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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 2021 KRWUSD
Revenue279,604.79B244,162.35M
Gross Profit108,951.12B95,140.58M
Operating income51,632.80B45,087.87M
Income before tax52,622.21B45,951.87M
Net income39,243.79B34,269.28M
EBITDA85,880.16B74,994.07M
Diluted EPS5,777.375.04
Dividends Per Share1,4441.26
Total Assets426,621.15B358,882.16M
Total liabilities121,721.22B102,394.30M
Total equity296,237.69B249,201.01M
Operating cash flow65,105.44B56,852.74M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 239,575.37B 243,771.41B 230,400.88B 236,806.98B 279,604.79B
Gross Profit 107,502.60B 108,494.11B 79,383.04B 88,194.79B 108,951.12B
Operating income 53,645.03B 58,886.66B 27,768.50B 35,993.87B 51,632.80B
Income before tax 56,195.96B 61,159.95B 30,019.22B 35,838.58B 52,622.21B
Net income 41,344.56B 43,890.87B 21,505.05B 26,090.84B 39,243.79B
EBITDA 75,762.43B 85,368.70B 57,366.14B 66,329.49B 85,880.16B
Diluted EPS 5,990.88 6,460.72 3,165.92 3,841.02 5,777.37
Dividends Per Share 850 1,416 1,416 1,416 1,444
Total Assets 301,752.09B 339,357.24B 352,564.49B 378,235.71B 426,621.15B
Total liabilities 87,260.66B 91,604.06B 89,684.07B 102,287.70B 121,721.22B
Total equity 207,213.41B 240,068.99B 254,915.47B 267,670.33B 296,237.69B
Operating cash flow 62,162.04B 67,031.86B 45,382.91B 65,287.00B 65,105.44B
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 211,917.91M 221,506.05M 197,568.15M 200,702.96M 244,162.35M
Gross Profit 95,092.10M 98,584.58M 68,070.74M 74,748.45M 95,140.58M
Operating income 47,452.05M 53,508.13M 23,811.42M 30,506.18M 45,087.87M
Income before tax 49,708.49M 55,573.78M 25,741.41M 30,374.57M 45,951.87M
Net income 36,571.60M 39,882.01M 18,440.52M 22,112.98M 34,269.28M
EBITDA 67,016.13M 77,571.38M 49,191.32M 56,216.77M 74,994.07M
Diluted EPS 5.29 5.87 2.71 3.25 5.04
Dividends Per Share 0.75 1.28 1.21 1.20 1.26
Total Assets 281,866.40M 304,138.05M 304,867.92M 348,187.14M 358,882.16M
Total liabilities 81,510.11M 82,097.20M 77,551.19M 94,161.55M 102,394.30M
Total equity 193,557.89M 215,154.13M 220,429.31M 246,405.51M 249,201.01M
Operating cash flow 54,985.82M 60,909.37M 38,915.73M 55,333.23M 56,852.74M

Valuation Measures

Dec 2021
PER13.55
ROA9.75%
ROE13.91%
Operating margin18.46%
Profit margin14.03%

Key executives

  • Vice Chairman & Co-Chief Executive Officer: Jong-Hee Han
  • Co-Chief Executive Officer & Executive Director: Kye Hyun Kyung
  • Chief Financial Officer: Hee-Chan Roh
  • Executive Director & Head-Compliance Team: Sang-Ju Lee
  • Head-Compliance Management: Sang-Gyun Kim

Shareholders

  • Samsung Life Insurance Co., Ltd. (8.5%)
  • National Pension Service of Korea (7.6%)
  • Samsung C&T Corp. (5.0%)
  • The Vanguard Group, Inc. (2.0%)
  • HONG RA HEE (1.9%)
  • BlackRock Fund Advisors (1.7%)
  • LEE JAE-YONG /SAMSUNG ELECTRONICS/ (1.6%)
  • Samsung Fire & Marine Insurance Co., Ltd. (1.4%)
  • Norges Bank Investment Management (1.4%)
  • Fidelity Management & Research Co. LLC (1.0%)

Contact Details

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

Related Companies

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  • Dowooinssys Co., Ltd.
  • Samsung Electronics Service Customer Satisfaction Co., Ltd.
  • Samsung Electronics Latinoamerica (Zona Libre) SA
  • SNB Technologies, Inc. Mexico SA de CV
  • Samsung SemiConductor Xian Co., Ltd.
  • Samsung R&D Institute Rus LLC
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  • Samsung R&D Institute Japan Co., Ltd.
  • Samsung Electronics Co. Ltd. /Subsidiaries 2/
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  • Samsung Electronics Rus Co. LLC
  • Samsung HVAC America LLC
  • Samsung Hungary Ltd.
  • Samsung Brake Corp.
  • Harman International Korea, Inc.
  • 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 Semiconductor (China) R&D Co., Ltd.
  • Samsung Electro Mechanics Co. Ltd. /PLP Business/
  • Beijing Integrated Circuit Industry International Fund LP
  • Samsung Strategy & Innovation Center

Competitors

  • Logitech International S.A.
  • Aptiv PLC
  • Panasonic Holdings Corporation
  • Yamaha Corporation
  • Apple Inc.
  • Alps Alpine Co., Ltd.
  • Taiwan Semiconductor Manufacturing Co., Ltd.
  • Amazon.com, Inc.
  • Continental AG
  • Mitsubishi Corporation
  • Primax Electronics Ltd.
  • Nokia Oyj
  • HP Inc.
  • Canon Inc.
  • Dreamus Company
  • TCL Electronics Holdings Limited
  • HF Co. SA
  • Skyworth Group Limited
  • Kinpo Electronics, Inc.
  • Sonos, Inc.
  • Archos SA
  • Panasonic Manufacturing Philippines Corporation
  • Garmin Ltd.
  • ClearOne, Inc.
  • Coretronic Corporation
  • Bigben Interactive SA
  • United Microelectronics Corp.
  • Guillemot Corp. SA
  • Koss Corporation
  • Inseego Corp.
Last Updated on 2 Dec, 2022

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