Morningstar

SK Telecom Co Ltd ADR SKM

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Stock XNYS Rating as of
$30.62 −1.14 (3.59%)
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As of Delayed Price Closed

Company Report

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SK Telecom's Investment in Anthropic Dominating Valuation

Dan Baker

SK Telecom's telecom market position is strong, and we like the free cash flow it generates. SK Telecom was Korea's first wireless operator, and we believe it has done a good job of maintaining a leading position. The firm continues to claim just under 45% wireless market share, including the leading position among postpaid contract customers, which provides it with the highest average revenue per user among Korean wireless operators. However, this has come at a cost, with wireless operating profit nearly halving between 2017 and 2019. More pleasing has been the wireless operating profit growth reported from 2020 to 2024, as competition seems to have stabilized with 5G generating incremental revenue.

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Price vs Fair Value

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SKM is trading at a LOCK|^wNzt#> premium.
Price
$30.62
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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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 aggressive investment targets for AI, but AI revenue and profit streams are uncertain.

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Trading Information

Previous Close Price
$31.76
Day Range
$29.93–31.21
52-Week Range
$19.66–47.18
Bid/Ask
$30.53 / $30.66
Shares Outstanding
383.89M
Market Cap
$11.75B
Volume/Avg
4M / 3M

Key Statistics

Price/Earnings (Normalized)
56.80
Price/Sales
0.98
Dividend Yield (Trailing)
2.08%
Dividend Yield (Forward)
2.08%
Total Yield
2.08%

Company Profile

SK Telecom is South Korea's largest wireless telecom operator, with 32 million mobile customers. The firm also owns SK Broadband (formerly Hanaro Telecom), which has 7.2 million broadband customers and 9.5 million pay TV customers (6.7 million IPTV and 2.8 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
22,723
Website
https://www.sktelecom.com

Competitors

Valuation

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Metric
SKM
9433
KT
Price/Earnings (Normalized)
 56.8015.497.79
Price/Book Value
 1.392.130.71
Price/Sales
 0.981.800.43
Price/Cash Flow
 4.247.431.93
Price/Earnings
SKM
9433
KT

Financial Strength

Metric
SKM
9433
KT
Quick Ratio
 0.740.530.90
Current Ratio
 1.180.561.15
Interest Coverage
 1.8133.286.30
Quick Ratio
SKM
9433
KT

Profitability

Metric
SKM
9433
KT
Return on Assets (Normalized)
 0.96%4.58%4.18%
Return on Equity (Normalized)
 2.40%16.40%10.27%
Return on Invested Capital (Normalized)
 1.06%7.61%6.24%
Return on Assets
SKM
9433
KT

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