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SK Telecom Co.

SKM
49
Telecommunications Services · Communication Services
Price
$30.62
-1.14 (-3.59%)
Market Cap
$11.75B
Exchange
New York Stock Exchange
Winston Score
49
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

2.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 391.6M (2021) → 383.4M (2025)

SK Telecom is South Korea's largest mobile phone carrier, serving roughly 30 million subscribers across the country. The company sells wireless phone plans to everyday consumers and businesses, and also provides internet and media services through brands like T World. It is a dominant player in South Korea's telecom market and was one of the first carriers in the world to launch a commercial 5G network.

SK Telecom makes most of its money from monthly subscription fees paid by mobile and broadband customers. It operates almost entirely in South Korea, though it holds stakes in other businesses including semiconductor-related firm SK Hynix and AI ventures it is actively developing. The company faces limited growth in its core telecom business because South Korea is already one of the most connected countries in the world, so its ability to expand revenue depends heavily on whether its bets on artificial intelligence and new digital services pay off.

Winston Score History

Score breakdown

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Quality

Gross Margin
87.6%
Premium pricing power — 87.6% gross margin
Operating Margin
12.5%
Healthy — 12.5% operating margin
ROCE
2.5%
Weak — 2.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-4.9%
Shrinking sales (-4.9% YoY)
EPS YoY
-70.8%
Earnings shrinking (-70.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
1019%
Turns 1019% of profit into real cash
FCF Margin
9.7%
Modest free cash flow (9.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.74
Moderate — manageable debt (0.74)
Interest Cover
2.55x
Tight — interest eats into profit (2.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
0.0x
Attractive valuation — P/E 0.0

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
+0.0
GROWING
Earnings roughly flat

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Dividends

Dividend Yield
1.91%
Small dividend — 1.91% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
-3.6%
Dividend cut (-3.6% YoY) — warning sign

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