SK Telecom Co., Ltd. (SKM) vs Telefonica SA (TELFY)

SK Telecom Co., Ltd. and Telefonica SA are both Telecom Services companies. Telefonica SA is the larger, with a market value of $21.5B against $12.5B — 1.7× the size. Telefonica SA has negative trailing earnings, so its P/E is not meaningful; SK Telecom Co., Ltd. trades at 25.5×. SK Telecom Co., Ltd. grew revenue faster over the last twelve months: −0.24% against −6.91%. SK Telecom Co., Ltd. has the higher net margin (4.22% vs −10.6%) and the higher return on invested capital (3.53% vs 1.78%). Only Telefonica SA pays a dividend (9.18%). Across the 22 metrics below, SK Telecom Co., Ltd. leads on 16 and Telefonica SA on 6.

Valuation

Metric SKM TELFY Telecom Services median
P/E 25.52 n/m 13.80
P/S 1.02 0.54 0.83
P/B 1.13 1.00 1.35
Price to free cash flow 11.61 11.94 8.86
EV/EBITDA 19.33 35.06 6.37
EV/Sales 1.40 1.33 1.82
Earnings yield 3.92% (19.26%) 2.02%
Free cash flow yield 8.62% 8.37% 5.99%

Profitability

Metric SKM TELFY Telecom Services median
Gross margin 87.63% 66.84% 51.26%
Operating margin 7.24% 3.78% 7.62%
Net margin 4.22% (10.56%) 4.22%
Free cash flow margin 8.75% 4.54% 4.98%
Return on equity 5.30% (17.31%) 5.80%
Return on assets 2.36% (3.95%) 0.00%
Return on invested capital 3.53% 1.78% 3.41%

Growth

Metric SKM TELFY Telecom Services median
Revenue growth (TTM) (0.24%) (6.91%) 3.31%
EPS growth (last fiscal year) (71.02%) (1,433.33%) 0.62%
Revenue growth, 5-year CAGR (4.20%) (4.19%) 2.53%
Net income growth, 5-year CAGR (25.73%) 0.00% 0.00%

Health

Metric SKM TELFY Telecom Services median
Debt to equity 0.56 1.84 0.63
Current ratio 1.25 0.92 1.13
Net debt to EBITDA 6.71 20.40 1.86

Dividend

Metric SKM TELFY Telecom Services median
Dividend yield 0.00% 9.18% 2.72%
Payout ratio 0.00 — 0.43

Size

Metric SKM TELFY Telecom Services median
Market cap 12.48b 21.48b 2.77b

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