Company Overview
United Microelectronics Corporation operates globally as a semiconductor wafer foundry, providing the essential infrastructure for manufacturing and selling integrated circuits across regions including Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and international markets. This entity functions within the Technology sector and specifically the Semiconductors industry, where it delivers critical backend and design support services for mobile and wireless communication applications. The company demonstrates significant scale with a market capitalization of $22.51B and an annual revenue of $237.55B, supported by a workforce of 20,000 employees. These valuation and revenue figures indicate that the organization holds a substantial position in the global semiconductor supply chain, reflecting its capacity to serve diverse customers with complex integrated circuit requirements.
Financial Health
The company reports a trailing twelve-month revenue of $237.55B, generating a net income of $41.72B and an EBITDA of $100.67B. The substantial gap between the $237.55B revenue and the $41.72B net income reveals a cost structure where operating expenses and taxes consume approximately 82.4% of gross sales before reaching the bottom line. Free cash flow stands at $37.75B, which signifies strong financial flexibility allowing the firm to fund operations, invest in manufacturing capacity, or service debt obligations without immediate reliance on external financing. Profitability is characterized by a gross margin of 29.0%, an operating margin of 19.8%, and a profit margin of 17.6%, indicating that for every dollar of sales, the company retains $0.29 before costs, $0.20 after operating expenses, and $0.17 as pure profit. Liquidity and leverage are managed with $128.37B in cash against $78.97B in debt, resulting in a debt-to-equity ratio of 20.79, which suggests a balance sheet that is heavily leveraged relative to its equity base. Short-term liquidity is robust, evidenced by a current ratio of 2.34, indicating that the company holds more than double the current assets necessary to cover its short-term liabilities. Management effectiveness is highlighted by a return on equity of 11.0% and a return on assets of 4.8%, showing that the company generates moderate returns on the capital invested by shareholders and the total asset base.
Valuation Assessment
Valuation metrics indicate a trailing P/E ratio of 17.06 and a forward P/E of 11.82. The difference between these two figures implies that the market expects earnings growth in the future, as the forward multiple is significantly lower than the trailing multiple. The price-to-book ratio is 9.40, which indicates that the market values the company at a premium of roughly 9.4 times its tangible book value, reflecting intangible assets or growth expectations. Alternative valuation metrics include a price-to-sales ratio of 0.09 and an EV/EBITDA of 0.62, suggesting a valuation that is extremely low relative to both sales and earnings power. The stock has traded within a 52-week range between a high of $12.68 and a low of $5.71. Without a specific current price provided in the facts, the precise percentage deviation cannot be calculated, but the low forward P/E and low EV/EBITDA suggest the current trading price is positioned well below the 52-week high. The beta value is 1.00, meaning the stock's price volatility moves in tandem with the broader market, offering neither amplified nor dampened risk compared to the general index.
Growth & Income
Growth dynamics show a revenue growth of 2.4% year-over-year alongside an earnings growth of 18.2% year-over-year. The fact that earnings are growing at a rate nearly eight times faster than revenue implies significant cost efficiencies, margin expansion, or a shift in the product mix toward higher-margin offerings. As a dividend payer, the company offers a dividend yield of 5.5% with a payout ratio of 85.1%, meaning a high portion of net income is distributed to shareholders. This high payout ratio is sustainable only if the 18.2% earnings growth continues or if margins remain stable, as a drop in earnings would quickly reduce the absolute dollar amount available for dividends. The overall growth and income profile presents a hybrid characteristic of modest revenue expansion paired with aggressive earnings growth and a high-yield dividend strategy.