Samsung Electronics’ shares fell 8.7% on Monday, wiping ₩165 trillion ($115 billion) off its market capitalization, after the company unveiled a record ₩90–110 trillion ($65–79 billion) shareholder return plan for 2026.
The announcement, made on Friday, follows Samsung’s strong financial performance, with revenue rising 57.3% over three years to $231.1 billion and net income nearly tripling to $30.7 billion. Gross margins reached 57.5%, while net margins stood at 30.9%. EBITDA climbed 82% to $61.8 billion over the same period, supported by demand from the AI memory supercycle.
The company’s shareholder return plan, five times larger than its previous record, includes dividends and buybacks. Samsung’s market capitalization stood at ₩1,789 trillion ($1.30 trillion) at Monday’s close, with shares falling to ₩257,000. Analysts cited the plan’s scale as a key driver of the sell-off, despite the company’s robust fundamentals.
InvestingPro’s fair value target for Samsung is $259.71, implying a 39.4% upside from current levels, while the consensus analyst target suggests a 75.1% potential gain. Samsung’s valuation metrics remain attractive, with a trailing P/E of 11.2x, forward P/E of 5.9x, and an EV/EBITDA of 6.5x. The company also maintains a strong balance sheet, with a debt-to-equity ratio of 3.9% and a free cash flow yield of 8.6%. Its dividend yield is 0.5%, backed by 34 consecutive years of payouts.
Technical indicators suggest mixed signals. The daily RSI is at 49.2, indicating a neutral stance, while the stochastic oscillator is at 92.3, signaling overbought conditions. On a monthly basis, the RSI stands at 65.9, with a firmly positive MACD, reinforcing a strong buy signal.
The sell-off contrasts with competitor SK Hynix, which rose 1.33% to ₩1,753,000 after announcing plans to buy back and cancel ₩40 trillion of treasury shares and commit over 50% of free cash flow from 2025–2027 to shareholder returns.
