TSEC:3037

Stock Analysis Report

Unimicron Technology

Executive Summary

Unimicron Technology Corporation engages in the development, manufacturing, processing, and sale of printed circuit boards, HDIs, FPCs, RFs, and IC carriers.


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Unimicron Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3037's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.3%

3037

0.7%

TW Electronic

0.4%

TW Market


1 Year Return

-12.1%

3037

-17.3%

TW Electronic

-10.7%

TW Market

Return vs Industry: 3037 exceeded the TW Electronic industry which returned -17.2% over the past year.

Return vs Market: 3037 underperformed the TW Market which returned -10.3% over the past year.


Shareholder returns

3037IndustryMarket
7 Day2.3%0.7%0.4%
30 Day-23.5%-15.7%-13.8%
90 Day-25.4%-24.7%-20.2%
1 Year-10.3%-12.1%-13.5%-17.3%-6.6%-10.7%
3 Year97.9%85.4%-12.6%-22.5%7.9%-4.7%
5 Year75.3%55.4%3.6%-15.4%21.6%-0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Unimicron Technology undervalued compared to its fair value and its price relative to the market?

14.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3037 (NT$31.7) is trading above our estimate of fair value (NT$28.51)

Significantly Below Fair Value: 3037 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3037 is poor value based on its PE Ratio (14.2x) compared to the Electronic industry average (13.3x).

PE vs Market: 3037 is poor value based on its PE Ratio (14.2x) compared to the TW market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: 3037 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 3037 is overvalued based on its PB Ratio (1.1x) compared to the TW Electronic industry average (1.1x).


Next Steps

Future Growth

How is Unimicron Technology forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

29.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3037's forecast earnings growth (29.3% per year) is above the savings rate (0.7%).

Earnings vs Market: 3037's earnings (29.3% per year) are forecast to grow faster than the TW market (11.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3037's revenue (7.9% per year) is forecast to grow faster than the TW market (7% per year).

High Growth Revenue: 3037's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3037's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has Unimicron Technology performed over the past 5 years?

61.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3037 has high quality earnings.

Growing Profit Margin: 3037's current net profit margins (3.9%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 3037's earnings have grown significantly by 61.9% per year over the past 5 years.

Accelerating Growth: 3037's earnings growth over the past year (91.2%) exceeds its 5-year average (61.9% per year).

Earnings vs Industry: 3037 earnings growth over the past year (91.2%) exceeded the Electronic industry -3%.


Return on Equity

High ROE: 3037's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Unimicron Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 3037's short term assets (NT$50.0B) exceed its short term liabilities (NT$36.2B).

Long Term Liabilities: 3037's short term assets (NT$50.0B) exceed its long term liabilities (NT$25.6B).


Debt to Equity History and Analysis

Debt Level: 3037's debt to equity ratio (74.4%) is considered high.

Reducing Debt: 3037's debt to equity ratio has increased from 71.2% to 74.4% over the past 5 years.

Debt Coverage: 3037's debt is well covered by operating cash flow (28.6%).

Interest Coverage: 3037's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: 3037 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3037's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Unimicron Technology's current dividend yield, its reliability and sustainability?

2.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3037's dividend (2.52%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (3.27%).

High Dividend: 3037's dividend (2.52%) is low compared to the top 25% of dividend payers in the TW market (7.1%).


Stability and Growth of Payments

Stable Dividend: 3037's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3037's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.7%), 3037's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3037's dividends in 3 years are forecast to be well covered by earnings (48.5% payout ratio).


Next Steps

Management

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

5.8yrs

Average board tenure


CEO

Tzyy Jang Tseng

no data

Tenure

Mr. Tzyy Jang Tseng serves as the Chairman of the Board and Chief Executive Officer of Unimicron Technology Corp. and serves as its President. Mr. Tseng serves as Director at Unimicron Technology Corporati ...


Board Members

NamePositionTenureCompensationOwnership
Tzyy Jang Tseng
Chairmanno datano data0.93% NT$427.8m
Chang Ming Lee
President of Operations & Directorno datano data0.019% NT$8.7m
Maurice Lee
Director & President of SBU5.83yrsno datano data
Louis Chien
Director5.33yrsno datano data
Lai-Juh Chen
Independent Director2.83yrsno datano data
Qi Dong Liu
Director11.33yrsno datano data
Sheng Yu Wang
Member of the Supervisory Boardno datano datano data
Ling-Ling Wu
Independent Director8.83yrsno datano data
Yen-Shen Hsieh
Director17.83yrsno datano data
Ya-Ching Li
Independent Director2.83yrsno datano data

5.8yrs

Average Tenure

Experienced Board: 3037's board of directors are considered experienced (5.8 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

Unimicron Technology Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Unimicron Technology Corporation
  • Ticker: 3037
  • Exchange: TSEC
  • Founded: 1990
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: NT$46.144b
  • Shares outstanding: 1.46b
  • Website: https://www.unimicron.com

Number of Employees


Location

  • Unimicron Technology Corporation
  • No. 38, Hsingpong Road
  • Guishan Industrial Park District
  • Taoyuan
  • 33341
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3037TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDSep 1999

Biography

Unimicron Technology Corporation engages in the development, manufacturing, processing, and sale of printed circuit boards, HDIs, FPCs, RFs, and IC carriers. It also provides IC testing services, as well as connectors, and TP and ECRM. The company was founded in 1990 and is headquartered in Taoyuan, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 15:45
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.