# Samsung Electronics (KRX:005930)

As of Sun 8 Nov 2026 12:00 UTC (weekly snapshot). Full report: https://standard-equity.report/KRX/005930

Price ₩188,700.00 (KRW), market cap ₩1,209T, Technology - Consumer Electronics.

## Valuation

- SE Reference Value (expected value, DCF): ₩458,235.20 (central 50% range ₩350,863.28 to ₩591,916.25), +143% against the price; range width wide
- SE Grade: 1 of 3 (Value 3, Quality 1, Moat 1)
- Consensus Rating: Strong Buy (Strong buy 24, Buy 12, Hold 0, Sell 0, Strong sell 0)
- Consensus Price (median): ₩450,000.00, +138% against the price

## Key metrics

Financials in KRW. Peer percentile: 100 = best in the peer group.

| Metric | Now | 5Y median | 10Y median | Peers |
|---|---|---|---|---|
| Revenue | ₩594.5T | CAGR 7.1% | CAGR 5.7% | P97 |
| Revenue growth | 88.4% | 10.9% | 8.1% | P90 |
| Gross margin | 64.1% | 38.0% | 39.2% | P87 |
| Operating margin | 46.1% | 13.1% | 14.4% | P93 |
| Net margin | 33.4% | 13.3% | 12.2% | P87 |
| FCF yield | 16.4% | 3.4% | 6.1% | P100 |
| FCF margin | 34.2% | 6.4% | 8.4% | P93 |
| FCF / net income | 1.02x | 0.46x | 0.75x | P70 |
| ROIC | 58.2% | 12.4% | 16.6% | P80 |
| ROE | 39.1% | 10.9% | 11.4% | P79 |
| ROA | 25.1% | 7.8% | 8.2% | P93 |
| EPS | ₩30,259.55 | CAGR 11.4% | CAGR 8.6% | - |
| EPS growth | 548.6% | 39.5% | 33.4% | P100 |
| Book value per share | ₩93,603.02 | CAGR 9.9% | CAGR 10.3% | - |
| FCF per share | ₩30,954.01 | CAGR 6.7% | CAGR 6.2% | - |
| Dividend per share | ₩5,913.00 | CAGR 3.3% | CAGR 12.7% | - |
| Dividend yield | 3.1% | 2.1% | 2.2% | P92 |
| Payout ratio | 19.6% | 25.3% | 25.1% | P4 |
| Diluted shares | 6,567.6M | CAGR -0.3% | CAGR -0.6% | P96 |
| Buyback yield | 1.6% | - | - | P96 |
| Debt/equity | 0.03x | 0.05x | 0.06x | P79 |
| Enterprise value | ₩1,131T | CAGR 7.7% | CAGR 12.8% | P93 |
| Long-term debt | ₩17.19T | CAGR 17.1% | CAGR 19.5% | P67 |

## Company Note (Q3 2026)

Written by AI from the data above.

**Samsung's third quarter was a memory story**. Server and AI-related demand drove record Memory results, and higher prices across all applications lifted both DRAM and NAND selling prices, so revenue rose 126.9% from a year earlier. The gain came despite weaker currencies, which cut operating profit by about 10 trillion won against the prior quarter. The stock looks cheap but the business scores weakly: SE fair value of ₩458,235 is 142.8% above the price, while Quality and Moat each earn one star.

**Management raised its fourth-quarter shipment guidance**. It now expects DRAM bit shipments to grow by a mid to high teen percentage over the quarter and NAND by mid-teens, and it introduced a target of double-digit foundry revenue growth. Full-year capital spending is set at 84.4 trillion won. A further 55-75 trillion won remains for shareholder returns, with a new policy due at the late-January board meeting. HBM4E mass production expands in the first half of next year. Asked about the memory market after 2027, the head of Memory said: "we expect tight supply conditions to continue in 2028." Revenue growth is slowing slightly from quarter to quarter, even as consensus expects further gains.

**Consensus expects EPS** to rise 621.3% in FY2026 and another 62.3% in FY2027. Revenue is forecast to grow 116.4% in FY2026, yet the price implies only 6.3% a year over five years. That gap is the source of the apparent cheapness. Our own projection is well below consensus for both years, and the company has beaten estimates in 5 of the last 8 quarters but missed the latest. The market is pricing a sharp fade from today's memory-driven earnings, and estimates are most likely to be cut.

**Current profitability is far above the company's history**. Operating margin stands at 46.1% against a 5-year median of 13.1% and ranks in the 80th percentile of peers. Over three years to FY2025, however, it slipped 1.3 points. Return on equity is now 39.1%, in the 75th percentile, but fell 6.2 points over the same three years. Return on assets of 25.1% ranks in the 93rd percentile despite a 4.4-point three-year decline. FCF margin rose from 4.2% in FY2022 to 11.3% in FY2025. Quality is held back by returns on capital relative to the cost of capital and by changes in share count.

**The P/E** of 6.2x is roughly half its 10-year median of 12.6x. SE fair value of ₩458,235 is 142.8% above the price, though the estimate is uncertain and carries low confidence. The median analyst target of ₩450,000 is 138.5% above the price. For the price to be justified, memory supply has to stay tight into 2028 and offset what management flags as pressure on device profitability and slowing mobile demand. Further slowing in quarterly revenue growth would be the clearest sign that this is not happening.

**The SE Score** is 1 of 3. Quality earns one star because a three-year median return on invested capital of 10% sits below a 13.5% cost of capital, which outweighs a net cash balance sheet. Moat earns one star because the company's five-year average return ranks low among comparable companies, even though its 10-year median return on invested capital is 17%. Value earns three stars because the price sits well below SE fair value. That discount left the overall score at one star, since a one-star Moat cannot climb further on price alone.

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Weekly snapshot, not live data. For information only, not investment advice. Methodology: https://standard-equity.report/methodology