NYSE:UMC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with moderate growth potential.


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


Market Performance


7 Day Return

-0.5%

NYSE:UMC

0.4%

US Semiconductor

0.8%

US Market


1 Year Return

-13.2%

NYSE:UMC

10.7%

US Semiconductor

1.9%

US Market

UMC underperformed the Semiconductor industry which returned 10.7% over the past year.

UMC underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

UMCIndustryMarket
7 Day-0.5%0.4%0.8%
30 Day3.8%7.8%3.4%
90 Day1.9%12.6%2.1%
1 Year-10.7%-13.2%12.7%10.7%4.2%1.9%
3 Year24.7%14.8%84.2%73.5%46.7%37.2%
5 Year21.5%5.3%124.2%101.4%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

United Microelectronics's share price is below the future cash flow value, and at a moderate discount (> 20%).

United Microelectronics's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

United Microelectronics is overvalued based on earnings compared to the US Semiconductor industry average.

United Microelectronics is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

United Microelectronics is poor value based on expected growth next year.


Price Based on Value of Assets

United Microelectronics is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is United Microelectronics expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

United Microelectronics's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

United Microelectronics's earnings are expected to grow significantly at over 20% yearly.

United Microelectronics's revenue growth is positive but not above the United States of America market average.

United Microelectronics's earnings growth is expected to exceed the United States of America market average.

United Microelectronics's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

United Microelectronics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has United Microelectronics performed over the past 5 years?

-9.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

United Microelectronics's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

United Microelectronics's 1-year earnings growth is negative, it can't be compared to the 5-year average.

United Microelectronics's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.


Return on Equity

It is difficult to establish if United Microelectronics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

United Microelectronics used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

United Microelectronics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is United Microelectronics's financial position?


Financial Position Analysis

United Microelectronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

United Microelectronics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

United Microelectronics's level of debt (42%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (22.2% vs 42% today).

Debt is well covered by operating cash flow (57%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 0.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

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

4.85%

Expected Dividend Yield


Dividend Yield and Payments Analysis

United Microelectronics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

United Microelectronics's dividend is above the markets top 25% of dividend payers in United States of America (3.69%).

United Microelectronics has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but United Microelectronics only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

What is the CEO of United Microelectronics's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Jason Wang (56yo)

2.3yrs

Tenure

0

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 ...


Management Age and Tenure

2.3yrs

Average Tenure

59yo

Average Age

The tenure for the United Microelectronics management team is about average.


Board Age and Tenure

10.3yrs

Average Tenure

61yo

Average Age

The average tenure for the United Microelectronics board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Stan Hung (59yo)

    Chairman & Chief Strategy Officer

    • Tenure: 11.2yrs
  • Lucas Chang (64yo)

    Senior VP & General Counsel

    • Tenure: 0yrs
  • Chitung Liu (53yo)

    CFO, VP & Company Secretary

    • Tenure: 13.9yrs
  • Jason Wang (56yo)

    Co-President & Director

    • Tenure: 2.3yrs
  • Shan-Chieh Chien (61yo)

    Co-President & Director

    • Tenure: 0yrs
  • Ming Hsu

    Senior Vice President

    • Tenure: 0yrs
  • Eric Chen

    VP & Chief Human Resources Officer

    • Tenure: 0yrs

Board Members

  • Stan Hung (59yo)

    Chairman & Chief Strategy Officer

    • Tenure: 11.2yrs
  • Dave Liu (85yo)

    Director

    • Tenure: 13.3yrs
  • Ting-Yu Lin (58yo)

    Director

    • Tenure: 10.3yrs
  • Cheng-Li Huang (70yo)

    Independent Director

    • Tenure: 10.3yrs
  • Jason Wang (56yo)

    Co-President & Director

    • Tenure: 2.3yrs
  • Shan-Chieh Chien (61yo)

    Co-President & Director

    • Tenure: 0yrs
  • Jyuo-Min Shyu (65yo)

    Independent Director

    • Tenure: 0yrs
  • Wenyi Chu (52yo)

    Independent Director

    • Tenure: 4.3yrs
  • Lih Chen (72yo)

    Independent Director

    • Tenure: 0yrs

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$150.735b
  • Listing Market Cap: NT$4.869b
  • Shares outstanding: 11.12b
  • Website: https://www.umc.com

Number of Employees


Location

  • United Microelectronics Corporation
  • Hsinchu Science Park
  • No. 3 Li-Hsin Road II
  • Hsinchu City
  • 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, the United States, Europe, and internationally. The company operates through Wafer Fabrication and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:41
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.