Morningstar

SK Telecom Co Ltd ADR SKM

Morningstar Rating
Unlock
Stock XNYS Rating as of
$23.38 −0.25 (1.06%)
View Full Chart
As of Delayed Price Closed

Company Report

View Archive

SKT's Telecom Business Is Solid, but AI Investment Could Take Time to Mature

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 2023 as competition seems to have stabilized with 5G generating incremental revenue.

Read Full Report

Price vs Fair Value

View History
SKM is trading at a 329% premium.
Price
$23.38
Fair Value
$78.00
Uncertainty
Medium
1-Star Price
$85.39
5-Star Price
$77.20
Economic Moat
Zrkfd
Capital Allocation
Qbxjpcw

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.

Show More

News

View All

Trading Information

Previous Close Price
$23.63
Day Range
$23.33–23.45
52-Week Range
$19.42–24.58
Bid/Ask
$11.00 / $24.98
Market Cap
$8.97 Bil
Volume/Avg
118,466 / 249,312

Key Statistics

Price/Earnings (Normalized)
11.22
Price/Sales
0.68
Dividend Yield (Trailing)
6.18%
Dividend Yield (Forward)
6.18%
Total Yield
6.18%

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

View More
Metric
SKM
KT
032640
Price/Earnings (Normalized)
 11.227.538.33
Price/Book Value
 1.090.600.48
Price/Sales
 0.680.370.29
Price/Cash Flow
 —1.830.72
Price/Earnings
SKM
KT
032640

Financial Strength

Metric
SKM
KT
032640
Quick Ratio
 0.620.840.70
Current Ratio
 0.971.081.00
Interest Coverage
 —3.893.33
Quick Ratio
SKM
KT
032640

Profitability

Metric
SKM
KT
032640
Return on Assets (Normalized)
 —2.77%3.11%
Return on Equity (Normalized)
 —6.99%7.50%
Return on Invested Capital (Normalized)
 —4.27%5.10%
Return on Assets
SKM
KT
032640

Telecom Services Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
T-Mobile US Inc
TMUS
PycycfblgMtkgj$242.8 Bil
 Verizon Communications Inc
VZ
RqbjgjmwKjprgys$189.6 Bil
 Comcast Corp Class A
CMCSA
GthpqlnxdLxvvt$159.9 Bil
 AT&T Inc
T
WshcLntrxp$159.1 Bil
 Deutsche Telekom AG ADR
DTEGY
GqdzrwltdFvcww$145.0 Bil
 KDDI Corp ADR
KDDIY
DmnrpgcgKppnvys$64.7 Bil
 America Movil SAB de CV ADR - Series B
AMX
LjxvdhvdPpgmx$49.5 Bil
 Charter Communications Inc Class A
CHTR
FktjdcwhJnwwjlz$47.0 Bil
 BCE Inc
BCE
YmfcwkpyhSqwlv$31.4 Bil
 Orange SA ADR
ORAN
NtdsbwjWwnzw$30.0 Bil

Sponsor Center