One-glance verdict
Undervalued
$94.49 our estimate vs market $65.21
31% below our estimate, below the bear case
Fundamentals snapshot
Samsung Electronics Co., Ltd.
SSNLF · PNK · Technology · Consumer Electronics
Current price
$65.21
52-week range
$40.60 - $65.21
Market cap
$428.21B
Balance sheet
Healthy
71.97x Strong cushion
Net cash $124.53B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 10.9% last year.
- Reward Returns 30.8% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 185097.5% above its 5-year average P/E.
What this company does
Samsung Electronics Co., Ltd.
Samsung Electronics is known for selling popular gadgets like Galaxy phones and TVs, but a significant portion of its profit often comes from making essential components like memory chips and screen displays. Because Samsung sells these parts to many other tech companies, its performance can signal the health of the entire electronics supply chain (the network of companies involved in creating and distributing products). This means the company's success depends not only on selling its own devices but also on the global demand for electronics of all kinds.
How the company got here
Founded in 1938 in Korea, Samsung began as a small trading company exporting dried fish and produce. It expanded into various industries like textiles and insurance before entering the electronics industry in 1969, initially producing black-and-white televisions. A major turning point was in the late 1970s and early 1980s with a significant expansion into technology, establishing separate semiconductor and electronics businesses. The company's focus on quality and innovation, particularly in memory chips and mobile devices, propelled its growth into a global technology leader.
What it actually does
Samsung Electronics is a global company that makes a wide variety of electronic products for both consumers and businesses. You likely know them for their Galaxy smartphones, tablets, and watches, as well as their TVs and home appliances like refrigerators and washing machines. Beyond the products you see in stores, Samsung is a major producer of the internal components that make electronics work, such as memory chips and display screens. They also provide technology and services to various industries, including healthcare, finance, and transportation.
Device eXperience (DX)
This is the part of Samsung that makes the products most people are familiar with. It includes their mobile devices like Galaxy smartphones, tablets, and watches, as well as their visual display products like TVs and monitors, and digital appliances such as refrigerators and air conditioners. This division earns money by selling these finished products directly to consumers and businesses. It represents a very large portion of Samsung's public-facing brand and business.
Device Solutions (DS)
This is a huge and very important part of Samsung's business, though it's less visible to the average person. The DS division manufactures essential electronic components, with a major focus on memory chips (like the ones that store data in your phone and computer) and semiconductors (the 'brains' of electronic devices). It makes money by selling these components to other companies, including its own DX division and even competitors. This segment is a major driver of Samsung's revenue and often its profitability.
SDC (Samsung Display)
This division specializes in making advanced display panels, particularly the vibrant OLED and QD-OLED screens used in smartphones, TVs, and laptops. Samsung Display was spun off from Samsung Electronics and is a world leader in this technology, supplying screens to many other electronics manufacturers, including some of Samsung's biggest rivals. It generates revenue by selling these high-tech display panels to other companies.
Harman
Samsung acquired Harman to expand its presence in audio and automotive technology. This division operates as an independent subsidiary and owns many well-known audio brands like JBL, Harman Kardon, and AKG, which sell speakers, headphones, and professional audio equipment. A significant part of Harman's business is providing connected car systems, including infotainment (the screen and software in your car's dashboard) and other automotive electronics, to car manufacturers.
What management is betting on now
Samsung's strategy is heavily focused on leading in the era of artificial intelligence (AI). This means both creating the powerful memory chips and semiconductors that AI systems need to run, and also embedding AI features directly into their own consumer products like smartphones and home appliances to make them smarter and more helpful. The company is also making significant investments in future technologies like advanced robotics and connected automotive systems. To achieve this, Samsung continues to invest heavily in research and development (R&D, the process of creating new products and technologies) to stay at the forefront of innovation.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $94.49 vs current price $65.21
Our most-likely fair value is $94.49 a share — about 44.9% above today's price of $65.21, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $124.5B - more cash than debt. Interest coverage 72.0x.
Net debt
$-124.53B
Interest coverage
71.97x
Samsung Electronics Co., Ltd.'s profit covers its interest bill about 72.0 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SSNLF
BASELINE
Samsung Electronics Co., Ltd.
Total debt $16.65B Interest coverage 71.97x This is the baseline the peer rows are being compared against.
Total debt $84.34B Interest coverage 33.83x -53% vs SSNLF Carries about 2.1x less debt cushion than SSNLF.
Total debt $50.54B Interest coverage -0.02x -100% vs SSNLF This peer has almost no interest-payment cushion compared with SSNLF.
Total debt $6.38B Interest coverage 20.56x -71% vs SSNLF Carries about 3.5x less debt cushion than SSNLF.
Total debt $120.79B Interest coverage 175.32x +144% vs SSNLF Carries about 2.4x more debt cushion than SSNLF.
Total debt $128.81B Interest coverage 50.88x -29% vs SSNLF Carries about 1.4x less debt cushion than SSNLF.
What you should know
The case for and against SSNLF
3 Rewards
1 Risk
Rewards
-
Revenue grew 10.9% last year.
-
Returns 30.8% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 185097.5% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.52x
Forward P/E
14.69x
P/B
1.35x
P/S
0.00x
EV/EBITDA
-0.67x
PEG ratio
0.43x
Profitability
How much profit each dollar creates
Gross margin
57.5%
Operating margin
52.2%
Net margin
30.8%
ROE
30.8%
ROA
17.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.04x
Current ratio
2.83x
Quick ratio
2.19x
Total debt
$16.65B
Total cash
$141.18B
Growth
How the business has been compounding
Revenue TTM
$360.59B
Revenue 5Y CAGR
3.3%
EPS TTM
3.34
EPS 5Y CAGR
-6.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$63.39B
Free CF TTM
$24.64B
FCF margin
6.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
30.3%
Last ex-div date
2026-06-29