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Samsung Electronics Co Ltd 005930

Morningstar Rating
KRW 72,900.00 −200.00 (0.27%)
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Company Report

Samsung Electronics and SK Hynix: Raise FVE by 5%-6%; Memory Price Increase to Moderate in 2H 2024

Samsung Electronics has been a fantastic growth story as it has established itself as the clear global leader in the smartphone space during the past decade, following its success in becoming the global top manufacturer of flat panel TV in the 2000s. However, we do not identify an economic moat from its consumer electronics business, as these products are mature and difficult to differentiate, and are exposed to the tough competition from Chinese manufacturers. Unlike its competitor Apple, Samsung does not have an ecosystem that prevents users from switching to other brands, in our view.

Price vs Fair Value

005930 is trading within a range we consider fairly valued.
Price
KRW 73,100.00
Fair Value
KRW 25,661.00
Uncertainty
Medium
1-Star Price
KRW 286,471.00
5-Star Price
KRW 66,811.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Samsung's flexible-screen advantage can be leveraged into increased smartphone market share.

Bears

Samsung generates about 20%-25% of earnings from mobile devices. Competition in this space has spiked dramatically, with new players offering similar devices to Samsung at much lower prices. Samsung’s market share and margins appear vulnerable.

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News

Trading Information

Previous Close Price
KRW 73,100.00
Day Range
KRW 72,900.0074,200.00
52-Week Range
KRW 59,000.0079,800.00
Bid/Ask
KRW 73,000.00 / KRW 73,100.00
Market Cap
KRW 495.19 Tril
Volume/Avg
16.2 Mil / 15.3 Mil

Key Statistics

Price/Earnings (Normalized)
10.92
Price/Sales
1.50
Dividend Yield (Trailing)
1.98%
Dividend Yield (Forward)
1.98%
Total Yield
1.98%

Company Profile

Samsung Electronics is a diversified electronics conglomerate that manufactures and sells a wide range of products, including smartphones, semiconductor chips, printers, home appliances, medical equipment, and telecom network equipment. More than half of its profit is generated from semiconductor business, and a further 25% is generated from its mobile handset business, although these percentages vary with the fortunes of each of these businesses. It is the largest smartphone and television manufacturer in the world, which helps provide a base demand for its component businesses, such as memory chips and displays, and is also the largest manufacturer of these globally.
Sector
Technology
Industry
Consumer Electronics
Stock Style Box
Large Value
Total Number of Employees
124,070

Competitors

Valuation

Metric
005930
000660
AAPL
Price/Earnings (Normalized)
10.92413.0428.68
Price/Book Value
1.411.8638.42
Price/Sales
1.503.527.50
Price/Cash Flow
7.70110.7224.04
Price/Earnings
005930
000660
AAPL

Financial Strength

Metric
005930
000660
AAPL
Quick Ratio
1.790.720.92
Current Ratio
2.591.501.07
Interest Coverage
8.15−10.36
Quick Ratio
005930
000660
AAPL

Profitability

Metric
005930
000660
AAPL
Return on Assets (Normalized)
4.31%−9.29%32.04%
Return on Equity (Normalized)
5.57%−15.90%174.73%
Return on Invested Capital (Normalized)
4.52%−9.79%63.75%
Return on Assets
005930
000660
AAPL
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Consumer Electronics Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
AAPL
Apple IncTtjzh$2.8 Tril
SNEJF
Sony Group CorpPfqft$108.9 Bil
SONY
Sony Group Corp ADRCrgwy$108.9 Bil
XIACF
Xiaomi Corp Class BSmgp$42.7 Bil
XIACY
Xiaomi Corp ADRHtwy$42.7 Bil
PCRFY
Panasonic Holdings Corp ADRJsdfv$22.0 Bil
PCRFF
Panasonic Holdings CorpDpwtf$22.0 Bil
SHCAY
Sharp Corp ADRZtwg$3.5 Bil
SHCAF
Sharp CorpJnqfp$3.5 Bil
LPL
LG Display Co Ltd ADRFgdm$3.3 Bil

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