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SK TelecomLtd

MUN:KMB
Snowflake Description

6 star dividend payer and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KMB
MUN
₩14,188B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

SK Telecom Co., Ltd. provides wireless telecommunication services in South Korea. The last earnings update was 29 days ago. More info.


Add to Portfolio Compare Print
  • SK TelecomLtd has significant price volatility in the past 3 months.
KMB Share Price and Events
7 Day Returns
13.1%
MUN:KMB
2.4%
Europe Wireless Telecom
4.3%
DE Market
1 Year Returns
-23.4%
MUN:KMB
-14.9%
Europe Wireless Telecom
-14.2%
DE Market
KMB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SK TelecomLtd (KMB) 13.1% -4.7% -17.6% -23.4% -28.6% -35.4%
Europe Wireless Telecom 2.4% -12.3% -18.5% -14.9% -32.4% -41.7%
DE Market 4.3% -9% -21.6% -14.2% -19.6% -25.6%
1 Year Return vs Industry and Market
  • KMB underperformed the Wireless Telecom industry which returned -14.9% over the past year.
  • KMB underperformed the Market in Germany which returned -14.2% over the past year.
Price Volatility
KMB
Industry
5yr Volatility vs Market
Related Companies

Value

 Is SK TelecomLtd undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SK TelecomLtd to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SK TelecomLtd.

MUN:KMB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 29 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for MUN:KMB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Wireless Telecom Unlevered Beta Simply Wall St/ S&P Global 0.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.248 (1 + (1- 30%) (80.35%))
0.589
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 6.07%)
4.47%

Discounted Cash Flow Calculation for MUN:KMB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SK TelecomLtd is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

MUN:KMB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (KRW, Millions) Source Present Value
Discounted (@ 4.47%)
2020 1,541,029.47 Analyst x15 1,475,149.30
2021 1,763,562.47 Analyst x17 1,615,998.36
2022 2,262,333.33 Analyst x3 1,984,411.32
2023 1,684,000.00 Analyst x1 1,413,976.60
2024 1,363,975.59 Est @ -19% 1,096,305.95
2025 1,180,934.47 Est @ -13.42% 908,606.84
2026 1,068,618.46 Est @ -9.51% 787,042.00
2027 996,224.45 Est @ -6.77% 702,356.28
2028 947,816.12 Est @ -4.86% 639,660.30
2029 914,467.92 Est @ -3.52% 590,770.52
Present value of next 10 years cash flows ₩11,214,277.00
MUN:KMB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₩914,467.92 × (1 + -0.39%) ÷ (4.47% – -0.39%)
₩18,758,267.98
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₩18,758,267.98 ÷ (1 + 4.47%)10
₩12,118,338.43
MUN:KMB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₩11,214,277.00 + ₩12,118,338.43
₩23,332,615.43
Equity Value per Share
(KRW)
= Total value / Shares Outstanding
= ₩23,332,615.43 / 73.14
₩319028.56
MUN:KMB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in MUN:KMB represents 8.0E-5x of KOSE:A017670
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
8.0E-5x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (KRW) x Listing Adjustment Factor
= ₩ 319,028.56 x 8.0E-5
€26.97
Value per share (EUR) From above. €26.97
Current discount Discount to share price of €16.40
= -1 x (€16.40 - €26.97) / €26.97
39.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SK TelecomLtd is available for.
Intrinsic value
39%
Share price is €16.4 vs Future cash flow value of €26.97
Current Discount Checks
For SK TelecomLtd to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SK TelecomLtd's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SK TelecomLtd's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SK TelecomLtd's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SK TelecomLtd's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
MUN:KMB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in KRW ₩12,143.91
KOSE:A017670 Share Price ** KOSE (2020-04-08) in KRW ₩194000
Europe Wireless Telecom Industry PE Ratio Median Figure of 7 Publicly-Listed Wireless Telecom Companies 29.55x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 17.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SK TelecomLtd.

MUN:KMB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= KOSE:A017670 Share Price ÷ EPS (both in KRW)

= 194000 ÷ 12,143.91

15.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SK TelecomLtd is good value based on earnings compared to the Europe Wireless Telecom industry average.
  • SK TelecomLtd is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does SK TelecomLtd's expected growth come at a high price?
Raw Data
MUN:KMB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts
33.3%per year
Europe Wireless Telecom Industry PEG Ratio Median Figure of 5 Publicly-Listed Wireless Telecom Companies 1.78x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

MUN:KMB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.98x ÷ 33.3%

0.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SK TelecomLtd is good value based on expected growth next year.
Price based on value of assets
What value do investors place on SK TelecomLtd's assets?
Raw Data
MUN:KMB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in KRW ₩313,890.40
KOSE:A017670 Share Price * KOSE (2020-04-08) in KRW ₩194000
Europe Wireless Telecom Industry PB Ratio Median Figure of 10 Publicly-Listed Wireless Telecom Companies 2.2x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.47x
MUN:KMB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= KOSE:A017670 Share Price ÷ Book Value per Share (both in KRW)

= 194000 ÷ 313,890.40

0.62x

* Primary Listing of SK TelecomLtd.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SK TelecomLtd is good value based on assets compared to the Europe Wireless Telecom industry average.
X
Value checks
We assess SK TelecomLtd's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Wireless Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Wireless Telecom industry average (and greater than 0)? (1 check)
  5. SK TelecomLtd has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is SK TelecomLtd expected to perform in the next 1 to 3 years based on estimates from 29 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SK TelecomLtd expected to grow at an attractive rate?
  • SK TelecomLtd's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • SK TelecomLtd's earnings growth is expected to exceed the Germany market average.
  • SK TelecomLtd's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
MUN:KMB Future Growth Rates Data Sources
Data Point Source Value (per year)
MUN:KMB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts 33.3%
MUN:KMB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 29 Analysts 4.1%
Europe Wireless Telecom Industry Earnings Growth Rate Market Cap Weighted Average 21.1%
Europe Wireless Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
MUN:KMB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
All numbers in KRW Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
MUN:KMB Future Estimates Data
Date (Data in KRW Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 19,586,000 1
2022-12-31 20,025,030 5,257,700 2,223,279 7
2021-12-31 19,553,947 5,080,219 2,059,789 29
2020-12-31 18,712,026 4,820,772 1,399,845 28
2020-04-08
MUN:KMB Past Financials Data
Date (Data in KRW Millions) Revenue Cash Flow Net Income *
2019-12-31 17,743,702 3,986,082 875,141
2019-09-30 17,684,855 4,491,873 1,387,100
2019-06-30 17,310,034 4,125,060 2,144,096
2019-03-31 17,027,329 4,313,981 2,792,622
2018-12-31 16,873,960 4,332,580 3,112,084
2018-09-30 17,019,569 3,591,628 3,220,855
2018-06-30 17,275,916 4,250,494 2,988,997
2018-03-31 17,467,185 3,912,716 2,705,654
2017-12-31 17,520,013 3,855,820 2,599,829
2017-09-30 17,374,957 4,476,006 2,481,892
2017-06-30 17,176,022 4,233,576 2,011,168
2017-03-31 17,097,718 4,499,936 1,676,414

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SK TelecomLtd's earnings are expected to grow significantly at over 20% yearly.
  • SK TelecomLtd's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
MUN:KMB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below

All data from SK TelecomLtd Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

MUN:KMB Future Estimates Data
Date (Data in KRW Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 27,535.19 38,055.58 17,784.00 3.00
2021-12-31 26,772.41 39,007.65 15,418.00 23.00
2020-12-31 17,752.66 22,974.00 12,248.00 21.00
2020-04-08
MUN:KMB Past Financials Data
Date (Data in KRW Millions) EPS *
2019-12-31 12,143.91
2019-09-30 19,381.44
2019-06-30 30,091.18
2019-03-31 39,367.00
2018-12-31 44,066.17
2018-09-30 45,463.14
2018-06-30 42,190.54
2018-03-31 38,074.64
2017-12-31 36,582.00
2017-09-30 35,226.81
2017-06-30 28,545.10
2017-03-31 23,679.66

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SK TelecomLtd is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SK TelecomLtd's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SK TelecomLtd has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has SK TelecomLtd performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SK TelecomLtd's growth in the last year to its industry (Wireless Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SK TelecomLtd's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • SK TelecomLtd's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • SK TelecomLtd's 1-year earnings growth is negative, it can't be compared to the Europe Wireless Telecom industry average.
Earnings and Revenue History
SK TelecomLtd's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SK TelecomLtd Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

MUN:KMB Past Revenue, Cash Flow and Net Income Data
Date (Data in KRW Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 17,743,702.00 875,141.00 11,320,858.00 391,327.00
2019-09-30 17,684,855.00 1,387,100.00 11,406,651.00 395,486.00
2019-06-30 17,310,034.00 2,144,096.00 11,193,999.00 395,965.00
2019-03-31 17,027,329.00 2,792,622.00 11,019,358.00 398,006.00
2018-12-31 16,873,960.00 3,112,084.00 10,967,111.00 387,675.00
2018-09-30 17,019,569.00 3,220,855.00 10,994,849.00 384,427.00
2018-06-30 17,275,916.00 2,988,997.00 11,138,077.00 393,509.00
2018-03-31 17,467,185.00 2,705,654.00 11,272,143.00 390,084.00
2017-12-31 17,520,013.00 2,599,829.00 11,260,473.00 395,276.00
2017-09-30 17,374,957.00 2,481,892.00 8,259,371.00 39,077.00
2017-06-30 17,176,022.00 2,011,168.00 7,634,273.00 21,354.00
2017-03-31 17,097,718.00 1,676,414.00 7,138,380.00 10,518.00
2016-12-31 17,091,816.00 1,659,127.00 6,726,896.00
2016-09-30 17,118,905.00 1,466,263.00 6,502,080.00 27,199.00
2016-06-30 17,136,461.00 1,523,412.00 6,446,007.00 20,689.00
2016-03-31 17,124,911.00 1,629,116.00 6,479,793.00 14,629.00
2015-12-31 17,136,734.00 1,501,764.00 6,495,361.00
2015-09-30 17,046,411.00 1,707,025.00 6,724,084.00 -86,306.00
2015-06-30 17,152,535.00 1,856,322.00 6,779,033.00 -57,538.00
2015-03-31 17,202,164.00 1,959,019.00 7,313,539.00 69,470.00
2014-12-31 17,163,798.00 1,784,338.00 6,967,860.00
2014-09-30 17,176,916.00 1,611,442.00 8,690,789.00 312,687.00
2014-06-30 16,934,026.00 1,407,813.00 8,131,007.00 204,960.00
2014-03-31 16,745,623.00 1,368,919.00 7,003,403.00
2013-12-31 16,609,357.00 1,447,299.00 6,785,233.00
2013-09-30 16,466,906.00 1,660,609.00 6,883,005.00
2013-06-30 16,426,672.00 1,504,760.00 7,102,134.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SK TelecomLtd has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SK TelecomLtd used its assets less efficiently than the Europe Wireless Telecom industry average last year based on Return on Assets.
  • SK TelecomLtd's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SK TelecomLtd's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Wireless Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SK TelecomLtd has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is SK TelecomLtd's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SK TelecomLtd's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SK TelecomLtd is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SK TelecomLtd's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of SK TelecomLtd's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SK TelecomLtd Company Filings, last reported 3 months ago.

MUN:KMB Past Debt and Equity Data
Date (Data in KRW Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 22,823,536.00 10,263,973.00 2,268,137.00
2019-09-30 22,656,645.00 10,217,212.00 2,263,244.00
2019-06-30 22,429,801.00 9,830,745.00 2,279,012.00
2019-03-31 22,119,117.00 10,211,577.00 2,862,634.00
2018-12-31 22,349,250.00 9,651,848.00 2,747,455.00
2018-09-30 22,170,830.00 8,120,248.00 3,156,304.00
2018-06-30 20,908,749.00 7,623,191.00 2,335,020.00
2018-03-31 19,987,823.00 7,752,280.00 2,529,655.00
2017-12-31 18,029,195.00 7,469,004.00 2,218,901.00
2017-09-30 17,476,085.00 7,451,205.00 2,158,860.00
2017-06-30 16,675,211.00 7,379,271.00 1,973,079.00
2017-03-31 15,912,511.00 7,332,571.00 2,256,843.00
2016-12-31 16,116,430.00 9,361,596.00 1,991,096.00
2016-09-30 15,544,187.00 7,172,956.00 1,584,980.00
2016-06-30 15,367,493.00 7,652,616.00 2,031,415.00
2016-03-31 15,115,186.00 8,028,868.00 1,588,285.00
2015-12-31 15,374,096.00 8,284,232.00 1,469,805.00
2015-09-30 15,633,770.00 7,428,789.00 1,690,752.00
2015-06-30 15,317,587.00 8,261,202.00 1,368,516.00
2015-03-31 15,077,151.00 7,769,072.00 1,274,972.00
2014-12-31 15,248,270.00 7,733,471.00 1,337,337.00
2014-09-30 14,744,075.00 8,156,886.00 1,636,532.00
2014-06-30 14,203,180.00 8,120,094.00 1,627,345.00
2014-03-31 13,824,958.00 6,460,601.00 1,433,654.00
2013-12-31 14,166,557.00 7,472,523.00 1,734,557.00
2013-09-30 13,783,003.00 7,842,412.00 1,964,793.00
2013-06-30 13,376,453.00 7,607,899.00 1,756,880.00
  • SK TelecomLtd's level of debt (45%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (50.7% vs 45% today).
  • Debt is well covered by operating cash flow (38.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).
X
Financial health checks
We assess SK TelecomLtd's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SK TelecomLtd has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is SK TelecomLtd's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.15%
Current annual income from SK TelecomLtd dividends. Estimated to be 5.07% next year.
If you bought €2,000 of SK TelecomLtd shares you are expected to receive €103 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SK TelecomLtd's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.63%).
  • SK TelecomLtd's dividend is above the markets top 25% of dividend payers in Germany (4.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
MUN:KMB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
Europe Wireless Telecom Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 5.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.6%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

MUN:KMB Future Dividends Estimate Data
Date (Data in ₩) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 11,576.00 1.00
2022-12-31 9,289.29 7.00
2021-12-31 9,988.18 28.00
2020-12-31 9,756.04 28.00
2020-04-08
MUN:KMB Past Annualized Dividends Data
Date (Data in ₩) Dividend per share (annual) Avg. Yield (%)
2020-02-07 10,000.000 4.977
2019-07-26 10,000.000 4.193
2019-01-30 10,000.000 3.927
2018-04-27 10,000.000 3.907
2018-03-08 10,000.000 4.347
2018-02-21 10,000.000 4.216
2017-07-31 10,000.000 3.822
2017-02-03 10,000.000 4.039
2016-07-28 10,000.000 4.469
2016-02-03 10,000.000 4.670
2015-07-24 9,400.000 3.990
2015-02-06 9,400.000 3.547
2014-07-29 9,400.000 3.396
2014-02-07 9,400.000 4.284
2013-04-30 9,400.000 4.287
2013-02-25 9,400.000 5.133
2012-03-23 9,400.000 6.482
2011-07-29 9,400.000 6.424
2011-01-24 9,400.000 5.925
2010-06-30 9,400.000 5.559
2010-05-03 9,400.000 5.674
2010-03-31 9,400.000 5.399
2010-01-29 8,400.000 4.779

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of SK TelecomLtd's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess SK TelecomLtd's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SK TelecomLtd afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SK TelecomLtd has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of SK TelecomLtd's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jung-ho Park
COMPENSATION ₩3,506,000,000
AGE 56
TENURE AS CEO 3.3 years
CEO Bio

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 Executive Officer and President of SK Holdings Co., Ltd. since December 9, 2014 until March 24, 2017. Mr. Park serves as an Executive Vice President and Chief Growth Officer of SK Telecom. He served as the Head of SK Telecom Business Development Office, Head of Corporate Development and Vice President at SK Holdings Co., Ltd. He served as the President of branch of SK Networks in Bangkok. He has been a Director of Webe Digital Sdn Bhd (formerly Packet One Networks (Malaysia) Sdn Bhd) since October 2014. He serves as Non Executive Director of SK Hynix Inc. He served as an Executive Director of SK Hynix Inc until March 24, 2017 and its Director since March 2016. He serves as an Outside Director of Hannong Chemicals Inc. He served as an Inside Director of SK Holdings Co., Ltd. until March 24, 2017. He studied M.B.A. from George Washington University. Mr. Park is a beneficial owner (affiliated company insider) at SK Holdings Co., Ltd.

CEO Compensation
  • Jung-ho's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Jung-ho's remuneration is lower than average for companies of similar size in Germany.
Management Team

Jung-ho Park

TITLE
President
COMPENSATION
₩4B
AGE
56
TENURE
3.3 yrs

James Ryu

TITLE
Executive Director & Head of MNO Business
COMPENSATION
₩579M
AGE
49
TENURE
1.1 yrs

Poong Yoon

TITLE
Chief Financial Officer
AGE
45

Jeong Choi

TITLE
Senior VP & IRO

Yong Park

TITLE
Head of Legal Group
AGE
54

Man Ra

TITLE
Head of HR Group
AGE
47

Eunah Hyun

TITLE
SVP of Strategy Legal
AGE
45

Seong Ha

TITLE
Head of Corporate Relation Center
AGE
51

Hyoung Ha

TITLE
Head of Integrated Service Innovation Center
AGE
49

Jin Park

TITLE
Head of ICT R&D Center
AGE
49
Board of Directors Tenure

Average tenure and age of the SK TelecomLtd board of directors in years:

2.1
Average Tenure
56
Average Age
  • The average tenure for the SK TelecomLtd board of directors is less than 3 years, this suggests a new board.
Board of Directors

Yong Hak Kim

TITLE
Independent Chairman of the Board
TENURE
0.1 yrs

Jung-ho Park

TITLE
President
COMPENSATION
₩4B
AGE
56
TENURE
3.1 yrs

James Ryu

TITLE
Executive Director & Head of MNO Business
COMPENSATION
₩579M
AGE
49
TENURE
2.2 yrs

Seok Dong Kim

TITLE
Independent Director
AGE
66
TENURE
1.1 yrs

Dae-Sik Cho

TITLE
Non-Executive Director
AGE
59
TENURE
3.1 yrs

Jung-Ho Ahn

TITLE
Independent Director
AGE
41
TENURE
3.1 yrs

Young Min Yoon

TITLE
Independent Non-Executive Director
AGE
56
TENURE
2.1 yrs

Junmo Kim

TITLE
Independent Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess SK TelecomLtd's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SK TelecomLtd has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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.

Details
Name: SK Telecom Co.,Ltd
KMB
Exchange: MUN
Founded: 1984
₩10,738,774,044
73,136,448
Website: http://www.sktelecom.com
Address: SK Telecom Co.,Ltd
SK T-Tower,
65, Eulji-ro,
Seoul,
04539,
South Korea
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
KOSE A017670 Common Stock Korea Stock Exchange KR KRW 08. Jan 1992
NYSE SKM ADR EACH REPR 0.11111 KRW500 New York Stock Exchange US USD 27. Jun 1996
MUN KMB ADR EACH REPR 0.11111 KRW500 Boerse Muenchen DE EUR 27. Jun 1996
LSE SKMD ADR EACH REPR 0.11111 KRW500 London Stock Exchange GB USD 27. Jun 1996
BATS-CHIXE SKMDL ADR EACH REPR 0.11111 KRW500 BATS 'Chi-X Europe' GB USD 27. Jun 1996
Number of employees
Current staff
Staff numbers
0
SK TelecomLtd employees.
Industry
Wireless Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 21:31
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/03/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.