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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 2020 KRWUSD
Revenue236,806.98B200,702.96M
Gross Profit88,194.79B74,748.45M
Operating income35,993.87B30,506.18M
Income before tax35,838.58B30,374.57M
Net income26,090.84B22,112.98M
EBITDA66,329.49B56,216.77M
Diluted EPS3,841.023.25
Dividends Per Share1,4161.20
Total Assets378,235.71B348,187.14M
Total liabilities102,287.70B94,161.55M
Total equity267,670.33B246,405.51M
Operating cash flow65,287.00B55,333.23M
Currency in KRWCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 201,866.74B 239,575.37B 243,771.41B 230,400.88B 236,806.98B
Gross Profit 79,183.91B 107,502.60B 108,494.11B 79,383.04B 88,194.79B
Operating income 29,240.67B 53,645.03B 58,886.66B 27,768.50B 35,993.87B
Income before tax 30,713.65B 56,195.96B 61,159.95B 30,019.22B 35,838.58B
Net income 22,415.65B 41,344.56B 43,890.87B 21,505.05B 26,090.84B
EBITDA 49,953.63B 75,762.43B 85,368.70B 57,366.14B 66,329.49B
Diluted EPS 3,155.64 5,990.88 6,460.72 3,165.92 3,841.02
Dividends Per Share 570 850 1,416 1,416 1,416
Total Assets 262,174.32B 301,752.09B 339,357.24B 352,564.49B 378,235.71B
Total liabilities 69,211.29B 87,260.66B 91,604.06B 89,684.07B 102,287.70B
Total equity 186,424.32B 207,213.41B 240,068.99B 254,915.47B 267,670.33B
Operating cash flow 47,385.64B 62,162.04B 67,031.86B 45,382.91B 65,287.00B
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 173,994.60M 211,917.91M 221,506.05M 197,568.15M 200,702.96M
Gross Profit 68,250.83M 95,092.10M 98,584.58M 68,070.74M 74,748.45M
Operating income 25,203.35M 47,452.05M 53,508.13M 23,811.42M 30,506.18M
Income before tax 26,472.95M 49,708.49M 55,573.78M 25,741.41M 30,374.57M
Net income 19,320.68M 36,571.60M 39,882.01M 18,440.52M 22,112.98M
EBITDA 43,056.44M 67,016.13M 77,571.38M 49,191.32M 56,216.77M
Diluted EPS 2.71 5.29 5.87 2.71 3.25
Dividends Per Share 0.49 0.75 1.28 1.21 1.20
Total Assets 217,067.64M 281,866.40M 304,138.05M 304,867.92M 348,187.14M
Total liabilities 57,303.59M 81,510.11M 82,097.20M 77,551.19M 94,161.55M
Total equity 154,350.31M 193,557.89M 215,154.13M 220,429.31M 246,405.51M
Operating cash flow 40,843.01M 54,985.82M 60,909.37M 38,915.73M 55,333.23M

Valuation Measures

Dec 2020
PER21.08
ROA7.14%
ROE9.98%
Operating margin15.19%
Profit margin11.01%

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 (9.9%)
  • Samsung Life Insurance Co., Ltd. (8.5%)
  • Samsung C&T Corp. (5.0%)
  • Estate of LEE KUN-HEE (4.1%)
  • The Vanguard Group, Inc. (1.8%)
  • BlackRock Fund Advisors (1.8%)
  • Samsung Fire & Marine Insurance Co., Ltd. (1.4%)
  • Norges Bank Investment Management (1.4%)
  • Fidelity Management & Research Co. LLC (1.4%)
  • HONG RA HEE (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 Co. Ltd. /Subsidiaries 2/
  • Samsung Electronics Singapore Pte Ltd.
  • 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

Competitors

  • Logitech International S.A.
  • Aptiv PLC
  • Visteon Corporation
  • Panasonic Corporation
  • Yamaha Corporation
  • Apple Inc.
  • Alps Alpine Co., Ltd.
  • Amazon.com, Inc.
  • Continental AG
  • Mitsubishi Corporation
  • Primax Electronics Ltd.
  • HP Inc.
  • Canon Inc.
  • Nokia Oyj
  • Dreamus Company
  • Skyworth Group Limited
  • Kinpo Electronics, Inc.
  • Sonos, Inc.
  • Archos SA
  • Garmin Ltd.
  • Lite-On Technology Corp.
  • TCL Electronics Holdings Limited
  • Arcelik A.S.
  • Koss Corporation
  • Bigben Interactive SA
  • Guillemot Corp. SA
  • Inseego Corp.
  • Dolby Laboratories, Inc. Class A
  • NETGEAR, Inc.
  • Zepp Health Corporation Sponsored ADR Class A
Last Updated on 16 Apr, 2021

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