NYSE:UMC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has United Microelectronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.9%

UMC

-1.5%

US Semiconductor

-1.5%

US Market


1 Year Return

103.8%

UMC

35.4%

US Semiconductor

12.9%

US Market

Return vs Industry: UMC exceeded the US Semiconductor industry which returned 35.4% over the past year.

Return vs Market: UMC exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

UMCIndustryMarket
7 Day-0.9%-1.5%-1.5%
30 Day16.6%-2.0%-1.8%
90 Day66.5%7.7%6.6%
1 Year111.2%103.8%37.8%35.4%15.4%12.9%
3 Year88.0%71.2%84.8%75.2%39.6%30.2%
5 Year201.0%159.4%251.5%217.0%93.4%71.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

18.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UMC ($4.28) is trading below our estimate of fair value ($5.22)

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


Price To Earnings Ratio

PE vs Industry: UMC is good value based on its PE Ratio (19x) compared to the US Semiconductor industry average (34.2x).

PE vs Market: UMC is poor value based on its PE Ratio (19x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: UMC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: UMC is good value based on its PB Ratio (1.5x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is United Microelectronics forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UMC's forecast earnings growth (21.9% per year) is above the savings rate (2.2%).

Earnings vs Market: UMC's earnings (21.9% per year) are forecast to grow slower than the US market (23.1% per year).

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

Revenue vs Market: UMC's revenue (4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: UMC's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UMC's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has United Microelectronics performed over the past 5 years?

-7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UMC has high quality earnings.

Growing Profit Margin: UMC's current net profit margins (9.4%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: UMC's earnings have declined by 7.9% per year over the past 5 years.

Accelerating Growth: UMC's earnings growth over the past year (426.1%) exceeds its 5-year average (-7.9% per year).

Earnings vs Industry: UMC earnings growth over the past year (426.1%) exceeded the Semiconductor industry 7.5%.


Return on Equity

High ROE: UMC's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is United Microelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: UMC's short term assets (NT$168.0B) exceed its short term liabilities (NT$65.1B).

Long Term Liabilities: UMC's short term assets (NT$168.0B) exceed its long term liabilities (NT$93.2B).


Debt to Equity History and Analysis

Debt Level: UMC's debt to equity ratio (33.9%) is considered satisfactory.

Reducing Debt: UMC's debt to equity ratio has increased from 25% to 33.9% over the past 5 years.

Debt Coverage: UMC's debt is well covered by operating cash flow (92.6%).

Interest Coverage: UMC's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UMC's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: UMC's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (4.7%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.8%), UMC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UMC's dividends in 3 years are forecast to be covered by earnings (75.5% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Jason S. Wang (57 yo)

3.25yrs

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

NamePositionTenureCompensationOwnership
Jia Cong Hung
Chairman & Chief Strategy Officer12.17yrsno data0.32%
NT$ 34.7m
Jason S. Wang
Co-President & Representative Director3.25yrsno data0.068%
NT$ 7.3m
Shan-Chieh Chien
Co-President & Representative Director4.5yrsno data0.057%
NT$ 6.1m
Qi Dong Liu
CFO, Senior VP14.92yrsno datano data
Lucas S. Chang
Senior VP & General Counsel2.67yrsno datano data
Eric Chen
VP & Chief Human Resources Officer9.58yrsno datano data
Ming Hsu
Executive Vice President5.25yrsno datano data
WenChi Ting
Deputy General Managerno datano data0.0073%
NT$ 780.1k
Steven Liu
Deputy General Managerno datano data0.0037%
NT$ 390.6k
Zhen-Lun Zhang
Deputy General Managerno datano data0.0037%
NT$ 390.6k
Kuei-Chun Hung
Deputy General Managerno datano data0.0085%
NT$ 911.4k
Francia Hsu
Deputy General Managerno datano data0.0041%
NT$ 441.8k

4.3yrs

Average Tenure

60yo

Average Age

Experienced Management: UMC's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jia Cong Hung
Chairman & Chief Strategy Officer12.17yrsno data0.32%
NT$ 34.7m
Jason S. Wang
Co-President & Representative Director3.25yrsno data0.068%
NT$ 7.3m
Shan-Chieh Chien
Co-President & Representative Director4.5yrsno data0.057%
NT$ 6.1m
Chung-Laung Liu
Director14.25yrsno datano data
Ting-Yu Lin
Director11.25yrsno data0.11%
NT$ 11.3m
Cheng-Li Huang
Independent Director11.25yrsno datano data
Jyuo-Min Shyu
Independent Director2.25yrsno datano data
Wenyi Chu
Independent Director5.25yrsno datano data
Lih J. Chen
Independent Director2.25yrsno datano data

5.3yrs

Average Tenure

62yo

Average Age

Experienced Board: UMC's board of directors are considered experienced (5.3 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 been diluted in the past year, with total shares outstanding growing by 5.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: United Microelectronics Corporation
  • Ticker: UMC
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: NT$309.581b
  • Listing Market Cap: NT$10.672b
  • Shares outstanding: 12.31b
  • Website: https://www.umc.com

Number of Employees


Location

  • United Microelectronics Corporation
  • Hsinchu Science Park
  • No. 3, Li-Hsin 2nd Road
  • Hsinchu City
  • 30078
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2303TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDJan 1992
UMCNYSE (New York Stock Exchange)ADS EACH REPR 5 ORD TWD10(SPONS)USUSDSep 2000
UMCBDB (Deutsche Boerse AG)ADS EACH REPR 5 ORD TWD10(SPONS)DEEURSep 2000

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 06:41
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
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.