Sk Telecom (SKM) AI Stock Analysis

• Market Cap: $11.25B
• Dividend Yield: 5.02%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 27.8
• Beta (1Y): 0.14
• Revenue Growth: -8.16%
• EPS Growth: -52.52%
• Country: US
• Employees: 5,054
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.67
• Shares Outstanding: 383,365,020
• 10 Day Avg. Volume: 2,154,324
• 30 Day Avg. Volume: 1,110,495
• PEG Ratio: 0.58
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 4.77
• Enterprise Value/Market Cap: 2.24K
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 4.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $29.00 ▲(34.95% Upside)

The score is anchored by solid underlying financial performance and cash generation, but is held back by the earnings-call-driven deterioration in profitability (negative net income and dividend suspension) and very overbought technical conditions. Valuation is neutral-to-slightly expensive given the P/E, partially balanced by a moderate dividend yield.

Positive Factors

Cash generation

Sustained free cash flow growth and strong conversion metrics (operating cash flow to net income 0.73; FCF to net income 0.57) provide durable funding for 5G and AI capex, buffer against shocks, and flexibility to invest in strategic projects over the next several quarters.

Margin sustainability

Very high gross margins and healthy operating margins indicate efficient network operations and cost control. This structural efficiency supports long-term profitability, enabling reinvestment in network upgrades and AI services even if top-line growth lags in the medium term.

Strategic AI and 5G positioning

A formal collaboration with OpenAI and rapid AI DC revenue growth (AI DC +53.8% YoY) materially diversifies SK Telecom beyond connectivity into AI infrastructure and services, strengthening long-term growth prospects and creating new high-margin revenue streams over multiple quarters.

Negative Factors

Cybersecurity incident impact

A material cybersecurity breach caused revenue declines, customer compensation and tariff discounts that directly reduced sales and operating income. The event creates persistent reputational, regulatory and remediation costs that can suppress recovery and margins for multiple quarters.

Dividend suspension

Halting dividends reflects constrained distributable cash and prioritization of balance restoration. This structural change may persist until profitability and cash generation normalize, reducing appeal to income-focused investors and signaling tighter capital allocation policy.

Weak revenue trend and margin pressure

Negative top-line growth combined with falling net margins erode internal funding capacity and return on capital. Over a multi-quarter horizon this constrains reinvestment pace, weakens competitive posture against peers investing in 5G/AI, and raises execution risk for strategic initiatives.

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 wireless voice and data transmission, Internet of Things solutions, platform, cloud, smart factory solutions, subscription, and metaverse platform-based services, as well as sells wireless devices. The Fixed-Line Telecommunications Services segment provides fixed-line telephone services; broadband Internet services; media platform services, such as Internet protocol TV and cable TV; and business communications services. The Other Businesses segment offers television shopping services under the T-commerce brand, as well as portal services. In addition, it 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 and surveillance devices; and operates information and communications facilities. As of December 31, 2021, the company had 3.6 million fixed-line telephone and 31.9 million wireless subscribers. SK Telecom Company Limited was incorporated in 1984 and is headquartered in Seoul, South Korea.

How the Company Makes Money

SK Telecom generates revenue primarily through its mobile telecommunications services, which include subscription fees from individual and corporate customers for voice, messaging, and data services. The company also earns significant income from its broadband internet services and fixed-line communications. Additional revenue streams come from sales of IoT solutions and devices, as well as partnerships with various enterprises for technology services, including cloud computing and AI applications. Furthermore, SK Telecom is involved in strategic partnerships and joint ventures that enhance its service offerings and expand its market reach, contributing to its overall financial performance.

Sk Telecom Financial Statement Overview

Summary

Financials are solid but uneven: strong gross margin (84.4%) and healthy EBIT/EBITDA margins support operations, and free cash flow grew 13.6% with good cash conversion (operating cash flow to net income 0.73). Offsetting this, revenue growth is negative in the TTM and net margin is relatively low at 5.6%.

Income Statement

Sk Telecom's income statement shows a mixed performance. The TTM gross profit margin is strong at 84.4%, indicating efficient cost management. However, the net profit margin has decreased to 5.6% in the TTM, reflecting challenges in maintaining profitability. Revenue growth has been negative in the TTM, suggesting potential market challenges or competitive pressures. Despite these issues, the EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.93 in the TTM, indicating manageable leverage. The return on equity has decreased to 8.6% in the TTM, suggesting reduced profitability for shareholders. The equity ratio is moderate, showing a balanced approach to financing through debt and equity.

Cash Flow

Cash flow analysis reveals a positive trend with a 13.6% growth in free cash flow in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 0.73, demonstrating effective conversion of earnings into cash. The free cash flow to net income ratio is also robust at 0.57, highlighting strong cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.84T	17.94T	17.61T	17.30T	16.75T	16.09T
Gross Profit	15.72T	15.66T	15.39T	15.05T	14.52T	13.92T
EBITDA	5.63T	5.86T	5.63T	5.32T	6.11T	5.36T
Net Income	1.01T	1.25T	1.09T	912.40B	2.41T	1.50T
Balance Sheet
Total Assets	29.30T	30.52T	30.12T	31.31T	30.91T	47.91T
Cash, Cash Equivalents and Short-Term Investments	2.55T	2.35T	1.75T	2.12T	1.39T	2.95T
Total Debt	10.70T	10.76T	10.66T	11.08T	10.37T	12.16T
Total Liabilities	17.33T	18.69T	17.89T	19.15T	18.58T	23.51T
Stockholders Equity	11.85T	11.70T	11.39T	11.32T	11.58T	23.74T
Cash Flow
Free Cash Flow	3.07T	2.53T	1.87T	2.11T	1.72T	2.13T
Operating Cash Flow	5.35T	5.09T	4.95T	5.16T	5.03T	5.82T
Investing Cash Flow	-2.04T	-2.71T	-3.35T	-2.81T	-3.49T	-4.25T
Financing Cash Flow	-2.51T	-1.81T	-2.02T	-1.35T	-2.05T	-1.46T

Sk Telecom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 24.05, below the 50-day MA of 21.75, and below the 200-day MA of 21.65, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 90.10 is Negative, neither overbought nor oversold. The STOCH value of 91.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKM.

Sk Telecom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	77 Outperform	$23.40B	22.23	8.36%	5.03%	-3.16%	4.70%
TLK	75 Outperform	$19.62B	15.59	15.54%	6.14%	-5.21%	-7.45%
KT	68 Neutral	$9.43B	15.21	5.26%	4.13%	0.63%	-21.51%
SKM	61 Neutral	$11.25B	27.81	4.72%	5.02%	-8.16%	-52.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
VOD	58 Neutral	$36.54B	―	-7.08%	3.77%	19.67%	-278.51%

Sk Telecom Corporate Events

SK Telecom to Dispose of Treasury Shares for Executive Stock Option Settlements

On January 28, 2026, SK Telecom approved the disposal of up to 71,726 treasury common shares, with an exercise price of ₩50,276 per share and an estimated aggregate disposal value of about ₩3.6 billion, to cover stock options granted at its 2021 shareholders’ meeting. The treasury shares, to be transferred over the counter between February 4 and March 25, 2026 to nine current and retired executive officers, are being used mainly to settle stock options via compensation in treasury shares for the difference between the exercise price and market price, with 5,375 options exercised and 609 shares confirmed for payment so far and a further 66,351 options still exercisable, underscoring SK Telecom’s ongoing use of equity-based pay while having a limited dilutive impact given its existing treasury share holdings.

The most recent analyst rating on (SKM) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Sk Telecom stock, see the SKM Stock Forecast page.

SK Telecom Achieves 17.26 Million 5G Subscribers by September 2025

As of September 30, 2025, SK Telecom reported a significant milestone with 17.26 million 5G subscribers, accounting for 79% of its total subscriber base. The company has maintained solid profitability through efficient network operations and stable market competition, aiming to enhance profitability by expanding customer choices and benefits. Despite the mature 5G market, SK Telecom continues to seek growth in its wireless telecommunications business, emphasizing the importance of stable sales from 5G subscribers and strategic investments.

The most recent analyst rating on (SKM) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Sk Telecom stock, see the SKM Stock Forecast page.

SK Telecom Halts Q3 2025 Dividend Distribution Amid Business Changes

On October 30, 2025, SK Telecom announced its decision not to distribute cash dividends for the third quarter of 2025. This decision was influenced by the company’s operational results and changes in the business environment. Despite this, SK Telecom remains committed to enhancing shareholder and corporate value, with plans to focus on future improvements in cash flow and financial conditions.

The most recent analyst rating on (SKM) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Sk Telecom stock, see the SKM Stock Forecast page.

SK Telecom Reports Significant Decline in Q3 2025 Financial Results

SK Telecom has released its preliminary financial results for the third quarter of 2025, showing a significant decline in operating revenue and income compared to the previous quarter and the same period last year. The company’s operating revenue decreased by 8.31% from the previous quarter and 12.23% year-over-year, while operating income dropped by 85.68% compared to the previous quarter. These results may impact SK Telecom’s market positioning and investor confidence as they reflect challenges in maintaining profitability.

The most recent analyst rating on (SKM) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Sk Telecom stock, see the SKM Stock Forecast page.