UNITED MICROELECTRON-SP ADR (UMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UMC - US9108734057 - ADR
8.85 USD
+0.06 (+0.68%)
8.88 USD
+0.03 (+0.34%)
We assign a fundamental rating of 5 out of 10 to UMC. UMC was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While UMC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, UMC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past 5 years UMC has always been profitable.
Each year in the past 5 years UMC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.23%, UMC is in the better half of the industry, outperforming 72.57% of the companies in the same industry.
UMC has a better Return On Equity (11.12%) than 72.57% of its industry peers.
UMC's Return On Invested Capital of 7.59% is fine compared to the rest of the industry. UMC outperforms 75.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UMC is above the industry average of 10.75%.
The 3 year average ROIC (13.31%) for UMC is well above the current ROIC(7.59%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | 11.12% | ||
| ROIC | 7.59% |
ROA(3y)11.85%
ROA(5y)11.06%
ROE(3y)18.5%
ROE(5y)17.55%
ROIC(3y)13.31%
ROIC(5y)11.57%
1.3 Margins
UMC has a Profit Margin of 17.01%. This is in the better half of the industry: UMC outperforms 76.99% of its industry peers.
UMC's Profit Margin has improved in the last couple of years.
UMC has a Operating Margin of 18.46%. This is in the better half of the industry: UMC outperforms 76.99% of its industry peers.
In the last couple of years the Operating Margin of UMC has grown nicely.
The Gross Margin of UMC (28.92%) is worse than 72.57% of its industry peers.
UMC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.46% | ||
| PM (TTM) | 17.01% | ||
| GM | 28.92% |
OM growth 3Y-2.85%
OM growth 5Y47.32%
PM growth 3Y-8.1%
PM growth 5Y25.41%
GM growth 3Y-1.25%
GM growth 5Y17.76%
2. Health
2.1 Basic Checks
Compared to 1 year ago, UMC has more shares outstanding
UMC has more shares outstanding than it did 5 years ago.
UMC has a better debt/assets ratio than last year.
2.2 Solvency
UMC has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
UMC has a better Debt to FCF ratio (1.98) than 69.91% of its industry peers.
UMC has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
UMC's Debt to Equity ratio of 0.21 is in line compared to the rest of the industry. UMC outperforms 46.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.34 indicates that UMC has no problem at all paying its short term obligations.
UMC has a Current ratio of 2.34. This is in the lower half of the industry: UMC underperforms 61.95% of its industry peers.
UMC has a Quick Ratio of 1.92. This is a normal value and indicates that UMC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.92, UMC is in line with its industry, outperforming 44.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
UMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.82%.
The Earnings Per Share has been growing by 37.18% on average over the past years. This is a very strong growth
UMC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.08%.
Measured over the past years, UMC shows a quite strong growth in Revenue. The Revenue has been growing by 9.41% on average per year.
EPS 1Y (TTM)-22.82%
EPS 3Y-5.91%
EPS 5Y37.18%
EPS Q2Q%3.48%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y2.93%
Revenue growth 5Y9.41%
Sales Q2Q%-2.25%
3.2 Future
Based on estimates for the next years, UMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.67% on average per year.
The Revenue is expected to decrease by -0.18% on average over the next years.
EPS Next Y-11.03%
EPS Next 2Y-1.4%
EPS Next 3Y3.45%
EPS Next 5Y9.67%
Revenue Next Year1.46%
Revenue Next 2Y3.89%
Revenue Next 3Y5.44%
Revenue Next 5Y-0.18%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
UMC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.4%
EPS Next 3Y3.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.40%, UMC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.53, UMC pays a better dividend. On top of this UMC pays more dividend than 99.11% of the companies listed in the same industry.
UMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
5.2 History
On average, the dividend of UMC grows each year by 38.65%, which is quite nice.
UMC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)38.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
UMC pays out 89.12% of its income as dividend. This is not a sustainable payout ratio.
The dividend of UMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP89.12%
EPS Next 2Y-1.4%
EPS Next 3Y3.45%
8.85
+0.06 (+0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners40.02%
Inst Owner Change0.02%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap22.22B
Revenue(TTM)236.13B
Net Income(TTM)40.16B
Analysts64.38
Price Target8.08 (-8.7%)
Short Float %1.98%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
Yearly DividendN/A
Dividend Growth(5Y)38.65%
DP89.12%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.99%
Min EPS beat(2)-20.74%
Max EPS beat(2)50.72%
EPS beat(4)1
Avg EPS beat(4)-4.06%
Min EPS beat(4)-30.13%
Max EPS beat(4)50.72%
EPS beat(8)4
Avg EPS beat(8)1.1%
EPS beat(12)7
Avg EPS beat(12)5.65%
EPS beat(16)9
Avg EPS beat(16)4.5%
Revenue beat(2)0
Avg Revenue beat(2)-4.38%
Min Revenue beat(2)-6.37%
Max Revenue beat(2)-2.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.94%
Min Revenue beat(4)-6.37%
Max Revenue beat(4)-1.23%
Revenue beat(8)1
Avg Revenue beat(8)-2.02%
Revenue beat(12)2
Avg Revenue beat(12)-1.77%
Revenue beat(16)6
Avg Revenue beat(16)-1.08%
PT rev (1m)1.96%
PT rev (3m)4.82%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)6.76%
EPS NY rev (1m)0.84%
EPS NY rev (3m)10.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | N/A | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)N/A
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpSN/A
BVpSN/A
TBVpSN/A
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | 11.12% | ||
| ROCE | 9.21% | ||
| ROIC | 7.59% | ||
| ROICexc | 10.03% | ||
| ROICexgc | 10.16% | ||
| OM | 18.46% | ||
| PM (TTM) | 17.01% | ||
| GM | 28.92% | ||
| FCFM | 19.25% |
ROA(3y)11.85%
ROA(5y)11.06%
ROE(3y)18.5%
ROE(5y)17.55%
ROIC(3y)13.31%
ROIC(5y)11.57%
ROICexc(3y)20.74%
ROICexc(5y)18.11%
ROICexgc(3y)21.06%
ROICexgc(5y)18.41%
ROCE(3y)15.8%
ROCE(5y)13.74%
ROICexgc growth 3Y-17.56%
ROICexgc growth 5Y42.58%
ROICexc growth 3Y-17.4%
ROICexc growth 5Y42.98%
OM growth 3Y-2.85%
OM growth 5Y47.32%
PM growth 3Y-8.1%
PM growth 5Y25.41%
GM growth 3Y-1.25%
GM growth 5Y17.76%
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 95.27% | ||
| Cap/Sales | 23.03% | ||
| Interest Coverage | 34.59 | ||
| Cash Conversion | 99.17% | ||
| Profit Quality | 113.17% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | N/A |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)203.17%
Cap/Depr(5y)154.73%
Cap/Sales(3y)37.1%
Cap/Sales(5y)30.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-22.82%
EPS 3Y-5.91%
EPS 5Y37.18%
EPS Q2Q%3.48%
EPS Next Y-11.03%
EPS Next 2Y-1.4%
EPS Next 3Y3.45%
EPS Next 5Y9.67%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y2.93%
Revenue growth 5Y9.41%
Sales Q2Q%-2.25%
Revenue Next Year1.46%
Revenue Next 2Y3.89%
Revenue Next 3Y5.44%
Revenue Next 5Y-0.18%
EBIT growth 1Y-16.14%
EBIT growth 3Y0%
EBIT growth 5Y61.17%
EBIT Next Year95.14%
EBIT Next 3Y33.02%
EBIT Next 5Y21.42%
FCF growth 1Y630.59%
FCF growth 3Y-60.29%
FCF growth 5Y-41.19%
OCF growth 1Y-0.89%
OCF growth 3Y1.28%
OCF growth 5Y11.32%
UNITED MICROELECTRON-SP ADR / UMC FAQ
Can you provide the ChartMill fundamental rating for UNITED MICROELECTRON-SP ADR?
ChartMill assigns a fundamental rating of 5 / 10 to UMC.
What is the valuation status of UNITED MICROELECTRON-SP ADR (UMC) stock?
ChartMill assigns a valuation rating of 1 / 10 to UNITED MICROELECTRON-SP ADR (UMC). This can be considered as Overvalued.
Can you provide the profitability details for UNITED MICROELECTRON-SP ADR?
UNITED MICROELECTRON-SP ADR (UMC) has a profitability rating of 7 / 10.
What is the expected EPS growth for UNITED MICROELECTRON-SP ADR (UMC) stock?
The Earnings per Share (EPS) of UNITED MICROELECTRON-SP ADR (UMC) is expected to decline by -11.03% in the next year.
How sustainable is the dividend of UNITED MICROELECTRON-SP ADR (UMC) stock?
The dividend rating of UNITED MICROELECTRON-SP ADR (UMC) is 6 / 10 and the dividend payout ratio is 89.12%.