DB:SSU

Stock Analysis Report

Samsung Electronics

Executive Summary

Samsung Electronics Co., Ltd. engages in the consumer electronics, information technology and mobile communications, and device solutions businesses worldwide.


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Samsung Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SSU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

SSU

32.4%

DE Tech

-0.6%

DE Market


1 Year Return

-4.5%

SSU

55.2%

DE Tech

-20.9%

DE Market

Return vs Industry: SSU exceeded the German Tech industry which returned -22.2% over the past year.

Return vs Market: SSU exceeded the German Market which returned -20.6% over the past year.


Shareholder returns

SSUIndustryMarket
7 Day2.2%32.4%-0.6%
30 Day-13.7%16.2%-18.6%
90 Day-17.3%-2.2%-26.2%
1 Year-3.2%-4.5%55.7%55.2%-18.6%-20.9%
3 Year6.6%0.6%70.3%67.9%-19.0%-25.8%
5 Year50.9%37.9%62.5%43.2%-21.2%-31.8%

Price Volatility Vs. Market

How volatile is Samsung Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Samsung Electronics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SSU (€879.5) is trading below our estimate of fair value (€2911.8)

Significantly Below Fair Value: SSU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SSU is good value based on its PE Ratio (14.8x) compared to the Tech industry average (15.3x).

PE vs Market: SSU is good value based on its PE Ratio (14.8x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: SSU is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SSU is good value based on its PB Ratio (1.3x) compared to the XE Tech industry average (1.4x).


Next Steps

Future Growth

How is Samsung Electronics forecast to perform in the next 1 to 3 years based on estimates from 36 analysts?

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSU's forecast earnings growth (24.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: SSU's earnings (24.7% per year) are forecast to grow faster than the German market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SSU's revenue (6.4% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: SSU's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SSU's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Samsung Electronics performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSU has high quality earnings.

Growing Profit Margin: SSU's current net profit margins (9.3%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: SSU's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: SSU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SSU had negative earnings growth (-51%) over the past year, making it difficult to compare to the Tech industry average (7.9%).


Return on Equity

High ROE: SSU's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

How is Samsung Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: SSU's short term assets (₩181,385.3B) exceed its short term liabilities (₩63,782.8B).

Long Term Liabilities: SSU's short term assets (₩181,385.3B) exceed its long term liabilities (₩25,901.3B).


Debt to Equity History and Analysis

Debt Level: SSU's debt to equity ratio (5.9%) is considered satisfactory.

Reducing Debt: SSU's debt to equity ratio has reduced from 6.6% to 5.9% over the past 5 years.

Debt Coverage: SSU's debt is well covered by operating cash flow (294.5%).

Interest Coverage: SSU earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SSU has a high level of physical assets or inventory.

Debt Coverage by Assets: SSU's debt is covered by short term assets (assets are 11.8x debt).


Next Steps

Dividend

What is Samsung Electronics's current dividend yield, its reliability and sustainability?

3.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SSU's dividend (3.01%) is higher than the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: SSU's dividend (3.01%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

Stable Dividend: SSU's dividend payments have been volatile in the past 10 years.

Growing Dividend: SSU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.7%), SSU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SSU's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Ki-Nam Kim (61yo)

2.25s

Tenure

₩4,918,432,000

Compensation

Mr. Ki-Nam Kim, Ph.D. is Vice Chairman of Samsung Electronics Co., Ltd. since December 2018 and CEO since 2018. Mr. Kim is an Executive Director at Samsung Electronics Co., Ltd. since March 23, 2018 and se ...


CEO Compensation Analysis

Compensation vs Market: Ki-Nam's total compensation ($USD3.97M) is about average for companies of similar size in the German market ($USD5.03M).

Compensation vs Earnings: Insufficient data to compare Ki-Nam's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Ki-Nam Kim
Vice Chairman2.25yrs₩4.92b0.0029% 6.9m
Dong-Jin Koh
President2.08yrs₩3.42b0.0011% 2.6m
Hyun-Suk Kim
President2.08yrs₩2.85b0.0015% 3.4m
Young-ky Kim
President of Networks Business and Head of Networks Businessno data₩6.00bno data
Hee-Deok Kim
Research commissionerno data₩4.32bno data
Hyun-Chong Kim
President and Chief Legal Officerno datano datano data
Kyungwhoon Cheun
President0.25yrno datano data
Yoon-Ho Choi
President0.083yrno datano data
Robert Yi
Head of Investor Relationsno datano datano data
Young-Soo Kim
Compliance Officer2.08yrsno datano data

2.3yrs

Average Tenure

58yo

Average Age

Experienced Management: SSU's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ki-Nam Kim
Vice Chairman2.25yrs₩4.92b0.0029% 6.9m
Dong-Jin Koh
President2.08yrs₩3.42b0.0011% 2.6m
Hyun-Suk Kim
President2.08yrs₩2.85b0.0015% 3.4m
Yoon-Ho Choi
President0.083yrno datano data
Jong-Hee Han
President and Head of Visual Display Business & Executive Director0.083yrno data0.000070% 164.1k
Ji-Sung Choi
Vice Chairman of Samsung Group and Head of the Future Strategy Office - Samsung Groupno datano datano data
Gee Chan Won
Chief Executive Officer of Samsung Cardno datano datano data
Soo-Bin Lee
Chairman of Samsung Life Insuranceno datano datano data
Jae-Wan Bahk
Independent Chairman of the Board0.17yrno datano data
Byung-Gook Park
Independent Director2.08yrsno datano data

2.1yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SSU's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Samsung Electronics Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Samsung Electronics Co., Ltd.
  • Ticker: SSU
  • Exchange: DB
  • Founded: 1938
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: ₩313.331t
  • Listing Market Cap: ₩234.436b
  • Shares outstanding: 6.79b
  • Website: https://www.samsung.com

Number of Employees


Location

  • Samsung Electronics Co., Ltd.
  • 129 Samsung-Ro
  • Maetan-3dong
  • Suwon
  • Gyeonggi-do
  • 443-742
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMSELBDL (Bourse de Luxembourg)GDR 144ALUUSDJan 1992
SSUNDB (Deutsche Boerse AG)GDR 144ADEEURJan 1992
A005930KOSE (Korea Stock Exchange)YesCommon StockKRKRWJan 1992
SMSDLSE (London Stock Exchange)GDR 144AGBUSDJan 1992
SSNL.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
SMSDLBATS-CHIXE (BATS 'Chi-X Europe')GDR 144AGBUSDJan 1992
SSUNWBAG (Wiener Boerse AG)GDR 144AATEURJan 1992
A005935KOSE (Korea Stock Exchange)Preferred StockKRKRWJun 1993
BC94LSE (London Stock Exchange)GDR 144A / REG SGBUSDSep 1996
SMSNLSE (London Stock Exchange)GDR 144A / REG SGBUSDSep 1996
SMSNLBATS-CHIXE (BATS 'Chi-X Europe')GDR 144A / REG SGBUSDSep 1996
SMSN NBMV (Bolsa Mexicana de Valores)GDR 144A / REG SMXMXNSep 1996
SSUDB (Deutsche Boerse AG)GDR 144A / REG SDEEURSep 1996
SSUWBAG (Wiener Boerse AG)GDR 144A / REG SATEURSep 1996

Biography

Samsung Electronics Co., Ltd. engages in the consumer electronics, information technology and mobile communications, and device solutions businesses worldwide. It offers mobile phones, tablets, wearables, virtual reality, and audio products; TVs, and home theaters; LCD and OLED panels; laptops, computers, chrome books, HDM, memory and system LSI products, monitors, and printers; and home appliances, such as refrigerators, air conditioners, ovens, air purifiers, cooktops and hoods, microwaves, dishwashers, washers, dryers, vacuum cleaners, and heating products, as well as TV and home theater accessories. It also provides security and monitoring, trackers, Wi-Fi routers, hubs, sensors, outlets, and buttons. In addition, the company is involved in the technology and venture capital investment businesses; manufacture of semiconductor equipment and components; and provision of repair services for electronic devices. Further, it provides medical equipment; software development and supply; toll processing of semiconductors and display panels; connected car systems, general logistics agency, financing, marketing, consulting, AI technology research, and cloud services; enterprise automation solutions and connected services; and digital advertising platforms. Additionally, it offers image sensing devices and mobile payment services; designs and develops software products; and develops and supplies semiconductor process defect and quality control software. The company serves finance, government, healthcare, education, hospitality, transportation, retail, legal, public safety, and manufacturing industries. Samsung Electronics Co., Ltd. has strategic partnerships with BlackBerry Limited; and IrisVision to bring clinically validated vision technologies to approximately 200 million low vision patients globally. Samsung Electronics Co., Ltd. was founded in 1938 and is based in Suwon, South Korea. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 01:32
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.