Samsung Electronics Co (GB:SMSD)
LSE:SMSD
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Samsung Electronics Co
(LSE:SMSD)
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Rating:81Outperform
Price Target:
$4,245.00
▲(65.82% Upside)
Action:N/A
Date:06/18/26
The score is driven primarily by strong financial performance (improving profitability, low leverage) and a clearly bullish technical trend. Earnings-call guidance reinforces semiconductor strength and shareholder-return actions, while the main constraints are a relatively expensive valuation (high P/E, low yield) and some near-term operational risks (device margin pressure, labor and geopolitical/logistics uncertainty).
Positive Factors
Semiconductor leadership
Samsung's early HBM4 mass production and a guidance of HBM sales >3x YoY signal durable product leadership in high‑margin memory for AI and servers. This structural edge supports sustained revenue mix improvement and margin resilience as AI workloads scale globally.
Negative Factors
Cyclicality & volatility
The business remains structurally cyclical: past sharp swings in revenue and margins show sensitivity to memory ASPs and demand cycles. Even with current strength, this inherent volatility can produce material downside in earnings and cashflow across 2–6 month industry turns.
Read all positive and negative factors
Positive Factors
Negative Factors
Semiconductor leadership
Samsung's early HBM4 mass production and a guidance of HBM sales >3x YoY signal durable product leadership in high‑margin memory for AI and servers. This structural edge supports sustained revenue mix improvement and margin resilience as AI workloads scale globally.
Read all positive factors
Samsung Electronics Co (SMSD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
$1.45T
Dividend Yield2.39%
Average Volume (3M)2.88K
Price to Earnings (P/E)29.3
Beta (1Y)1.26
Revenue Growth22.79%
EPS Growth133.74%
CountryUK
Employees123,915
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)6804538.25
Shares Outstanding32,094,850
10 Day Avg. Volume3,753
30 Day Avg. Volume2,879
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.06
Price to Sales (P/S)0.07
P/FCF Ratio0.71
Enterprise Value/Market Cap1.56K
Enterprise Value/Revenue5.77
Enterprise Value/Gross Profit12.07
Enterprise Value/Ebitda14.11
Forecast
1Y Price Target
$7,300.00Price Target Upside185.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Samsung Electronics Co Business Overview & Revenue Model
Company Description
Samsung Electronics Co., Ltd. is a global powerhouse with operations spanning consumer electronics, information technology and mobile communications, and advanced device solutions. The company offers a comprehensive array of home appliances, inclu...
How the Company Makes Money
Samsung Electronics primarily makes money by selling hardware products and components across several large business lines. A major revenue stream comes from semiconductors: the company sells memory products (such as DRAM and NAND flash) used in PC...
Samsung Electronics Co Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call highlighted strong, widespread semiconductor strength—record revenue, operating profit and margin expansion—driven by Memory and Foundry leadership (HBM4 mass production, robust DRAM/NAND ASPs and foundry order momentum). Management signaled continued investment and shareholder returns (dividend plus share cancellations). Offsetting risks include rising component costs pressuring DX/MX and Display profitability, labor uncertainty with a potential strike, and geopolitical/logistics cost risks. Overall, positive operational momentum in core semiconductor businesses and clear strategic actions outweigh the near‑term device and macro headwinds.Positive Updates
Record Quarterly Revenue
Total revenue reached a record KRW 134 trillion in Q1 2026, up 43% quarter‑on‑quarter.
Negative Updates
DX / MX Profitability Pressure Expected
Company expects DX (device experiences) profit to decline in Q2 due to rising component costs; MX anticipates Q2 revenue to decline Q‑o‑Q and profitability to be pressured by higher memory and component costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total revenue reached a record KRW 134 trillion in Q1 2026, up 43% quarter‑on‑quarter.
Read all positive updates
Company Guidance
Management’s guidance emphasized continued strength in semiconductors and selective investment and returns: for Q2 Samsung expects semiconductor demand to remain strong with memory prices on an upward trend and a server/AI-focused mix (DRAM bit growth guided to single-digit % QoQ, NAND bit growth low-single-digit % QoQ); HBM sales are expected to grow >3x YoY in 2026 with HBM4 ramping to >50% of HBM sales from Q3 (HBM4E samples planned in Q2 — 16 Gbps, 4.0 TB/s); Foundry sees advanced-node utilization reaching full in Q2, the 1.4nm program on track, and second‑generation 2nm mass production in H2 (Taylor Fab move‑in in 2026, mass production in 2027 with further capacity expansion); Display will prioritize premium products and stable supply (Gen 8.6 IT OLED ramp), while DX expects Q2 profit pressure but plans to mitigate via S26, Micro RGB TVs and AI combo product mix; CapEx was KRW 11.2 trillion in Q1 (down KRW 9.2T QoQ; KRW 10.2T to DS, KRW 0.6T to Display) and full‑year CapEx is forecast to rise substantially YoY with flexible deployment and >KRW 110 trillion of facility/R&D investment contemplated under the corporate value plan; shareholder returns include a KRW 372 quarterly dividend per share, a 2024–26 minimum annual regular dividend target of KRW 9.8 trillion (KRW 2.5 trillion quarterly), and recent cancellation of 73.4M common (1.2%) and 13.6M preferred (1.7%) shares valued at ~KRW 14.6 trillion (retaining KRW 1.6 trillion for employee compensation).Samsung Electronics Co Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
76
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> | 78.55T | 10.00T> | 10.00T> |
| EBITDA | 10.00T> | 97.01T | 81.06T | 50.60T | 86.31T | 88.03T |
| Net Income | 84.83T | 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 | 27.70T | 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 | 53.78T | 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 | -84.15T | -68.51T | -85.38T | -16.92T | -31.60T | -33.05T |
| Financing Cash Flow | -7.76T | -13.48T | -7.80T | -8.59T | -19.39T | -23.99T |
Samsung Electronics Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.45T | 29.33 | 19.77% | 2.39% | 22.79% | 133.74% | |
67 Neutral | £256.19M | 65.50 | 3.10% | 2.19% | 12.73% | -26.74% | |
67 Neutral | £1.72B | 143.65 | 10.81% | ― | 20.33% | 77.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | £43.60M | 37.43 | 2.29% | 3.67% | -10.70% | ― | |
54 Neutral | £206.22M | -4.07 | -31.21% | ― | -7.62% | 5.48% | |
50 Neutral | £670.89M | -13.59 | -37.49% | ― | -17.57% | 4.55% |
* Technology Sector Average
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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.