| Common 005930.KS | Preferred 005935.KS | |
|---|---|---|
| Price | KRW 299,500 | KRW 190,900 |
| Preferred discount | — | -36.3% |
| 52w High | KRW 323,000 | KRW 199,700 |
| YTD | +133% (from ~128K) | +103% (from ~94K) |
| 5y return (KRW) | +314% (from 72K) | +199% (from 64K) |
| EUR equiv. | ~EUR 185 | ~EUR 118 |
FX: USD/KRW ~1,500; EUR/KRW ~1,620 (1 EUR = 1,620 KRW). KRW has weakened ~25% vs EUR over 5 years — structural headwind for EUR investors.
| Metric | Common | Preferred |
|---|---|---|
| Trailing P/E (last 4Q EPS ~12,571) | 23.8x | 15.2x |
| Forward P/E (consensus) | 5.6x | 4.0x |
| P/B | 4.07x | 2.59x |
| P/S (TTM) | 5.1x | 3.2x |
| EV/EBITDA | 13.3x | 8.2x |
| Regular div yield | 0.49% | 0.78% |
Dividend pattern: KRW 370/quarter regular + Q4 special (Q4 2025: KRW 566 vs 370 regular = 196 KRW special). Samsung's stated minimum KRW 9.8T annual shareholder return policy runs through 2026. Both share classes receive the same regular dividend per share; specials are irregular — do not rely on them in yield.
| Item | Value |
|---|---|
| Cash + Short-term investments | 125.8T |
| Total Debt | 25.2T |
| Net Cash | 100.6T |
| Working Capital | 141.3T |
| Total Equity | 424.3T |
| Current Ratio | 2.54x |
| Net Cash / Mkt Cap | ~5.1% |
Net cash = 100.6T KRW (~EUR 62B). Zero financial distress risk. One of the strongest balance sheets in global tech.
| Year | Revenue | Op Income | Net Income | EPS (KRW) | FCF |
|---|---|---|---|---|---|
| 2022 | 302T | 43.4T | 54.7T | 8,057 | 9.1T |
| 2023 | 259T | 6.6T | 14.5T | 2,131 | -16.4T |
| 2024 | 301T | 32.7T | 33.6T | 4,950 | 19.2T |
| 2025 | 334T | 43.6T | 44.3T | 6,603 | 33.2T |
| Q1 2026 | 134T (q) | 57T (q) | 47T (q) | 7,123 (q) | — |
Q1 2026 was Samsung's best quarter ever. DS (semiconductor) OP hit 53.7T in Q1 alone vs 1T in Q1 2025 — a 50x QoQ surge. 2023 was the memory downcycle trough (NAND+DRAM glut), not a structural impairment.
Foundry remains loss-making or near breakeven vs TSMC — the HBM4 base die ramp is the margin lever in 2026-2027.
KRW 361/quarter (2021-2024) stepped up to 372 by Q1 2026. Q4 2025 had a special of 566 KRW (vs 370 regular). Zero dividend interruptions over 10+ years.
Control runs: Lee Jae-yong -> Samsung C&T -> Samsung Life -> Samsung Electronics. Family controls ~24% indirectly. Korean 5% disclosure rules apply — less granular than US Form 4. No open-market Lee family purchases or sales flagged in 2026. Alignment via control structure but no direct bullish insider signal. AMBER.
37 analysts on common (strong buy, mean score 1.38/5.0). Mean target KRW 361,046 vs current 299,500 = +20.5% upside implied. High 590,000 / Low 205,000. Preferred: 4 analysts, mean target 260,263 vs 190,900 = +36.3% upside.
Post-Q1 upgrades across the board. HBM3E NVDA qualification (confirmed 2025, shipments Q3 2025+) removed the primary overhang. HBM sales expected to triple in 2026; 2026 HBM supply sold out.
| Quarter | Actual EPS (KRW) | Consensus | Surprise |
|---|---|---|---|
| Q3 2025 | 1,802 | 1,436 | +25.5% |
| Q4 2025 | 2,909 | 2,361 | +23.2% |
| Q1 2026 | 7,123 | 5,089 | +40.0% |
Acceleration unmistakable. Q1 2026 single-quarter EPS (7,123) > full-year 2025 EPS (6,603). Memory driven by HBM4 + server DRAM + enterprise SSD. Conventional DRAM also solidly profitable. Foundry declined QoQ (seasonality) but targets full advanced-node utilization Q2 2026.
Memory: Strong upcycle. HBM premium layer growing fast — Samsung now a qualified NVDA supplier. Risk: Samsung itself guided to a possible 2027 DRAM shortage-to-glut transition as HBM builds deplete conventional capacity.
Foundry: Still subscale vs TSMC. GAA (3nm) ramping but customer wins are limited. Not the near-term thesis.
| Filter | Test | Common | Preferred |
|---|---|---|---|
| F1 | Mkt cap > USD 2B | PASS (USD 1.31T) | PASS |
| F2 | Current ratio >= 2.0; LT debt < WC | PASS (2.54x; 25T < 141T) | PASS |
| F3 | Positive EPS 5-10yr | PASS (trough 2023 = 2,131 — still positive) | PASS |
| F4 | Dividend uninterrupted | PASS (10yr+) | PASS |
| F5 | >=33% normalized EPS growth | PASS (2016e 1,435 -> 2025 6,603 = +360%) | PASS |
| F6 | P/E <= 15 (<= 20 quality) | FAIL trailing 23.8x / PASS forward 5.6x | PASS forward 4.0x |
| F7 | P/E x P/B <= 22.5 | FAIL trailing 96.9 / PASS forward 22.9 | PASS forward 10.5 |
Score: 5/7 trailing; 7/7 forward. F6 and F7 fail trailing because the last-4Q EPS includes the 2023 trough (EPS 2,131). Per shr-003 and shr-004: for a company at a profitability inflection, forward P/E is the operative metric. The trailing failure is cyclicality, not a value-trap (shr-017 check: forward guidance is sharply UP, unlike Maersk).
Trailing EPS = KRW 12,571 (last 4 actual quarters):
| g | IV (KRW) | Common MoS | Preferred MoS |
|---|---|---|---|
| 0% | 106,854 | -180% | -79% |
| 3% | 182,280 | -64% | -5% |
| 5% | 232,564 | -29% | +18% |
| 7.5% | 295,418 | -1% | +35% |
| 10% | 358,274 | +16% | +47% |
Forward EPS = KRW 28,500 (conservative: Q1 2026 x 4):
| g | IV (KRW) | Common MoS | Preferred MoS |
|---|---|---|---|
| 0% | 242,250 | -24% | +21% |
| 3% | 413,250 | +28% | +54% |
| 5% | 527,250 | +43% | +64% |
| 7.5% | 669,750 | +55% | +72% |
| 10% | 812,250 | +63% | +77% |
Key read (shr-003): trailing P/E 23.8x (common) vs forward P/E 5.6x is a 4.2x gap — the market is pricing a profitability inflection, not sustained high growth. Common clears F7 only on forward at >=3% growth. Preferred clears F7 on forward at 0% growth and on trailing at 5%+. Preferred dominates on every Graham metric.
| Category | Status | Detail |
|---|---|---|
| Recent price action | RED | +133% common / +103% preferred YTD — 2x rally from trough already in |
| Earnings/news | GREEN | Q1 2026 record — thesis strengthened post-data |
| Dividend status | GREEN | Uninterrupted; stepped up; special paid Q4 2025 |
| Insider activity | AMBER | Complex Korean holding structure; no direct buy/sell signal in 2026 |
| Analyst revisions | GREEN | Post-Q1 upgrades; mean target +20.5% common / +36.3% preferred |
| Short interest | AMBER | KRX short data not accessible via standard tools |
| Balance sheet | GREEN | Net cash 100.6T; zero solvency risk |
| FX risk | RED | KRW weakened ~25% vs EUR over 5yr; structural drag on EUR returns |
| Broker access | RED | KRX not on DEGIRO — hard execution blocker |
DEGIRO does not list KRX (Korea Exchange). Three options:
FX path for LSE GDR: EUR -> GBP (at DEGIRO) -> KRW exposure. Double FX layer. KRW secular weakness vs EUR is a real return haircut.
Fundamental case is compelling: 7/7 Graham on forward metrics, fortress balance sheet (100.6T net cash), HBM thesis de-risked by NVDA qualification, and clear earnings inflection confirmed by Q1 2026 record. Preferred (005935.KS / SMSN.L) is the structurally superior share class at every valuation metric — 36% discount, higher yield, lower P/B, lower EV/EBITDA — with the same earnings exposure.
Hard blockers for this portfolio:
Recommended path: (1) Verify SMSN.L on DEGIRO with live spread check. (2) Add to watchlist at preferred ~162,000 KRW (~EUR 100 equivalent via SMSN.L). (3) No tranche 1 at current levels — YTD rally too far advanced, entry pricing is not a Graham margin of safety entry.
VERDICT LINE: YELLOW — WATCHLIST. Preferred (005935.KS / SMSN.L GDR) passes Graham 7/7 on forward, meaningful MoS at forward EPS from 3%+ growth, fortress balance sheet, HBM thesis now de-risked. Three hard blockers prevent immediate buy: (1) verify SMSN.L DEGIRO access first — KRX is inaccessible via DEGIRO; (2) wait for 15-20% pullback from current levels before sizing T1 — YTD +103% rally precludes a Graham MoS entry today; (3) KRW/EUR secular weakness is a structural return headwind. Common (005930.KS) explicitly not recommended over preferred — 36% premium for no additional earnings or dividend rights.