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SK Telecom Co.

SKM
52
Telecommunications Services · Communication Services
Price
$40.29
+1.98 (+5.17%)
Market Cap
$15.47B
Exchange
New York Stock Exchange
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Weak
Cash Flow
Strong
Stability
Good
Valuation
Good
Dividends
Mixed

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)

Winston Score History

The full picture

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.

Score breakdown

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Quality

Profit per sale
Gross Margin
100.0%
Premium pricing power — 100.0% gross margin
Profit after running costs
Operating Margin
13.0%
Healthy — 13.0% operating margin
Return on the money invested
ROCE
5.4%
Weak — 5.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-4.4%
Shrinking sales (-4.4% YoY)
Profit growth
EPS YoY
-22.9%
Earnings shrinking (-22.9% YoY)

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

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
500%
Turns 500% of profit into real cash
Spare cash per sale
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

What it owes vs what it owns
Debt / Equity
0.74
Moderate — manageable debt (0.74)
Covers its interest
Interest Cover
4.22x
Adequate interest coverage (4.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
30.9x
Pricey — P/E 30.9

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+16.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (30.9 → 14.8)

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Dividends

Dividend
Dividend Yield
2.04%
Moderate income — 2.04% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

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

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