Sk Telecom (SKM)
NYSE:SKM
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Sk Telecom
(NYSE:SKM)
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Rating:57Neutral
Price Target:
$29.00
â–²(34.95% Upside)
Action:ReiteratedDate:03/13/26
The score is primarily held back by the sharp profitability and return deterioration and a cautious earnings-call outlook tied to cybersecurity-related impacts, penalties, and subscriber pressure. Solid cash generation and a generally supported balance sheet help offset these risks, while technicals are mixed (short-term weakness but longer-term support) and valuation looks demanding given the earnings compression despite a moderate dividend yield.
Positive Factors
Consistent Free Cash Flow
Consistently positive operating and free cash flow provides durable internal funding for capex, data‑center builds and remediation costs. Strong cash conversion cushions earnings volatility, sustains liquidity and supports strategic investments or shareholder returns over the next 2–6 months.
Negative Factors
Sharp Margin & ROE Deterioration
Marked margin compression and collapsing ROE signal impaired core profitability that undermines the company's ability to sustainably fund dividends and reinvest. Even with steady revenue historically, structural cost and one‑off impacts have materially weakened returns for months ahead.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Free Cash Flow
Consistently positive operating and free cash flow provides durable internal funding for capex, data‑center builds and remediation costs. Strong cash conversion cushions earnings volatility, sustains liquidity and supports strategic investments or shareholder returns over the next 2–6 months.
Read all positive factors
Sk Telecom (SKM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.21B
Dividend Yield5.02%
Average Volume (3M)1.75M
Price to Earnings (P/E)27.4
Beta (1Y)0.12
Revenue Growth-8.16%
EPS Growth-52.52%
CountryUS
Employees5,054
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.56
Shares Outstanding383,365,020
10 Day Avg. Volume1,086,353
30 Day Avg. Volume1,752,384
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 Cap2.31K
Enterprise Value/Revenue1.52
Enterprise Value/Gross Profit2.17
Enterprise Value/Ebitda5.70
Forecast
1Y Price Target
$27.96Price Target Upside30.11% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)1.88
Revenue Forecast (FY)$12.01B
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:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Negative
The call presented a mixed picture: severe short‑term financial impacts from the cybersecurity incident drove notable declines in operating income (‑41.1% YoY) and net income (‑73% YoY) and forced dividend reductions, representing substantial near‑term headwinds. Offsetting this, management outlined concrete strategic responses and growth levers—most notably double‑digit growth in AIDC revenue, the development of the large A.X K1 foundation model (>500B parameters), data center expansion (Pangyo acquisition, Ulsan build, planned Seoul region center), and a management focus on AI‑driven productivity and customer value innovation. However, the magnitude of current financial deterioration and ongoing uncertainties (penalties, subscriber attrition, and no clarity on Anthropic monetization) outweigh the positive strategic initiatives in the near term.Positive Updates
AI / AIDC (AI Data Center) Double-Digit Revenue Growth
AIDC revenue continued a double-digit growth trend driven by higher utilization of Gasan and Yangju data centers and the acquisition of the Pangyo data center; Ulsan AIDC construction underway since September 2025 and plans to add another data center in the Seoul metropolitan region to accelerate scale and revenue.
Negative Updates
Revenue Decline
Consolidated revenue reported KRW 17.0992 trillion, down 4.7% year‑on‑year, attributed to sales of noncore subsidiaries, net subscriber decline after the cybersecurity incident, and tariff discounts under the Accountability and Commitment Program.
Read all updates
Q4-2025 Updates
Positive
Negative
AI / AIDC (AI Data Center) Double-Digit Revenue Growth
AIDC revenue continued a double-digit growth trend driven by higher utilization of Gasan and Yangju data centers and the acquisition of the Pangyo data center; Ulsan AIDC construction underway since September 2025 and plans to add another data center in the Seoul metropolitan region to accelerate scale and revenue.
Read all positive updates
Company Guidance
Management guided that FY2025 consolidated revenue was KRW 17.099.2 trillion (‑4.7% YoY), operating income KRW 1.073.2 trillion (‑41.1% YoY) and net income KRW 375.1 billion (‑73% YoY); the Board set FY2025 DPS at KRW 1,660 (no Q4 dividend) and said 2026 priorities are to restore earnings and return dividend payouts to prior levels (including exploring tax‑free dividends), aim to recover operating income toward 2024 levels, and focus on MNO profitability and customer‑value innovation while scaling AI businesses—AIDC revenue grew in double digits, A.X K1 is a >500 billion‑parameter model, A. has >10 million users, Ulsan AIDC construction is underway (since Sept 2025) and an additional Seoul‑region data center is planned to drive economies of scale and improved productivity.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
28.59
Positive
24.41
Positive
23.20
Positive
Market Momentum
0.20
Positive
49.59
Neutral
61.47
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 below the 20-day moving average (MA) of 29.47, below the 50-day MA of 28.59, and below the 200-day MA of 23.20, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 61.47 is Neutral, 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 | $18.54B | 16.17 | 15.56% | 6.14% | -5.21% | -7.45% | |
70 Outperform | $24.64B | 17.32 | 9.03% | 5.03% | -3.16% | 4.70% | |
63 Neutral | $9.56B | 12.98 | 10.06% | 4.13% | 0.63% | -21.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $34.27B | 7.35 | -8.37% | 3.77% | 19.67% | -278.51% | |
57 Neutral | $11.21B | 27.39 | 3.37% | 5.02% | -8.16% | -52.52% |
* Communication Services Sector Average
SKM
Sk Telecom
29.20
7.80
36.45%
KT
KT
21.38
3.74
21.20%
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Sk Telecom Corporate Events
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...
SK Telecom Profit Plunges 73% on Subscriber Losses and Divestiture Impact
Feb 5, 2026
SK Telecom reported a sharp deterioration in its consolidated financial performance for the current fiscal year, as disclosed in preliminary results approved by its board on February 5, 2025. Operating revenue fell 4.7% year-on-year to approximate...
SK Telecom Flags Sharp 2025 Profit Decline in Preliminary Fourth-Quarter Results
Feb 5, 2026
On February 5, 2026, SK Telecom released preliminary consolidated and separate results for the fourth quarter and full year 2025, showing a mixed top line but sharply weaker profitability compared with 2024. On a consolidated basis, fourth-quarter...
SK Telecom Cancels 2025 Year-End Cash Dividend Amid Changing Business Conditions
Feb 5, 2026
On February 5, 2026, SK Telecom Co., Ltd. announced that it would not distribute any cash year-end dividends for the 2025 fiscal year, citing its operating results and changes in the business environment. The decision, confirmed after a management...
SK Telecom to Dispose of Treasury Shares as 2022 Executive Stock Options Begin Exercise
Feb 4, 2026
On February 4, 2026, SK Telecom Co., Ltd. reported a planned disposal of treasury shares tied to the initial exercise of stock options that were approved at its 2022 general meeting of shareholders. The company intends to dispose of up to 195,245 ...
SK Telecom Schedules February 5 Conference Call for Q4 and Full-Year 2025 Results
Jan 29, 2026
On January 29, 2026, SK Telecom Co., Ltd. announced that it will hold an investor conference call on February 5, 2026, at 4:00 p.m. Seoul time to present its fourth-quarter 2025 and full-year 2025 earnings results, followed by a QA session with in...
SK Telecom to Dispose of Treasury Shares for Executive Stock Option Settlements
Jan 28, 2026
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 a...
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.