = 1.03 (Total Current Assets 6727b / Total Current Liabilities 6530b)
Debt / Equity = 0.99 (Debt 12297b / totalStockholderEquity, last quarter 12464b)
Debt / EBITDA = 3.36 (Net Debt 10620b / EBITDA 3160b)
Debt / FCF = 8.09 (Net Debt 10620b / FCF TTM 1313b)
Total Stockholder Equity = 12121b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.15% (Net Income 44.2b / Total Assets 30107b)
RoE = 0.36% (Net Income TTM 44.2b / Total Stockholder Equity 12121b)
RoCE = 2.54% (EBIT 500b / Capital Employed (Equity 12121b + L.T.Debt 7594b))
RoIC = 1.35% (NOPAT 340b / Invested Capital 25237b)
WACC = 4.98% (E(22669b)/V(34966b) * Re(6.82%) + D(12297b)/V(34966b) * Rd(2.34%) * (1-Tc(0.32)))
Discount Rate = 6.82% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -53.94 | Cagr: -2.04%
[DCF] Terminal Value 73.10% ; FCFF base≈1867b ; Y1≈1637b ; Y5≈1323b
[DCF] Fair Price = 27.6k (EV 21233b - Net Debt 10620b = Equity 10613b / Shares 383.9m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -69.46 | EPS CAGR: -21.67% | SUE: 0.35 | # QB: 0
Revenue Correlation: -49.17 | Revenue CAGR: -5.17% | SUE: -1.90 | # QB: -1
EPS current Year (2026-12-31): EPS=2.19 | Chg30d=-4.22% | Revisions=-20% | GrowthEPS=+0.0% | GrowthRev=+47.1%
EPS next Year (2027-12-31): EPS=2.32 | Chg30d=N/A | Revisions=N/A | GrowthEPS=+6.2% | GrowthRev=+3.4%