Don't Take a Position in United Microelectronics Stocks Without Knowing Its Fundamentals!

By Harris Dyer • Friday, December 30 12:02 • Permanent Link

Now trading at a price of $6.51, United Microelectronics has moved -3.3% so far today on a volume of 2,319,397, compared to its average of 10,149,219. In contrast, the S&P 500 index moved -0.7%.

United Microelectronics shares moved -42.5% over the last 52 weeks, with a high of $11.95 and a low of $5.36. During this time, the stock lagged the S&P 500 index by -23.2%. As of January 2022, the company's 50-day average price is $6.8166. United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The large-cap Technology company has 19,500 full time employees and is based in Hsinchu City, Taiwan. United Microelectronics has returned a 44.6% dividend yield over the last 12 months.

United Microelectronics Is Currently Undervalued:

Compared to the Technology sector's average of 26.5, United Microelectronics has a trailing twelve month price to earnings (P/E) ratio of 6.3 and, based on its EPS guidance of 0.76, an expected P/E ratio of 8.6.

The firm's price to earnings growth (PEG) is 0.17, which indicates that the company is undervalued in terms of its expected earnings growth.

United Microelectronics is undervalued in terms of its assets because its price to book (P/B) ratio is 0.1 compared to its sector average of 5.57. As of the date of publication, the company's shares are trading -88.0% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the forumla:

√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 1.03 * 126.105) = $54.06

Most of the Market Indicators on United Microelectronics Are Negative:

3 analysts are following United Microelectronics and have set target prices ranging from $4.7 to $9.9 per share. On average, they have given the company a rating of hold. At the current price of $6.51, UMC is trading -5.79% away from its average analyst target price of $6.91 per share, implying an analyst consensus of some upside potential for the stock.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.