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Samsung Electronics
(LSE:SMSN)
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Rating:84Outperform
Price Target:
$5,642.00
▲(19.43% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by very strong TTM financial performance (profitability, growth, and improved cash generation) and a supportive earnings outlook from the latest call (semiconductor-led momentum and better demand visibility). Technicals are positive but not overheated, while valuation is helped by a low P/E but tempered by a low dividend yield and the business’s demonstrated cyclicality.
Positive Factors
Strong Earnings Rebound
The sharp recovery in revenue and profitability shows strong earnings power across the cycle. While current margins may be elevated, improved operating leverage and semiconductor demand provide a solid foundation for sustained cash generation.
Negative Factors
High Earnings Cyclicality
Samsung’s historical margin compression and negative free cash flow demonstrate substantial exposure to semiconductor pricing, utilization and working-capital cycles. Current results may therefore represent a strong phase of the cycle rather than a permanently higher earnings base.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Earnings Rebound
The sharp recovery in revenue and profitability shows strong earnings power across the cycle. While current margins may be elevated, improved operating leverage and semiconductor demand provide a solid foundation for sustained cash generation.
Read all positive factors
Samsung Electronics (SMSN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
$1.28T
Dividend Yield0.56%
Average Volume (3M)24.10K
Price to Earnings (P/E)11.9
Beta (1Y)1.13
Revenue Growth50.87%
EPS Growth379.31%
CountryUK
Employees128,881
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)570615.25
Shares Outstanding233,851,150
10 Day Avg. Volume12,066
30 Day Avg. Volume24,096
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)1.89
Price to Sales (P/S)2.40
P/FCF Ratio24.18
Enterprise Value/Market Cap<0.01
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)852.47
Revenue Forecast (FY)$515.55B
Samsung Electronics Business Overview & Revenue Model
Company Description
Samsung Electronics Co., Ltd. is a global leader engaged in consumer electronics, information technology and mobile communications, and innovative device solutions. The company manufactures a diverse range of home appliances, including refrigerato...
How the Company Makes Money
Samsung Electronics primarily makes money by selling hardware products and technology components, with revenue generated across several major lines of business. (1) Semiconductors: The company earns revenue from supplying memory chips (e.g., DRAM ...
Samsung Electronics 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 conveyed a strongly positive financial quarter driven by record revenue, outsized operating profit growth, robust memory and foundry momentum, accelerated R&D and CapEx, expanded multiyear customer agreements and progressive sustainability metrics. Offsetting risks include margin pressure in DX and mobile businesses due to rising component costs, a MX operating loss, ongoing memory supply constraints expected through 2028, and short-term cost impacts from new display ramp-ups. On balance, the company’s exceptional semiconductor-driven results, strong order visibility and strategic investments outweigh near-term consumer-facing margin pressures.Positive Updates
Record Quarterly Revenue and Profit
Total revenue KRW 171.5 trillion (Q2 2026), up 28% QoQ; operating profit KRW 89.5 trillion, up 56% QoQ; operating margin improved to 52% from 43% QoQ; net profit KRW 71.6 trillion, up 52% QoQ; EPS KRW 10,849, up 52% QoQ.
Negative Updates
DX Division Profitability Pressure
DX (device & consumer) achieved year-on-year revenue growth but operating profit declined due to rising component and material costs; company is experiencing margin compression and plans to prioritize high-value products and cost optimization.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Profit
Total revenue KRW 171.5 trillion (Q2 2026), up 28% QoQ; operating profit KRW 89.5 trillion, up 56% QoQ; operating margin improved to 52% from 43% QoQ; net profit KRW 71.6 trillion, up 52% QoQ; EPS KRW 10,849, up 52% QoQ.
Read all positive updates
Company Guidance
Guidance highlighted continued strong momentum into H2 after Q2 record results (Q2 revenue KRW 171.5 trillion, operating profit KRW 89.5 trillion, operating margin 52% vs 43% in Q1, net profit KRW 71.6 trillion, EPS KRW 10,849) with R&D at a quarterly high of KRW 16 trillion and Q2 CapEx KRW 16.8 trillion (KRW 15.4 trillion to DS, KRW 0.7 trillion to Display); currency strengthened the USD adding ~KRW 3.1 trillion to Q‑o‑Q operating profit. In Memory, Q2 saw record DRAM and NAND bit shipments (DRAM bit shipment up low‑teens Q‑o‑Q, NAND up low single‑digits), ASPs rose mid‑40% for DRAM and high‑60% for NAND Q‑o‑Q, and the company expects Q3 bit growth mid‑single digits for DRAM and high single‑digits for NAND; HBM4 sales are expected to increase by more than three full quarters Q‑o‑Q in Q3 and to represent well over 60% of HBM revenue in H2. Foundry expects double‑digit+ YoY revenue growth with advanced‑node revenue to exceed 50% and AI/HPC share rising from high‑teens in 2025 to >30% in 2026, with 2‑nm design wins >2x YoY and Taylor Fab1 on track to ramp in 2026 (Fab2 targeted for mass production by 2030). On capital returns and contracts, the Board approved a Q2 dividend of KRW 374 per share (regular annual dividend commitment KRW 9.8 trillion via quarterly KRW 2.45 trillion), remains committed to returning ~50% of free cash flow, is negotiating multiyear memory supply agreements (5‑year rolling) expected to cover ~60–70% of planned capacity with ~1/4 of advance payments already received, and recognized a special bonus accrual ~10.5% of cumulative H1 operating profit in Q2. Finally, DX will push premium/AI product mix to restore profitability (MX Q2 revenue KRW 32.3 trillion, combined MX/Network operating loss KRW 0.7 trillion), and sustainability targets include 32.5% renewable energy transition (2025) and 33.7% recycled plastics.Samsung Electronics Financial Statement Overview
Summary
Income Statement
91
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very 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 | 79.85T | 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 | 22.22T | 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 | 21.58T | -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 | -85.39T | -16.95T | -31.60T | -33.05T |
| Financing Cash Flow | -22.70T | -13.48T | -7.79T | -8.59T | -19.39T | -23.99T |
Samsung Electronics Technical Analysis
Positive
4724.00
Price Trends
4567.28
Positive
4699.24
Positive
3685.17
Positive
Market Momentum
104.07
Negative
59.94
Neutral
96.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SMSN, the sentiment is Positive. The current price of 4724 is below the 20-day moving average (MA) of 4737.55, above the 50-day MA of 4567.28, and above the 200-day MA of 3685.17, indicating a bullish trend. The MACD of 104.07 indicates Negative momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 96.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SMSN.
Samsung Electronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.28T | 11.93 | 32.20% | 0.56% | 50.87% | 379.31% | |
66 Neutral | £329.82M | 81.69 | 3.33% | 0.81% | 12.73% | -26.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | £652.23M | -20.49 | -19.81% | ― | 19.88% | 53.94% | |
61 Neutral | £283.39M | -8.14 | -24.38% | 3.68% | -2.68% | 47.33% | |
60 Neutral | £1.15B | 64.44 | 12.98% | ― | 20.33% | 77.68% | |
59 Neutral | £51.07M | 292.50 | -0.11% | 3.76% | -10.70% | -200.00% |
* Technology Sector Average
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Samsung Electronics Corporate Events
Business Operations and StrategyStock Buyback
Samsung Electronics Approves KRW 15 Trillion Share Buyback for Employee Incentives
Positive
Aug 21, 2026
Samsung Electronics’ board has approved a share repurchase of up to 53.29 million common shares, worth approximately KRW 15 trillion, to be conducted on the open market between 24 August and 21 November 2026. The company currently holds abou...
Business Operations and Strategy
Samsung Electronics Commits KRW 78.9 Billion Incentive Fund for Device Solutions Partners
Positive
Aug 21, 2026
Samsung Electronics’ board has approved a KRW 78.9 billion charitable contribution to fund performance incentives for small and medium-sized enterprises that serve as on-site business partners to its Device Solutions division. The initiative...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Samsung Electronics Maps Out Up to KRW 110 Trillion in 2026 Shareholder Returns
Positive
Aug 21, 2026
Samsung Electronics outlined its 2024–2026 shareholder return framework, under which it committed to returning 50% of total free cash flow generated over the three-year period to investors, including a regular annual dividend of KRW 9.8 tril...
Dividends
Samsung Electronics Sets Q2 2026 Dividend Payout
Positive
Jul 30, 2026
Samsung Electronics Co., Ltd. is a global technology and electronics manufacturer, best known for its semiconductors, smartphones, consumer electronics and display products. The company is a flagship of South Korea’s corporate sector and is ...
Business Operations and StrategyPrivate Placements and Financing
Samsung Electronics Approves Major Affiliate Investments and Insurance Deal
Positive
Jul 30, 2026
Samsung Electronics’ board has approved major related-party transactions with group affiliates aimed at strengthening its technology pipeline and risk management. The company will invest KRW 495.0 billion in SVIC 82, a new technology investm...
Business Operations and Strategy
Samsung Electronics Approves KRW 3.72 Billion in Industry and Partner Contributions
Positive
Jul 30, 2026
Samsung Electronics’ board has approved charitable and membership-related payments totaling KRW 3.72 billion, underscoring its ongoing engagement with key industry organizations and business partners. The company will pay an annual membershi...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Samsung Electronics Denies Decision on Mega Share Buyback Plan
Neutral
Jul 23, 2026
Samsung Electronics has responded to media reports claiming it plans to repurchase KRW 90 trillion of its own shares over three years starting next month, clarifying that no such large-scale buyback has been decided. The company instead stated it ...
Business Operations and Strategy
Samsung Electronics Sells 1.13 Million Treasury Shares, Retains 1.4% Stake
Neutral
Jul 16, 2026
Samsung Electronics has completed the disposition of 1,132,477 common shares of its treasury stock on July 13, 2026, at a price of KRW 254,500 per share, for total proceeds of about KRW 288.2 billion. The transaction was executed exactly as planne...
Business Operations and StrategyExecutive/Board Changes
Samsung Electronics Grants ₩323 Billion in Treasury Shares to Executives Under Long-Term Incentive Plan
Positive
Jul 13, 2026
Samsung Electronics has approved the disposal of 1,132,477 common treasury shares, valued at approximately ₩322.8 billion based on the prior closing price, to be granted in a single day on July 13, 2026. The shares will be transferred from t...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Samsung Electronics Reports Treasury Share Disposition Results
Neutral
Jul 10, 2026
Samsung Electronics Co. Ltd is a global technology company based in South Korea, operating in the electronics and semiconductor industry. It is best known for its consumer electronics, including smartphones, TVs and home appliances, as well as mem...
Business Operations and Strategy
Samsung Electronics Grants Treasury Shares as 2026 Employee Incentive
Positive
Jul 7, 2026
Samsung Electronics Co., Ltd. is a global leader in the electronics and semiconductor industry, producing smartphones, consumer electronics, memory chips and display panels for worldwide markets. The company operates major divisions including its ...
Business Operations and StrategyFinancial Disclosures
Samsung Electronics Signals Robust Q2 2026 Earnings in Preliminary Guidance
Positive
Jul 7, 2026
Samsung Electronics Co., Ltd. is a global leader in the electronics and semiconductor industry, best known for its smartphones, memory chips, displays and consumer electronics. The company operates across core markets including mobile, consumer de...
Business Operations and StrategyFinancial Disclosures
Samsung Electronics Sets Date and Format for Q2 2026 Earnings Release
Positive
Jul 7, 2026
Samsung Electronics has scheduled the release of its second-quarter 2026 earnings for July 30, with results to be presented via a conference call and live audio webcast hosted on its investor relations website. The format indicates continued empha...
Business Operations and Strategy
Samsung Unveils KRW 2,450 Trillion Domestic Investment Plan Through 2040
Positive
Jun 29, 2026
Samsung Electronics has outlined an extensive domestic investment vision for 2026 to 2040, centered on expanding its cutting-edge semiconductor operations and related businesses in South Korea. The plan targets approximately KRW 2,450 trillion in ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Samsung Electronics Denies Decision on KRW 90 Trillion Share Buyback
Neutral
Jun 25, 2026
Samsung Electronics has responded to a domestic media report claiming it plans a KRW 90 trillion share repurchase over three years starting next month, clarifying that no such large-scale buyback has been decided. The company said the article refe...
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.