TSEC:3037

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Unimicron Technology

Executive Summary

Unimicron Technology Corp. engages in the development, manufacturing, processing, and sale of printed circuit boards, electrical equipment, electronic products, and testing and burn-in systems for integrated circuit products worldwide. More Details


Snowflake Analysis

Excellent balance sheet 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 is more volatile than 75% of TW stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 3037's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of TW stocks.


Market Performance


7 Day Return

2.5%

3037

4.5%

TW Electronic

1.9%

TW Market


1 Year Return

92.8%

3037

10.9%

TW Electronic

21.4%

TW Market

Return vs Industry: 3037 exceeded the TW Electronic industry which returned 9.9% over the past year.

Return vs Market: 3037 exceeded the TW Market which returned 20.2% over the past year.


Shareholder returns

3037IndustryMarket
7 Day2.5%4.5%1.9%
30 Day30.7%12.9%10.9%
90 Day8.4%7.3%9.4%
1 Year96.9%92.8%14.9%10.9%25.7%21.4%
3 Year479.0%439.2%20.2%6.2%49.9%33.2%
5 Year539.4%473.7%71.6%40.6%101.8%66.4%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3037 (NT$85.2) is trading below our estimate of fair value (NT$331.36)

Significantly Below Fair Value: 3037 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3037 is poor value based on its PE Ratio (27.7x) compared to the TW Electronic industry average (16.9x).

PE vs Market: 3037 is poor value based on its PE Ratio (27.7x) compared to the TW market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: 3037 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 3037 is overvalued based on its PB Ratio (2.7x) compared to the TW Electronic industry average (1.6x).


Next Steps

Future Growth

How is Unimicron Technology forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

35.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3037's forecast earnings growth (35.3% per year) is above the savings rate (0.9%).

Earnings vs Market: 3037's earnings (35.3% per year) are forecast to grow faster than the TW market (16.7% per year).

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

Revenue vs Market: 3037's revenue (10.3% per year) is forecast to grow faster than the TW market (9.4% per year).

High Growth Revenue: 3037's revenue (10.3% 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 (15.1%).


Next Steps

Past Performance

How has Unimicron Technology performed over the past 5 years?

59.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3037 has a large one-off gain of NT$965.0M impacting its September 30 2020 financial results.

Growing Profit Margin: 3037's current net profit margins (5.1%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: 3037 has become profitable over the past 5 years, growing earnings by 59.9% per year.

Accelerating Growth: 3037's earnings growth over the past year (53%) is below its 5-year average (59.9% per year).

Earnings vs Industry: 3037 earnings growth over the past year (53%) exceeded the Electronic industry 4%.


Return on Equity

High ROE: 3037's Return on Equity (8.7%) is considered low.


Next Steps

  • Explore strong past performing companies in the Tech industry.

Financial Health

How is Unimicron Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 3037's short term assets (NT$53.3B) exceed its short term liabilities (NT$38.8B).

Long Term Liabilities: 3037's short term assets (NT$53.3B) exceed its long term liabilities (NT$28.8B).


Debt to Equity History and Analysis

Debt Level: 3037's debt to equity ratio (78.2%) is considered high.

Reducing Debt: 3037's debt to equity ratio has reduced from 80.6% to 78.2% over the past 5 years.

Debt Coverage: 3037's debt is well covered by operating cash flow (28.7%).

Interest Coverage: 3037's interest payments on its debt are well covered by EBIT (19.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3037's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (2.1%).

High Dividend: 3037's dividend (1.29%) is low compared to the top 25% of dividend payers in the TW market (5.17%).


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 fallen 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 (43.3% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Unimicron Technology has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Tzyy Jang Tseng
Chairman & Group CSOno datano data0.92%
NT$ 1.1b
Chia-Pin Lee
Executive President0.33yrno datano data
Jerry Kuo
Executive President0.33yrno datano data
Michael Shen
General Manager of Finance Divisionno datano datano data
Jia Bin Li
President of Operationsno datano datano data
Qiong Mei Lin
Head of the Accounting Departmentno datano datano data
John Lau
Chief Technology Officer1.33yrsno datano data
Steve Chiang
Head of PIW Market Developmentno datano datano data
Shu Sheng Jiang
Head of PIW Market Development & Strategyno datano datano data
Ting Lan
Senior Vice Presidentno datano data0.016%
NT$ 19.8m
Zheng Hui Guo
Chief Quality Officerno datano data0.023%
NT$ 28.3m
Maurice Lee
President of SBU21.67yrsno datano data

0.8yrs

Average Tenure

Experienced Management: 3037's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tzyy Jang Tseng
Chairman & Group CSOno datano data0.92%
NT$ 1.1b
Louis Chien
Director6yrsno datano data
Lai-Juh Chen
Independent Director3.5yrsno datano data
Qi Dong Liu
Director12yrsno datano data
Sheng Yu Wang
Member of the Supervisory Boardno datano datano data
Jian Zhi Liu
Member of the Supervisory Boardno datano datano data
Cheng Qian Jian
Member of the Supervisory Boardno datano datano data
Yen-Shen Hsieh
Director18.5yrsno datano data
Terry Wang
Independent Director0.92yrno datano data
Yu Ting
Director0.92yrno datano data
Sc Chien
Director0.92yrno datano data

3.5yrs

Average Tenure

Experienced Board: 3037's board of directors are considered experienced (3.5 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 Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Unimicron Technology Corp.
  • Ticker: 3037
  • Exchange: TSEC
  • Founded: 1990
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: NT$124.944b
  • Shares outstanding: 1.47b
  • Website: https://www.unimicron.com

Number of Employees


Location

  • Unimicron Technology Corp.
  • No. 173/179, Shanying Road
  • Guishan District
  • Taoyuan City
  • 33341
  • Taiwan

Listings

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

Biography

Unimicron Technology Corp. engages in the development, manufacturing, processing, and sale of printed circuit boards, electrical equipment, electronic products, and testing and burn-in systems for integrat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 08:37
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
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.