Samsung Electronics is listed on the Korea Exchange (KRX) under the ticker symbol 005930. The company is also a key component of the KOSPI 200, KOSPI 50 and S&P Global 100.
Samsung Electronics is a South Korean electronics company headquartered in Suwon that was founded in 1969. It is the flagship subsidiary of the Samsung Group and is one of the world’s largest producers of consumer electronics, semiconductors, and information technology. Samsung Electronics is a dominant player in the market for smartphones, televisions, and memory chips.
Samsung Electronics (KRX: 005930)
The company’s operations span across a wide range of products and services, including mobile devices, home appliances, and various IT solutions. Samsung Electronics is a leader in the semiconductor industry, particularly in DRAM, NAND flash, and system LSI products. The company has various manufacturing and research and development centres globally, including in South Korea, the US, the UK, China, Canada, and India.
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Electronics Industry Comparison
Samsung EPS and Revenue Breakdown 2020-2023
| Year | Operating Profit | Annual Revenue |
|---|---|---|
| 2020 | KRW35.99 trillion | KRW236.81 trillion |
| 2021 | KRW51.63 trillion | KRW279.60 trillion |
| 2022 | KRW43.38 trillion | KRW302.23 trillion |
| 2023 | KRW6.57 trillion | KRW258.94 trillion |
Samsung Share Price & Dividend Yield
Samsung Electronics IPO’d in 1975 under the name Samsung Electronics Manufacturing. It changed its name to Samsung Electronics in 1984. The company has seen tremendous growth over the decades, with its stock price hitting an all-time high of KRW96,800 in January 2021.
Annual Dividend Yield: 2.53%
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Samsung Share Price Forecast
According to data compiled by TradingView, out of 38 analysts covering Samsung Electronics, 33 have a Buy rating on the stock, with five assigning it a Hold rating.
A View From The Bulls: Following Samsung Electronics’ latest earnings release, analysts at investment bank UBS maintained their Buy rating with a price target of KRW116,000 per share on the stock, highlighting the company’s expectations of a favourable supply and demand situation in the memory sector into at least the first half of 2025. In addition, UBS said Samsung’s near term memory bit shipments are tracking in line with guidance.
A View From The Bears: Analysts at Bank of America downgraded Samsung Electronics to Neutral from Buy, lowering their price target to KRW80,000 from KRW100,000 in a recent note to clients. The bank told investors that while it doesn’t see a downturn, its new forecasts ” indicate a gradual decline in operating profit through 3Q24.” Furthermore, the bank expects lower earnings per share for the company due to declines in memory average selling prices.
Average Analyst Consensus 12-Month Price Target: KRW97,300
Our View: Samsung Electronics is a global leader in several high-growth sectors, including semiconductors and consumer electronics. However, the company faces cyclical challenges in the memory chip market and pressure from increased competition in smartphones. Despite these challenges, Samsung’s strong R&D capabilities and diversified product portfolio make it a resilient player in the tech industry.
Suitability
Samsung Electronics appeals to investors who are seeking exposure to a diversified tech giant with leadership positions across multiple industries, including semiconductors, smartphones, and home electronics. The company’s robust financial position, extensive R&D investments, and focus on innovation provide a solid foundation for long-term growth.
Investors who are bullish on the continued expansion of the semiconductor market, particularly in AI, 5G, and data centres, will find Samsung’s dominant position in DRAM and NAND flash production attractive. Additionally, those interested in capitalising on Samsung’s global smartphone dominance, especially as AI is introduced into the devices, may see this as a long-term investment opportunity.
Samsung Electronics offers regular dividend payments, making it an appealing option for income-seeking investors. However, those expecting rapid growth may need to navigate periods of volatility due to its exposure to cyclical industries, such as semiconductors and consumer electronics.
Overall, investors looking for a tech company with a strong balance sheet, a broad portfolio, and a leadership position in key growth industries should consider Samsung Electronics. However, it’s important to remain aware of the company’s exposure to cyclical market trends and global competition.
