Sk Telecom (SKM) AI Stock Analysis

• Market Cap: $8.32B
• Dividend Yield: 4.6%
• Average Volume (3M): 347.47K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.22
• Revenue Growth: -4.74%
• EPS Growth: -16.57%
• Country: US
• Employees: 5,054
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.14
• Shares Outstanding: 386,619,020
• 10 Day Avg. Volume: 353,844
• 30 Day Avg. Volume: 347,467
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $23.47
• Price Target Upside: 8.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $23.50 ▲(8.29% Upside)

SK Telecom's overall score reflects solid financial performance and attractive valuation, offset by technical indicators showing mixed momentum and challenges highlighted in the earnings call, particularly the impact of a cybersecurity incident.

Positive Factors

AI Business Growth

The growth in AI business revenue indicates a successful diversification strategy, reducing reliance on traditional telecom services and positioning SK Telecom for future technological advancements.

Hyperscale AI Data Center Initiative

The initiative to build a hyperscale AI data center with AWS signifies a strategic investment in infrastructure, enhancing SK Telecom's capabilities in AI and supporting long-term growth in digital services.

Government AI Projects

Participation in government AI projects strengthens SK Telecom's position as a leader in AI technology, potentially leading to new revenue streams and reinforcing its competitive edge in the tech industry.

Negative Factors

Cybersecurity Incident Impact

The cybersecurity incident led to significant subscriber losses and revenue decline, highlighting vulnerabilities in SK Telecom's operations that could affect customer trust and long-term financial stability.

Subscriber Base Decline

The decline in the subscriber base, particularly in 5G, poses a challenge to SK Telecom's growth strategy, potentially impacting its market share and revenue from high-margin services.

Increase in One-Off Costs

The substantial one-off costs incurred due to the cybersecurity incident strain financial resources, affecting profitability and potentially limiting investment capacity in strategic growth areas.

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 voice and data plans for individual consumers and businesses. The company also earns significant income from broadband internet services and fixed-line telephony. Another key revenue stream is the sale of value-added services, such as content delivery, cloud services, and IoT solutions. SK Telecom has established partnerships with various technology companies and content providers, which enhance its service offerings and contribute to revenue growth. Additionally, the company monetizes its investments in new technologies, such as 5G and AI, through both direct service offerings and collaborative ventures with other firms in the tech ecosystem.

Sk Telecom Financial Statement Overview

Summary

Sk Telecom demonstrates strong profitability with a robust gross profit margin and steady revenue growth. However, the modest net profit margin and moderate leverage pose some risks. Overall, the company maintains solid financial health with efficient cash flow management.

Income Statement

Sk Telecom shows a strong gross profit margin at 84.3% TTM, indicating efficient cost management. The net profit margin is modest at 7.3% TTM, reflecting stable profitability. Revenue growth is steady with a 3.54% increase from 2023 to 2024, and EBIT margin improved to 22.5% TTM, showcasing operational efficiency improvements. EBITDA margin remains robust at 30.7% TTM, underlining strong cash generation capabilities. Overall, Sk Telecom's income statement reveals solid profitability and growth, although net margins could be improved.

Balance Sheet

The debt-to-equity ratio stands at 0.9, indicating a moderate level of leverage. Return on equity is healthy at 11.1% TTM, suggesting effective use of equity to generate profits. The equity ratio is 39.5% TTM, highlighting a balanced capital structure. While the company maintains a stable financial position, a slightly high debt level presents a risk if market conditions deteriorate.

Cash Flow

Operating cash flow to net income ratio is strong at 4.0 TTM, demonstrating robust cash flow generation relative to profits. Free cash flow growth rate is healthy at 6.73% from 2023 to TTM, indicating effective capital management. The free cash flow to net income ratio is 2.1 TTM, showing good conversion of earnings into free cash flow. Overall, Sk Telecom's cash flow statement reflects efficient cash management and sustainability in operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.92T	17.94T	17.61T	17.30T	16.75T	16.09T
Gross Profit	15.11T	12.93T	12.74T	12.44T	12.11T	11.70T
EBITDA	5.50T	5.16T	5.09T	4.96T	5.06T	4.98T
Net Income	1.31T	1.30T	1.09T	912.40B	2.41T	1.50T
Balance Sheet
Total Assets	29.92T	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	10.67T	10.76T	10.66T	11.08T	10.37T	12.16T
Total Liabilities	17.98T	18.69T	17.89T	19.15T	18.58T	23.51T
Stockholders Equity	11.82T	11.70T	10.99T	11.32T	11.58T	23.74T
Cash Flow
Free Cash Flow	2.70T	2.53T	1.87T	2.11T	1.72T	2.13T
Operating Cash Flow	5.22T	5.09T	4.95T	5.16T	5.03T	5.82T
Investing Cash Flow	-2.53T	-2.71T	-3.35T	-2.81T	-3.49T	-4.25T
Financing Cash Flow	-2.11T	-1.81T	-2.02T	-1.35T	-2.05T	-1.46T

Sk Telecom Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKM, the sentiment is Negative. The current price of 21.7 is below the 20-day moving average (MA) of 21.78, below the 50-day MA of 22.10, and below the 200-day MA of 21.77, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 16.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKM.

Sk Telecom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLK	74 Outperform	18.65B	13.30	17.30%	6.89%	-5.13%	-5.90%
VIV	72 Outperform	20.02B	19.95	7.96%	4.65%	-6.51%	-0.21%
KT	72 Outperform	8.68B	14.51	2.91%	3.11%	-1.56%	-18.33%
SKM	67 Neutral	$8.32B	11.64	8.49%	4.60%	-4.74%	-16.57%
VOD	60 Neutral	27.05B	-6.30	-7.90%	4.39%	0.89%	-494.16%
TEF	52 Neutral	28.70B	-11.35	-13.79%	7.12%	-4.73%	-251.31%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Sk Telecom Corporate Events

SK Telecom Reports Stable Operations and Subsidiary Changes in 2025

In its semi-annual business report for the period ending June 30, 2025, SK Telecom announced that it has 19 consolidated subsidiaries, following the exclusion of NATE Communications Corporation and SK m&service Co., Ltd. The company continues to maintain a strong position in the telecommunications sector, with a stable credit rating of AAA for its corporate bonds, reflecting its robust financial health and market stability.

SK Telecom Reports Decline in Q2 2025 Financial Results

On August 6, 2025, SK Telecom released its preliminary financial results for the second quarter of 2025, indicating a decline in key financial metrics compared to both the previous quarter and the same period last year. The company’s operating revenue decreased by 2.58% from the first quarter of 2025 and by 1.89% year-over-year. Operating income and profit from continuing operations before income tax also saw significant declines of 40.38% and 52.67%, respectively, compared to the first quarter of 2025. These results highlight challenges in maintaining profitability and may impact stakeholder confidence.

SK Telecom Schedules Q2 2025 Earnings Call for August 6

SK Telecom announced it will hold a conference call on August 6, 2025, to discuss its second-quarter earnings results for 2025. This event will provide investors and analysts with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder confidence.

SK Telecom Announces Q2 2025 Dividend Details

On July 24, 2025, SK Telecom’s board of directors resolved to set August 31, 2025, as the record date for its quarterly cash dividends for the second quarter of 2025. The dividend amount per share for common stock is set at 830 won, with a total dividend payment of 176,775,288,250 won. This decision underscores SK Telecom’s commitment to returning value to its shareholders and may impact its financial outlook and investor relations positively.

SK Telecom Revises 2025 Financial Forecast Following Cybersecurity Incident

On July 4, 2025, SK Telecom Co., Ltd. announced a revision to its 2025 financial forecast due to a recent cybersecurity incident. The revised guidance indicates a forecasted operating revenue of 17.0 trillion Won, with an expected decrease in operating profit compared to 2024. This adjustment reflects the impact of a customer appreciation package, estimated at approximately 500 billion Won, and the company’s analysis of current market conditions. The revision highlights the company’s proactive approach in addressing the incident’s impact on its financial performance and market positioning.

SK Telecom Unveils 2024 Annual Sustainability Report

SK Telecom released its 2024 Annual Report, approved by the board in June 2025, highlighting its financial and non-financial performance, future prospects, and value creation efforts. The report, certified by the British Standards Institution, adheres to the International Integrated Reporting Council’s framework and GRI Standards. It covers data from 2022 to 2024, with qualitative insights up to May 2025, focusing on operations in South Korea. The report aims to inform investors and stakeholders about the company’s sustainability initiatives and strategic direction.

SK Telecom Resumes New Mobile Service Subscriptions After USIM Card Replacement

On June 24, 2025, SK Telecom Co., Ltd. announced the resumption of new mobile phone service subscriptions, which had been temporarily halted to focus on replacing universal subscriber identity module (USIM) cards for existing customers. The completion of the USIM card replacement for most subscribers and the securing of sufficient inventory have enabled the company to restart its subscription services, potentially enhancing its market operations and customer satisfaction.