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Electronic Technology

Samsung Electronics Co., Ltd.

Company Background

Samsung Electronics is South Korea's largest company, with its core business semiconductors and electronic products. The company has an overwhelming presence in South Korea and exerts a strong influence over every sector. The success of its smartphone business has boosted the Samsung brand power overseas. In 2012, Samsung was ranked ninth in U.S. company Interbrand's best global brands survey. It was the highest ranking among Asian companies, overtaking Toyota Motor.

 

The business was founded in 1969 as part of the Samsung group, which had started out as a trading and textile company. Last year the company's owner and chairman, Lee Kun-hee, a son of the founder, collapsed from a heart attack. His son, Lee Jae-yong, who is vice chairman, took over the management of the company. As Jae-yong has no brothers, he is expected to succeed his father as chairman.

 

Samsung group's structure is complicated, with its companies holding each other's shares. The largest shareholder of Samsung Electronics is Samsung Life Insurance, but Cheil Industries, the top shareholder of Samsung Life Insurance, is considered to be the de facto holding company of the group. As of the end of 2014, Vice Chairman Lee Jae-yong owned 23.23% of Cheil Industries, indicating a generational shift has fairly progressed in terms of ownership.

 

While the semiconductor business continues to generate high profits, the smartphone operation, which has been behind the company's rapid growth over the past several years, fares poorly these days. The company still makes high profits as a manufacturer, but needs to explore new businesses to get its growth back on track.

Business Summary

Samsung Electronics Co., Ltd. engages in the manufacturing and selling of electronics and computer peripherals. The company operates through following business divisions: Consumer Electronics, Information Technology & Mobile Communications and Device Solutions. The Consumer Electronics business division provides cable television, monitor, printer, air-conditioners, refrigerators, washing machines and medical devices. The Information Technology & Mobile Communications business division offers handheld products, communication systems, computers and digital cameras. The Device Solutions business division comprises of memory, system large scale integrated circuit and light emitting diode. The company was founded on January 13, 1969 and is headquartered in Suwon, South Korea.

Financial Highlights

Dec 2019 KRWUSD
Revenue230,400.88B197,568.15M
Gross Profit79,383.04B68,070.74M
Operating income27,768.50B23,811.42M
Income before tax30,019.22B25,741.41M
Net income21,505.05B18,440.52M
EBITDA57,366.14B49,191.32M
Diluted EPS3,165.922.71
Dividends Per Share1,4161.21
Total Assets352,564.49B304,867.92M
Total liabilities89,684.07B77,551.19M
Total equity254,915.47B220,429.31M
Operating cash flow45,382.91B38,915.73M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 200,653.48B 201,866.74B 239,575.37B 243,771.41B 230,400.88B
Gross Profit 74,920.09B 79,183.91B 107,502.60B 108,494.11B 79,383.04B
Operating income 26,413.44B 29,240.67B 53,645.03B 58,886.66B 27,768.50B
Income before tax 25,960.99B 30,713.65B 56,195.96B 61,159.95B 30,019.22B
Net income 18,694.62B 22,415.65B 41,344.56B 43,890.87B 21,505.05B
EBITDA 47,344.29B 49,953.63B 75,762.43B 85,368.70B 57,366.14B
Diluted EPS 2,514.22 3,155.64 5,990.88 6,460.72 3,165.92
Dividends Per Share 420 570 850 1,416 1,416
Total Assets 242,179.52B 262,174.32B 301,752.09B 339,357.24B 352,564.49B
Total liabilities 63,119.71B 69,211.29B 87,260.66B 91,604.06B 89,684.07B
Total equity 172,876.76B 186,424.32B 207,213.41B 240,068.99B 254,915.47B
Operating cash flow 40,061.76B 47,385.64B 62,162.04B 67,031.86B 45,382.91B
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 177,286.50M 173,994.60M 211,917.91M 221,506.05M 197,568.15M
Gross Profit 66,195.31M 68,250.83M 95,092.10M 98,584.58M 68,070.74M
Operating income 23,337.48M 25,203.35M 47,452.05M 53,508.13M 23,811.42M
Income before tax 22,937.72M 26,472.95M 49,708.49M 55,573.78M 25,741.41M
Net income 16,517.55M 19,320.68M 36,571.60M 39,882.01M 18,440.52M
EBITDA 41,830.84M 43,056.44M 67,016.13M 77,571.38M 49,191.32M
Diluted EPS 2.22 2.71 5.29 5.87 2.71
Dividends Per Share 0.37 0.49 0.75 1.28 1.21
Total Assets 206,540.88M 217,067.64M 281,866.40M 304,138.05M 304,867.92M
Total liabilities 53,831.14M 57,303.59M 81,510.11M 82,097.20M 77,551.19M
Total equity 147,436.57M 154,350.31M 193,557.89M 215,154.13M 220,429.31M
Operating cash flow 35,396.39M 40,843.01M 54,985.82M 60,909.37M 38,915.73M

Valuation Measures

Dec 2019
PER17.62
ROA6.21%
ROE8.68%
Operating margin12.05%
Profit margin9.33%

Key executives

  • President, Co-CEO & Director: Kinam Kim
  • Co-President, Co-CEO & Director: Hyun-Suk Kim
  • Co-President, Co-CEO & Director: Dongjin Koh
  • Co-President & Head-Research & Development: Tae Moon Roh
  • Chief Financial Officer: Hee-Chan Roh

Shareholders

  • National Pension Service of Korea (10.9%)
  • Samsung Life Insurance Co., Ltd. (8.5%)
  • Samsung C&T Corp. (5.0%)
  • LEE KUN HEE (4.1%)
  • The Vanguard Group, Inc. (2.1%)
  • BlackRock Fund Advisors (1.6%)
  • Samsung Fire & Marine Insurance Co., Ltd. (1.4%)
  • Norges Bank Investment Management (1.4%)
  • Fidelity Management & Research Co. LLC (1.1%)
  • Capital Research & Management Co. (World Investors) (0.9%)

Contact Details

  • Website:http://www.samsung.com
  • Address: 129 Samsung-ro, Yeongtong-gu, Suwon, 16677, South Korea
  • Phone: +82.31.200.1114

Related Companies

  • Samsung Electronics RUS Co.
  • Samsung Hungary Ltd.
  • Samsung Brake Corp.
  • Thai Samsung Mechanical Co., Ltd.
  • Samsung Medison India Pvt Ltd.
  • Samsung Electronics Nigeria Ltd.
  • Samyang Japan Co., Ltd.
  • Samsung (CHINA) Investment Co. Ltd. Beijing Branch
  • Samsung Electro Mechanics Co. Ltd. /PLP Business/
  • Samsung Strategy & Innovation Center
  • Samsung SDS Asia Pacific Pte Ltd.
  • S-Printing Solution Co., Ltd.
  • Samsung Electronics Co. Ltd. / In-Vitro Diagnostic /
  • Samsung R&D Institute India - Bangalore Pvt Ltd.
  • AMX Products & Solutions Pvt Ltd.
  • Innoetics
  • Samsung Bussan Co., Ltd.
  • Samsung Shuttle Co.
  • Samsung Electronics Latinoamerica Columbia SA
  • Samsung Global Strategy Group
  • Mirero System Co., Ltd.
  • Melaud AB
  • Laos Samsung Electronics Sole Co. Ltd.
  • Samsung Electronics HCMC CE Complex Co. Ltd.
  • Samsung Research America, Inc.
  • Samsung Accelerator
  • Samsung Next LLC
  • Samsung Electronics (China) R&D Center
  • Shenzhen Samsung Electronics Telecommunication Co.Ltd
  • Samsung Telecom Research Israel

Competitors

  • Logitech International S.A.
  • Aptiv PLC
  • Panasonic Corporation
  • Yamaha Corporation
  • Apple Inc.
  • Alps Alpine Co., Ltd.
  • Amazon.com, Inc.
  • Continental AG
  • Mitsubishi Corporation
  • Primax Electronics Ltd.
  • HP Inc.
  • Technicolor SA
  • Canon Inc.
  • Nokia Oyj
  • Dreamus Company
  • Skyworth Group Limited
  • Kinpo Electronics, Inc.
  • Garmin Ltd.
  • Sonos, Inc.
  • Archos SA
  • Lite-On Technology Corp.
  • TCL Electronics Holdings Limited
  • Arcelik A.S.
  • Bigben Interactive SA
  • Guillemot Corp. SA
  • Inseego Corp.
  • Dolby Laboratories, Inc. Class A
  • Huami Corporation Sponsored ADR Class A
  • ClearOne, Inc.
  • Micron Technology, Inc.
Last Updated on 22 Oct, 2020

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