United Microelectronics Corporation (NEW) Common Stock (UMC)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Generates $37.8 billion in annual free cash flow (126.5% yield on market cap)
• Solid return on equity of 11.0% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.21, providing financial flexibility
• Attractive 4.0% dividend yield providing steady income returns
• Established organization with 20,000 employees providing operational scale

Concerns

• Anemic revenue growth of 2.4% for a company of this size limits long-term upside
• Altman Z-Score of 1.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

United Microelectronics Corporation (NEW) Common Stock is a mid-cap technology company valued at $29.8 billion. Revenue stands at $237.6 billion. From a quality standpoint, United shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.0 warrants caution. On valuation, the stock is reasonably priced at 22.6x earnings, with offers a 37% margin of safety vs Graham Number of $19. Growth dynamics show revenue growing at 2.4% and profit growth of -0.1%. The 4.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 58/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $37.8 billion in annual free cash flow (126.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Sluggish 2% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer