Fact based stock research
UMC (TSEC:2303)

TW0002303005

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

UMC stock research in summary

umc.com

ANALYSIS: With an Obermatt Combined Rank of 53 (better than 53% compared with investment alternatives), UMC (Semiconductors, Taiwan) shares have above-average financial characteristics compared with similar stocks. Shares of UMC are a good value (attractively priced) with a consolidated Value Rank of 81 (better than 81% of alternatives), are safely financed (Safety Rank of 51, which means low debt burdens), but show below-average growth (Growth Rank of 27). ...read more

RECOMMENDATION: A Combined Rank of 53, is a buy recommendation based on UMC's financial characteristics. As the company UMC's key financial metrics exhibit good value (Obermatt Value Rank of 81) but low growth (Obermatt Growth Rank of 27) while being safely financed (Obermatt Safety Rank of 51), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 81% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	Taiwan
Industry	Semiconductors
Index	Energy Efficient, Human Rights, Low Waste, Recycling, Water Efficiency, FTSE Taiwan
Size class	X-Large

This stock has achievements: Top 10 Stock.

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Further information

Alternative to SMI? Experts Share Their Swiss Investment Strategies

Dr. Hermann Stern, founder and chair of Obermatt, provides insight into the methodology and background of the method, while Daniel Grob, partner at Amasus, shows how the method is made investable for customers. Be there to gain exciting insights and new perspectives. (event held in German)

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: UMC

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	89	47	81	n/a
GROWTH
GROWTH	64	71	19	n/a
SAFETY
SAFETY	80	25	51	n/a
SENTIMENT
SENTIMENT	n/a	8	26	^new
360° VIEW
360° VIEW	n/a	21	31	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better UMC is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	89	47	81	n/a
GROWTH
GROWTH	64	71	19	n/a
SAFETY
SAFETY	80	25	51	n/a
COMBINED
COMBINED	93	47	47	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of UMC the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 81 (better than 81% compared with alternatives) for 2025, UMC shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for UMC. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 92 which means that the stock price compared with what market professionals expect for future profits is lower than for 92% of comparable companies, indicating a good value concerning UMC's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 57, and for Dividend Yield with a Dividend Yield Rank of 95. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 56% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 44). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 81, is a buy recommendation based on UMC's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that UMC has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing UMC shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	55	27	47	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	88	57	92	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	63	52	62	n/a
DIVIDEND YIELD
DIVIDEND YIELD	94	78	97	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	89	47	81	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of UMC; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 27 (better than 27% compared with alternatives), UMC shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for UMC. While Profit Growth has a good rank of 50, as professionals currently expect the company to grow its profits more than 50% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 33, which means that currently professionals expect the company to grow less than 67% of its competitors, while Capital Growth has a rank of 12 and Stock Returns have been below market median, with a rank of 45 (55% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 27, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	26	68	36	n/a
PROFIT GROWTH
PROFIT GROWTH	33	61	51	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	31	13	n/a
STOCK RETURNS
STOCK RETURNS	88	71	43	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	64	71	19	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of UMC.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 51 (better than 51% compared with alternatives), the company UMC has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of UMC is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for UMC. Leverage is at 56, meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors. Refinancing is at a rank of 51, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 51% of its competitors. Finally, Liquidity is also good at a rank of 51, which means that the company generates more profit to service its debt than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 51 (better than 51% compared with alternatives), UMC has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with UMC but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	82	38	56	n/a
REFINANCING
REFINANCING	14	45	51	n/a
LIQUIDITY
LIQUIDITY	100	25	51	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	80	25	51	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of UMC and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	47	51	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	16	52	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	34	39	^new
MARKET PULSE
MARKET PULSE	n/a	35	34	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	8	26	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for UMC.
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