Samsung SDI Co., Ltd. (006400.KS) stock analysis

In our weekly check, Samsung SDI Co., Ltd. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 7 pass, warnings: 6, red flags: 12.

About Samsung SDI Co., Ltd.

Samsung SDI Co., Ltd. is an Industrials company (Electrical Equipment & Parts) based in South Korea, listed on KSC as 006400.KS.

What our checks show for 006400.KS

Red flags

• Net debt is 6.8x a year of EBITDA (debt/equity 0.51). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (-2.7x): interest is paid from cash or new debt.
• The net margin fell by 8.4 points over 5 years, to 0.3%: the company keeps less of each sale as profit.
• The gross margin fell by 5.4 points, to 17.3%: costs are rising faster than prices.
• Revenue fell 10.9% a year over the last 3 years.
• The net margin is only 0.3%: little room if costs rise.
• Free cash flow is negative (-15% of revenue): the business spends more cash than it brings in.
• The price is 998 times earnings (P/E): the market already pays for a lot of future growth.
• The price swings a lot: 75.7% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 80% from a peak. Would you have held through that?
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 74.2% a year over the last 3 years.
• Net profit fell 73.2% a year over the last 3 years.
• The stock is still below its previous peak.
• Beta 1.58: the stock usually moves more than the market, both up and down.
• The share count grew by 17.7% in 2 years: each shareholder owns a smaller slice.
• Thinly traded (about 470 thousand shares a day): buying and selling can move the price.

Strengths

• Operating cash flow is 5.34x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 394% a year over the next years.
• Analysts expect revenue to grow about 23.7% a year over the next years.
• Analysts expect the net margin to improve by 8.4 points from today's 0.3%.
• The dividend takes 8% of profit: there is a cushion.
• A large company: market value $29.14 billion.

Next earnings report: 2026-11-04

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Questions

What grade does Samsung SDI Co., Ltd. (006400.KS) have?

In our weekly check, Samsung SDI Co., Ltd. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 7 pass, warnings: 6, red flags: 12. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 006400.KS stock?

This week's biggest flags for Samsung SDI Co., Ltd.: High debt, Weak interest cover, Margins falling. In total 18 of 25 checks show a warning or a red flag.

What does Samsung SDI Co., Ltd. do?

Samsung SDI Co., Ltd. is an Industrials company (Electrical Equipment & Parts) based in South Korea, listed on KSC as 006400.KS.

When does Samsung SDI Co., Ltd. report earnings next?

The next earnings report is expected on 2026-11-04. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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