United Microelectronics Operating Margin vs. Price To Book

UMC Stock  USD 6.75  0.06  0.90%   
Based on United Microelectronics' profitability indicators, United Microelectronics is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in December. Profitability indicators assess United Microelectronics' ability to earn profits and add value for shareholders.

United Microelectronics Operating Profit Margin

0.27

At present, United Microelectronics' Days Sales Outstanding is projected to slightly decrease based on the last few years of reporting. The current year's EV To Sales is expected to grow to 2.77, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.03. At present, United Microelectronics' Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 71.9 B, whereas Interest Income is forecasted to decline to about 4.2 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.180.3494
Way Down
Slightly volatile
Net Profit Margin0.140.2682
Way Down
Pretty Stable
Operating Profit Margin0.270.2601
Sufficiently Up
Slightly volatile
Pretax Profit Margin0.320.3076
Sufficiently Up
Slightly volatile
Return On Assets0.110.1092
Slightly Up
Slightly volatile
Return On Equity0.170.1662
Fairly Up
Slightly volatile
For United Microelectronics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of United Microelectronics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well United Microelectronics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between United Microelectronics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of United Microelectronics over time as well as its relative position and ranking within its peers.
  
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Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of United Microelectronics. If investors know United will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about United Microelectronics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.09)
Dividend Share
3
Earnings Share
0.63
Revenue Per Share
93.08
Quarterly Revenue Growth
0.06
The market value of United Microelectronics is measured differently than its book value, which is the value of United that is recorded on the company's balance sheet. Investors also form their own opinion of United Microelectronics' value that differs from its market value or its book value, called intrinsic value, which is United Microelectronics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because United Microelectronics' market value can be influenced by many factors that don't directly affect United Microelectronics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between United Microelectronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if United Microelectronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, United Microelectronics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

United Microelectronics Price To Book vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining United Microelectronics's current stock value. Our valuation model uses many indicators to compare United Microelectronics value to that of its competitors to determine the firm's financial worth.
United Microelectronics is rated second in operating margin category among its peers. It is rated below average in price to book category among its peers fabricating about  6.34  of Price To Book per Operating Margin. At present, United Microelectronics' Operating Profit Margin is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the United Microelectronics' earnings, one of the primary drivers of an investment's value.

United Price To Book vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

United Microelectronics

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.23 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

United Microelectronics

P/B

 = 

MV Per Share

BV Per Share

 = 
1.48 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

United Price To Book Comparison

United Microelectronics is currently under evaluation in price to book category among its peers.

United Microelectronics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in United Microelectronics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, United Microelectronics will eventually generate negative long term returns. The profitability progress is the general direction of United Microelectronics' change in net profit over the period of time. It can combine multiple indicators of United Microelectronics, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income3.6 B6.8 B
Operating Income57.9 B60.8 B
Income Before Tax68.5 B71.9 B
Total Other Income Expense Net10.6 B11.1 B
Net Income59.7 B62.7 B
Income Tax Expense8.3 B8.7 B
Net Income Applicable To Common Shares100.3 B105.3 B
Net Income From Continuing Ops69.6 B73.1 B
Interest Income4.6 B4.2 B
Net Interest IncomeB3.1 B
Change To Netincome16.9 B17.8 B
Net Income Per Share 4.82  5.07 
Income Quality 1.41  1.34 
Net Income Per E B T 0.87  0.90 

United Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on United Microelectronics. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of United Microelectronics position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the United Microelectronics' important profitability drivers and their relationship over time.

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When determining whether United Microelectronics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of United Microelectronics' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of United Microelectronics Stock. Outlined below are crucial reports that will aid in making a well-informed decision on United Microelectronics Stock:
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You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
To fully project United Microelectronics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of United Microelectronics at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include United Microelectronics' income statement, its balance sheet, and the statement of cash flows.
Potential United Microelectronics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although United Microelectronics investors may work on each financial statement separately, they are all related. The changes in United Microelectronics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on United Microelectronics's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.