Samsung E&A (028050) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Samsung E&A is an engineering, procurement and construction (EPC) contractor that designs, sources for and builds large overseas plants. Its process (chemical) division, which builds refining, petrochemical and methanol facilities mainly in the Middle East, accounts for roughly half of revenue, with high-tech industrial plants such as semiconductor and battery factories, plus new-energy plants (LNG, ammonia and sustainable aviation fuel, or SAF) making up the rest. In the first quarter of 2026 revenue was ₩2.2674 trillion and operating profit ₩188.2 billion, up 8.1% and 19.6% respectively from a year earlier, marking a turn away from the earnings decline seen in 2025; first-quarter new orders of ₩4.6277 trillion lifted the order backlog to ₩20.6237 trillion. On the positive side, the backlog holds more than two years of work, the company is in a net-cash position and its ROE of 13% is higher than that of peer builders. The caution is that earnings depend heavily on winning and executing large overseas projects, so a slowdown in new orders can shake both revenue and profit a few quarters later.
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30-second brief
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
This stock's effective sub-sector is “General Construction” (Construction & Building Materials · Construction & Real Estate), a type typically read first through P/B.
General construction recognizes profits unevenly depending on order intake and project timing, and it rides project cycles hard, so a single year's earnings is a shaky basis for value. Price-to-book (P/B) — the share price against net assets such as land and construction holdings — is steadier and less whipsawed by that swing.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
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
- Revenue fell 9.4% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 8.1% higher than a year earlier.
- ROE is 13.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.9%.
- 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 SDI 11.69% (individual)
Controlling bloc incl. related parties 20.61%
With the controlling bloc holding 21%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
Samsung E&A does not sell physical products; it is an EPC contractor that takes on a client's large industrial plant end to end, from engineering and procurement to construction, and is paid for delivering it. About half of revenue comes from the process (chemical) division, which builds refining, petrochemical, methanol and gas-processing plants, mainly in the Middle East. The rest is split between the high-tech industrial and new-energy divisions. The high-tech business builds industrial facilities such as semiconductor and battery factories, with Samsung group work making up a substantial share. New energy covers energy-transition plants such as LNG, low-carbon ammonia, sustainable aviation fuel (SAF), eco-friendly plastics and carbon capture, and it is a growth axis the company has been pushing in 2026. In the first quarter of 2026 revenue was split roughly 49.8% process, 25.3% high-tech and 24.9% new energy, a fairly even balance across the three pillars. In short, the core business is overseas plant construction that rides the oil-price and energy-investment cycle, supported by group semiconductor investment and energy-transition demand.
The latest close is ₩49,450 and the market capitalization is ₩9.7 trillion. The price sits above its 20-day moving average (₩43,695) and above its 60-day moving average (₩47,379). 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 57.9, a neutral level. The one-month change is +4.0%, the three-month change is -6.7%, and the position relative to the 52-week high is -23.2%. Relative strength versus the KOSPI is 66 (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 66% of all stocks. Over the past three months it lagged the index by 8.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Profitability stands out among peer builders. ROE (how much the company earns in a year on its equity) is 13.0%, high compared with the mostly single-digit figures of large domestic builders. The operating margin of 8.8% is also higher than the 2-5% typical of domestic housing-focused builders, meaning the company is protecting margins in the specialized field of overseas plants. The balance sheet is in a net-cash position: net debt (total borrowings minus cash) is about minus ₩861.8 billion, meaning cash exceeds debt. The debt ratio (debt to equity) of 118% looks somewhat high because advances received and payables are recorded as liabilities in the EPC business, but an interest-coverage ratio of 5.9x means the interest burden is manageable. On valuation, the P/E ratio (how many times one year's earnings the price is) is 15.70x and P/B (price to book net assets) is 2.02x. On an enterprise-value basis that reflects debt, EV/EBIT (a debt-adjusted counterpart to P/E) is 11.0x, EV/EBITDA is 10.0x and EV/Sales (enterprise value divided by revenue) is 1.0x. Because of the large net-cash position, enterprise value is actually smaller than market capitalization, so once debt is reflected the picture is less demanding than the P/E alone suggests. The dividend yield is 1.86% (₩790 per share), with a payout ratio of about 25%.
Earnings declined over the past three years. Revenue fell from ₩10.6 trillion in 2023 to ₩9.97 trillion in 2024 and ₩9.03 trillion in 2025, and net profit dropped 18.4% from ₩756.9 billion in 2024 to ₩617.5 billion in 2025, as large projects entered their completion phase and left a revenue gap. The direction changed in 2026. First-quarter revenue rose 8.1% and operating profit 19.6% from a year earlier, breaking the downtrend. New-energy revenue in particular surged from ₩237.9 billion a year earlier to ₩563.3 billion, and that division's operating profit jumped from ₩5.6 billion to ₩30.3 billion. The key indicator for future earnings is orders. First-quarter new orders of ₩4.6277 trillion were about double the year-earlier figure, and the backlog grew 16.1% from ₩17.76 trillion at the end of last year to ₩20.62 trillion, equal to roughly 2.3 years of work. As the backlog is recognized as revenue over time, 2026 has a good chance of being the year the decline stops and recovery begins. The company set 2026 targets of ₩12 trillion in orders, ₩10 trillion in revenue and ₩800 billion in operating profit. On that basis, valuation measured against this year's earnings is lower than on last year's results.
Recent disclosures center on orders and business restructuring. In June the company re-disclosed a large supply contract tied to a UAE methanol project: an EPC contract worth about ₩2.4788 trillion with a UAE state energy company to build a methanol plant with capacity of 5,000 tons per day in the Ruwais industrial complex. In May it filed the quarterly report covering first-quarter results and held several investor-relations (IR) sessions to communicate its restructured three-pillar model (process, high-tech, new energy) and its order strategy. In June it also filed a corporate-governance report and a report on changes in the largest shareholder's holdings. Overall the disclosures confirm a stream of new orders and the ramp-up of new-energy revenue.
Samsung E&A has clear strengths and cautions. There are three strengths. First, in the specialized field of overseas plants it generates higher profitability than domestic builders, with a 13% ROE and an 8.8% operating margin. Second, it is in a net-cash position, with more cash than debt, giving it a solid balance sheet. Third, first-quarter 2026 results rebounded and the backlog, filled with more than two years of work, broke the downtrend. There are also cautions. Earnings in this business depend heavily on winning and executing large overseas projects. If new orders slow or project costs exceed expectations, revenue and profit can both waver a few quarters later. In addition, the process division is exposed to oil prices and the energy-investment cycle of oil-producing nations, while the high-tech division rides the scale of Samsung group's semiconductor investment. In sum, when the order pipeline is filling and new-energy revenue is taking hold, high profitability and net cash come to the fore; conversely, when order gaps or cost issues emerge, earnings volatility rises.
🔎 Valuation vs peers Fairly valued
Compared against domestic listed large-scale construction and plant EPC contractors with overlapping business character, weighing differences in overseas-plant exposure and profitability.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Engineering & Construction | 33.60x | 1.37x | 4.52% |
| DL E&C | 7.54x | 0.52x | 9.35% |
| GS E&C | 29.83x | 0.58x | 1.87% |
Samsung E&A's P/B of 1.76x is higher than the domestic construction peer set (0.46-1.37x), but its 13% ROE is two to four times theirs, so the premium to book is explained by profitability. Its P/E of 13.5x is lower than Hyundai Engineering & Construction (30x) and GS E&C (26x) but higher than DL E&C (6.5x). That said, 2025 was a trough year in which profit fell as large projects wound down, and recovery began as first-quarter 2026 operating profit rose 19.6%. Reflecting the company's ₩800 billion operating-profit target for this year and the rebounding first-quarter trend, valuation measured against this year's earnings is lower than on last year's results. In other words, last year's P/E looks high because it was a trough year with depressed profit; measured against recovering earnings, the multiple comes down. Unlike domestic housing-focused builders, given its specialization in overseas plants, net-cash position and high profitability, the current valuation can be seen as a fair level that reflects business quality rather than an excessive premium.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩10 trillion | ₩800.0 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩49,450 and the market capitalization is ₩9.7 trillion. The price sits above its 20-day moving average (₩43,695) and above its 60-day moving average (₩47,379). 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 57.9, a neutral level. The one-month change is +4.0%, the three-month change is -6.7%, and the position relative to the 52-week high is -23.2%. Relative strength versus the KOSPI is 66 (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 66% of all stocks. Over the past three months it lagged the index by 8.7%. 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 -8.66% / 6M +26.21% / 12M -3.18%
Key metrics Computed vs whole-market median
Valuation
The P/E of 15.70x is above the whole-market median (12.97x). The P/B of 2.02x is above the whole-market median (0.84x).
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) 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.
DCF (discounted cash flow) estimate — discount rate 9.2%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.135x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 13.0%, above the whole-market average (3.0%). The operating margin is 8.9%. The debt ratio is 118.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $7.5B | $7.0B | $6.3B | -9.41% ↓ slower |
| Operating profit | $697.7M | $682.6M | $556.4M | -18.48% ↓ slower |
| Net profit | $529.6M | $531.7M | $433.8M | -18.42% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.3B | $7.1B | $7.5B | $7.0B | $6.3B |
| Operating profit | $353.6M | $493.8M | $697.7M | $682.6M | $556.4M |
| Net profit | $261.6M | $467.1M | $529.6M | $531.7M | $433.8M |
| Revenue CAGR | 4-yr avg 4.79% | ||||
Revenue fell 9.4% year over year (2023 ₩10.6 trillion → 2024 ₩10.0 trillion → 2025 ₩9.0 trillion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit fell 18.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.8%. The two-year revenue CAGR is -7.8%. In the most recent quarter (Q1 2026), revenue was 8.1% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 13.0% points to solid profitability.
Points to watch
- Revenue fell 9.4% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-04UpdateEPC supply contract for a UAE methanol project (amended disclosure). About ₩2.4788 trillion with a UAE state energy company to build a 5,000 ton-per-day methanol plant in the Ruwais industrial complex.A large contract that supports medium-term revenue and the order backlog, confirming the trend of expanding new-energy and process orders. Source
- 2026-05-15EarningsFirst-quarter 2026 report. Revenue of ₩2.2674 trillion (+8.1%) and operating profit of ₩188.2 billion (+19.6%), both up year on year, with new-energy revenue and profit surging.A rebound signal that breaks the 2025 earnings decline, improving the near-term earnings direction. Source
- 2026-05-26IRInvestor-relations (IR) session held. Communicated the restructured three-pillar model (process, high-tech, new energy) and order strategy to the market.Shares information on the business transition and order pipeline, relevant to the medium-term direction. Source
- 2026-06-01FilingCorporate-governance report and large-business-group status disclosure. Regular disclosure of governance and group status.Limited direct impact on earnings, but a regular disclosure relevant to governance transparency. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit | ₩188.2 billion(+19.6% YoY) | ₩188.2 billion(+19.6% YoY) | Confirmed | link |
| Contract amount of the UAE methanol project | approx. 2₩478.8 billion | approx. 2₩478.8 billion | Confirmed | link |
| Company-guided 2026 operating-profit target | ₩800.0 billion | ₩800.0 billion | Unverified | link |
Recent filings Source
- 2026-06-04Single supply/sales contract (amended)
- 2026-06-01OwnershipLargest-shareholder ownership change report
- 2026-06-01Single supply/sales contract
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-26Amended filing
- 2026-05-26Disclosure
- 2026-05-22Single supply/sales contract (amended)
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-12Disclosure
📖 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.
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