On the stock market since 2000, it operates in the world of technology. It has 20,000 employees. Now — the numbers.
This is an established company with proven profits.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
No real growth (3% a year).
If every debt were paid off today, $68.6B would still be left in the vault — a solid cushion for hard times.
The stock trades 24% 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 $128B in the vault; even if every debt were paid off, $68.6B would remain.
It pays out $0.41 per share each year — regular cash for whoever holds the stock.
Over the last 3 years, sales fell about 5% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
The stock trades 52% above the average analyst price target.
On our five-subject report card, UMC sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
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 whether the price paid for the stock is too high.