Sk Telecom (SKM) AI Stock Analysis

• Market Cap: $7.70B
• Dividend Yield: 5.01%
• Average Volume (3M): 428.82K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.24
• Revenue Growth: -8.16%
• EPS Growth: -51.97%
• Country: US
• Employees: 5,054
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.26
• Shares Outstanding: 386,619,020
• 10 Day Avg. Volume: 559,133
• 30 Day Avg. Volume: 428,819
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $23.43
• Price Target Upside: 9.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• 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 (SKM) is a leading South Korean telecommunications company that offers a wide range of services in the telecommunications sector, including mobile and fixed-line services, broadband internet, and digital media. The company is a pioneer in the development and deployment of advanced technologies such as 5G networks and Internet of Things (IoT) solutions. In addition to its core telecom services, SK Telecom has diversified its offerings to include various digital services, entertainment content, and smart solutions for consumers and businesses.

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 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	17.87T	17.94T	17.61T	17.30T	16.75T	16.09T
Gross Profit	14.91T	12.79T	12.74T	12.44T	12.11T	11.70T
EBITDA	5.28T	5.16T	5.09T	4.96T	5.06T	4.98T
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	11.06T	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	10.99T	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: Negative
• Last Price: 21.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 21.49 is above the 20-day moving average (MA) of 20.97, above the 50-day MA of 21.43, and below the 200-day MA of 21.71, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 28.47 is Positive, neither overbought nor oversold. The STOCH value of 6.66 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
VIV	―	$19.67B	18.50	8.36%	5.07%	-3.16%	4.70%
TLK	―	$20.71B	15.22	15.54%	6.37%	-5.21%	-7.45%
KT	―	$8.05B	13.77	5.22%	3.21%	-1.56%	-18.33%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	―	$7.70B	19.11	―	5.01%	-8.16%	-51.97%
VOD	―	$26.93B	-6.27	-7.17%	4.35%	0.89%	-494.16%
TEF	―	$24.19B	-9.58	-3.55%	6.71%	-4.73%	-251.31%

Sk Telecom Corporate Events

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.

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.

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.

SK Telecom Unveils Ambitious AI Strategy with Major Investment

On September 25, 2025, SK Telecom announced a strategic restructuring to enhance its AI business capabilities, launching an AI ‘Company-in-Company’ unit. The company plans to invest a cumulative Won 5 trillion over the next five years, aiming for AI-related revenue of Won 5 trillion or more by 2030. This move reflects SK Telecom’s commitment to strengthening its position in the AI sector and adapting to developments in the AI market and business environment.

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.