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Samsung Electronics Co Ltd 005930

Morningstar Rating
KRW 79,300.00 −400.00 (0.50%)
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Company Report

Samsung Electronics and SK Hynix: While Memory Prices Rise in 2024, HBM Competition Will Intensify

According to two South Korean memory suppliers’ earnings, DRAM prices rose by nearly 20% and NAND prices more than 30% sequentially in the March quarter, exceeding the forecasts we made three months ago. While memory suppliers continued to lower capacity utilization to reduce inventories, 1) demand for high-end memory, such as high bandwidth memory, remained robust and contributed to an improved product mix, and 2) smartphone manufacturers procured memory in anticipation of a memory price hike this year, creating a tight supply/demand situation.

Price vs Fair Value

005930 is trading at a 141% premium.
Price
KRW 79,700.04
Fair Value
KRW 28,677.00
Uncertainty
Medium
1-Star Price
KRW 842,539.00
5-Star Price
KRW 59,993.00
Economic Moat
Hmlgdcw
Capital Allocation
Kxftchry

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 79,700.00
Day Range
KRW 78,900.0081,100.00
52-Week Range
KRW 63,600.0086,000.00
Bid/Ask
KRW 79,300.00 / KRW 79,400.00
Market Cap
KRW 538.66 Tril
Volume/Avg
13.6 Mil / 20.6 Mil

Key Statistics

Price/Earnings (Normalized)
37.63
Price/Sales
1.84
Dividend Yield (Trailing)
1.81%
Dividend Yield (Forward)
1.81%
Total Yield
1.81%

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 20-25% 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 Growth
Total Number of Employees
124,070

Competitors

Valuation

Metric
005930
000660
AAPL
Price/Earnings (Normalized)
37.6328.72
Price/Book Value
1.532.2638.17
Price/Sales
1.843.687.56
Price/Cash Flow
9.5934.6323.93
Price/Earnings
005930
000660
AAPL

Financial Strength

Metric
005930
000660
AAPL
Quick Ratio
1.790.770.87
Current Ratio
2.591.451.04
Interest Coverage
8.15−7.09
Quick Ratio
005930
000660
AAPL

Profitability

Metric
005930
000660
AAPL
Return on Assets (Normalized)
4.31%−6.96%32.12%
Return on Equity (Normalized)
5.57%−12.30%165.09%
Return on Invested Capital (Normalized)
4.52%−6.92%62.77%
Return on Assets
005930
000660
AAPL
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Consumer Electronics Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
AAPL
Apple IncStdjnsxgqVwjk$2.8 Tril
SNEJF
Sony Group CorpMbfn$93.2 Bil
SONY
Sony Group Corp ADRGrgrxqfbhvGpwf$93.2 Bil
XIACF
Xiaomi Corp Class BHghkg$60.9 Bil
XIACY
Xiaomi Corp ADRJwz$60.9 Bil
PCRFF
Panasonic Holdings CorpPrkh$20.8 Bil
PCRHY
Panasonic Holdings Corp ADR - UnsponsoredWwjj$20.6 Bil
LPL
LG Display Co Ltd ADRCmns$3.9 Bil
SHCAY
Sharp Corp ADRXdhr$3.5 Bil
SHCAF
Sharp CorpJtpp$3.5 Bil

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