QS Research · Michael Burry's Scion Capital analyst template · 2006
SK hynix Inc. (SKHY)
As of 2026-11-08 · 5/15 boxes filled from SEC filings and market data
Conclusion: LONG
Conviction medium · base case +36% · downside -15% · upside +125%
Section 13 has no SKHY TTM net income or free cash flow, so the only cited SKHY earnings multiple is the 4.5x forward P/E in S11; I use its implied $28.30 forward EPS as the single base for all three cases. The market is pricing a memory-cycle collapse even as Q3 2026 revenue rose 327.9% year-over-year to 104.62 trillion won, operating profit was 83.33 trillion won at about an 80% operating margin, DRAM/HBM are sold out through 2029, and over 50% of 2027-2028 capacity is under long-term agreements. The $14.9 billion buyback plus $10.4 billion dividend and 50% cumulative free-cash-flow return through 2027 are balance-sheet catalysts that can force a re-rating from 4.5x toward the 6.1x/9.2x memory-peer P/E. Base case: 6.1x on $28.30 = $172.62 (+35.6%); downside: 4.5x on 15%-lower EPS = $108.24 (-15.0%); upside: 9.2x on 10%-higher EPS = $286.37 (+124.9%). That meets the long rule with medium conviction; the missing TTM financials and memory cyclicality keep it from high conviction.
Key numbers
- Share price: $127.34
- Market cap: $897.97B
The 15 boxes
- ○ 1. Long-form business notes
- ○ 2. Competitive advantage
- ○ 3. 10-Q takeaways
- ○ 4. Corporate governance
- ○ 5. Overview of the prior 3 years of 8-K filings
- ✓ 6. Other significant filings
Filled; members read this box.
- ○ 7. Chronology of significant news and events
- ✓ 8. Comparables valuation interpretation
Filled; members read this box.
- ○ 9. Insider trading interpretation
- ○ 10. Earnings-call notes
- ○ 11. Impression of the shareholder letter
- ○ 12. Scuttlebutt overview
- ✓ 13. Valuation and risk/reward summary
Filled; members read this box.
- ✓ 14. Current price suppression and potential catalysts
Filled; members read this box.
- ✓ 15. Conclusions
The call above.
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