United Microelectronics Corporation
United Microelectronics Corporation Fundamental Analysis
United Microelectronics Corporation (UMC) shows moderate financial fundamentals with a PE ratio of 19.67, profit margin of 17.56%, and ROE of 11.36%. The company generates $237.3B in annual revenue with moderate year-over-year growth of 4.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze UMC's fundamental strength across five key dimensions:
Efficiency Score
WeakUMC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentUMC trades at attractive valuation levels.
Growth Score
WeakUMC faces weak or negative growth trends.
Financial Health Score
ExcellentUMC maintains a strong and stable balance sheet.
Profitability Score
ModerateUMC maintains healthy but balanced margins.
Key Financial Metrics
Is UMC Expensive or Cheap?
P/E Ratio
UMC trades at 19.67 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, UMC's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values United Microelectronics Corporation at 2.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.78 times EBITDA. This is generally considered low.
How Well Does UMC Make Money?
Net Profit Margin
For every $100 in sales, United Microelectronics Corporation keeps $17.56 as profit after all expenses.
Operating Margin
Core operations generate 18.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.36 in profit for every $100 of shareholder equity.
ROA
United Microelectronics Corporation generates $7.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
United Microelectronics Corporation generates strong operating cash flow of $99.51B, reflecting robust business health.
Free Cash Flow
United Microelectronics Corporation generates strong free cash flow of $50.66B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $20.31 in free cash annually.
FCF Yield
UMC converts 6.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How UMC Stacks Against Its Sector Peers
| Metric | UMC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.67 | 35.19 | Better (Cheaper) |
| ROE | 11.36% | 1155.00% | Weak |
| Net Margin | 17.56% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.21 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 2.30 | 4.71 | Strong Liquidity |
| ROA | 7.20% | -314918.00% (disorted) | Weak |
UMC outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews United Microelectronics Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.75%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
670.53%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
65.52%
Industry Style: Growth, Innovation, High Beta
High Growth