Sk Telecom (SKM)
NYSE:SKM
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Sk Telecom
(NYSE:SKM)
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Rating:65Neutral
Price Target:
$40.00
â–²(86.13% Upside)
Action:ReiteratedDate:05/07/26
The score is driven primarily by solid cash generation and manageable leverage, but is held back by a sharp deterioration in profitability and returns. Technicals are constructive (above key moving averages with positive momentum), while valuation looks only fair-to-expensive for the current earnings quality. The latest earnings call supports a recovery narrative and shareholder return actions, but lingering subscriber and AI-profitability uncertainties keep the overall score moderate.
Positive Factors
Consistent cash generation
SK Telecom’s recurring strong operating cash flow and consistently positive free cash flow provide durable funding for capex, AI data center builds, dividends and share actions. Reliable cash conversion cushions earnings volatility and preserves strategic optionality over the next several quarters.
Negative Factors
Sharp profitability deterioration
Material margin compression and collapsing ROE reduce internal capital for investments and dividends, and signal weaker operating leverage in the core MNO business. For a capital‑intensive telecom, sustained low margins threaten reinvestment capacity and long‑term return targets unless structural cost or revenue improvements persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
SK Telecom’s recurring strong operating cash flow and consistently positive free cash flow provide durable funding for capex, AI data center builds, dividends and share actions. Reliable cash conversion cushions earnings volatility and preserves strategic optionality over the next several quarters.
Read all positive factors
Sk Telecom (SKM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.50B
Dividend Yield5.02%
Average Volume (3M)1.38M
Price to Earnings (P/E)27.4
Beta (1Y)0.23
Revenue Growth-7.08%
EPS Growth-73.47%
CountryUS
Employees5,054
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1022.75
Shares Outstanding383,365,020
10 Day Avg. Volume1,900,649
30 Day Avg. Volume1,380,053
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.91
Price to Sales (P/S)0.65
P/FCF Ratio6.59
Enterprise Value/Market Cap2.16K
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit1.89
Enterprise Value/Ebitda6.26
Forecast
1Y Price Target
$27.96Price Target Upside30.11% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)1.89
Revenue Forecast (FY)$11.99B
Sk Telecom Business Overview & Revenue Model
Company Description
SK Telecom Co., Ltd. provides wireless telecommunication services in South Korea. The company operates through three segments: Cellular Services, Fixed-Line Telecommunications Services, and Other Businesses. The Cellular Services segment offers wi...
How the Company Makes Money
SK Telecom primarily makes money by charging customers (consumers and businesses) for connectivity and related services. The largest revenue driver is typically mobile service revenue, which includes recurring monthly fees from postpaid plans, usa...
Sk Telecom Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The call conveyed a clear recovery trajectory: revenue and operating income have rebounded toward pre‑cybersecurity‑incident levels, handset net additions resumed, AI data center revenue showed strong YoY growth (+89%), and quarterly dividends were reinstated. However, significant legacy impacts remain (handset base still materially down ~986k YoY at the start of the year despite Q1 net adds), and key uncertainties persist around AI business profitability, full‑year dividend sizing, and early commercialization of AI‑RAN/AI traffic opportunities. Highlights and improvements are meaningful but are balanced by unresolved headwinds and limited disclosure on some growth metrics.Positive Updates
Revenue Recovery
Consolidated revenue of KRW 4.39 trillion in Q1 FY2026, up 1.5% quarter-on-quarter, driven by MNO subscriber growth and data center expansion.
Negative Updates
Large Year‑on‑Year Subscriber Shortfall Remaining
Company started 2026 with handset subscribers down ~986,000 year‑over‑year; Q1 net add of ~208k reduces the gap but the subscriber base remains materially below prior-year levels.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Recovery
Consolidated revenue of KRW 4.39 trillion in Q1 FY2026, up 1.5% quarter-on-quarter, driven by MNO subscriber growth and data center expansion.
Read all positive updates
Company Guidance
SK Telecom guided that Q1 FY2026 results show recovery momentum with consolidated revenue of KRW 4.39 trillion (+1.5% Q‑on‑Q) and consolidated operating income of KRW 537.6 billion (quarterly operating income > KRW 500 billion); management reported handset net adds of roughly 208–210k in Q1 (following a Y/Y handset decline of ~986k at the start of 2026), resumed quarterly dividends (Q1 DPS KRW 830) after transferring KRW 1.7 trillion from capital reserves to retained earnings to enable tax‑exempt dividends from the 2026 year‑end, and reiterated a goal to restore full‑year earnings above pre‑cybersecurity‑incident levels; they also flagged AI growth levers—AI data center revenue +89% YoY (Pangyo + higher utilization at Gasan), Ulsan AI DC under construction with additional DCs planned including Seoul—alongside plans to pivot/discontinue low‑margin AI lines, expand AI DC scale, and drive cost efficiency via enterprise AI tools and AX transformation.Sk Telecom Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.33T | 17.94T | 17.61T | 17.30T | 16.75T |
| Gross Profit | 3.30T | 15.66T | 15.39T | 15.05T | 14.52T |
| EBITDA | 4.60T | 5.86T | 5.63T | 5.32T | 6.11T |
| Net Income | 413.95B | 1.25T | 1.09T | 912.40B | 2.41T |
Balance Sheet | |||||
| Total Assets | 30.11T | 30.52T | 30.12T | 31.31T | 30.91T |
| Cash, Cash Equivalents and Short-Term Investments | 1.68T | 2.35T | 1.75T | 2.12T | 1.39T |
| Total Debt | 10.77T | 10.76T | 10.66T | 11.08T | 10.37T |
| Total Liabilities | 17.55T | 18.69T | 17.89T | 19.15T | 18.58T |
| Stockholders Equity | 12.46T | 11.70T | 11.39T | 11.32T | 11.58T |
Cash Flow | |||||
| Free Cash Flow | 1.72T | 2.53T | 1.87T | 2.11T | 1.72T |
| Operating Cash Flow | 3.96T | 5.09T | 4.95T | 5.16T | 5.03T |
| Investing Cash Flow | -1.76T | -2.71T | -3.35T | -2.81T | -3.49T |
| Financing Cash Flow | -2.73T | -1.81T | -2.02T | -1.35T | -2.05T |
Sk Telecom Technical Analysis
Positive
21.49
Price Trends
31.02
Positive
26.38
Positive
24.01
Positive
Market Momentum
2.13
Negative
75.03
Negative
92.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKM, the sentiment is Positive. The current price of 21.49 is below the 20-day moving average (MA) of 32.38, below the 50-day MA of 31.02, and below the 200-day MA of 24.01, indicating a bullish trend. The MACD of 2.13 indicates Negative momentum. The RSI at 75.03 is Negative, neither overbought nor oversold. The STOCH value of 92.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKM.
Sk Telecom Risk Analysis
Sk Telecom disclosed 32 risk factors in its most recent earnings report. Sk Telecom reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sk Telecom Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $16.88B | 16.17 | 15.56% | 6.14% | -5.21% | -7.46% | |
70 Outperform | $25.09B | 13.62 | 9.03% | 5.03% | 2.80% | 11.44% | |
65 Neutral | $13.50B | 27.39 | 3.41% | 5.02% | -7.08% | -73.47% | |
63 Neutral | $9.78B | 30.31 | 10.06% | 4.13% | 12.09% | 246.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $37.26B | 7.35 | -8.37% | 3.77% | 19.66% | -278.57% |
* Communication Services Sector Average
SKM
Sk Telecom
37.87
17.87
89.35%
KT
KT
21.18
1.97
10.26%
TLK
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17.16
1.95
12.82%
VIV
Telefonica Brasil
15.60
6.34
68.54%
VOD
Vodafone
16.20
7.52
86.72%
Sk Telecom Corporate Events
SK Telecom Posts Rebound in Q1 2026 Profit Versus Q4 Despite Year-on-Year Decline
May 7, 2026
SK Telecom reported preliminary consolidated and separate results for the first quarter of 2026, covering the period from January 1 to March 31, 2026. The disclosure, released on May 7, 2026 for analysts and investors, provides an early view of ea...
SK Telecom Schedules First-Quarter 2026 Earnings Call for May 7
Apr 30, 2026
SK Telecom announced that it plans to hold a conference call to present its first-quarter 2026 earnings results and conduct a QA session with investors and analysts on May 7, 2026, at 4:00 p.m. Seoul time at its headquarters. The company will prov...
SK Telecom Board Sets Q1 2026 Dividend at 830 Won per Share
Apr 27, 2026
On April 27, 2026, SK Telecom’s board approved a quarterly cash dividend for the first quarter of 2026, designating May 31, 2026 as the record date and setting the dividend at 830 won per common share, with no dividend on preferred stock. Th...
SK Telecom to Dispose of Treasury Shares for Director and Executive Stock Compensation
Apr 27, 2026
On April 27, 2026, SK Telecom’s board approved the disposal of 51,952 common treasury shares, valued at an estimated ₩5.20 billion based on a reference price of ₩100,000 per share, to be executed over the counter between April 28...
SK Telecom Reports 2025 Group Restructuring and Maintains Top-Tier Credit Ratings
Apr 17, 2026
In its annual business report for the year ended December 31, 2025, SK Telecom disclosed that it operated 19 consolidated subsidiaries, with major units including wireless-focused SK Telecom itself and PSMarketing, and fixed-line provider SK Broad...
SK Telecom Details Lower-Than-Expected Treasury Share Disposal Linked to 2021 Stock Options
Mar 30, 2026
From February 4 to March 25, 2026, SK Telecom disposed of a portion of its treasury stock in connection with the exercise of stock options granted at its 2021 annual general meeting. The company ultimately transferred 14,621 common shares, far bel...
SK Telecom Moves to Fully Acquire SK Broadband via Cash Share Exchange
Mar 26, 2026
On March 26, 2026, SK Telecom’s board approved a cash-based share exchange to acquire all remaining shares of its fixed-line unit SK Broadband, turning it into a wholly owned subsidiary. The transaction values SK Broadband minority shares at...
SK Telecom Shareholders Approve 2025 Results, Capital Changes and New Board Line-up
Mar 26, 2026
At its March 2026 annual general meeting, SK Telecom shareholders approved the 2025 financial statements, which showed consolidated operating revenue of KRW 17.1 trillion, operating income of KRW 1.07 trillion and profit of KRW 375.1 billion for t...
SK Telecom Names Jaihun Jung as New Representative Director
Mar 26, 2026
On March 26, 2026, SK Telecom announced a change in its representative director, with the role shifting from Young Sang Ryu to Jaihun Jung following a resolution by the company’s board of directors. The move formalizes Jung’s leadershi...
SK Telecom Files 2025 Audited Results and Receives Clean Opinion on Financials and Controls
Mar 11, 2026
On March 11, 2026, SK Telecom filed a Form 6-K with the U.S. Securities and Exchange Commission presenting its audited consolidated financial statements for the year ended December 31, 2025, along with reports on internal control over financial re...
SK Telecom Receives Clean Audit Opinion on 2025 Separate Financial Statements
Mar 11, 2026
On March 11, 2026, SK Telecom filed its March Form 6-K with the U.S. Securities and Exchange Commission, submitting its audited separate financial statements for the fiscal year ended December 31, 2025, together with auditors’ and internal c...
SK Telecom Calls March 26 AGM, Moves to Modernize Governance and Shareholder Participation
Feb 25, 2026
On February 25, 2026, SK Telecom’s board resolved to convene its annual general meeting of shareholders on March 26, 2026, in Seoul to approve 2025 financial statements, amend its Articles of Incorporation, adjust capital reserves, appoint d...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.