Provide semiconductor wafer foundry services to fabless design companies. Offer circuit design and mask tooling services to enhance product development. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
The market pays 44.2× for every dollar this company earns in a year — a price that already assumes things go well.
Against companies in its own sector, it looks cheaper than 56% of them.
Analysts' average target sits 55% below today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
Clearly above the class average — a step short of the very top.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
There is growth, but not at top-of-the-class tempo.
The stock has been running stronger than the market lately.
No real weak spot in any of the five subjects — a balanced report card.
The stock trades 19% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 17% — still a thick cushion, though costs have been eating into it lately.
There is $4.1B in the vault; even if every debt were paid off, $2.2B would remain.
It pays out $0.40 per share each year — regular cash for whoever holds the stock.
Over the last 4 years, sales grew only 3% a year on average. At this size, speeding back up is not easy.
The company’s market value is 44 times its annual profit. Even a small disappointment could hit the price hard.
The stock trades 55% above the average analyst price target.
On our five-subject report card, UMC sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: UMC is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.