Samsung SDS earns money from IT services, where system integration and operation plus cloud and enterprise generative AI are the growth engines (2025 revenue ₩6.5435 trillion, of which cloud was ₩2.6802 trillion), and from logistics BPO, which handles international transport, customs, and warehousing (2025 revenue ₩7.3864 trillion), so most of its revenue comes from logistics while the quality of its profit comes from IT services and cloud. Q1 2026 confirmed revenue of ₩3.35 trillion and operating profit of ₩78.3 billion (reflecting a one-off retirement cost), and the 2025 year-end dividend was ₩3,190 per share, up 10% from the prior year. The strength worth watching is a near-net-cash balance sheet, the country's largest cloud and enterprise-AI franchise, and a low valuation versus peers; the cautions are that logistics, which makes up half of revenue, is swayed by the freight-rate and volume cycle, and that IT services also faces headwinds from affiliate dependence and shrinking ITO.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- 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.
- Even versus the prior quarter (Q4 2025), revenue was 5.2% lower.
- ROE is 7.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 6.9%.
- The forward P/E sits below the sector median.
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
- Samsung SDS earns money from two main businesses.
- The first is IT services: on top of SI/ITO that builds and operates systems, the recent growth engines are cloud (CSP, renting out infrastructure from its own data centers, and MSP, operating and managing others' clouds on their behalf) and enterprise generative AI.
- 2025 IT services revenue was ₩6.5435 trillion, of which cloud was ₩2.6802 trillion, up 15.4% from the prior year to lead the growth.
- The second is logistics: a logistics BPO (the digital platform Cello Square) that handles international transport, customs, and warehousing on behalf of shipper companies, with 2025 revenue of ₩7.3864 trillion, more than half of the total.
- In other words, most of the revenue comes from logistics, while the quality of the profit (margins and growth) comes from IT services and cloud.
- The latest close is ₩188,300 and market cap is ₩14.6 trillion.
- The price sits below the 20-day line (₩205,755) and below the 60-day line (₩202,673).
- It trades under both its short- and mid-term moving averages, so the trend is subdued.
- The RSI (a gauge that compares upward and downward momentum over the past 14 days on a 0-100 scale) is 42.7, a neutral level.
- The one-month change is -16.3%, the three-month change is +24.4%, and the price is -48.0% from its 52-week high.
- Relative strength versus the KOSPI is 42 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 58% by strength among all stocks.
- Over the past three months it lagged the index by 1.5%.
- Chart readings are best viewed alongside trading volume and the dates of disclosures.
- Valuation is a P/E (how many times one year of profit the price represents) of 19.18x and a P/B (how many times book equity the price represents) of 1.47x, on the low side among large IT-services companies.
- Profitability, with ROE (how much the company earns in a year on its equity) of 7.7% and an operating margin of 6.9%, is not dazzling, because half of revenue is thin-margin logistics BPO that presses down the company-wide margin.
- The balance sheet is very solid: a debt ratio (debt relative to equity) of 32.2% and a current ratio (cash and equivalents relative to debt due within a year) of 403% put it effectively near net cash.
- That said, the trailing P/E on 2025 EPS is based on profit before the recent one-off cost, so in a stretch of large earnings swings it is closer to reality to view it on the normalized profit discussed below.
- The top line is at a mature stage.
- Revenue normalized from ₩17.2 trillion in 2022 (when ocean freight rates spiked) and has been nearly flat in the ₩13 trillion range over the past three years (+0.7% in 2025), while operating profit improved gently from ₩80.8 billion to ₩91.1 billion to ₩95.7 billion over 2023-2025.
- The texture of growth differs by division.
- Cloud and generative AI continue double-digit growth (2025 cloud +15.4%, Q1 CSP +12%), whereas logistics is subdued as freight rates and volumes normalize.
- Q1 2026 operating profit of ₩78.3 billion fell sharply year on year, largely because a one-off retirement-related cost of about ₩112.0 billion was booked all at once.
- Excluding this one-off, the Q1 operating margin was about 5.7%, a normal level, and the company's stated 2026 direction is NVIDIA B300-based GPUaaS, data center DBO, and expanding generative AI (FabriX, Brity Copilot) to 57 government agencies.
- Therefore this year's profit is expected to trace a course similar to last year's, absorbing logistics weakness and one-off costs while cloud and AI support the floor of IT-services profit (even if the trailing P/E looks high, it is not an overvalued figure on normalized profit).
- Recent disclosures center on results, governance, and ownership changes.
- On May 15, the Q1 2026 quarterly report confirmed revenue of ₩3.35 trillion and operating profit of ₩78.3 billion (reflecting a one-off retirement cost), and on June 1 a corporate governance report and a large business group status disclosure (Samsung Group affiliate) followed.
- Many ownership reports by executives and major shareholders and large-holding reports were filed in April and May, and on April 30 there was a voluntary disclosure of the outcome of an equity-linked bond issuance.
- The 2025 year-end dividend was ₩3,190 per share, up 10% from the prior year.
- The strong phase is clear: a near-net-cash balance sheet, the country's largest cloud and enterprise generative-AI franchise (a domestic reseller of OpenAI ChatGPT Enterprise, FabriX, and government-agency expansion), and a low valuation versus large SI peers.
- The cautionary phase is that logistics, which makes up half of revenue, is swayed by the freight-rate and volume cycle and raises earnings volatility, and that IT services faces structural headwinds from dependence on the Samsung group and shrinking or in-housed ITO contracts.
- In short, it is strong when cloud and AI grow and logistics normalizes, and weaker when freight rates fall further or affiliate volumes decline.
🔎 Valuation vs peers Fairly valued
A comparison against large Korean integrated IT-services and SI providers (built on in-house data centers, cloud, and affiliate SI).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai AutoEver | 65.07x | 6.43x | 9.88% |
| POSCO DX | 56.13x | 5.13x | 9.14% |
| Lotte Innovate | 25.22x | 0.59x | 2.33% |
At a P/E of 19.4x and a P/B of 1.49x, it trades at markedly lower multiples than fellow large SI names such as Hyundai AutoEver (P/E 79.7x, P/B 7.9x) or POSCO DX (P/E 63.2x, P/B 5.8x). Unlike those high-growth affiliate SI names, the fact that logistics makes up half of revenue and is mature and low-margin makes the company-wide growth rate look lower, so there is a legitimate discount factor rooted in logistics. Still, given the balance-sheet strength and the cloud and AI franchise, this is closer to 'a fairly valued level where the growth premium is lightly reflected' than a stock left cheap. The 2025 trailing P/E is a figure before earnings normalization (the Q1 2026 one-off cost), so it is hard to declare over- or under-valuation from it alone, and on normalized-profit forward terms the valuation is not heavily burdensome.
Price history Close · MA20 · MA60
The latest close is ₩188,300 and the market capitalization is ₩14.6 trillion. The price sits below its 20-day moving average (₩205,755) and below its 60-day moving average (₩202,673). 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 42.7, a neutral level. The one-month change is -16.3%, the three-month change is +24.4%, and the position relative to the 52-week high is -48.0%. Relative strength versus the KOSPI is 42 (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 42% of all stocks. Over the past three months it lagged the index by 1.5%. 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 -1.53% / 6M -35.47% / 12M -51.38%
Key metrics vs sector median
Valuation
The P/E is 19.18x. The P/B of 1.47x is below the sector median (1.93x).
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.
Intrinsic value (DCF estimate)
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 0.921x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.7%, below the sector average (10.0%). The operating margin is 6.9%. The debt ratio is 32.2%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $8.8B | $9.2B | $9.2B | +0.73% ↓ slower |
| Operating profit | $535.7M | $603.9M | $634.3M | +5.05% ↓ slower |
| Net profit | $459.6M | $501.7M | $503.4M | +0.34% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $9.0B | $11.4B | $8.8B | $9.2B | $9.2B |
| Operating profit | $535.6M | $607.2M | $535.7M | $603.9M | $634.3M |
| Net profit | $405.1M | $728.9M | $459.6M | $501.7M | $503.4M |
| Revenue CAGR | 4-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. Because quarterly results are relatively even in this industry, revenue also came in 5.2% lower than the prior quarter (Q4 2025), so the recent trend looks soft.
Latest quarterly results Q1 2026 · vs year-ago + prior quarter
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- 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).
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report filed — revenue ₩3.35 trillion, operating profit ₩78.3 billion (reflecting a one-off retirement-related cost of about ₩112.0 billion), with an impact from falling logistics freight rates.Near-term profit was heavily pressed by the one-off cost, but the operating margin excluding it was about 5.7%, a normal level. This is a temporary factor rather than structural damage. Source
- 2026-06-01FilingCorporate governance report and large business group status disclosure — a periodic disclosure of Samsung Group affiliate status.Information related to medium-term governance and affiliate-transaction transparency. The direct impact on results is limited. Source
- 2026-04-30FilingVoluntary disclosure of the outcome of an equity-linked bond issuance.A disclosure related to capital and funding structure. With its strong near-net-cash balance sheet, the financial burden is limited. Source
- 2026-05-15FilingDisclosure of changes to goods-and-services transactions with affiliated group companies — changes to the terms of Samsung group internal transactions.It affects the scale and terms of affiliate revenue in IT services and logistics over the medium term. A reference point from the perspective of affiliate dependence. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue and operating profit | revenue 13.93 / operating profit 9,571 | revenue 139,299 / operating profit 9,571 (+5.0% YoY) | Confirmed | link |
| Cloud revenue and growth rate (2025) | IT 6.54 | revenue 26,802 , +15.4% YoY / IT 65,435 (+2.2%) | Confirmed | link |
| Dividend per share (2025 year-end) | DPS ₩3,190 | ₩3,190 | Confirmed | link |
| 2026 net profit estimate (forward) | approx. 7,000 (self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-04OwnershipOwnership-change filing
- 2026-05-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30Paid-in capital increase
- 2026-04-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings 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.