Financials SK Inc.

Equities

A034730

KR7034730002

IT Services & Consulting

End-of-day quote Korea S.E. Other stock markets 03:30:00 30/04/2024 am IST			5-day change	1st Jan Change
1,66,000 ^KRW	-1.72%		+2.41%	-6.74%

08/04	US says SK Battery faces $77,200 in fines over employee health hazards	RE
26/03	L&F Bags KRW13 Trillion Cathode Supply Contract From SK On	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	1,46,25,979	1,25,79,195	1,40,80,189	1,04,72,019	98,25,946	88,32,297	-	-
Enterprise Value (EV) ²	48,414	50,249	53,743	59,823	63,178	66,513	65,391	61,601
P/E ratio	20.3 x	67.9 x	6.72 x	9.69 x	-12.8 x	6.54 x	5.43 x	4.49 x
Yield	1.91%	2.91%	3.19%	2.65%	2.81%	3.21%	3.54%	3.36%
Capitalization / Revenue	0.15 x	0.15 x	0.14 x	0.08 x	0.07 x	0.07 x	0.06 x	0.06 x
EV / Revenue	0.49 x	0.61 x	0.55 x	0.44 x	0.48 x	0.51 x	0.47 x	0.43 x
EV / EBITDA	4.22 x	6.43 x	3.98 x	3.56 x	4.5 x	3.91 x	3.69 x	3.49 x
EV / FCF	408 x	110 x	-17.4 x	-9.37 x	-8.36 x	13 x	10.6 x	11.3 x
FCF Yield	0.25%	0.91%	-5.74%	-10.7%	-12%	7.68%	9.39%	8.81%
Price to Book	0.87 x	0.72 x	0.62 x	0.49 x	0.47 x	0.5 x	0.46 x	0.53 x
Nbr of stocks (in thousands)	55,824	52,304	56,096	55,408	55,202	54,520	-	-
Reference price ³	2,62,000	2,40,500	2,51,000	1,89,000	1,78,000	1,62,000	1,62,000	1,62,000
Announcement Date	07/02/20	09/02/21	09/02/22	14/02/23	07/02/24	-	-	-

¹KRW in Million²KRW in Billions³KRW

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	99,265	81,826	98,325	1,34,552	1,31,238	1,31,313	1,39,258	1,44,554
EBITDA ¹	11,460	7,820	13,513	16,788	14,044	17,010	17,699	17,642
EBIT ¹	3,950	-191.1	4,936	8,005	5,059	7,284	8,331	9,396
Operating Margin	3.98%	-0.23%	5.02%	5.95%	3.85%	5.55%	5.98%	6.5%
Earnings before Tax (EBT) ¹	2,777	-98.62	6,027	5,909	-747.7	4,664	6,319	7,292
Net income ¹	717.3	189.4	1,970	1,099	-475	1,580	2,027	2,412
Net margin	0.72%	0.23%	2%	0.82%	-0.36%	1.2%	1.46%	1.67%
EPS ²	12,917	3,544	37,332	19,506	-13,941	24,754	29,809	36,073
Free Cash Flow ³	1,18,730	4,55,860	-30,84,291	-63,82,768	-75,61,333	51,05,750	61,41,250	54,28,333
FCF margin	119.61%	557.11%	-3,136.83%	-4,743.73%	-5,761.55%	3,888.22%	4,409.98%	3,755.24%
FCF Conversion (EBITDA)	1,036.02%	5,829.49%	-	-	-	30,016.61%	34,698.85%	30,769.38%
FCF Conversion (Net income)	16,553.04%	2,40,727.05%	-	-	-	3,23,229.83%	3,02,956.08%	2,25,036.15%
Dividend per Share ²	5,000	7,000	8,000	5,000	5,000	5,200	5,727	5,440
Announcement Date	07/02/20	09/02/21	09/02/22	14/02/23	07/02/24	-	-	-

¹KRW in Billions²KRW³KRW in Million

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4
Net sales ¹	25,563	27,106	30,764	33,327	36,583	34,534	32,703	31,923	33,864	32,654	32,062	32,138	33,613	33,272
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	1,557	616.2	3,053	3,578	1,899	-491.3	1,130	695.1	2,712	424.7	1,654	1,880	2,137	1,673
Operating Margin	6.09%	2.27%	9.92%	10.74%	5.19%	-1.42%	3.46%	2.18%	8.01%	1.3%	5.16%	5.85%	6.36%	5.03%
Earnings before Tax (EBT) ¹	1,714	1,245	3,380	-	1,444	-2,300	14.76	-217.6	1,113	-1,588	1,592	1,502	1,576	852.5
Net income ¹	16.02	1,221	1,223	-	179.4	-1,101	-	-141.4	326.7	-1,085	267.5	417.5	438.5	228.5
Net margin	0.06%	4.5%	3.97%	-	0.49%	-3.19%	-	-0.44%	0.96%	-3.32%	0.83%	1.3%	1.3%	0.69%
EPS ²	-	-	-	-	-	-	-	-	-	-19,401	3,351	5,464	10,420	7,062
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	15/11/21	09/02/22	16/05/22	16/08/22	14/11/22	14/02/23	15/05/23	14/08/23	14/11/23	07/02/24	-	-	-	-

¹KRW in Billions²KRW

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	33,788	37,670	39,663	49,351	53,352	57,681	56,558	52,769
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	2.948 x	4.817 x	2.935 x	2.94 x	3.799 x	3.391 x	3.196 x	2.991 x
Free Cash Flow ²	1,18,730	4,55,860	-30,84,291	-63,82,768	-75,61,333	51,05,750	61,41,250	54,28,333
ROE (net income / shareholders' equity)	3.17%	-0.39%	9.78%	6.04%	-0.64%	7.36%	8.77%	11.8%
ROA (Net income/ Total Assets)	1.3%	-0.15%	1.3%	0.61%	-0.24%	0.78%	0.96%	1.11%
Assets ¹	55,197	-1,26,718	1,51,519	1,79,938	2,00,769	2,01,267	2,11,642	2,17,022
Book Value Per Share ³	3,01,682	3,33,331	4,04,377	3,85,812	3,75,776	3,20,963	3,53,037	3,04,493
Cash Flow per Share ³	1,44,320	1,85,346	1,07,272	1,35,743	2,05,846	1,83,974	1,56,364	1,49,474
Capex ¹	7,863	9,239	8,733	13,997	18,915	9,302	10,152	9,722
Capex / Sales	7.92%	11.29%	8.88%	10.4%	14.41%	7.08%	7.29%	6.73%
Announcement Date	07/02/20	09/02/21	09/02/22	14/02/23	07/02/24	-	-	-

¹KRW in Billions²KRW in Million³KRW

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for SK Inc.

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

1,62,000 KRW

Average target price

2,43,182 KRW

Spread / Average Target

+50.11%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other IT Services & Consulting

	1st Jan change	Capi.
SK INC.	-6.74%	6.58B
ACCENTURE PLC	-14.41%	188B
TATA CONSULTANCY SERVICES LTD.	+1.84%	166B
IBM	+0.70%	151B
AUTOMATIC DATA PROCESSING, INC.	+3.89%	101B
RELX PLC	+5.59%	77.06B
CROWDSTRIKE HOLDINGS, INC.	+18.89%	71.46B
INFOSYS LIMITED	-8.33%	70.46B
SNOWFLAKE INC.	-20.72%	52.14B
HCL TECHNOLOGIES LIMITED	-7.19%	44.34B

Other IT Services & Consulting