Want to see GB:SMSD full AI Analyst Report?
Top Page
Samsung Electronics Co
(LSE:SMSD)
Select Model
Select Model
Rating:83Outperform
Price Target:
$3,681.00
▲(4.57% Upside)
Action:Reiterated
Date:09/23/26
The score is driven primarily by strong financial performance (sharp profitability rebound supported by a conservative balance sheet) and a solid bullish technical trend (price above key moving averages with healthy momentum). Earnings-call guidance adds support via AI/semiconductor growth and HBM/foundry progress, while the biggest constraints are earnings/cash-flow cyclicality, weaker cash conversion versus net income, and near-term margin/capex pressures. Valuation is reasonable on P/E but offers limited dividend support.
Positive Factors
Diversified and integrated business model
Samsung serves consumer and enterprise markets across semiconductors, displays, mobile devices, appliances, software and services. This breadth, combined with vertical integration across components and finished products, can reduce dependence on one end market and support scale over several quarters.
Negative Factors
Cyclical profitability
The sharp change in margins across recent years demonstrates that Samsung’s earnings remain highly sensitive to semiconductor supply, pricing and end-market conditions. Current profitability may therefore moderate when the cycle turns, making sustained peak earnings less certain over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified and integrated business model
Samsung serves consumer and enterprise markets across semiconductors, displays, mobile devices, appliances, software and services. This breadth, combined with vertical integration across components and finished products, can reduce dependence on one end market and support scale over several quarters.
Read all positive factors
Samsung Electronics Co (SMSD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
$1.02T
Dividend Yield0.89%
Average Volume (3M)4.35K
Price to Earnings (P/E)9.4
Beta (1Y)0.82
Revenue Growth50.87%
EPS Growth379.31%
CountryUK
Employees128,881
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)753065.25
Shares Outstanding32,094,850
10 Day Avg. Volume5,458
30 Day Avg. Volume4,347
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.41
Price to Sales (P/S)1.79
P/FCF Ratio18.03
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Samsung Electronics Co Business Overview & Revenue Model
Company Description
Samsung Electronics Co., Ltd. engages in the consumer electronics, information technology and mobile communications, and device solutions businesses worldwide. The company operates through four divisions: Device eXperience (DX), Device Solutions (...
How the Company Makes Money
Samsung Electronics primarily makes money by manufacturing and selling hardware components and finished electronic devices across several major revenue streams. (1) Semiconductors: A large portion of revenue comes from selling memory products such...
Samsung Electronics Co Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call highlighted strong, record-setting financial performance driven by exceptional memory and foundry demand, meaningful ASP and shipment gains, aggressive R&D and CapEx investments, and strategic advancements (HBM4, Gen 8.6 OLED, foundry 2-nano orders). At the same time, management acknowledged notable near-term challenges: DX/MX margin pressure from rising component and memory costs, supply constraints that limit fulfillment of AI-driven demand, and short-term cost pressures from ramping new production lines and higher R&D/CapEx. Overall, the business trajectory is growth-oriented and strategically positioned for AI-driven markets, but faces execution and margin headwinds in the near term due to input-cost inflation and constrained capacity.Positive Updates
Record Quarterly Revenue and Profit
Total revenue KRW 171.5 trillion, up 28% quarter-on-quarter; operating profit KRW 89.5 trillion, up 56% quarter-on-quarter; operating margin improved to 52% from 43% in the prior quarter.
Negative Updates
DX (Device eXperience) Profit Pressure
DX division revenue grew year-on-year (Q2 MX revenue KRW 32.3 trillion) but operating profit declined; combined MX and Network businesses recorded an operating loss of KRW 0.7 trillion in Q2 due to rising component costs (notably memory).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Profit
Total revenue KRW 171.5 trillion, up 28% quarter-on-quarter; operating profit KRW 89.5 trillion, up 56% quarter-on-quarter; operating margin improved to 52% from 43% in the prior quarter.
Read all positive updates
Company Guidance
Guidance highlighted continued H2 growth driven by semiconductors and AI with strong Q2 cash generation (total revenue KRW 171.5 trillion, +28% q/q; operating profit KRW 89.5 trillion, +56% q/q; operating margin 52% vs 43% prior; net profit KRW 71.6 trillion, +52%; EPS KRW 10,849, +52%), sustained investments (R&D record quarterly high KRW 16 trillion from KRW 11 trillion; Q2 CapEx KRW 16.8 trillion, +KRW 5.5 trillion q/q with KRW 15.4 trillion to DS and KRW 0.7 trillion to Display), and shareholder returns (Q2 dividend KRW 374 per share; 2024–26 regular annual dividend commitment KRW 9.8 trillion via quarterly KRW 2.45 trillion; policy to return ~50% of free cash flow). For Memory, Q2 DRAM bit shipments rose low‑teens q/q and NAND low‑single digits q/q, with DRAM ASP +mid‑40% q/q and NAND ASP +high‑60% q/q; Q3 bit outlook: DRAM mid‑single digit q/q, NAND high‑single digit q/q; HBM4 sales set to rise by more than three full quarters q/q in Q3 and to represent well over 60% of HBM revenue in 2H; server SSD expected to exceed 60% of NAND mix this year and QLC bit shipments in 2H to more than double 1H. Management warned industry supply constraints are likely to persist into 2027–2028, is securing multiyear supply deals (targeting ~60–70% of capacity to LTAs, 5‑year rolling contracts with significant prepayments received ~25% so far), and expects Foundry to deliver double‑digit+ y/y revenue with advanced nodes >50% of revenue and AI/HPC share rising from high‑teens in 2025 to >30% in 2026; Taylor Fab1 on track for 2026 start and Fab2 construction to begin year‑end with mass production by 2030. Additional metrics: special incentive accrual ~10.5% of H1 operating profit recognized in Q2, a ~KRW 3.1 trillion positive q/q FX impact on operating profit, renewable energy transition 32.5% (2025, +1.1 pp), recycled plastics 33.7% (+2.7 pp), and four consecutive years without serious workplace accidents.Samsung Electronics Co Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Gross Profit | 10.00T> | 10.00T> | 10.00T> | 76.21T | 10.00T> | 10.00T> |
| EBITDA | 10.00T> | 97.01T | 81.06T | 50.60T | 86.31T | 88.03T |
| Net Income | 10.00T> | 44.26T | 33.62T | 14.47T | 54.73T | 39.24T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 10.00T> | 10.00T> | 10.00T> | 92.41T | 10.00T> | 10.00T> |
| Total Debt | 22.41T | 25.24T | 19.33T | 12.69T | 10.33T | 18.39T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 92.23T | 93.67T | 10.00T> |
| Stockholders Equity | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
Cash Flow | ||||||
| Free Cash Flow | 10.00T> | 33.16T | 19.24T | -16.40T | 9.05T | 15.28T |
| Operating Cash Flow | 10.00T> | 85.32T | 72.98T | 44.14T | 62.18T | 65.11T |
| Investing Cash Flow | -10.00T> | -68.51T | -85.38T | -16.95T | -31.60T | -33.05T |
| Financing Cash Flow | -22.07T | -13.48T | -7.80T | -8.58T | -19.39T | -23.99T |
Samsung Electronics Co Technical Analysis
Negative
3520.00
Price Trends
3494.90
Negative
3359.40
Negative
2909.20
Positive
Market Momentum
-120.20
Positive
40.35
Neutral
57.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SMSD, the sentiment is Negative. The current price of 3520 is above the 20-day moving average (MA) of 3408.75, above the 50-day MA of 3494.90, and above the 200-day MA of 2909.20, indicating a neutral trend. The MACD of -120.20 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 57.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SMSD.
Samsung Electronics Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.02T | 9.43 | 32.20% | 0.89% | 50.87% | 379.31% | |
68 Neutral | £1.03B | 31.63 | 19.29% | ― | 70.72% | 238.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | £331.93M | -9.29 | -24.38% | 3.68% | -2.68% | 47.33% | |
56 Neutral | £50.10M | 300.00 | -0.11% | 3.67% | -10.70% | -200.00% | |
46 Neutral | £462.57M | -14.85 | -19.81% | ― | 19.88% | 53.94% |
* Technology Sector Average
GB:SMSD
Samsung Electronics Co
3,170.00
1,795.00
130.55%
GB:CML
CML Microsystems
300.00
-8.19
-2.66%
GB:IQE
IQE plc
34.75
28.30
438.76%
GB:TTG
TT Electronics
186.00
92.10
98.08%
GB:RPI
Raspberry PI Holdings plc
533.00
160.80
43.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.