Buy Or Sell Opportunity • Jul 24
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 24% to NT$1,200. The fair value is estimated to be NT$1,540, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 33%. Revenue is forecast to grow by 198% in 2 years. Earnings are forecast to grow by 338% in the next 2 years. Annuncio • Jul 18
Universal Microwave Technology, Inc. (TPEX:3491) agreed to acquire an additional majority stake in Dynahz Technologies for TWD 1.7 billion. Universal Microwave Technology, Inc. (TPEX:3491) agreed to acquire an additional majority stake in Dynahz Technologies for TWD 1.7 billion on July 16, 2026. Upon completion, Universal Microwave will hold more than 51% of Dynahz.
The deal remains subject to contract signing, closing conditions, and seller procedures, with Dynahz’s existing management team expected to remain in place afterward.
The transaction is expected to be completed in August 2026. Declared Dividend • Jul 10
Dividend of NT$6.80 announced Shareholders will receive a dividend of NT$6.80. Ex-date: 23rd July 2026 Payment date: 28th August 2026 Dividend yield will be 0.5%, which is lower than the industry average of 4.0%. Buy Or Sell Opportunity • Jul 07
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 33% to NT$1,200. The fair value is estimated to be NT$1,538, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 33%. Revenue is forecast to grow by 198% in 2 years. Earnings are forecast to grow by 338% in the next 2 years. Buy Or Sell Opportunity • Jun 11
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 28% to NT$1,680. The fair value is estimated to be NT$1,381, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 32%. Revenue is forecast to grow by 198% in 2 years. Earnings are forecast to grow by 338% in the next 2 years. Reported Earnings • May 16
First quarter 2026 earnings: Revenues and EPS in line with analyst expectations First quarter 2026 results: EPS: NT$3.00 (up from NT$2.22 in 1Q 2025). Revenue: NT$1.02b (up 65% from 1Q 2025). Net income: NT$253.1m (up 77% from 1Q 2025). Profit margin: 25% (up from 23% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 46% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has increased by 114% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Apr 29
Consensus revenue estimates increase by 12% The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast increased from NT$4.28b to NT$4.78b. EPS estimate unchanged from NT$19.23 at last update. Electronic industry in Taiwan expected to see average net income growth of 25% next year. Consensus price target of NT$1,554 unchanged from last update. Share price fell 9.9% to NT$1,550 over the past week. New Risk • Mar 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 31% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). High level of non-cash earnings (31% accrual ratio). New Risk • Mar 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 10.0% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Annuncio • Mar 05
Universal Microwave Technology, Inc., Annual General Meeting, May 29, 2026 Universal Microwave Technology, Inc., Annual General Meeting, May 29, 2026. Location: no,1, kung chien rd., cidu district, keelung city Taiwan Price Target Changed • Jan 23
Price target increased by 44% to NT$838 Up from NT$582, the current price target is an average from 4 analysts. New target price is 22% below last closing price of NT$1,080. Stock is up 138% over the past year. The company is forecast to post earnings per share of NT$8.33 for next year compared to NT$8.59 last year. Price Target Changed • Dec 22
Price target increased by 8.3% to NT$554 Up from NT$512, the current price target is an average from 4 analysts. New target price is 13% below last closing price of NT$635. Stock is up 101% over the past year. The company is forecast to post earnings per share of NT$8.33 for next year compared to NT$8.59 last year. Price Target Changed • Nov 23
Price target increased by 9.6% to NT$512 Up from NT$467, the current price target is an average from 4 analysts. New target price is 14% above last closing price of NT$449. Stock is up 49% over the past year. The company is forecast to post earnings per share of NT$8.33 for next year compared to NT$8.59 last year. Reported Earnings • Nov 18
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: NT$1.33 (down from NT$2.07 in 3Q 2024). Revenue: NT$483.9m (down 24% from 3Q 2024). Net income: NT$88.3m (down 33% from 3Q 2024). Profit margin: 18% (down from 21% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.5%. Earnings per share (EPS) also missed analyst estimates by 27%. Revenue is forecast to grow 38% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Oct 21
Price target increased by 7.9% to NT$484 Up from NT$449, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of NT$465. Stock is up 52% over the past year. The company is forecast to post earnings per share of NT$8.41 for next year compared to NT$8.59 last year. Valuation Update With 7 Day Price Move • Aug 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$394, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 131% over the past three years. Reported Earnings • Aug 15
Second quarter 2025 earnings: EPS misses analyst expectations Second quarter 2025 results: EPS: NT$1.07 (down from NT$2.79 in 2Q 2024). Revenue: NT$513.7m (down 21% from 2Q 2024). Net income: NT$71.1m (down 60% from 2Q 2024). Profit margin: 14% (down from 28% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 32% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 07
Price target decreased by 7.5% to NT$453 Down from NT$489, the current price target is an average from 4 analysts. New target price is 29% above last closing price of NT$351. Stock is up 16% over the past year. The company is forecast to post earnings per share of NT$8.83 for next year compared to NT$8.59 last year. Buy Or Sell Opportunity • Aug 07
Now 24% overvalued The stock has been flat over the last 90 days, currently trading at NT$351. The fair value is estimated to be NT$282, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.6% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to grow by 19% in a year. Earnings are forecast to grow by 14% in the next year. Major Estimate Revision • Aug 06
Consensus revenue estimates decrease by 11% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from NT$3.03b to NT$2.70b. EPS estimate unchanged from NT$14.30 per share at last update. Electronic industry in Taiwan expected to see average net income growth of 19% next year. Consensus price target down from NT$489 to NT$469. Share price rose 2.0% to NT$331 over the past week. Upcoming Dividend • Jul 14
Upcoming dividend of NT$6.49 per share Eligible shareholders must have bought the stock before 21 July 2025. Payment date: 12 August 2025. Payout ratio is a comfortable 40% and the cash payout ratio is 91%. Trailing yield: 1.1%. Lower than top quartile of Taiwanese dividend payers (5.3%). Lower than average of industry peers (3.1%). Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$371, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 183% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$378 per share. Declared Dividend • Jun 25
Dividend of NT$6.63 announced Shareholders will receive a dividend of NT$6.63. Ex-date: 21st July 2025 Payment date: 12th August 2025 Dividend yield will be 1.9%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is covered by earnings (40% earnings payout ratio) but not adequately covered by cash flows (91% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 37% over the next year, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Jun 17
Consensus EPS estimates fall by 28% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from NT$14.30 to NT$10.30. Revenue forecast unchanged from NT$2.80b at last update. Net income forecast to grow 27% next year vs 19% growth forecast for Electronic industry in Taiwan. Consensus price target of NT$498 unchanged from last update. Share price fell 2.5% to NT$331 over the past week. Buy Or Sell Opportunity • May 19
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to NT$352. The fair value is estimated to be NT$448, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.6% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to grow by 47% in a year. Earnings are forecast to grow by 62% in the next year. Reported Earnings • May 17
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: NT$2.22 (up from NT$1.23 in 1Q 2024). Revenue: NT$620.1m (up 43% from 1Q 2024). Net income: NT$142.9m (up 84% from 1Q 2024). Profit margin: 23% (up from 18% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 2.5%. Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Annuncio • May 14
An undisclosed buyer agreed to acquire 13.75% stake in Genton Tech Corporation from Universal Microwave Technology, Inc. (TPEX:3491). An undisclosed buyer agreed to acquire 13.75% stake in Genton Tech Corporation from Universal Microwave Technology, Inc. (TPEX:3491) on May 13, 2025. Upon completion of the transaction Universal Microwave Technology, Inc. will only hold 39.85% stake in Genton Tech Corporation.
The transaction is subject to approval of merger agreement by the board of Universal Microwave Technology, Inc. The deal has been approved by the board of Universal Microwave Technology, Inc.. Annuncio • May 06
Universal Microwave Technology, Inc. to Report Q1, 2025 Results on May 13, 2025 Universal Microwave Technology, Inc. announced that they will report Q1, 2025 results on May 13, 2025 New Risk • May 01
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (21% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (9.7% average weekly change). Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to NT$315, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 87% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$444 per share. Buy Or Sell Opportunity • Apr 08
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to NT$350. The fair value is estimated to be NT$442, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 12%. Revenue is forecast to grow by 98% in 2 years. Earnings are forecast to grow by 162% in the next 2 years. Annuncio • Mar 17
Universal Microwave Technology, Inc., Annual General Meeting, Jun 10, 2025 Universal Microwave Technology, Inc., Annual General Meeting, Jun 10, 2025. Location: no,1, kung chien rd., cidu district, keelung city Taiwan Annuncio • Mar 07
Universal Microwave Technology, Inc. to Report Fiscal Year 2024 Results on Mar 14, 2025 Universal Microwave Technology, Inc. announced that they will report fiscal year 2024 results on Mar 14, 2025 Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$456, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 221% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at NT$425 per share. Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$453, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 190% over the past three years. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NT$395, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 131% over the past three years. Buy Or Sell Opportunity • Jan 03
Now 32% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to NT$356. The fair value is estimated to be NT$270, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 12%. Revenue is forecast to grow by 43% in a year. Earnings are forecast to grow by 83% in the next year. Buy Or Sell Opportunity • Dec 11
Now 28% overvalued after recent price rise Over the last 90 days, the stock has risen 8.1% to NT$346. The fair value is estimated to be NT$269, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 12%. Revenue is forecast to grow by 43% in a year. Earnings are forecast to grow by 83% in the next year. Reported Earnings • Nov 19
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: NT$2.07 (up from NT$0.73 in 3Q 2023). Revenue: NT$639.6m (up 70% from 3Q 2023). Net income: NT$132.4m (up 188% from 3Q 2023). Profit margin: 21% (up from 12% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 5.7%. Revenue is forecast to grow 34% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Oct 15
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 2.9% to NT$319. The fair value is estimated to be NT$263, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 7.5%. Revenue is forecast to grow by 52% in a year. Earnings are forecast to grow by 107% in the next year. Buy Or Sell Opportunity • Sep 18
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 12% to NT$320. The fair value is estimated to be NT$265, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 7.5%. Revenue is forecast to grow by 52% in a year. Earnings are forecast to grow by 107% in the next year. Major Estimate Revision • Sep 11
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from NT$2.60b to NT$2.42b. EPS estimate also fell from NT$10.31 per share to NT$8.79 per share. Net income forecast to grow 107% next year vs 22% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$308 to NT$330. Share price fell 3.2% to NT$320 over the past week. Reported Earnings • Aug 14
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: NT$2.79 (up from NT$0.92 in 2Q 2023). Revenue: NT$647.9m (up 72% from 2Q 2023). Net income: NT$178.1m (up 212% from 2Q 2023). Profit margin: 28% (up from 15% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.5%. Earnings per share (EPS) also missed analyst estimates by 6.1%. Revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 66% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Aug 14
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (21% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (8.2% average weekly change). Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to NT$264, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 15x in the Electronic industry in Taiwan. Total returns to shareholders of 299% over the past three years. Annuncio • Aug 02
Universal Microwave Technology, Inc. to Report Q2, 2024 Results on Aug 09, 2024 Universal Microwave Technology, Inc. announced that they will report Q2, 2024 results on Aug 09, 2024 Buy Or Sell Opportunity • Jul 26
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 55% to NT$307. The fair value is estimated to be NT$251, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 6.3%. Revenue is forecast to grow by 69% in a year. Earnings are forecast to grow by 207% in the next year. Declared Dividend • Jul 11
Dividend reduced to NT$3.35 Dividend of NT$3.35 is 15% lower than last year. Ex-date: 22nd July 2024 Payment date: 14th August 2024 Dividend yield will be 1.1%, which is lower than the industry average of 4.0%. Sustainability & Growth Dividend is not adequately covered by earnings (95% earnings payout ratio). However, it is covered by cash flows (61% cash payout ratio). The dividend has increased by an average of 3.3% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 5.5% to bring the payout ratio under control. EPS is expected to grow by 56% over the next year, which is sufficient to bring the dividend into a sustainable range. Buy Or Sell Opportunity • Jul 08
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 84% to NT$307. The fair value is estimated to be NT$251, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 6.3%. Revenue is forecast to grow by 69% in a year. Earnings are forecast to grow by 207% in the next year. Buy Or Sell Opportunity • Jul 01
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 81% to NT$308. The fair value is estimated to be NT$247, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 6.3%. Revenue is forecast to grow by 69% in a year. Earnings are forecast to grow by 207% in the next year. Buy Or Sell Opportunity • May 31
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 77% to NT$287. The fair value is estimated to be NT$233, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 6.3%. Revenue is forecast to grow by 69% in a year. Earnings are forecast to grow by 207% in the next year. Major Estimate Revision • May 29
Consensus revenue estimates increase by 11% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$2.33b to NT$2.60b. EPS estimate increased from NT$7.79 to NT$10.31 per share. Net income forecast to grow 207% next year vs 28% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$202 to NT$308. Share price rose 9.2% to NT$285 over the past week. Valuation Update With 7 Day Price Move • May 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$251, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 327% over the past three years. Reported Earnings • May 19
First quarter 2024 earnings: Revenues and EPS in line with analyst expectations First quarter 2024 results: EPS: NT$1.23 (up from NT$0.89 in 1Q 2023). Revenue: NT$433.6m (up 2.0% from 1Q 2023). Net income: NT$77.6m (up 40% from 1Q 2023). Profit margin: 18% (up from 13% in 1Q 2023). The increase in margin was primarily driven by lower expenses. Revenue is forecast to grow 33% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Apr 29
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.4% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (120% payout ratio). Shareholders have been diluted in the past year (2.4% increase in shares outstanding). Buy Or Sell Opportunity • Apr 24
Now 29% overvalued after recent price rise Over the last 90 days, the stock has risen 22% to NT$197. The fair value is estimated to be NT$153, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 2.8% over the last 3 years. Earnings per share has grown by 13%. Revenue is forecast to grow by 84% in 2 years. Earnings are forecast to grow by 231% in the next 2 years. Price Target Changed • Apr 24
Price target increased by 32% to NT$202 Up from NT$153, the current price target is provided by 1 analyst. New target price is 13% above last closing price of NT$180. Stock is up 11% over the past year. The company is forecast to post earnings per share of NT$7.79 for next year compared to NT$3.20 last year. Major Estimate Revision • Apr 24
Consensus revenue estimates increase by 10% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from NT$2.12b to NT$2.33b. EPS estimate increased from NT$6.94 to NT$7.79 per share. Net income forecast to grow 144% next year vs 30% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$153 to NT$202. Share price was steady at NT$180 over the past week. Annuncio • Mar 28
Universal Microwave Technology, Inc., Annual General Meeting, Jun 19, 2024 Universal Microwave Technology, Inc., Annual General Meeting, Jun 19, 2024. Location: No. 1, Gongjian Rd., Qidu Dist. Keelung City Taiwan Agenda: To consider 2023 Business Report; to consider Audit Committee's Review Report on 2023 Consolidated Financial Statements; to consider report on the remuneration of employees and directors in 2023; to consider distribution of 2023 Earnings of cash dividend Report; to consider amendment to Rules of Procedure for Board of Directors Meetings; to consider report of the Audit Committee of the Company on the results of its deliberations on the proposal of the Company's 100% subsidiary, UMT Holdings (Samoa) Limited and its 100% owned subsidiary UMT Holdings (Cayman) Limited would undergo a reverse triangular merger with Radiation Technology Inc., 55.59% directly and indirectly owned by the Company; and to consider other matters. Major Estimate Revision • Jan 25
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$1.63b to NT$1.59b. EPS estimate also fell from NT$3.51 per share to NT$3.15 per share. Net income forecast to grow 85% next year vs 25% growth forecast for Electronic industry in Taiwan. Consensus price target broadly unchanged at NT$153. Share price rose 5.2% to NT$163 over the past week. Reported Earnings • Nov 14
Third quarter 2023 earnings released: EPS: NT$0.73 (vs NT$1.41 in 3Q 2022) Third quarter 2023 results: EPS: NT$0.73 (down from NT$1.41 in 3Q 2022). Revenue: NT$375.5m (down 26% from 3Q 2022). Net income: NT$45.9m (down 48% from 3Q 2022). Profit margin: 12% (down from 17% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 31% p.a. on average during the next 2 years, compared to a 9.2% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Oct 27
Consensus revenue estimates fall by 18% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$1.99b to NT$1.63b. EPS estimate fell from NT$5.46 to NT$3.51 per share. Net income forecast to grow 34% next year vs 5.6% growth forecast for Electronic industry in Taiwan. Consensus price target up from NT$150 to NT$155. Share price rose 3.7% to NT$170 over the past week. Reported Earnings • Aug 12
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: NT$0.92 (down from NT$1.47 in 2Q 2022). Revenue: NT$376.6m (down 21% from 2Q 2022). Net income: NT$57.1m (down 37% from 2Q 2022). Profit margin: 15% (down from 19% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 18%. Earnings per share (EPS) also missed analyst estimates by 36%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 8.0% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 20% per year. Upcoming Dividend • Jul 18
Upcoming dividend of NT$3.96 per share at 2.6% yield Eligible shareholders must have bought the stock before 25 July 2023. Payment date: 15 August 2023. Payout ratio is on the higher end at 88%, however this is supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Taiwanese dividend payers (5.4%). Lower than average of industry peers (4.1%). Price Target Changed • May 03
Price target increased by 26% to NT$150 Up from NT$119, the current price target is provided by 1 analyst. New target price is 6.3% below last closing price of NT$160. Stock is up 6.3% over the past year. The company is forecast to post earnings per share of NT$5.46 for next year compared to NT$4.36 last year. Major Estimate Revision • May 03
Consensus revenue estimates fall by 12% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from NT$2.27b to NT$1.99b. EPS estimate fell from NT$6.58 to NT$5.46 per share. Net income forecast to grow 25% next year vs 7.2% decline forecast for Electronic industry in Taiwan. Consensus price target up from NT$119 to NT$150. Share price was steady at NT$160 over the past week. Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improved over the past week After last week's 16% share price gain to NT$145, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 10x in the Electronic industry in Taiwan. Total returns to shareholders of 76% over the past three years. Major Estimate Revision • Nov 17
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from NT$2.10b to NT$1.89b. EPS estimate also fell from NT$5.66 per share to NT$4.61 per share. Net income forecast to grow 32% next year vs 6.3% growth forecast for Electronic industry in Taiwan. Consensus price target down from NT$155 to NT$115. Share price rose 4.1% to NT$128 over the past week. Reported Earnings • Nov 16
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: NT$1.41 (up from NT$0.89 in 3Q 2021). Revenue: NT$507.8m (up 6.1% from 3Q 2021). Net income: NT$87.8m (up 59% from 3Q 2021). Profit margin: 17% (up from 12% in 3Q 2021). Revenue missed analyst estimates by 10%. Earnings per share (EPS) exceeded analyst estimates by 8.5%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 12% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Nov 16
Price target decreased to NT$115 Down from NT$155, the current price target is provided by 1 analyst. New target price is 9.1% below last closing price of NT$127. Stock is down 26% over the past year. The company is forecast to post earnings per share of NT$4.61 for next year compared to NT$3.81 last year. Reported Earnings • Nov 13
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: NT$1.41 (up from NT$0.89 in 3Q 2021). Revenue: NT$507.8m (up 6.1% from 3Q 2021). Net income: NT$87.8m (up 59% from 3Q 2021). Profit margin: 17% (up from 12% in 3Q 2021). Revenue missed analyst estimates by 10%. Earnings per share (EPS) exceeded analyst estimates by 8.5%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Electronic industry in Taiwan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 12% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 20% share price decline to NT$117, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 9x in the Electronic industry in Taiwan. Total returns to shareholders of 40% over the past three years. Buying Opportunity • Sep 06
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 3.0%. The fair value is estimated to be NT$206, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 4.2%. Revenue is forecast to grow by 21% in a year. Earnings is forecast to grow by 61% in the next year. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: NT$1.47 (vs NT$1.59 in 2Q 2021) Second quarter 2022 results: EPS: NT$1.47 (down from NT$1.59 in 2Q 2021). Revenue: NT$476.9m (up 17% from 2Q 2021). Net income: NT$91.2m (down 7.8% from 2Q 2021). Profit margin: 19% (down from 24% in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$140, the stock trades at a trailing P/E ratio of 34.4x. Average trailing P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 74% over the past three years. Upcoming Dividend • Jun 28
Upcoming dividend of NT$4.00 per share Eligible shareholders must have bought the stock before 05 July 2022. Payment date: 29 July 2022. Payout ratio is on the higher end at 98%, however this is supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Taiwanese dividend payers (6.3%). Lower than average of industry peers (4.5%). Reported Earnings • May 17
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: NT$0.71 (up from NT$0.45 in 1Q 2021). Revenue: NT$442.0m (up 21% from 1Q 2021). Net income: NT$44.4m (up 59% from 1Q 2021). Profit margin: 10% (up from 7.6% in 1Q 2021). Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 27%. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Price Target Changed • Apr 27
Price target decreased to NT$72.00 Down from NT$88.67, the current price target is provided by 1 analyst. New target price is 52% below last closing price of NT$152. Stock is up 104% over the past year. The company posted earnings per share of NT$3.81 last year. Reported Earnings • Mar 28
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: NT$3.81 (up from NT$2.04 in FY 2020). Revenue: NT$1.76b (up 19% from FY 2020). Net income: NT$236.6m (up 91% from FY 2020). Profit margin: 14% (up from 8.4% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 27%. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 35% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 19% share price gain to NT$170, the stock trades at a trailing P/E ratio of 53.5x. Average trailing P/E is 16x in the Electronic industry in Taiwan. Total returns to shareholders of 149% over the past three years. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment deteriorated over the past week After last week's 16% share price decline to NT$165, the stock trades at a trailing P/E ratio of 52x. Average trailing P/E is 17x in the Electronic industry in Taiwan. Total returns to shareholders of 147% over the past three years. Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improved over the past week After last week's 24% share price gain to NT$205, the stock trades at a trailing P/E ratio of 64.4x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 209% over the past three years. Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$0.89 (vs NT$0.45 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: NT$478.6m (up 23% from 3Q 2020). Net income: NT$55.2m (up 104% from 3Q 2020). Profit margin: 12% (up from 7.0% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 35% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improved over the past week After last week's 15% share price gain to NT$104, the stock trades at a trailing P/E ratio of 38x. Average forward P/E is 12x in the Electronic industry in Taiwan. Total returns to shareholders of 78% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS NT$1.59 (vs NT$1.43 in 2Q 2020) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2021 results: Revenue: NT$407.4m (down 4.7% from 2Q 2020). Net income: NT$98.9m (up 14% from 2Q 2020). Profit margin: 24% (up from 20% in 2Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 20
Upcoming dividend of NT$2.50 per share Eligible shareholders must have bought the stock before 27 July 2021. Payment date: 23 August 2021. Trailing yield: 3.6%. Lower than top quartile of Taiwanese dividend payers (4.9%). Higher than average of industry peers (2.9%). Reported Earnings • May 16
First quarter 2021 earnings released: EPS NT$0.45 (vs NT$0.084 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: NT$366.1m (up 33% from 1Q 2020). Net income: NT$27.9m (up NT$33.0m from 1Q 2020). Profit margin: 7.6% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Mar 14
Revenue beats expectations Revenue exceeded analyst estimates by 0.1%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is forecast to grow 16%, compared to a 16% growth forecast for the Electronic industry in Taiwan. Reported Earnings • Mar 13
Full year 2020 earnings released: EPS NT$2.03 (vs NT$4.15 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$1.48b (down 16% from FY 2019). Net income: NT$124.2m (down 50% from FY 2019). Profit margin: 8.4% (down from 14% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Major Estimate Revision • Jan 23
Analysts lower revenue estimates to NT$1.48b The 2020 consensus revenue estimate decreased from NT$1.65b. Earning per share (EPS) estimate was also lowered from NT$6.07 to NT$2.03 for the same period. Net income is expected to grow by 46% next year compared to 27% growth forecast for the Electronic industry in Taiwan. The consensus price target was lowered from NT$88.67 to NT$73.00. Share price stayed mostly flat at NT$71.80 over the past week. Price Target Changed • Jan 22
Price target lowered to NT$73.00 Down from NT$87.33, the current price target is an average from 3 analysts. The new target price is close to the current share price of NT$71.80. As of last close, the stock is down 20% over the past year. Is New 90 Day High Low • Jan 19
New 90-day high: NT$80.90 The company is up 15% from its price of NT$70.20 on 22 October 2020. The Taiwanese market is up 20% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 24% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NT$47.33 per share.