Bong Stocks Korean stock & ETF info from public data
← Stocks 한국어 ↗

Samsung SDS (018260) 🔎 In-depth

KOSPI · Price as of 2026-08-06 · Updated 2026-08-09

Compiled and reviewed by Bing Bing · Figures are computed automatically from public filings and market data; the written analysis is drafted automatically and then rule-verified · Methodology · AI Disclosure · Report an error

Samsung SDS is a Samsung Group affiliate that earns money on two axes: IT services, building and operating companies' systems, and logistics, carrying freight on their behalf. First-quarter 2026 revenue was ₩3.3529 trillion and operating profit was ₩78.3 billion, down 70.8% from a year earlier, but most of that decline was a one-off cost — ₩112.0 billion recognized at once when the basis for calculating retirement benefits was changed — while cloud revenue over the same period rose 5.8% to ₩690.9 billion. What stands out recently is a two-sided picture: a plan to invest ₩10 trillion in AI infrastructure through 2031, adding ₩1.22 trillion raised from KKR to more than ₩6 trillion in cash, could be a growth driver; on the other hand, earnings can swing with logistics freight rates and the group's IT investment cycle.

This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.

30-second brief

Earnings trend
still growing, but the pace has slowed.
Financials
debt levels look manageable.
Data as of
prices as of 2026-08-06, financials as of 2026 1분기.

Pulled directly from the computed values below — not a separately written opinion.

What do the SourceComputedEstimateReading tags mean?

Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.

Core valuation metric

P/E (trailing)23.69x

This stock's effective sub-sector is “IT Services (SI & Solutions)” (Internet, Platforms & Software), a type typically read first through P/E.

IT services (systems integration and solutions) tends to earn steadily off project wins and maintenance contracts. Value here comes from people and contracts rather than physical assets, so price-to-earnings (P/E) — the price measured against actual net profit — fits best.

P/B (price-to-book)1.81x

Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.

This note explains how each sector is typically valued and is educational context only, not investment advice.

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

Financial healthStable
  • Debt ratio, current ratio and interest burden all look healthy.
GrowthSlowing
  • Revenue rose 0.7% year over year, and the pace is slowing (3-year trend: rising).
  • Most recent quarter (Q1 2026) revenue was 3.9% lower than a year earlier.
ProfitabilityModerate
  • ROE is 6.4% (controlling-interest basis). It is above the sector average.
  • Operating margin is 5.6%.
ValuationFairly valued
  • A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.

Ownership & governance As of 2025-12-31

Largest shareholder Samsung Electronics 22.58% (individual)

Controlling bloc incl. related parties 48.92%

With the controlling bloc holding 49%, the ownership structure is stable.

🔎 In-depth analysis Reading

🏢Business

Samsung SDS makes money on two large businesses. The first is IT services. It designs and builds companies' computing systems (SI), operates and manages them on their behalf (ITO), and has recently been shifting its center of gravity to cloud. First-quarter 2026 IT-services revenue was ₩1.6105 trillion, of which cloud accounted for the largest share at ₩690.9 billion. In particular, driven by public institutions' demand for AI transformation, its service for renting GPUs (GPUaaS) grew, and cloud infrastructure revenue rose 12%. The second is logistics. This business transports and brokers customers' freight worldwide, with first-quarter 2026 revenue of ₩1.7424 trillion. Logistics is so large — roughly half of total revenue — that viewing the company purely as an IT firm would miss its real shape. Logistics revenue swings widely with freight rates and volumes, while IT services is relatively stable on the back of group-affiliate volume.

📈Price & chart

The latest close is ₩232,500 and the market capitalization is ₩18.0 trillion. The price sits above its 20-day moving average (₩203,800) and above its 60-day moving average (₩212,770). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 61.4, a neutral level. The one-month change is +13.4%, the three-month change is +36.8%, and the position relative to the 52-week high is -35.8%. Relative strength versus the KOSPI is 70 (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 71% of all stocks. Over the past three months it outpaced the index by 56.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

📊Key metrics

Starting with the valuation metrics: the P/E (how many times a year's earnings the price represents) is 23.69x and the P/B (how many times book shareholders' equity the price represents) is 1.81x. But note that the P/E on last year's earnings is only a reference figure, because ₩112.0 billion of one-off retirement-benefit cost was recognized in the first quarter of 2026, temporarily depressing this year's earnings. On profitability, ROE (how much the company earns in a year on its equity) is on the low side at 7.7%. The company has disclosed a target of lifting this ROE to 10% by 2028 and 12% by 2030. The finances are very solid. The debt ratio (debt relative to equity) is low at 32%, and the current ratio (cash-like assets relative to debt due within a year) is 403%, with ample room. In particular, net debt (total borrowings minus cash) is negative, a net-cash position with about ₩740 billion more cash than debt. EV/EBITDA (enterprise value including debt divided by operating profit before depreciation) is 9.4x, and the FCF yield (actual cash earned relative to market cap) is 5.4%, showing a company that steadily generates real cash.

🚀Growth

Growth is gradual. 2025 revenue was ₩13.9299 trillion, up 0.7% from the prior year, and operating profit was ₩957.1 billion, up 5.1%. Revenue over the past three years has edged up steadily — ₩13.3 trillion → ₩13.8 trillion → ₩13.9 trillion. In the first quarter of 2026, revenue fell 3.9% and operating profit plunged 70.8%, but most of the decline was due to the ₩112.0 billion one-off cost described above. Excluding this cost, the actual operating picture is not a plunge but a gradual adjustment, in which cloud growth (+5.8%) partly offset logistics weakness (-7.8%). The logistics weakness reflects freight-rate declines after the year-end peak ended and a base effect from volumes that had piled up on last year's U.S. tariff issue. Earnings ahead can be seen in two strands. In the short term, because the one-off cost is reflected only in the first quarter, second-to-fourth-quarter earnings are likely to return to normal levels. In the medium term, the key is how much the plan to invest ₩10 trillion in AI infrastructure through 2031 grows cloud and AI revenue. This year's net profit is expected to be lower than last year's owing to the one-off cost, and the forward P/E reflecting this is estimated at about 25x.

📰Recent news & filings

The 2026 narrative is led by two events. First, the strategic partnership with KKR in April. Samsung SDS issued ₩1.22 trillion of convertible bonds to a fund managed by KKR. The conversion price is ₩180,000, the coupon and maturity rates are each 2.5%, and maturity is 2032. The funds raised are used entirely as operating capital and, combined with existing cash on hand, become the resource for AI-infrastructure investment and M&A. KKR advises on M&A and capital deployment over the next six years. Second, the first-quarter preliminary results announced in April. Operating profit fell sharply, but the disclosure noted alongside it that the cause was a one-off cost. Beyond this, the 2025 year-end dividend rose 10% to ₩3,190 per share from ₩2,900 the prior year, and the payout ratio was raised to 32.5%. Through a value-up plan, the company set out its ROE target and a direction of expanded shareholder returns.

🧭Bottom line

Samsung SDS is a company with very solid finances and abundant cash. In a net-cash position with a 5.4% FCF yield, its actual cash-generating power is stable. The strengths are clear when the conditions align. If cloud and AI demand continues and the ₩10 trillion investment and M&A translate into results, today's low ROE has room to climb toward the target (10% by 2028). More than ₩6 trillion of its own cash and the KKR funds provide the ammunition. On the other hand, the cautions are equally clear. Logistics, half of revenue, sees earnings swing with freight rates and volumes, and IT services is affected by the group affiliates' IT investment cycle. Given the large investment scale, how quickly the AI investment comes back as revenue and profit is the verification task. There is also the point that when the convertible bonds convert to stock, the share count rises and per-share value is diluted. In sum, this is a structure that is strong when demand and investment returns support it, and weak if logistics slows or investment recovery is delayed.

🔎 Valuation vs peers Fairly valued

Compared with domestic listed IT-services companies of similar business character.

PeerP/EP/BROE
LG CNS15.95x2.39x15.78%
Hyundai AutoEver62.67x6.28x9.95%
Douzone Bizon37.86x5.68x16.76%

Samsung SDS's P/E of 20.3x is higher than system-integration peer LG CNS (15.1x) but lower than Hyundai AutoEver (64x) and Douzone Bizon (37.9x), a middle position. However, the P/E on last year's earnings is only a reference figure. Because ₩112.0 billion of one-off cost was recognized in the first quarter of 2026, temporarily depressing this year's net profit, the forward P/E reflecting this could look higher, at about 25x. This is not because the company has worsened but a result of the one-off cost being concentrated in this year, and normalizing this cost brings the multiple back down. The point that profitability (ROE 7.7%) is lower than LG CNS's (14.9%) is the key factor holding down the valuation. Conversely, the net-cash position, abundant cash and a stable FCF yield are premium factors. On balance, strengths (finances and cash) and weaknesses (low ROE and logistics volatility) interlock, so it can be seen as fairly valued versus peers.

₩232,500 +0.87%
Market cap $12.6B

Price history Close · MA20 · MA60

Close MA20MA60

The latest close is ₩232,500 and the market capitalization is ₩18.0 trillion. The price sits above its 20-day moving average (₩203,800) and above its 60-day moving average (₩212,770). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 61.4, a neutral level. The one-month change is +13.4%, the three-month change is +36.8%, and the position relative to the 52-week high is -35.8%. Relative strength versus the KOSPI is 70 (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 71% of all stocks. Over the past three months it outpaced the index by 56.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

Relative performance stock vs index · start = 100

70Relative strength vs KOSPI1–99 · last 12 months’ return vs the index, recency-weighted · higher = stronger than the marketTop 29% strength

Excess return vs index · 3M +56.61% / 6M +8.86% / 12M -24.70%

StockKOSPI

Key metrics Computed vs sector median

Valuation

P/E (trailing)23.69x
Forward P/E29.98x
P/B1.81x
Forward P/B1.74x
P/S1.30x
EPS₩9,816
BPS (book value/share)₩128,198
Dividend yield1.37%
DPS₩3,190

The P/E of 23.69x is above the sector median (12.01x). The P/B of 1.81x is above the sector median (0.81x).

Enterprise value (EV)

Net debt-$521.2M
EV (enterprise value)$12.1B
EV/EBIT22.49x
EV/EBITDA10.87x
EV/Sales1.25x
FCF (free cash flow)$592.8M
FCF yield4.69%

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) Estimate

Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.

Bear case₩86,400
Base case₩114,200
Bull case₩173,200

DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.79x. A reference range that shifts materially with assumptions.

Confidence: Low (bull–bear span 76% of the base case) · Most sensitive assumption: discount rate — a 1%p change moves the base case by roughly 10–20% · Financial basis: FY2025 statements

Profitability & financials

ROE6.39%
Operating margin5.56%
Net margin4.59%
Debt ratio34.78%
Payout ratio32.50%

Return on equity (ROE) is 6.4%, in line with the sector average (6.0%). The operating margin is 5.6%. The debt ratio is 34.8%, so the financial structure is stable.

Growth FY2025 · annual report (consolidated)

Item202320242025YoY
Revenue$9.3B$9.7B$9.8B+0.73% ↓ slower
Operating profit$567.8M$640.0M$672.4M+5.05% ↓ slower
Net profit$487.1M$531.8M$533.6M+0.34% ↓ slower
5-year20212022202320242025
Revenue$9.6B$12.1B$9.3B$9.7B$9.8B
Operating profit$567.7M$643.5M$567.8M$640.0M$672.4M
Net profit$429.3M$772.6M$487.1M$531.8M$533.6M
Revenue CAGR4-yr avg 0.55%

Revenue rose 0.7% year over year (2023 ₩13.3 trillion → 2024 ₩13.8 trillion → 2025 ₩13.9 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 5.1% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.5%. The two-year revenue CAGR is 2.4%. In the most recent quarter (Q1 2026), revenue was 3.9% lower than the same period a year earlier.

Latest quarterly results Source Q1 2026 · vs year-ago

Revenue$2.4B
Revenue YoY-3.92%
Operating profit$55.0M
Op. profit YoY-70.83%
Net profit$64.5M
Net profit YoY-57.83%

Technical indicators Computed

RSI (14)61.4
MA20₩203,800
MA60₩212,770
1-month+13.41%
3-month+36.76%
vs 52-wk high-35.77%

What stands out

  • The balance sheet is stable in terms of debt and liquidity.

Points to watch

  • Revenue rose 0.7% 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

Figure cross-check computed ↔ external

MetricComputedExternalStatusSource
First-quarter 2026 revenue and operating profitrevenue 3 ₩352.9 billion / operating profit ₩78.3 billionrevenue 3 ₩352.9 billion / operating profit ₩78.3 billionConfirmedlink
Cause of the first-quarter operating-profit plunge (one-off)base operating profit YoY -70.8%₩112.0 billionConfirmedlink
2025 year-end dividend (DPS)base ₩3,190₩3,190, 32.5%Confirmedlink
2026 full-year net profit estimateapprox. ₩600.0 billion(self-estimate)—Unverifiedlink

Recent filings Source

📖 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.

한국어 페이지 · About · Data · Disclaimer · About the Author · Methodology · AI Disclosure · Corrections · Contact · Privacy