Samsung Electro-Mechanics makes the components that go inside electronic products. Its mainstays are the MLCC (multilayer ceramic capacitor), a tiny component that stores and releases electric current; package substrates (FC-BGA) that attach semiconductor chips to boards; and camera modules for smartphones and cars. First-quarter 2026 revenue was ₩3,209.1 billion, up 17.2% from a year earlier, while operating profit was ₩280.6 billion (+39.9%) and net profit was ₩252.7 billion (+78.5%), so profit grew far faster than revenue. The key points to watch are, on the strength side, that a single AI server uses more than 14 times the MLCCs of an ordinary server so demand is growing structurally, and package substrates are in short supply, so profit could step up as the year progresses; and, on the caution side, that the share price already reflects much of this expectation ahead of time, so if demand or prices wobble the correction could be large.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 9.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 17.2% higher than a year earlier.
- ROE is 7.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.1%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Samsung Electronics 23.69% (corporate)
Controlling bloc incl. related parties 23.8%
With the controlling bloc holding 24%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Samsung Electro-Mechanics earns money from three core components that go inside electronic devices.
- The first is the MLCC (multilayer ceramic capacitor), a component smaller than a grain of rice that briefly stores electric current and releases it when needed to stabilize the flow of electricity.
- It goes into smartphones, servers and cars by the thousands to hundreds of thousands, and is called the 'salt of the electronics industry.' The second is the semiconductor package substrate (FC-BGA), an intricate circuit board that connects a semiconductor chip to the main board.
- The third is camera modules used in smartphones and cars.
- According to the company's official materials, it holds about a 40% share of the AI server MLCC market, and a single electric vehicle uses roughly 20,000 to 30,000 MLCCs.
- Recently it has been shifting the center of gravity of its business toward high-value products for AI servers and cars that withstand high temperatures and voltages, and toward next-generation glass substrates.
- The latest closing price is ₩1,493,000 and the market capitalization is ₩111.5 trillion.
- The price sits below the 20-day moving average (₩1,961,250) and above the 60-day average (₩1,422,417).
- With short- and medium-term trends diverging, the direction should be read separately.
- The RSI (a supplementary gauge that compares upward and downward force over the last 14 days on a 0-100 scale) is 39.0, a neutral level.
- The one-month change is -17.3%, the three-month change is +226.7%, and the position versus the 52-week high is -34.2%.
- Relative strength against the KOSPI is 97 (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 2% of all stocks by strength.
- Over the last three months it outpaced the index by 133.9%.
- Chart reading is best done alongside trading volume and the dates on which disclosures occurred.
- The balance sheet is on the solid side.
- The debt ratio (debt relative to equity) is a low 50.3%, and a current ratio of 186% leaves ample short-term funding capacity.
- With more cash than borrowings, net debt (total borrowings minus cash) is negative, meaning a net-cash position of about ₩424 billion.
- Profitability is still in the early stages of recovery.
- The ROE (how much is earned in a year per unit of equity) is 7.4% and the operating margin is 8.1%, around the industry average, but with profit rising quickly the direction is improving.
- The valuation metrics look high on last year's results.
- The P/E ratio (how many times one year's profit the share price is) is 157.93x and the P/B (how many times book net assets the share price is) is 11.69x.
- These figures are divided by 2025 profit, taken just before profit jumped sharply, so for a company at a profit inflection they have the limitation of looking inflated versus reality.
- EV/EBIT (a P/E equivalent that also reflects debt) is also high at 157x, but with almost no debt the picture on a P/E and an EV basis is not much different.
- The free-cash-flow yield (actual cash generated relative to market cap) is a still-low 0.2%, so this is a stretch in which growth expectations rather than cash generation are leading the share price.
- The texture of growth has been shifting recently.
- Revenue rose for three straight years to ₩11.3 trillion in 2025 (+9.9%), and operating profit grew faster than revenue at +24.3%.
- The profit increase is especially pronounced in the first quarter of 2026.
- Revenue was +17.2% year on year, but operating profit was +39.9% and net profit +78.5%, so profit grew well ahead of revenue.
- This is because the share of high-value MLCCs for AI servers and cars that withstand high temperatures and voltages has grown, and margins improved as utilization of the semiconductor package substrate (FC-BGA) line rose.
- The company sees the FC-BGA line entering full operation from the second half, so a trajectory in which profit steps up as the year progresses is natural.
- Accordingly, this year's forward profit is closer to the real picture than the high P/E based on last year's profit.
- The grounds for expecting profit to grow this much this year are clear.
- A single AI server uses more than 14 times the MLCCs of an ordinary server, so demand is growing structurally, and package substrates are in a stretch of rising prices as demand outstrips supply.
- Recent disclosures read along two axes: improving results and business expansion.
- The April 30 fair-disclosure of preliminary first-quarter results confirmed a surge in revenue and profit.
- On May 20 a single sales and supply contract (a major disclosure) signaled a large order, showing that demand for AI and automotive components is turning into actual contracts.
- On April 10 it announced an investor-relations (IR) meeting to communicate its business status and strategy to the market.
- On dividends, it paid ₩2,350 per share for a 25.2% payout ratio, returning part of profit to shareholders.
- In June it disclosed a corporate governance report and its large business group status.
- Overall, growth signals centered on new products and orders are backed up by disclosures.
- Samsung Electro-Mechanics is a component supplier to the big demand currents of AI and electrification.
- Three strengths overlap.
- With about a 40% share of the AI server MLCC market, it directly benefits from structurally rising demand.
- With package substrates in short supply, utilization and prices rise together.
- Its net-cash structure gives it the financial strength to fund large capacity expansions.
- That profit is growing much faster than revenue supports this picture.
- The cautions are clear too.
- The share price has already risen well ahead of this expectation, so the valuation on last year's profit is quite high.
- It is strong when demand persists as expected and price increases for substrates and MLCCs materialize, and the correction could be large if AI investment slows or supply grows quickly and prices wobble.
- In the end, the point to watch is whether full FC-BGA operation and MLCC price increases in the second half are confirmed as actual profit.
🔎 Valuation vs peers Inconclusive
Domestic semiconductor-component and substrate makers that benefit from expanding AI, server and automotive demand are taken as the substantive comparison group. LG Innotek (camera modules and substrates), Isu Petasys (high-layer-count substrates) and Daeduck Electronics (semiconductor substrates) overlap in business character.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LG Innotek | 51.39x | 3.04x | 5.92% |
| Isu Petasys | 41.99x | 8.92x | 21.24% |
| Daeduck Electronics | 116.27x | 6.17x | 5.31% |
On last year's profit, a P/E of 156x is high even within the peer group (LG Innotek 52.9x, Daeduck Electronics 109.7x, Isu Petasys 40.2x). That said, the whole group carries high multiples on expectations of AI-component demand, and Samsung Electro-Mechanics is the highest because the expected profit inflection running through MLCCs, substrates and glass substrates is the largest. Last year's P/E is divided by results taken just before profit jumped, so for an inflection stock it has the limitation of looking inflated, and this year's forward figure is closer to the real picture. Given the net-cash structure, the position on a P/E and an EV basis is not much different. The strengths (structural demand, tight supply and financial strength) are clear, but the absolute multiple is high, so whether second-half profit is actually confirmed to step up is the crux, and it is hard to come down firmly on one side, so it is judged inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩1,493,000 and the market capitalization is ₩111.5 trillion. The price sits below its 20-day moving average (₩1,961,250) and above its 60-day moving average (₩1,422,417). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 39.0, a neutral level. The one-month change is -17.3%, the three-month change is +226.7%, and the position relative to the 52-week high is -34.2%. Relative strength versus the KOSPI is 97 (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 98% of all stocks. Over the past three months it outpaced the index by 133.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +133.92% / 6M +245.74% / 12M +348.38%
Key metrics vs whole-market median
Valuation
The P/E of 157.93x is above the whole-market median (13.81x). The P/B of 11.69x 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)
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.
Profitability & financials
Return on equity (ROE) is 7.4%, above the whole-market average (5.0%). The operating margin is 8.1%. The debt ratio is 50.3%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.9B | $6.8B | $7.5B | +9.91% ↓ slower |
| Operating profit | $437.8M | $487.1M | $605.3M | +24.26% ↑ faster |
| Net profit | $280.3M | $450.1M | $468.0M | +3.97% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $6.4B | $6.2B | $5.9B | $6.8B | $7.5B |
| Operating profit | $985.5M | $784.0M | $437.8M | $487.1M | $605.3M |
| Net profit | $699.5M | $669.2M | $280.3M | $450.1M | $468.0M |
| Revenue CAGR | 4-yr avg 3.99% | ||||
Revenue rose 9.9% year over year (2023 ₩8.9 trillion → 2024 ₩10.3 trillion → 2025 ₩11.3 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 24.3% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.0%. The two-year revenue CAGR is 12.8%. In the most recent quarter (Q1 2026), revenue was 17.2% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 9.9% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-30EarningsFair-disclosure of preliminary consolidated first-quarter 2026 results - revenue of ₩3,209.1 billion (+17.2%), operating profit of ₩280.6 billion (+39.9%) and net profit of ₩252.7 billion (+78.5%), with profit growing well ahead of revenueMargin improvement from a growing share of high-value MLCCs and package substrates is confirmed in the results. A medium-term positive as an early signal of a profit inflection Source
- 2026-05-20UpdateSingle sales and supply contract disclosure (major disclosure) - a large component supply contract confirms AI and automotive demand turning into actual contractsImproved order visibility. A medium-term positive that reinforces the future revenue base Source
- 2026-04-10IRNotice of an investor-relations (IR) meeting - communicating business status and strategy to the marketShares the growth strategy and demand outlook with investors. A short-term informational event Source
- 2026-05-15FilingFirst-quarter report (March 2026) filed - detailed first-quarter financials and business status disclosedSecures transparency by disclosing earnings details. A neutral routine event Source
- 2026-06-01DividendDividend of ₩2,350 per share paid (25.2% payout ratio) - returning part of profit to shareholdersMaintains dividend returns even as a growth stock. The dividend yield itself is a low 0.16%, so the impact is limited Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-06-01OwnershipLargest-shareholder ownership change report
- 2026-05-20Single supply/sales contract
- 2026-05-15PeriodicQuarterly report
- 2026-05-04OwnershipLargest-shareholder ownership change report
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-30Disclosure
- 2026-04-10Disclosure
- 2026-04-10EarningsEarnings disclosure
- 2026-04-06OwnershipLargest-shareholder ownership change report
📖 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.