TSE:6615

Stock Analysis Report

UMC Electronics

Executive Summary

UMC Electronics Co., Ltd. provides electronic manufacturing services in Japan.


Snowflake Analysis

Unattractive dividend payer with imperfect balance sheet.

Share Price & News

How has UMC Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6615's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-16.1%

6615

-3.3%

JP Electronic

-4.6%

JP Market


1 Year Return

-87.8%

6615

-10.7%

JP Electronic

-15.7%

JP Market

Return vs Industry: 6615 underperformed the JP Electronic industry which returned -4.9% over the past year.

Return vs Market: 6615 underperformed the JP Market which returned -10.7% over the past year.


Shareholder returns

6615IndustryMarket
7 Day-16.1%-3.3%-4.6%
30 Day-36.8%-9.5%-11.2%
90 Day-55.0%-22.0%-21.0%
1 Year-86.9%-87.8%-9.2%-10.7%-13.5%-15.7%
3 Year-84.9%-86.4%16.5%11.1%-2.3%-9.2%
5 Yearn/a17.5%8.0%-1.1%-11.8%

Price Volatility Vs. Market

How volatile is UMC Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is UMC Electronics undervalued compared to its fair value and its price relative to the market?

0.36x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 6615 (¥221) is trading above our estimate of fair value (¥120.1)

Significantly Below Fair Value: 6615 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6615 is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: 6615 is unprofitable, so we can't compare its PE Ratio to the JP market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6615's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6615 is good value based on its PB Ratio (0.4x) compared to the JP Electronic industry average (0.7x).


Next Steps

Future Growth

How is UMC Electronics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.7%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as UMC Electronics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has UMC Electronics performed over the past 5 years?

-76.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6615 is currently unprofitable.

Growing Profit Margin: 6615 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6615 is unprofitable, and losses have increased over the past 5 years at a rate of -76.5% per year.

Accelerating Growth: Unable to compare 6615's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6615 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-10.4%).


Return on Equity

High ROE: 6615 has a negative Return on Equity (-51.83%), as it is currently unprofitable.


Next Steps

Financial Health

How is UMC Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: 6615's short term assets (¥54.6B) do not cover its short term liabilities (¥58.9B).

Long Term Liabilities: 6615's short term assets (¥54.6B) exceed its long term liabilities (¥9.4B).


Debt to Equity History and Analysis

Debt Level: 6615's debt to equity ratio (233.6%) is considered high.

Reducing Debt: 6615's debt to equity ratio has increased from 206% to 233.6% over the past 5 years.


Balance Sheet

Inventory Level: 6615 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6615's debt is covered by short term assets (assets are 2.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 6615 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 6615 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -46.9% each year


Next Steps

Dividend

What is UMC Electronics's current dividend yield, its reliability and sustainability?

14.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6615's dividend (13.57%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 6615's dividend (13.57%) is in the top 25% of dividend payers in the JP market (3.81%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6615 has been paying a dividend for less than 10 years.

Growing Dividend: 6615's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: 6615 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Shigeki Uchiyama

no data

Tenure

Mr. Shigeki Uchiyama serves as the Chief Executive Officer, President and Director at UMC Electronics Co., Ltd. 


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.2%.


Top Shareholders

Company Information

UMC Electronics Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: UMC Electronics Co., Ltd.
  • Ticker: 6615
  • Exchange: TSE
  • Founded: 1968
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: JP¥3.917b
  • Shares outstanding: 19.30m
  • Website: https://www.umc.co.jp

Number of Employees


Location

  • UMC Electronics Co., Ltd.
  • 721 Kawarabuki
  • Ageo
  • Saitama
  • 362-0022
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6615TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYMar 2016
UM3DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2016

Biography

UMC Electronics Co., Ltd. provides electronic manufacturing services in Japan. The company develops antennas, active tags and readers, devices for fingerprint authentication systems, IC card reader/writer-related devices contact and non-contact type, monitoring alarm for vehicle abnormalities, PHS terminals, pachinko amusement/pinball, game pachinko/pinball game control units, devices related to credit/debit cards, handy terminals, and original reader/writer core units. UMC Electronics Co., Ltd. was founded in 1968 and is headquartered in Ageo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 19:34
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.