What is Samsung Electronics company?
Samsung is a South Korean multinational manufacturing company & Samsung is the largest South Korean business conglomerate in the world. Samsung is the 23rd largest public company by market capitalization on the planet.
Samsung was founded by Lee Byung-Chui in 1983.
In the early days Samsung was a trading company & over the next three decades the company expanded its business operations into food processing, textiles, insurance, securities & retail.
In the late 1960s, Samsung entered the electronics industry & from that moment to now Samsung has played a significant dominant role in the technology industry.
There are 15 subsidiaries under the Samsung name & Samsung Electronics is one of them.
How Does Samsung Electronics Generate Its Revenue?
Samsung Electronics generates revenue through several key segments. Consumer Electronics, accounting for 34% of its income, includes popular products like Galaxy smartphones, home appliances, and televisions.
Semiconductors, contributing 36%, involve the production of memory chips, system LSI, and foundry services.
Display panels make up 14% of the total, with Samsung leading in OLED and LCD technology for various devices.
IT & Mobile Communications, at 12%, covers network equipment, laptops, and peripherals.
Harman International adds 4% through connected car technology and audio products. Lastly, Consumer & Professional Electronics, comprising 2%, includes audio and video products, enhancing Samsung’s diverse revenue streams.
How much money does Samsung Electronics Generate?
For the last twelve months, Samsung Electronics generated KRW (South Korean Won) 267 trillion ($193 billion) in revenue, achieving a gross profit of KRW 86 trillion ($62 billion) and a gross profit margin of 32%.
The net profit recorded for this period is KRW 19 trillion ($14 billion), with a net profit margin of 7.3%. This indicates that 7.3% of Samsung Electronics’ revenue translates to net profit for its shareholders.
How many assets company own?
As of December 31, 2023, Samsung Electronics holds assets worth KRW 455 trillion ($330 billion) and equity amounting to KRW 353 trillion ($256 billion). The company’s debt stands at KRW 92 trillion ($67 billion), resulting in a debt-to-equity ratio of 26%.
This ratio indicates that only 26% of Samsung Electronics’ equity is financed through debt, highlighting a low level of leverage.
This financial structure is advantageous for a technology-driven company like Samsung, especially in a dynamic industry where technological advancements and market competition evolve rapidly.
Maintaining low leverage enhances financial resilience, ensuring the company’s ability to navigate economic downturns and technological shifts effectively.
What is the current trading price of the stock?
Samsung Electronics Corporation is currently trading on the South Korean Stock Exchange under the symbol 005930. KS. The current trading price of the stock is KRW 81,500 ($59) per share.
For the last twelve months, the earnings per share (EPS) are KRW 4,700 ($3.4) per share, which gives a price-to-earnings (P/E) ratio of 17.35.
A P/E ratio of 17.35 indicates that it would take approximately 17 years to recoup your initial investment in Samsung Electronics stocks if the earnings remain consistent.
From 2020 to 2022, Samsung’s earnings were on an upward trend, although they dropped in 2023. To predict future earnings, it is essential to understand the business nature of the company.
With advancements in technology, the internet, and AI, Samsung holds a significant advantage in the electronic device manufacturing sector. Consumers are always eager for the latest Samsung Galaxy phones and other devices, and as long as the company meets their loyal customers’ expectations, earnings should remain stable.
Additionally, Samsung Electronics has paid a dividend of KRW 1,440 ($1.04) per share, resulting in a dividend yield of 1.77%.
The dividend payout ratio was 30%, meaning the company returns 30% of its earnings to shareholders and reinvests 70% into future business expansion.
Who owns the company?
The largest shareholder of Samsung Electronics is Samsung Life Insurance, which owns 8.51% of the company.
The second largest shareholder is the National Pension Service of Korea, owning 8.19% of the company.
Who runs the Samsung Electronics company?
The CEO of Samsung Electronics is Han Jong-Hee, who has been running the company since 2022. Currently, 270,372 employees work under his management.
