Samsung Electronics Return On Equity vs. Shares Owned By Institutions

SMSN Stock  USD 967.50  27.00  2.71%   
Based on Samsung Electronics' profitability indicators, Samsung Electronics' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Samsung Electronics' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.08583719
Current Value
0.15
Quarterly Volatility
0.04868086
 
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Covid
The value of Price To Sales Ratio is estimated to slide to 0.95. The value of Days Sales Outstanding is estimated to slide to 52.88. The value of Net Interest Income is estimated to slide to about 2.2 T. The value of Interest Income is estimated to slide to about 3 T.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.290.3799
Way Down
Very volatile
Net Profit Margin0.0880.1117
Significantly Down
Very volatile
Operating Profit Margin0.10.1088
Significantly Down
Very volatile
Pretax Profit Margin0.10.1247
Significantly Down
Very volatile
Return On Assets0.10.0653
Way Up
Slightly volatile
Return On Equity0.150.0858
Way Up
Slightly volatile
For Samsung Electronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Samsung Electronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Samsung Electronics Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Samsung Electronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Samsung Electronics Co over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Samsung Electronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Samsung Electronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Samsung Electronics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Samsung Electronics Shares Owned By Institutions vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Samsung Electronics's current stock value. Our valuation model uses many indicators to compare Samsung Electronics value to that of its competitors to determine the firm's financial worth.
Samsung Electronics Co is rated second in return on equity category among its peers. It also is rated second in shares owned by institutions category among its peers producing about  12.50  of Shares Owned By Institutions per Return On Equity. At this time, Samsung Electronics' Return On Equity is quite stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Samsung Electronics' earnings, one of the primary drivers of an investment's value.

Samsung Shares Owned By Institutions vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Samsung Electronics

Return On Equity

 = 

Net Income

Total Equity

 = 
0.11
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

Samsung Electronics

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
1.33 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.

Samsung Shares Owned By Institutions Comparison

Samsung Electronics is currently under evaluation in shares owned by institutions category among its peers.

Samsung Electronics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Samsung Electronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Samsung Electronics will eventually generate negative long term returns. The profitability progress is the general direction of Samsung Electronics' change in net profit over the period of time. It can combine multiple indicators of Samsung Electronics, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Net Interest Income3.9 T2.2 T
Interest Income4.8 TT
Operating Income32.7 T31.1 T
Net Income From Continuing Ops34.5 T28 T
Income Before Tax37.5 T33.2 T
Net Income Applicable To Common Shares62.9 T41.6 T
Net Income33.6 T27.5 T
Income Tax Expense-8.3 T-7.9 T
Change To Netincome-13.2 T-12.5 T
Net Income Per ShareK2.7 K
Income Quality 2.12  1.46 
Net Income Per E B T 0.90  0.67 

Samsung Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Samsung Electronics. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Samsung Electronics position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Samsung Electronics' important profitability drivers and their relationship over time.

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Aggressive Funds Theme
Funds or Etfs that attempt to achieve high capital gains by investing in companies with high growth potential and above average risk. The Aggressive Funds theme has 42 constituents at this time.
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Other Information on Investing in Samsung Stock

To fully project Samsung Electronics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Samsung Electronics at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Samsung Electronics' income statement, its balance sheet, and the statement of cash flows.
Potential Samsung Electronics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Samsung Electronics investors may work on each financial statement separately, they are all related. The changes in Samsung Electronics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Samsung Electronics's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.