UMC Electronics Co., Ltd. (6615) AI Stock Analysis

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UMC Electronics Co., Ltd.

(TSE/TYO:6615)

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Rating:46Neutral

Price Target:JPY 216.00▲(5.88% Upside)

Action:reiterated

Date:10/15/26

The score is held down primarily by weak financial quality (thin, volatile profitability, elevated leverage, and negative FY2026 free cash flow) and bearish technicals (price below major moving averages with negative MACD). A relatively high dividend yield offers some support, but a negative P/E and unstable earnings reduce valuation confidence.

Positive Factors

Improved Equity BaseA stronger equity base and a return to positive ROE provide some evidence that the company has stabilized after the prior period. Although returns remain modest, improved capital support can help preserve operating continuity and provide a foundation for recovery if profitability strengthens.

Negative Factors

Revenue ContractionThe sharp FY2026 revenue decline following an earlier rebound points to an uneven demand environment and makes the company’s growth trajectory difficult to rely on. Persistent top-line volatility can reduce operating leverage, weaken planning visibility, and hinder sustained improvement in earnings quality.

UMC Electronics Co., Ltd. (6615) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.74B
Dividend Yield: 4.90%
Average Volume (3M): 62.06K
Price to Earnings (P/E): -46.3
Beta (1Y): 0.92
Revenue Growth: -9.55%
EPS Growth: 95.66%
Country: Japan
Employees: 5,596
Sector: Technology
Sector Strength: 61
Industry: Hardware, Equipment & Parts

UMC Electronics Co., Ltd. Business Overview & Revenue Model

Company Description

UMC Electronics Co., Ltd. provides electronic manufacturing services in Japan. The company offers in-vehicle equipment, including electrical systems for electric vehicles, starting and power generation equipment, exterior systems, speedometers, in-ve...

How the Company Makes Money

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UMC Electronics Co., Ltd. Financial Statement Overview

Summary

Financials appear fragile: revenue declined in FY2026 (-11.9%), profitability is very thin (FY2026 net margin ~0.3%, EBIT margin ~1.1%), leverage is elevated (debt-to-equity ~2.0x), and cash generation is inconsistent with FY2026 free cash flow turning negative (~-¥0.9B).

Income Statement

44Neutral

Balance Sheet

46Neutral

Cash Flow

41Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	115.67B	112.73B	131.94B	131.29B	161.71B	134.55B
Gross Profit	6.45B	6.53B	7.57B	7.34B	8.26B	7.67B
EBITDA	4.70B	4.75B	5.50B	5.18B	5.50B	4.33B
Net Income	-123.00M	283.00M	-2.51B	1.02B	637.00M	1.57B
Balance Sheet
Total Assets	81.45B	75.81B	73.63B	79.02B	84.78B	73.37B
Cash, Cash Equivalents and Short-Term Investments	10.52B	10.60B	11.56B	10.27B	9.75B	7.93B
Total Debt	32.72B	34.08B	31.75B	35.83B	38.23B	26.70B
Total Liabilities	64.11B	58.66B	58.30B	59.30B	66.77B	56.28B
Stockholders Equity	17.30B	17.11B	15.29B	19.70B	18.00B	17.03B
Cash Flow
Free Cash Flow	0	-942.00M	7.87B	4.71B	-2.64B	-5.95B
Operating Cash Flow	0	2.59B	10.35B	8.66B	361.00M	-3.51B
Investing Cash Flow	0	-4.33B	-3.65B	-4.74B	-8.76B	-2.09B
Financing Cash Flow	0	575.00M	-5.57B	-3.45B	10.14B	6.09B

UMC Electronics Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price204.00

Price Trends

50DMA229.70Negative

100DMA231.05Negative

200DMA270.13Negative

Market Momentum

MACD-7.58Positive

RSI27.11Positive

STOCH17.75Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6615, the sentiment is Negative. The current price of 204.00 is below the 20-day moving average (MA) of 216.45, below the 50-day MA of 229.70, and below the 200-day MA of 270.13, indicating a bearish trend. The MACD of -7.58 indicates Positive momentum. The RSI at 27.11 is Positive, neither overbought nor oversold. The STOCH value of 17.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6615.

UMC Electronics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6615 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6770	68Neutral	JPY 408.72B	16.02	3.75%	3.07%	5.06%	-65.51%
JP:6806	66Neutral	JPY 748.91B	23.55	8.79%	2.20%	15.94%	6.46%
JP:6908	66Neutral	JPY 61.87B	21.86	―	5.67%	9.70%	3.12%
JP:6762	62Neutral	JPY 4.88T	20.79	―	1.56%	25.38%	50.76%
JP:6981	62Neutral	JPY 11.73T	43.72	10.61%	1.10%	14.53%	24.27%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:6615	46Neutral	JPY 5.74B	-46.26	-0.73%	4.90%	-9.55%	95.66%

* Technology Sector Average

Performance Comparison

JP:6615 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6615	UMC Electronics Co., Ltd.	204.00	-62.68	-23.50%
JP:6770	Alps Alpine Co	2085.00	195.04	10.32%
JP:6806	HIROSE ELECTRIC CO	23625.00	3392.57	16.77%
JP:6981	Murata Manufacturing Co	6358.00	3012.39	90.04%
JP:6762	TDK Corporation	2572.00	-57.75	-2.20%
JP:6908	IRISO Electronics Co., Ltd.	2644.00	-322.57	-10.87%

UMC Electronics Co., Ltd. Corporate Events

UMC Electronics to Move Listing From Prime to Standard Market as Supervision Status Lifted

Sep 1, 2026

UMC Electronics Co., Ltd., listed on the Tokyo and Nagoya Stock Exchanges under securities code 6615, operates in the electronics sector, supplying electronic components and related solutions to industrial customers. The company targets growth throug...

UMC Electronics to Cancel Treasury Shares After Ending Stock Benefit Trust

Aug 28, 2026

UMC Electronics will terminate its performance-linked Stock Benefit Trust earlier than planned after its shares were placed under supervision by the Tokyo Stock Exchange, triggering conditions in the trust agreement. As a result, the company will acq...

UMC Electronics Posts Q1 Loss Despite Higher Sales and Cuts Full-Year Profit Outlook

Aug 6, 2026

UMC Electronics reported first-quarter fiscal 2027 consolidated net sales of ¥31.9 billion, up 10.2% year on year, but operating profit fell 42.4% to ¥230 million and ordinary profit declined 30.8% to ¥201 million, resulting in a net l...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 15, 2026

UMC Electronics Co., Ltd. AI Stock Analysis

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