UMC Electronics Co., Ltd. (6615) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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UMC Electronics Co., Ltd.

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Why is UMC Electronics Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.67%

The company has been able to generate a Return on Capital Employed (avg) of 4.67% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -2.73% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.45% signifying low profitability per unit of shareholders funds

Healthy long term growth as Operating profit has grown by an annual rate 22.29%

With a fall in Net Sales of -4.66%, the company declared Very Negative results in Mar 26

INTEREST(Q) At JPY 114 MM has Grown at 10.68%
INTEREST COVERAGE RATIO(Q) Lowest at 802.63
RAW MATERIAL COST(Y) Grown by 36.4% (YoY)

With ROCE of 5.08%, it has a risky valuation with a 0.79 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -26.17%, its profits have fallen by -202%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to UMC Electronics Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is UMC Electronics Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

UMC Electronics Co., Ltd.

-26.17%

-0.80

54.31%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.73%

EBIT Growth (5y)

22.29%

EBIT to Interest (avg)

3.04

Debt to EBITDA (avg)

4.01

Net Debt to Equity (avg)

1.30

Sales to Capital Employed (avg)

2.55

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.67%

ROE (avg)

4.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.53

EV to EBIT

15.64

EV to EBITDA

5.71

EV to Capital Employed

0.79

EV to Sales

0.27

PEG Ratio

Dividend Yield

ROCE (Latest)

5.08%

ROE (Latest)

-12.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-27What is not working for the Company

INTEREST(Q)

At JPY 114 MM has Grown at 10.68%

INTEREST COVERAGE RATIO(Q)

Lowest at 802.63

RAW MATERIAL COST(Y)

Grown by 36.4% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 137.25 %

NET SALES(Q)

At JPY 27,592 MM has Fallen at -5.79%

OPERATING PROFIT(Q)

Lowest at JPY 915 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.32 %

PRE-TAX PROFIT(Q)

Lowest at JPY 21 MM

NET PROFIT(Q)

Lowest at JPY -4,491.5 MM

Here's what is not working for UMC Electronics Co., Ltd.

Pre-Tax Profit

At JPY 21 MM has Fallen at -95.17%

over average net sales of the previous four periods of JPY 434.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -4,491.5 MM has Fallen at -681.63%

over average net sales of the previous four periods of JPY -574.64 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 114 MM has Grown at 10.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 802.63

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At JPY 27,592 MM has Fallen at -5.79%

over average net sales of the previous four periods of JPY 29,288.75 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 915 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -4,491.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at 137.25 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 36.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales