Samsung E&A is an EPC contractor that designs, procures, and builds entire plants. It wins overseas orders for refining, gas, and petrochemical process facilities in oil-producing countries, recognizing revenue as construction progresses, and adds domestic work such as Samsung Biologics' Songdo P5 plant and semiconductor research facilities. In 2026 the company has locked in a UAE methanol project (₩2.4788 trillion, with the counterparty succeeded to the TA'ZIZ entity), the Songdo P5 plant (₩1.7708 trillion), and the Osan semiconductor research facility (₩167.8 billion), while a roughly US$2.4 billion process-plant Letter of Award remains withheld pending details. Two points stand out: the strength of having the highest ROE in its industry (13.0%) while trading at a forward P/E of only about 14.3x, which reads as undervalued relative to its profitability; and the caution that there is a lag before orders convert to revenue, and that overseas costs, exchange-rate swings, and whether the LOA converts to a firm contract are all variables to weigh together.
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 8.8%.
- P/B is high versus peers, a stretch on an asset 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
- Samsung E&A is an EPC (engineering, procurement, and construction) company that designs and builds entire plants.
- Its largest revenue pillar is overseas process plants: it wins orders to build refining, gas, and petrochemical facilities in oil-producing countries and recognizes revenue according to construction progress.
- On top of this come domestic industrial and environmental work, plus a growing share of Samsung Group-related facilities (Samsung Biologics' Songdo P5 plant, semiconductor production-equipment research facilities, and so on).
- In other words, it does not make money by selling products but is an order-based business that wins large projects and builds them over several years, so the backlog accumulating now will shape revenue two to three years out.
- The latest close was ₩42,050 and market cap is ₩8.2 trillion.
- The price sits below the 20-day line (₩47,802) and below the 60-day line (₩50,507).
- Trading below both its short- and mid-term moving averages, the trend is subdued.
- RSI (an auxiliary gauge that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 40.1, a neutral level.
- The one-month change is -11.1%, the three-month change is -12.0%, and the price sits -34.7% below its 52-week high.
- Relative strength versus the KOSPI is 67 (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 32% by strength among all stocks.
- Over the past three months it lagged the index by 32.9%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis, the P/E ratio (how many times one year's earnings the price represents) is 13.35x and P/B (how many times net assets the price represents) is 1.74x.
- ROE (how much is earned in a year on shareholders' equity) is 13.0%, the highest among the construction and EPC peers compared, and the operating margin is 8.8%.
- The debt ratio (debt relative to equity) is 118.0%, but in construction and EPC, advances received upfront from clients are recorded as liabilities in accounting, so this figure alone does not indicate a heavy debt burden.
- One key point is that the P/E and P/B above are both on a trailing basis (last year's confirmed earnings and net assets).
- For a stock like this, where quarterly earnings have begun to grow again, this year's figures matter more than last year's.
- The forward P/E reflecting this year's earnings is about 14.3x, lower than last year's confirmed figure (15.1x), which means this year's earnings are trending higher than last year's.
- Given profitability well above peers at 13% ROE, the valuation is hard to call burdensome and is rather on the low side relative to earning power.
- Over five years, revenue rose from ₩7.5 trillion in 2021 to ₩10.6 trillion in 2023, then fell for two straight years to ₩10.0 trillion in 2024 and ₩9.0 trillion in 2025 (-9.4% year on year).
- Operating profit also fell 18.5% to ₩792.1 billion in 2025, so on an annual basis it was a pause.
- But in the most recent quarter, Q1 2026, the trend clearly shifts.
- Revenue of ₩2.3 trillion (+8.1% year on year) and operating profit of ₩188.2 billion (+19.6%) show earnings rising faster than revenue, a return to growth with improving profitability.
- This recovery has real foundations.
- Trillion-won orders such as the UAE methanol project (about ₩2.5 trillion) and Samsung Biologics' Songdo P5 (about ₩1.8 trillion) are accumulating and flowing into revenue as work progresses, and the work mix has diversified across high-margin overseas process plants and domestic semiconductor and bio projects.
- Reflecting this, the forward P/E for this year is about 14.3x, lower than last year's confirmed P/E (15.1x), which means this year's earnings are trending higher.
- Meanwhile, there is no confirmed basis to conclude that the earnings outlook turns down next year (2027) versus this year, so there is no data to declare the present a cycle top.
- The core of recent disclosures is large orders.
- In June 2026, the UAE methanol project won in early 2025 (contract value ₩2.4788 trillion, 23.3% of prior revenue) was amended because the counterparty succeeded from ADNOC to the TA'ZIZ entity following the establishment of an order SPC (amount and content unchanged).
- In May, the contract for affiliate Samsung Biologics' Songdo P5 plant (₩1.7708 trillion, 16.7%) was confirmed along with a correction to its end date, and in early June the company won Applied Materials' Osan semiconductor research facility (₩167.8 billion) on a sole basis, broadening its order base into domestic semiconductor infrastructure.
- In addition, the receipt of a roughly US$2.4 billion process-plant Letter of Award, received in February with the disclosure deadline extended in May, still has client and amount details withheld; if it converts to a firm contract, it becomes another trillion-won order.
- Note alongside this that disclosed orders are not accounting revenue but reserved work recognized over the coming years.
- This company has two clear strengths.
- First, it earns well with the highest ROE in its peer group (13.0%) (Hyundai E&C 4.5%, DL E&C 7.1%, Daewoo E&C in the red), yet relative to that profitability, this year's forward P/E of about 14.3x is on the low side.
- The company that generates earnings best trades at a lower P/E than peers, so on a profitability basis the valuation can be read as an undervalued zone.
- Second, recent quarterly earnings have grown back faster than revenue, and trillion-won overseas process, domestic bio, and semiconductor orders are accumulating, building work that will feed revenue two to three years out.
- Last year's confirmed P/E and P/B look high, but since earnings are trending up, there is no need to read those figures as a straight burden.
- A point to weigh together is a trait common to order-based businesses.
- There is a lag before orders are booked as revenue, overseas plants are exposed to cost and exchange-rate swings, and whether the withheld LOA converts to a firm contract is not yet confirmed.
- In sum, if new orders convert to actual revenue and cash flow and quarterly earnings recovery continues, it is a strong structure supported on both profitability and valuation; if orders are delayed or overseas costs waver, the stock weakens accordingly.
🔎 Valuation vs peers Undervalued
Peers were directly selected from the same large construction and EPC business group among those with meaningful overseas plant and large domestic construction exposure (Hyundai E&C, DL E&C, Daewoo E&C); shipbuilding and heavy industry were excluded as their business character differs.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung E&A | 13.35x | 1.74x | 13.03% |
| Hyundai Engineering & Construction | 29.51x | 1.33x | 4.51% |
| DL E&C | 6.47x | 0.46x | 7.06% |
| Daewoo E&C | — | 1.97x | -27.25% |
(a) Looking at its position versus peers, Samsung E&A's P/E (15.1x) is far below Hyundai E&C's (34.1x), yet its profitability (ROE 13.0%) is the highest in the group. This is a discount zone that runs against the norm, where the company that generates earnings best trades at a lower P/E than peers. (b) The P/B of 2.0x is somewhat higher than peers, but this can be seen as a natural premium for high ROE and is largely justified by profitability. (c) Moreover, the current P/E of 15.1x is on trailing 2025 confirmed results, a year when earnings dipped once (net profit -18.4%). Q1 2026 operating profit rebounded +19.6% and this year's earnings are trending higher than last year, so the forward P/E reflecting this year's earnings falls further to about 14.3x. High profitability, an earnings recovery, and a low multiple combine to support an undervalued view relative to profitability. That said, the EPC character means orders are uneven quarter to quarter and the business is exposed to overseas cost and exchange-rate swings, which should be taken into account.
Price history Close · MA20 · MA60
The latest close is ₩42,050 and the market capitalization is ₩8.2 trillion. The price sits below its 20-day moving average (₩47,802) and below its 60-day moving average (₩50,507). 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 40.1, a neutral level. The one-month change is -11.1%, the three-month change is -12.0%, and the position relative to the 52-week high is -34.7%. Relative strength versus the KOSPI is 67 (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 68% of all stocks. Over the past three months it lagged the index by 32.9%. 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 -32.94% / 6M +7.39% / 12M -22.54%
Key metrics vs whole-market median
Valuation
The P/E of 13.35x is in line with the whole-market median (13.81x). The P/B of 1.74x is above the whole-market median (1.15x).
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 9.2%, initial growth 5.7%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.057x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 13.0%, above the whole-market average (5.0%). The operating margin is 8.8%. The debt ratio is 118.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $7.0B | $6.6B | $6.0B | -9.41% ↓ slower |
| Operating profit | $658.2M | $644.0M | $525.0M | -18.48% ↓ slower |
| Net profit | $499.6M | $501.7M | $409.3M | -18.42% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.0B | $6.7B | $7.0B | $6.6B | $6.0B |
| Operating profit | $333.6M | $465.9M | $658.2M | $644.0M | $525.0M |
| Net profit | $246.8M | $440.7M | $499.6M | $501.7M | $409.3M |
| 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 Q1 2026 · vs year-ago
Technical indicators
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
- 2026-06-04UpdateUAE methanol project (construction order) counterparty amended — contract value ₩2.4788 trillion (23.3% of prior revenue), succeeded from ADNOC to TA'ZIZ METHANOL INDUSTRIAL LLC following establishment of an order SPCA large overseas process-plant order equal to about a quarter of prior annual revenue, spread into revenue over the coming years according to construction progress. The change of contracting party is only a change in order structure; the amount and content are unchanged. Source
- 2026-06-01UpdateApplied Materials Korea semiconductor production-equipment research facility (Gajang-dong, Osan) won solely — contract value ₩167.8 billion (1.86% of prior revenue), contract term 2026-05-25 to 2027-12-15A case of broadening the order base beyond overseas process work into domestic semiconductor infrastructure. Modest in scale, but as a domestic project to be recognized as revenue in the near term, it can be read as a signal of business diversification. Source
- 2026-05-26UpdateReceived a roughly US$2.4 billion process-plant construction Letter of Award (LOA) from an overseas project owner — client, project name, and amount details withheld as business confidential (deadline extended to 2026-07-29)A pre-contract award notice; if it converts to a firm contract it becomes another trillion-won order. But while withheld, it should be treated only as a potential order until the amount and timing are confirmed. Source
- 2026-05-22UpdateSamsung Biologics Songdo P5 plant construction (P5 Project) contract end date amended — contract value ₩1.7708 trillion (16.7% of prior revenue), transaction between affiliatesA large domestic bio-facility project ordered by a group affiliate, which becomes a stable revenue source. As an affiliate transaction, order volatility is on the low side, but its character differs from new external orders. Source
- 2026-05-15EarningsQ1 2026 quarterly report filed — revenue ₩2.3 trillion (+8.1% year on year), operating profit ₩188.2 billion (+19.6%)Confirmed results showing that a flow of two straight years of annual decline turned to growth on a quarterly basis. Whether this recovery continues through Q2-Q4 will decide the annual direction. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| UAE methanol project contract value | 2₩478.8 billion | ₩2,478,818,000,000 (TA'ZIZ METHANOL INDUSTRIAL LLC) | Confirmed | link |
| Samsung Biologics P5 plant contract value | 1₩770.8 billion | ₩1,770,780,000,000 | Confirmed | link |
| Q1 2026 operating profit | ₩188.2 billion | ₩188,193,584,998 | Confirmed | link |
| 2026 net profit (own estimate) | approx. ₩650.0 billion | — | Unverified | link |
Recent filings
- 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.
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.