Sk Telecom (SKM) AI Stock Analysis

• Market Cap: $7.56B
• Dividend Yield: 5.02%
• Average Volume (3M): 648.98K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.17
• 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: 648,455
• 30 Day Avg. Volume: 648,978
• 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: 2.80K
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 1.35
• Enterprise Value/Ebitda: 3.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $22.00 ▲(2.37% Upside)

SK Telecom's overall score reflects strong operational efficiency and cash flow generation, but is weighed down by recent financial setbacks from a cybersecurity incident. The stock's valuation is reasonable, and growth in AI and 5G subscribers offers potential for recovery. However, technical indicators suggest a bearish trend, and the suspension of dividends is a concern for income-focused investors.

Positive Factors

AI Business Expansion

The significant growth in AI revenue indicates a strong strategic focus on AI, positioning SK Telecom to capitalize on future tech trends.

5G Subscriber Growth

Continued growth in 5G subscribers strengthens SK Telecom's market position in the telecommunications sector, ensuring future revenue streams.

AI Strategic Investment

The substantial investment in AI reflects a commitment to long-term growth and innovation, enhancing competitive advantage in emerging tech markets.

Negative Factors

Cybersecurity Incident Impact

The cybersecurity incident has severely impacted financial performance, highlighting vulnerabilities that could affect future profitability and trust.

Revenue Decline

The significant revenue decline suggests challenges in maintaining market share and competitiveness, potentially impacting long-term financial health.

Dividend Suspension

Suspension of dividends may affect investor confidence and indicates financial strain, impacting the company's attractiveness to income-focused investors.

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

SK Telecom exhibits strong operational efficiency and cash flow generation, with healthy EBIT and EBITDA margins. However, challenges in revenue growth and net profitability, along with a moderate balance sheet, indicate areas for improvement.

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: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 20.28, above the 50-day MA of 20.22, and above the 200-day MA of 21.37, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 38.68 is Neutral, 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	$19.98B	18.85	8.36%	5.03%	-3.16%	4.70%
TLK	75 Outperform	$20.26B	15.39	15.54%	6.14%	-5.21%	-7.45%
KT	68 Neutral	$8.51B	13.68	5.26%	4.13%	0.63%	-21.51%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	60 Neutral	$7.56B	20.02	4.72%	5.02%	-8.16%	-52.52%
VOD	58 Neutral	$31.99B	―	-7.08%	3.77%	19.67%	-278.51%
TEF	45 Neutral	$22.50B	―	-0.70%	7.47%	-5.49%	-75.51%

Sk Telecom Corporate Events

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.

SK Telecom to Discuss Q3 2025 Earnings in Upcoming Conference Call

SK Telecom Co., Ltd. announced it will hold a conference call on October 30, 2025, to discuss its third-quarter earnings results. The call, aimed at investors and analysts, will include a Q&A session and will be accessible via real-time webcasting on the company’s investor relations website. This event is part of SK Telecom’s ongoing efforts to maintain transparency and engage with stakeholders regarding its financial performance.

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.