SKMSK Telecom Co., Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (3.8×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SKM?
SK Telecom Co., Ltd. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.2 points above what the capital costs: growth creates value
- Operating margin
- 9.4%
Operating margin · Telecom Services median 11% · fiscal year to FY2024
- Cash conversion
- 3.82×
Cash conversion · 3.66× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2019 | 6.4% |
| FY2020 | 6.4% |
| FY2021 | 8.6% |
| FY2022 | 9.2% |
| FY2023 | 10.0% |
| FY2024 | 9.4% |
Details›
- Gross marginfiscal year to FY2024
- 93%
- Operating marginfiscal year to FY2024
- 9.4%
- Net marginfiscal year to FY2024
- 7.0%
- Free cash flow margin
- 14%
- R&D as % of revenue
- 2.1%
- Revenue, trailing twelve months
- $17.94T
- Free cash flow, trailing twelve months
- $2.60T
- Net income, trailing twelve months
- $1.25T
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.