Samsung Biologics is a contract development and manufacturing organization (CDMO) that makes biologic drugs on behalf of other pharmaceutical companies, earning revenue by filling the capacity of its large production plants. At the end of 2025 it spun off its biosimilar business (Samsung Bioepis) as a separate entity and reorganized into a "pure CDMO," and in the first quarter of 2026 it posted revenue of ₩1.2571 trillion and operating profit of ₩580.8 billion — an operating margin of 46% — with profit well up from a year earlier. The key point lately is that, while new plants fill up and large orders keep coming, it is strong on its high operating margin and stable finances; but if demand from major customers or global drug-manufacturing volumes wobble, results can swing widely with plant utilization.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 30.3% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 25.8% higher than a year earlier.
- ROE is 23.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 45.4%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Samsung C&T 43.06% (individual)
Controlling bloc incl. related parties 74.32%
With the controlling bloc holding 74%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Samsung Biologics is a CDMO (contract development and manufacturing organization) that takes on the production and development of antibody and protein drugs developed by global pharmaceutical companies such as Pfizer and Roche.
- Rather than earning money by selling its own new drugs, it lends the capacity of its large bioreactor plants to customers and is paid for producing on their behalf.
- Revenue centers on contract manufacturing (CMO), with contract development (CDO) services such as cell-line development and process design added on.
- It operates Plants 1 through 4 in Songdo, Incheon, with world-class production capacity, and revenue is growing as its new Plant 5 fills up.
- Having spun off its biosimilar subsidiary (Samsung Bioepis) at the end of 2025, it is now a company focused on the single CDMO business.
- The latest close is ₩1,325,000 and the market cap is ₩61.3 trillion.
- The price sits below its 20-day line (₩1,369,650) and below its 60-day line (₩1,418,583).
- Being under both the short- and mid-term moving averages, the trend looks subdued.
- The RSI (a gauge that scores the balance of up-moves against down-moves over the last 14 days on a 0-100 scale) is 44.1, a neutral reading.
- It is up 2.1% over one month and down 16.5% over three months, and it stands 32.6% below its 52-week high.
- Relative strength versus the KOSPI is 38 (on a 1-99 scale that weights the past year's return against the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 63% of all stocks by strength.
- Over the past three months it lagged the index by 33.2%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- Profitability is this company's greatest strength.
- An operating margin of 45.4% and ROE (how much the company earns in a year on its equity) of 23.9% are top-tier even within pharma and biotech.
- The finances are also solid.
- The debt ratio (debt relative to equity) is a low 48%, and the current ratio of 1.74x leaves ample short-term liquidity.
- Net debt of about ₩778.2 billion is not a heavy burden relative to the size of equity (₩7.5 trillion).
- On valuation, the trailing P/E (how many times last year's earnings the share price is) is 34.37x, which looks high.
- But that is on last year's results, which mix in pre-spinoff accounting; on this year's basis, as a pure CDMO with higher profit, the multiple comes down.
- EV/EBIT (enterprise value, which reflects debt, against profit) is 31.8x, pointing, like the P/E, to a premium range.
- The free-cash-flow yield (actual cash generated relative to market cap) is a modest 1.2%, still low as is typical of a growth company investing heavily in plant expansion.
- Growth is speeding up.
- In 2025, revenue rose 30.3% from the prior year, with operating profit up 56.6% and net profit up 64.7%.
- The revenue growth rate actually accelerated, from 19% in 2024 to 30% in 2025.
- The five-year average revenue growth rate has held steady in the low 30s.
- The first quarter of 2026 kept up the pace, with revenue up 25.8% and operating profit up 35.0% year on year.
- Net profit of ₩469.2 billion was higher than the immediately preceding quarter's ₩453.0 billion, a trajectory of quarterly profit stepping up.
- This year, as the new Plant 5's utilization fills in, there is room for profit to build further toward the second half.
- Reflecting this trajectory, the forward-earnings-based P/E falls below the trailing basis — that is, the shares look expensive on last year's multiple but the picture shifts on this year's earnings.
- The largest structural change was the spinoff in the second half of 2025.
- Samsung Bioepis, which makes biosimilars, was carved out into a new holding company (Samsung Epis Holdings), removing the scope for competition with customers and standing the company back up as a "pure CDMO." Because of this, 2026 results are disclosed on a basis restated to exclude the Bioepis segment.
- Orders have also continued.
- In June 2026, a drug-manufacturing contract with a European pharmaceutical company was disclosed as finalized at an increased amount of ₩400.7 billion (about US$270 million), equal to 8.8% of annual revenue.
- In April, the first-quarter preliminary results were disclosed, confirming the rise in profit.
- The strengths are clear.
- It is a high-margin growth company combining world-class production capacity, an operating margin in the mid-40s, and low debt.
- The spinoff simplified the business into CDMO alone, a structural strength that makes it easier for large customers to entrust volumes without competitive concerns.
- On this year's earnings, the valuation burden is lighter than last year's multiple suggests.
- There are cautions, too.
- In this business, plant utilization drives results.
- If demand from major customers or global drug-manufacturing volumes fall, empty space in new plants weighs on profit and raises volatility in results.
- It is also worth noting that free cash flow (FCF) comes out thin while large expansion investment continues.
- In short, it is strong when capacity fills and orders keep coming, and weaker when customer demand wobbles or the burden of expansion grows.
🔎 Valuation vs peers Fairly valued
Among Korea's large pharma and biotech names, the comparison set is Celltrion (biosimilars plus CDMO), SK Biopharmaceuticals (new drugs), and the traditional drugmakers Hanmi Pharmaceutical and Yuhan; pure-CDMO direct peers are scarce in Korea.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Celltrion | 37.26x | 2.23x | 5.98% |
| SK Biopharmaceuticals | 23.53x | 7.73x | 32.83% |
| Hanmi Pharmaceutical | 30.30x | 4.11x | 13.57% |
| Yuhan Corporation | 27.66x | 2.27x | 8.22% |
On a trailing P/E of 35.4x alone, the shares look expensive. But that is on last year's results, which mix in pre-spinoff accounting. On this year's expected basis, as a pure CDMO with higher profit, the multiple falls to the low 30s. Among peers, Celltrion trades higher, at a P/E of 38x, but its ROE is just 6%. Samsung Biologics, by contrast, delivers ROE of 24% and an operating margin of 45% at a similar or lower multiple. In other words, accounting for the quality of its earnings, the premium is hard to call excessive. Weighing growth, profitability, and financial stability together, the current valuation reads as fairly valued for the quality on offer.
Price history Close · MA20 · MA60
The latest close is ₩1,325,000 and the market capitalization is ₩61.3 trillion. The price sits below its 20-day moving average (₩1,369,650) and below its 60-day moving average (₩1,418,583). 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 44.1, a neutral level. The one-month change is +2.1%, the three-month change is -16.5%, and the position relative to the 52-week high is -32.6%. Relative strength versus the KOSPI is 38 (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 37% of all stocks. Over the past three months it lagged the index by 33.2%. 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 -33.23% / 6M -52.22% / 12M -45.76%
Key metrics vs sector median
Valuation
The P/E of 34.37x is above the sector median (15.98x). The P/B of 8.23x is above the sector median (1.37x).
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 23.9%, above the sector average (3.0%). The operating margin is 45.4%. The debt ratio is 48.4%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.9B | $2.3B | $3.0B | +30.31% ↑ faster |
| Operating profit | $799.0M | $875.8M | $1.4B | +56.60% ↑ faster |
| Net profit | $568.5M | $718.0M | $1.2B | +64.71% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.0B | $2.0B | $1.9B | $2.3B | $3.0B |
| Operating profit | $356.1M | $651.9M | $799.0M | $875.8M | $1.4B |
| Net profit | $260.9M | $528.9M | $568.5M | $718.0M | $1.2B |
| Revenue CAGR | 4-yr avg 30.57% | ||||
Revenue rose 30.3% year over year (2023 ₩2.9 trillion → 2024 ₩3.5 trillion → 2025 ₩4.6 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 56.6% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 30.6%. The two-year revenue CAGR is 24.5%. In the most recent quarter (Q1 2026), revenue was 25.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 23.9% points to solid profitability.
- Revenue grew 30.3% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2025-11-24FilingThe biosimilar business (Samsung Bioepis) was spun off into a newly established holding company, Samsung Epis Holdings, leaving the surviving entity reorganized as a pure CDMO. Existing shareholders received surviving and new shares at a ratio of roughly 0.65:0.35.With CDMO and biosimilars separated, competitive concerns for customers are removed and the earnings structure is simplified. Subsequent results are computed on a basis excluding the Bioepis segment (a medium-term reorganization effect). Source
- 2026-06-09UpdateA drug-manufacturing contract with a Europe-based pharmaceutical company was disclosed as raised and finalized at ₩400.7 billion (about US$270.79 million), equal to 8.81% of annual revenue, with a contract term of 2025-07-31 to 2032-03-13.Long-term manufacturing volume is locked in, improving future plant utilization and revenue visibility (medium-term positive). The contract amount was increased from the prior figure at the customer's request. Source
- 2026-04-22EarningsFirst-quarter 2026 consolidated preliminary results disclosed: revenue of ₩1.2571 trillion (up 25.8% year on year), operating profit of ₩580.8 billion (up 35.0%), and net profit of ₩469.2 billion (up 41.6%). Comparison periods were restated to reflect the Bioepis spinoff.Even on a pure-CDMO basis, it confirmed double-digit growth and a 46% operating margin (short-term positive). Quarterly net profit rose even against the immediately preceding quarter, continuing the upward trajectory. Source
- 2026-06-01FilingRoutine disclosure of the corporate governance report and large-business-group status. Changes in the largest shareholder's holdings and sustainability-report matters were disclosed together.A routine disclosure on governance and ownership structure, with limited effect on near-term results (neutral). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 revenue | 1₩257.1 billion | 1,257,119 | Confirmed | link |
| First-quarter 2026 net profit (controlling interest) | ₩469.2 billion | 469,245 | Confirmed | link |
| Spinoff (reorganization into a pure CDMO) | CDMO | approx. 0.65:0.35 | Confirmed | link |
| 2026 expected net profit and forward P/E | approx. ₩2.0 trillion / forward PER 31.5x(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-09Single supply/sales contract (amended)
- 2026-06-01Disclosure
- 2026-06-01OwnershipLargest-shareholder ownership change report
- 2026-06-01Disclosure
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-20OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-15PeriodicAnnual business report (amended)
- 2026-05-04OwnershipLargest-shareholder ownership change report
- 2026-04-24Disclosure
- 2026-04-22EarningsFair-disclosure notice
📖 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.