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 109 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. 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.
Each year in the past 5 years UMC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of UMC (8.28%) is better than 74.31% of its industry peers.
The Return On Equity of UMC (12.49%) is better than 74.31% of its industry peers.
UMC's Return On Invested Capital of 8.72% is fine compared to the rest of the industry. UMC outperforms 76.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UMC is above the industry average of 11.14%.
The last Return On Invested Capital (8.72%) 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 | 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 has a better Profit Margin (20.32%) than 81.65% of its industry peers.
In the last couple of years the Profit Margin of UMC has grown nicely.
Looking at the Operating Margin, with a value of 22.19%, UMC belongs to the top of the industry, outperforming 82.57% of the companies in the same industry.
UMC's Operating Margin has improved in the last couple of years.
UMC has a Gross Margin of 32.57%. This is in the lower half of the industry: UMC underperforms 66.97% of its industry peers.
UMC's Gross Margin has improved in the last couple of years.
| 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
UMC has more shares outstanding than it did 1 year ago.
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 of 32.21. This is comparable to the rest of the industry: UMC outperforms 46.79% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that UMC is not too dependend on debt financing.
UMC has a Debt to Equity ratio (0.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 32.21 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
UMC has a Current Ratio of 2.52. This indicates that UMC is financially healthy and has no problem in meeting its short term obligations.
UMC has a worse Current ratio (2.52) than 60.55% 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 50.46% 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -22.73%.
Measured over the past years, UMC shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.18% on average per year.
UMC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.39%.
The Revenue has been growing by 9.41% on average over the past years. This is quite good.
EPS 1Y (TTM)-22.73%
EPS 3Y-5.91%
EPS 5Y37.18%
EPS Q2Q%-36.54%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y2.93%
Revenue growth 5Y9.41%
Sales Q2Q%9.88%
3.2 Future
The Earnings Per Share is expected to grow by 14.62% on average over the next years. This is quite good.
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-4.88%
EPS Next 2Y5.11%
EPS Next 3Y9.04%
EPS Next 5Y14.62%
Revenue Next Year7.52%
Revenue Next 2Y8.52%
Revenue Next 3Y12%
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 2Y5.11%
EPS Next 3Y9.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.46%, UMC is a good candidate for dividend investing.
UMC's Dividend Yield is rather good when compared to the industry average which is at 2.99. UMC pays more dividend than 98.17% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, UMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
5.2 History
The dividend of UMC is nicely growing with an annual growth rate of 38.65%!
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
79.61% of the earnings are spent on dividend by UMC. This is not a sustainable payout ratio.
UMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.61%
EPS Next 2Y5.11%
EPS Next 3Y9.04%
6.81
-0.04 (-0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners45.16%
Inst Owner Change0%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap17.10B
Analysts70.32
Price Target7.33 (7.64%)
Short Float %3.59%
Short Ratio5.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
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)10.7%
PT rev (3m)5.92%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-10.43%
EPS NY rev (1m)-1.93%
EPS NY rev (3m)-22.87%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
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)-22.73%
EPS 3Y-5.91%
EPS 5Y37.18%
EPS Q2Q%-36.54%
EPS Next Y-4.88%
EPS Next 2Y5.11%
EPS Next 3Y9.04%
EPS Next 5Y14.62%
Revenue 1Y (TTM)4.39%
Revenue growth 3Y2.93%
Revenue growth 5Y9.41%
Sales Q2Q%9.88%
Revenue Next Year7.52%
Revenue Next 2Y8.52%
Revenue Next 3Y12%
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%