UNITED MICROELECTRON-SP ADR (UMC) Stock Fundamental Analysis
NYSE:UMC - New York Stock Exchange, Inc. - US9108734057 - ADR - Currency: USD
Overall UMC gets a fundamental rating of 5 out of 10. We evaluated UMC against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. UMC has an excellent profitability rating, but there are some minor concerns on its financial health. UMC shows excellent growth, but is valued quite expensive already. Finally UMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UMC had positive earnings in each of the past 5 years.
UMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.28%, UMC is doing good in the industry, outperforming 75.45% of the companies in the same industry.
UMC's Return On Equity of 12.49% is fine compared to the rest of the industry. UMC outperforms 73.64% of its industry peers.
UMC's Return On Invested Capital of 8.72% is fine compared to the rest of the industry. UMC outperforms 76.36% of its industry peers.
UMC had an Average Return On Invested Capital over the past 3 years of 13.31%. This is above the industry average of 11.19%.
The 3 year average ROIC (13.31%) for UMC is well above the current ROIC(8.72%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.28% | ||
| ROE | 12.49% | ||
| ROIC | 8.72% |
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's Profit Margin of 20.32% is amongst the best of the industry. UMC outperforms 81.82% of its industry peers.
UMC's Profit Margin has improved in the last couple of years.
UMC's Operating Margin of 22.19% is amongst the best of the industry. UMC outperforms 82.73% of its industry peers.
In the last couple of years the Operating Margin of UMC has grown nicely.
UMC's Gross Margin of 32.57% is on the low side compared to the rest of the industry. UMC is outperformed by 67.27% of its industry peers.
In the last couple of years the Gross Margin of UMC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.19% | ||
| PM (TTM) | 20.32% | ||
| GM | 32.57% |
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
The number of shares outstanding for UMC has been increased compared to 5 years ago.
UMC has a better debt/assets ratio than last year.
2.2 Solvency
UMC has a debt to FCF ratio of 32.21. This is a negative value and a sign of low solvency as UMC would need 32.21 years to pay back of all of its debts.
UMC has a Debt to FCF ratio (32.21) which is in line with its industry peers.
UMC has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
UMC has a Debt to Equity ratio of 0.18. This is comparable to the rest of the industry: UMC outperforms 46.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 32.21 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.52 indicates that UMC has no problem at all paying its short term obligations.
UMC has a worse Current ratio (2.52) than 60.91% of its industry peers.
UMC has a Quick Ratio of 2.04. This indicates that UMC is financially healthy and has no problem in meeting its short term obligations.
UMC has a Quick ratio of 2.04. This is comparable to the rest of the industry: UMC outperforms 48.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
UMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.89%, which is quite impressive.
The Earnings Per Share has been growing by 37.18% on average over the past years. This is a very strong growth
Looking at the last year, UMC shows a small growth in Revenue. The Revenue has grown by 5.64% in the last year.
The Revenue has been growing by 9.41% on average over the past years. This is quite good.
EPS 1Y (TTM)32.89%
EPS 3Y-5.91%
EPS 5Y37.18%
EPS Q2Q%252.25%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y2.93%
Revenue growth 5Y9.41%
Sales Q2Q%3.7%
3.2 Future
UMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.62% yearly.
Based on estimates for the next years, UMC will show a quite strong growth in Revenue. The Revenue will grow by 11.60% on average per year.
EPS Next Y-5.62%
EPS Next 2Y4.85%
EPS Next 3Y7.95%
EPS Next 5Y14.62%
Revenue Next Year6.7%
Revenue Next 2Y7.37%
Revenue Next 3Y7.43%
Revenue Next 5Y11.6%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
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
The decent profitability rating of UMC 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 6.31%, which is a nice return.
UMC's Dividend Yield is rather good when compared to the industry average which is at 2.75. UMC pays more dividend than 98.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, UMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
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.
UMC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)38.65%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
UMC pays out 79.61% 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.
DP79.61%
EPS Next 2Y4.85%
EPS Next 3Y7.95%
7.35
+0.34 (+4.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners45.16%
Inst Owner Change-0.95%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap18.46B
Analysts68.75
Price Target6.96 (-5.31%)
Short Float %3.34%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
Yearly DividendN/A
Dividend Growth(5Y)38.65%
DP79.61%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-14.53%
Min EPS beat(2)-30.13%
Max EPS beat(2)1.06%
EPS beat(4)2
Avg EPS beat(4)-3.05%
Min EPS beat(4)-30.13%
Max EPS beat(4)20.24%
EPS beat(8)6
Avg EPS beat(8)7.48%
EPS beat(12)8
Avg EPS beat(12)4.84%
EPS beat(16)11
Avg EPS beat(16)8.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.47%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-1.23%
Revenue beat(4)1
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)0.32%
Revenue beat(8)2
Avg Revenue beat(8)-1.13%
Revenue beat(12)5
Avg Revenue beat(12)-0.58%
Revenue beat(16)6
Avg Revenue beat(16)-0.57%
PT rev (1m)1.54%
PT rev (3m)16.42%
EPS NQ rev (1m)-2.8%
EPS NQ rev (3m)-3.47%
EPS NY rev (1m)-2.98%
EPS NY rev (3m)-5.46%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-1.22%
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 | 8.28% | ||
| ROE | 12.49% | ||
| ROCE | 10.41% | ||
| ROIC | 8.72% | ||
| ROICexc | 11.31% | ||
| ROICexgc | 11.44% | ||
| OM | 22.19% | ||
| PM (TTM) | 20.32% | ||
| GM | 32.57% | ||
| FCFM | 1.09% |
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 | 0.18 | ||
| Debt/FCF | 32.21 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 189.64% | ||
| Cap/Sales | 39.32% | ||
| Interest Coverage | 38.47 | ||
| Cash Conversion | 94.15% | ||
| Profit Quality | 5.36% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.04 | ||
| 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)32.89%
EPS 3Y-5.91%
EPS 5Y37.18%
EPS Q2Q%252.25%
EPS Next Y-5.62%
EPS Next 2Y4.85%
EPS Next 3Y7.95%
EPS Next 5Y14.62%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y2.93%
Revenue growth 5Y9.41%
Sales Q2Q%3.7%
Revenue Next Year6.7%
Revenue Next 2Y7.37%
Revenue Next 3Y7.43%
Revenue Next 5Y11.6%
EBIT growth 1Y-10.56%
EBIT growth 3Y0%
EBIT growth 5Y61.17%
EBIT Next Year106.79%
EBIT Next 3Y36.59%
EBIT Next 5Y31.96%
FCF growth 1Y131.53%
FCF growth 3Y-60.29%
FCF growth 5Y-41.19%
OCF growth 1Y9.15%
OCF growth 3Y1.28%
OCF growth 5Y11.32%