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Samsung Electronics (005930) 🔎 In-depth

KOSPI · Price as of 2026-07-09 · Updated 2026-07-10

Samsung Electronics is a diversified electronics maker that produces memory chips such as DRAM and NAND flash alongside smartphones (Galaxy), home appliances and displays. Today its semiconductor arm generates most of the profit, led by high-bandwidth memory (HBM) used in AI servers. In the first quarter of 2026 the company posted record quarterly figures of ₩133.9 trillion in revenue and ₩57.2 trillion in operating profit, and that single quarter's operating profit alone exceeded the entire prior full year (₩43.6 trillion). The key points to watch are that, while AI demand and tight memory supply persist, low debt and a net-cash position let profits step up sharply; that the trailing metric (a P/E of 36.7x) looks expensive but drops steeply once this year's profit surge is reflected on a forward basis; and that, as a cyclical business, prices and profits could eventually give back gains once memory supply loosens.

At-a-glance assessment financial health · growth · profitability · valuation

Financial healthStable
  • Debt ratio, current ratio and interest burden all look healthy.
GrowthGrowing
  • Revenue rose 10.9% year over year, and the pace is slowing (3-year trend: rising).
  • Most recent quarter (Q1 2026) revenue was 69.2% higher than a year earlier.
ProfitabilityHealthy
  • ROE is 10.4% (controlling-interest basis). It is above the sector average.
  • Operating margin is 13.1%.
ValuationUndervalued
  • The forward P/E sits below the sector median.

Ownership & governance As of 2022-12-31

Largest shareholder Samsung Life Insurance 8.51% (corporate)

Controlling bloc incl. related parties 20.89%

With the controlling bloc holding 21%, control is maintained but the free float is relatively large.

🔎 In-depth analysis

🏢Business
  • Samsung Electronics earns money in three broad ways.
  • The first is the semiconductor (DS) division, which makes memory such as DRAM and NAND flash as well as foundry (contract chip manufacturing).
  • The second is the mobile (MX) unit that makes smartphones and tablets, plus network equipment.
  • The third is visual and home appliances (VD and DA) such as TVs and refrigerators.
  • Profit is now overwhelmingly concentrated in semiconductors.
  • In the first quarter of 2026 the semiconductor division alone generated ₩81.7 trillion in revenue and ₩53.7 trillion in operating profit, accounting for most of the company-wide ₩57.2 trillion.
  • HBM, which sits next to the GPUs in AI servers, is the core profit driver in particular.
  • By contrast, the mobile division's weight has shrunk sharply, with ₩38.1 trillion in revenue and ₩2.8 trillion in operating profit.
📈Price & chart
  • The latest closing price is ₩278,000 and the market capitalization is ₩1,625.3 trillion.
  • The price sits below the 20-day moving average (₩325,200) and below the 60-day average (₩287,558).
  • Trading below both its short- and medium-term averages, the trend is on the softer side.
  • The RSI (a supplementary gauge that compares upward and downward force over the last 14 days on a 0-100 scale) is 42.0, a neutral level.
  • The one-month change is -8.1%, the three-month change is +41.5%, and the position versus the 52-week high is -23.3%.
  • Relative strength against the KOSPI is 85 (on a 1-99 scale, converted from the past year's return versus the index with recent periods weighted more heavily; higher means stronger than the market).
  • That places it in roughly the top 14% of all stocks by strength.
  • Over the last three months it outpaced the index by 6.4%.
  • Chart reading is best done alongside trading volume and the dates on which disclosures occurred.
📊Key metrics
  • Start with the valuation metrics.
  • The P/E ratio (how many times one year's profit the share price is) is 36.7x on a trailing basis.
  • The P/B (how many times the company's net assets the share price is) is 3.83x.
  • An important caveat applies here.
  • This P/E of 36.7x is calculated on last year's (2025) profit, a low figure captured just as earnings were recovering from a cycle trough.
  • Reflect this year's profit surge and the multiple drops sharply.
  • On profitability, last year's ROE (how much is earned in a year per unit of equity) was 10.4% and the operating margin was 13.1%.
  • In the first quarter of 2026, however, the net margin jumped to 35% as semiconductor profit stepped up.
  • The balance sheet is very solid.
  • The debt ratio (debt relative to equity) is a low 30.8%.
  • Net debt (total borrowings minus cash) is minus ₩32.6 trillion, meaning a net-cash position with ₩32.6 trillion more cash than debt.
  • EV/EBITDA (enterprise value, which also reflects debt, divided by operating profit before depreciation) is 17.9x.
  • The free-cash-flow yield (actual cash generated relative to market cap) is 1.98%.
🚀Growth
  • Over the long run, profit swings heavily with the cycle.
  • Operating profit collapsed from ₩51.6 trillion in 2021 to ₩6.6 trillion in 2023, then recovered to ₩32.7 trillion in 2024 and ₩43.6 trillion in 2025.
  • Net profit likewise climbed from a ₩14.5 trillion trough in 2023 to ₩44.3 trillion in 2025.
  • The inflection is clear heading into 2026.
  • First-quarter revenue was ₩133.9 trillion, up 69% from the same period a year earlier.
  • First-quarter operating profit of ₩57.2 trillion was 8.6 times that of a year ago (+756%).
  • Net profit of ₩47.2 trillion also meant this single quarter exceeded the whole of last year's net profit.
  • This strength comes from AI server demand and HBM.
  • The company has officially stated that it expects this year's HBM revenue to more than triple last year's, and that it is mass-producing HBM4 and aggressively expanding capacity.
  • It also projected that server memory demand would stay strong in the second half.
  • Because of this, the trailing P/E may look high, but on a forward basis reflecting this year's profit surge the metric falls sharply.
📰Recent news & filings
  • Recent disclosures are dominated by reports of executives acquiring treasury shares and of holdings in specified securities.
  • No large company-level contracts or earnings corrections stand out.
  • Instead, the earnings themselves were the biggest event.
  • In its preliminary and confirmed first-quarter 2026 results, the company announced record quarterly figures of ₩133.9 trillion in revenue and ₩57.2 trillion in operating profit.
  • According to the company's official statements, the semiconductor division led these results, and it began mass-producing and selling HBM4 and next-generation low-power modules as the first in the industry.
  • For the second half, it signaled the first sample supply of HBM4E and a sales strategy aligned with new GPU and CPU launches.
🧭Bottom line
  • In sum, Samsung Electronics sits in the middle of a memory upcycle.
  • Its strengths are clear.
  • While AI server and HBM demand persists, semiconductor profit steps up, backed by a solid balance sheet with ₩32.6 trillion of net cash.
  • The trailing P/E of 36.7x looks expensive because it is calculated on trough-cycle profit, but on a forward basis reflecting this year's profit surge it actually falls.
  • Compared with fellow memory maker SK Hynix, which trades at a much higher P/B and P/S, Samsung Electronics reads as sitting in undervalued territory relative to its profit surge.
  • There are cautions too.
  • A large share of this profit depends on memory prices and HBM volumes.
  • If AI investment slows or memory supply loosens again, the cyclical nature of the business means prices and profits could give back gains together.
  • Share competition with rivals in the HBM market is another variable.
  • In short, it is strong while demand and tight supply persist, and weaker once signs of oversupply appear.

🔎 Valuation vs peers Undervalued

A domestic direct comparison group of memory-chip makers.

PeerP/EP/BROE
SK Hynix36.30x12.93x35.61%

On a trailing basis, a P/E of 36.7x and a P/B of 3.82x may look burdensome at first glance. But these figures have a limitation: they are calculated on 2025 profit that was just recovering from a cycle trough. For a stock at a profit inflection, the real picture emerges from this year's earnings rather than last year's. In the first quarter of 2026 net profit already reached ₩47.2 trillion, exceeding the whole of last year in a single quarter, and the company has officially stated that second-half demand is strong and that HBM revenue will grow threefold. Reflect this year's profit surge and the valuation falls sharply. The contrast with fellow memory maker SK Hynix is clear. SK Hynix already reflects high profitability in its price with a P/B of 12.3x and an ROE of 35.6%, whereas Samsung Electronics is far lower at a P/B of 3.82x. Samsung's ROE (10.4% last year) is still low because profits have only just begun to surge, and once that improvement is reflected in this year's metrics the undervaluation appeal grows. Taken together, relative to the profit surge, the current valuation is judged to be in undervalued territory.

₩278,000 +0.18%
Market cap $1.08T

Price history Close · MA20 · MA60

Close MA20MA60

The latest close is ₩278,000 and the market capitalization is ₩1,625.3 trillion. The price sits below its 20-day moving average (₩325,200) and below its 60-day moving average (₩287,558). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 42.0, a neutral level. The one-month change is -8.1%, the three-month change is +41.5%, and the position relative to the 52-week high is -23.3%. Relative strength versus the KOSPI is 85 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 86% of all stocks. Over the past three months it outpaced the index by 6.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

Relative performance stock vs index · start = 100

85Relative strength vs KOSPI1–99 · last 12 months’ return vs the index, recency-weighted · higher = stronger than the marketTop 14% strength

Excess return vs index · 3M +6.36% / 6M +24.21% / 12M +86.22%

StockKOSPI

Key metrics vs whole-market median

Valuation

P/E (trailing)36.72x
Forward P/E6.01x
P/B3.83x
Forward P/B2.94x
P/S4.87x
EPS₩7,571
BPS (book value/share)₩72,578
Dividend yield0.60%
DPS₩1,668

The P/E of 36.72x is above the whole-market median (13.81x). The P/B of 3.83x is above the whole-market median (1.15x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.

Enterprise value (EV)

Net debt-$21.6B
EV (enterprise value)$1.09T
EV/EBIT37.60x
EV/EBITDA17.86x
EV/Sales4.91x
FCF (free cash flow)$22.0B
FCF yield1.98%

EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.

Intrinsic value (DCF estimate)

Bear case₩193,200
Base case₩269,700
Bull case₩411,100

DCF (discounted cash flow) estimate — discount rate 11.0%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 3x. A reference range that shifts materially with assumptions.

Profitability & financials

ROE10.43%
Operating margin13.07%
Net margin13.27%
Debt ratio30.78%
Payout ratio25.10%

Return on equity (ROE) is 10.4%, above the whole-market average (5.0%). The operating margin is 13.1%. The debt ratio is 30.8%, so the financial structure is stable.

Growth FY2025 · annual report (consolidated)

Item202320242025YoY
Revenue$171.6B$199.4B$221.1B+10.88% ↓ slower
Operating profit$4.4B$21.7B$28.9B+33.23% ↓ slower
Net profit$9.6B$22.3B$29.3B+31.65% ↓ slower
5-year20212022202320242025
Revenue$185.3B$200.3B$171.6B$199.4B$221.1B
Operating profit$34.2B$28.7B$4.4B$21.7B$28.9B
Net profit$26.0B$36.3B$9.6B$22.3B$29.3B
Revenue CAGR4-yr avg 4.51%

Revenue rose 10.9% year over year (2023 ₩258.9 trillion → 2024 ₩300.9 trillion → 2025 ₩333.6 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 33.2% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.5%. The two-year revenue CAGR is 13.5%. In the most recent quarter (Q1 2026), revenue was 69.2% higher than the same period a year earlier.

Latest quarterly results Q1 2026 · vs year-ago

Revenue$88.7B
Revenue YoY+69.16%
Operating profit$37.9B
Op. profit YoY+756.10%
Net profit$31.3B
Net profit YoY+474.32%

Technical indicators

RSI (14)42.0
MA20₩325,200
MA60₩287,558
1-month-8.10%
3-month+41.48%
vs 52-wk high-23.31%

What stands out

  • P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
  • ROE of 10.4% points to solid profitability.
  • Revenue grew 10.9% year over year, a sign of growth.
  • The balance sheet is stable in terms of debt and liquidity.

Points to watch

  • The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.

Recent news & events searched · sourced

Figure cross-check computed ↔ external

MetricComputedExternalStatusSource
First-quarter 2026 revenue₩133.9 trillion₩133.9 trillionConfirmedlink
First-quarter 2026 operating profit₩57.2 trillion₩57.2 trillionConfirmedlink
2025 full-year net profit₩44.3 trillion₩44.3 trillionConfirmedlink
2026 full-year net profit (estimate)approx. ₩272 trillion(self-estimate)—Unverified—

Recent filings

📖 Plain-language glossary — expand if you are new to this
P/E
How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
P/B
Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
P/S
Price relative to a year's revenue — useful for growth companies with thin earnings.
Net debt / EV
Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
EV/EBIT · EV/EBITDA · EV/Sales
Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
FCF / FCF yield
Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
Intrinsic value (DCF)
Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
ROE
How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
EPS / BPS
Earnings per share / net assets (book value) per share.
Operating / net margin
Profit left from the core business / final profit after tax and interest, per unit of revenue.
Debt ratio
Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
Current ratio
Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
Interest coverage
How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
Dividend yield / payout ratio
The year's dividend as a % of today's price / the share of earnings paid out as dividends.
Revenue CAGR
Multi-year growth expressed as a single yearly average (compound annual growth rate).
RSI (short-term signal)
Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
MA20 / MA60 (moving averages)
The 20- and 60-day average price. Price above them signals a firmer short-term trend.
vs 52-week high
How far below the past year's peak the price sits now (%).

All figures are for reference only; how they read varies by sector and over time.

Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.

Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.

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