UNITED MICROELECTRON-SP ADR (UMC) Stock Fundamental Analysis
NYSE:UMC - New York Stock Exchange, Inc. - US9108734057 - ADR - Currency: USD
UMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 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. UMC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
Each year in the past 5 years UMC has been profitable.
Each year in the past 5 years UMC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.77%, UMC is doing good in the industry, outperforming 76.36% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.40%, UMC is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
UMC's Return On Invested Capital of 8.36% is fine compared to the rest of the industry. UMC outperforms 76.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UMC is above the industry average of 10.57%.
The last Return On Invested Capital (8.36%) for UMC is well below the 3 year average (13.31%), which needs to be investigated, but indicates that UMC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 11.4% | ||
| ROIC | 8.36% |
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 better Profit Margin (18.91%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of UMC has grown nicely.
UMC has a better Operating Margin (21.09%) than 81.82% of its industry peers.
UMC's Operating Margin has improved in the last couple of years.
UMC has a worse Gross Margin (31.50%) than 69.09% of its industry peers.
In the last couple of years the Gross Margin of UMC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.09% | ||
| PM (TTM) | 18.91% | ||
| GM | 31.5% |
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
Compared to 5 years ago, UMC has more shares outstanding
Compared to 1 year ago, UMC has an improved debt to assets ratio.
2.2 Solvency
UMC has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as UMC would need 3.36 years to pay back of all of its debts.
UMC has a Debt to FCF ratio (3.36) which is comparable to the rest of the industry.
UMC has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
UMC has a Debt to Equity ratio (0.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
UMC has a Current Ratio of 2.64. This indicates that UMC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.64, UMC is in line with its industry, outperforming 43.64% of the companies in the same industry.
A Quick Ratio of 2.15 indicates that UMC has no problem at all paying its short term obligations.
The Quick ratio of UMC (2.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
UMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.59%.
The Earnings Per Share has been growing by 37.18% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.64% in the past year.
The Revenue has been growing by 9.41% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.59%
EPS 3Y-5.91%
EPS 5Y37.18%
EPS Q2Q%-25.3%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y2.93%
Revenue growth 5Y9.41%
Sales Q2Q%5.91%
3.2 Future
The Earnings Per Share is expected to grow by 7.85% on average over the next years.
UMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.24% yearly.
EPS Next Y-5.62%
EPS Next 2Y4.85%
EPS Next 3Y7.95%
EPS Next 5Y7.85%
Revenue Next Year6.94%
Revenue Next 2Y7.26%
Revenue Next 3Y7.65%
Revenue Next 5Y6.24%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 2Y4.85%
EPS Next 3Y7.95%
5. Dividend
5.1 Amount
UMC has a Yearly Dividend Yield of 6.03%, which is a nice return.
UMC's Dividend Yield is rather good when compared to the industry average which is at 2.50. UMC pays more dividend than 98.18% of the companies in the same industry.
UMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.03% |
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 84.40% 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.
DP84.4%
EPS Next 2Y4.85%
EPS Next 3Y7.95%
8.27
+0.1 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners40.6%
Inst Owner Change-5.35%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap20.77B
Analysts68.13
Price Target7.75 (-6.29%)
Short Float %3.22%
Short Ratio6.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.03% |
Yearly DividendN/A
Dividend Growth(5Y)38.65%
DP84.4%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.12%
Min EPS beat(2)-30.13%
Max EPS beat(2)-16.11%
EPS beat(4)2
Avg EPS beat(4)-6.23%
Min EPS beat(4)-30.13%
Max EPS beat(4)20.24%
EPS beat(8)5
Avg EPS beat(8)2.64%
EPS beat(12)7
Avg EPS beat(12)2.86%
EPS beat(16)10
Avg EPS beat(16)5.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)-1.23%
Revenue beat(8)2
Avg Revenue beat(8)-0.95%
Revenue beat(12)4
Avg Revenue beat(12)-0.75%
Revenue beat(16)6
Avg Revenue beat(16)-0.6%
PT rev (1m)1.97%
PT rev (3m)17%
EPS NQ rev (1m)2.24%
EPS NQ rev (3m)6.66%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-4.13%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)2.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
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
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 11.4% | ||
| ROCE | 9.93% | ||
| ROIC | 8.36% | ||
| ROICexc | 10.86% | ||
| ROICexgc | 10.97% | ||
| OM | 21.09% | ||
| PM (TTM) | 18.91% | ||
| GM | 31.5% | ||
| FCFM | 8.66% |
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%
ROICexcg growth 3Y-17.56%
ROICexcg 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-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 148.77% | ||
| Cap/Sales | 32.47% | ||
| Interest Coverage | 36.71 | ||
| Cash Conversion | 95.84% | ||
| Profit Quality | 45.8% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z | N/A |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)203.18%
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)-19.59%
EPS 3Y-5.91%
EPS 5Y37.18%
EPS Q2Q%-25.3%
EPS Next Y-5.62%
EPS Next 2Y4.85%
EPS Next 3Y7.95%
EPS Next 5Y7.85%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y2.93%
Revenue growth 5Y9.41%
Sales Q2Q%5.91%
Revenue Next Year6.94%
Revenue Next 2Y7.26%
Revenue Next 3Y7.65%
Revenue Next 5Y6.24%
EBIT growth 1Y-9.41%
EBIT growth 3Y0%
EBIT growth 5Y61.17%
EBIT Next Year106.14%
EBIT Next 3Y36.15%
EBIT Next 5Y20.91%
FCF growth 1Y-49.96%
FCF growth 3Y-60.29%
FCF growth 5Y-41.19%
OCF growth 1Y-32.11%
OCF growth 3Y1.28%
OCF growth 5Y11.32%