United Microelectronics Corporation (NEW) Common Stock (UMC)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, UMC trades at $22.39. The business is a semiconductor wafer foundry: it turns designs into manufactured integrated circuits for communication, consumer, computer, and other applications. I see a narrow, capital-intensive operation rather than a wide-moat franchise. The numbers are mixed. FairStock calculations show a P/E of 21.74, P/B of 4.04, EPS of $1.03, ROE of 21.33%, but ROCE of only 5.09%. Low debt—D/E 0.14—is a genuine comfort. Revenue growth of 16.98% and profit growth of 374.70% look impressive, but that profit jump likely reflects cyclicality or a low prior base; I would not annualize it. In fiscal Q2 2026, the latest reported quarter, revenue was $68.7B, net income $42.3B, and margin 61.48%, which is extraordinary for a foundry. The Graham Number is $28.63, offering a 21.80% margin of safety, and PEG is 0.06, both suggesting the price is not demanding if earnings hold. Yet Piotroski is 7/9, Altman Z is 0.94, and beta is 1.70, so balance-sheet quality and volatility deserve scrutiny. Dividend yield is only 1.63%. Some FairStock inputs—FCF yield 198.6% and EV/EBITDA -0.26—look extreme and need verification. I would want durable ROCE and several years of filed results before paying up. The stock may be modestly cheap versus the Graham estimate, but a cyclical foundry with low return on capital and a high beta requires a margin of safety, not optimism.

In plain English: United Microelectronics makes semiconductor wafers and chips for other companies. The business has shown strong recent sales and profit growth, carries little debt, and earns a strong profit relative to shareholder money. At $22.39, the price looks somewhat below a simple value estimate, but chip making is cyclical and the stock has swung widely.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer