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2303

United MicroelectronicsTWSE:2303 Stock Report

Market Cap

NT$768.0b

7D

5.5%

1Y

89.6%

Updated

27 Oct, 2021

Data

Company Financials +
2303 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

2303 Overview

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally.

United Microelectronics Competitors

Taiwan Semiconductor Manufacturing

TWSE:2330

NT$15.5t

Nanya Technology

TWSE:2408

NT$204.2b

Winbond Electronics

TWSE:2344

NT$104.1b

Macronix International

TWSE:2337

NT$70.6b

Price History & Performance

Summary of all time highs, changes and price drops for United Microelectronics
Historical stock prices
Current Share PriceNT$61.90
52 Week HighNT$29.40
52 Week LowNT$72.00
Beta1.01
1 Month Change-6.64%
3 Month Change13.37%
1 Year Change89.59%
3 Year Change424.58%
5 Year Change429.06%
Change since IPO2,270.43%

Recent News & Updates

Shareholder Returns

2303TW SemiconductorTW Market
7D5.5%1.0%0.9%
1Y89.6%41.0%32.8%

Return vs Industry: 2303 exceeded the TW Semiconductor industry which returned 41% over the past year.

Return vs Market: 2303 exceeded the TW Market which returned 32.8% over the past year.

Price Volatility

Is 2303's price volatile compared to industry and market?
2303 volatility
2303 Beta1.01
Industry Beta1.01
Market Beta1

Stable Share Price: 2303 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2303's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198019,577Jason S. Wanghttps://www.umc.com

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. It operates through Wafer Fabrication and New Business segments. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services.

United Microelectronics Fundamentals Summary

How do United Microelectronics's earnings and revenue compare to its market cap?
2303 fundamental statistics
Market CapNT$768.01b
Earnings (TTM)NT$36.34b
Revenue (TTM)NT$188.17b

21.1x

P/E Ratio

4.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2303 income statement (TTM)
RevenueNT$188.17b
Cost of RevenueNT$139.15b
Gross ProfitNT$49.02b
ExpensesNT$12.68b
EarningsNT$36.34b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)2.93
Gross Margin26.05%
Net Profit Margin19.31%
Debt/Equity Ratio29.4%

How did 2303 perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

53%

Payout Ratio

Valuation

Is United Microelectronics undervalued compared to its fair value and its price relative to the market?

11.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2303 (NT$61.9) is trading below our estimate of fair value (NT$70.19)

Significantly Below Fair Value: 2303 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2303 is poor value based on its PE Ratio (21.1x) compared to the TW Semiconductor industry average (20.8x).

PE vs Market: 2303 is poor value based on its PE Ratio (21.1x) compared to the TW market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: 2303's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 2303 is overvalued based on its PB Ratio (3.2x) compared to the TW Semiconductor industry average (2.9x).


Future Growth

How is United Microelectronics forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2303's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: 2303's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: 2303's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 2303's revenue (7.6% per year) is forecast to grow slower than the TW market (9.9% per year).

High Growth Revenue: 2303's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2303's Return on Equity is forecast to be low in 3 years time (15%).


Past Performance

How has United Microelectronics performed over the past 5 years?

28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2303 has high quality earnings.

Growing Profit Margin: 2303's current net profit margins (19.3%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: 2303's earnings have grown significantly by 28.7% per year over the past 5 years.

Accelerating Growth: 2303's earnings growth over the past year (157.7%) exceeds its 5-year average (28.7% per year).

Earnings vs Industry: 2303 earnings growth over the past year (157.7%) exceeded the Semiconductor industry 58%.


Return on Equity

High ROE: 2303's Return on Equity (14.7%) is considered low.


Financial Health

How is United Microelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: 2303's short term assets (NT$207.8B) exceed its short term liabilities (NT$85.0B).

Long Term Liabilities: 2303's short term assets (NT$207.8B) exceed its long term liabilities (NT$96.5B).


Debt to Equity History and Analysis

Debt Level: 2303's debt to equity ratio (29.4%) is considered satisfactory.

Reducing Debt: 2303's debt to equity ratio has reduced from 33.8% to 29.4% over the past 5 years.

Debt Coverage: 2303's debt is well covered by operating cash flow (107.6%).

Interest Coverage: 2303's interest payments on its debt are well covered by EBIT (25.9x coverage).


Balance Sheet


Dividend

What is United Microelectronics's current dividend yield, its reliability and sustainability?

2.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2303's dividend (2.58%) is higher than the bottom 25% of dividend payers in the TW market (1.97%).

High Dividend: 2303's dividend (2.58%) is low compared to the top 25% of dividend payers in the TW market (5.24%).


Stability and Growth of Payments

Stable Dividend: 2303's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2303's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.6%), 2303's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2303's dividends in 3 years are forecast to be covered by earnings (84.3% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Jason S. Wang (58 yo)

4.33yrs

Tenure

Mr. Jason S. Wang has been Co-President of United Microelectronics Corporation since June 14, 2017. Mr. Wang served as a Senior Vice President of United Microelectronics Corporation since November 2014 unt...


Leadership Team

Experienced Management: 2303's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: 2303's board of directors are considered experienced (5.6 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

United Microelectronics Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: United Microelectronics Corporation
  • Ticker: 2303
  • Exchange: TWSE
  • Founded: 1980
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$768.005b
  • Shares outstanding: 12.41b
  • Website: https://www.umc.com

Number of Employees


Location

  • United Microelectronics Corporation
  • Hsinchu Science Park
  • No. 3 Li-Hsin Road II
  • Hsinchu City
  • 30078
  • Taiwan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 15:31
End of Day Share Price2021/10/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.