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

• Market Cap: ¥8.43B
• Dividend Yield: 3.36%
• Average Volume (3M): 60.34K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 1.03
• Revenue Growth: -2.78%
• EPS Growth: -253.13%
• Country: JP
• Employees: 5,689
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 8.47
• Shares Outstanding: 28,284,620
• 10 Day Avg. Volume: 33,760
• 30 Day Avg. Volume: 60,336
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥314.69
• Price Target Upside: 4.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥315.00 ▲(5.00% Upside)

The overall stock score for UMC Electronics Co., Ltd. is driven primarily by its strong cash flow management, which provides a buffer against its profitability challenges and high leverage. Technical indicators suggest a neutral outlook, while valuation concerns due to a negative P/E ratio are partially offset by a decent dividend yield.

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

Company Description

UMC Electronics Co., Ltd. provides electronic manufacturing services in Japan. The company develops pachinko amusement/pinball games; pachinko/pinball game control units; electronic circuit boards for liquid crystal displays, decorative illumination, power supply, etc.; and devices related to credit/debit cards, such as credit/debit card payment terminals and security code inputting keypads. It also offers car electronic machine parts, including AC inverters, motor drivers, electric steering locks, trunk lid sensors, indicator in the compartments, start stop converters, and other parts. The company was founded in 1968 and is headquartered in Ageo, Japan.

How the Company Makes Money

UMC Electronics Co., Ltd. generates revenue primarily through the production and sale of electronic components and systems. The company earns money by manufacturing customized electronic solutions for automotive and industrial applications, leveraging its expertise in electronic design and production. Key revenue streams include contracts with automotive manufacturers for the supply of electronic control units and sales of printed circuit boards to industrial equipment companies. Additionally, strategic partnerships with technology firms enhance the company's offering and contribute to its earnings, allowing it to maintain competitiveness in the rapidly evolving electronics market.

UMC Electronics Co., Ltd. Financial Statement Overview

Summary

UMC Electronics Co., Ltd. shows strong cash flow management with a significant increase in free cash flow. However, profitability is a concern with negative net income margins and high leverage, which poses financial stability risks.

Income Statement

UMC Electronics Co., Ltd. showed a mixed performance on the income statement. The gross profit margin stood at 5.74% for 2025, reflecting moderate profitability. However, the net profit margin was concerning at -1.97%, indicating a loss. The revenue growth from 2024 to 2025 was marginal at 0.49%. While EBIT and EBITDA margins improved slightly, the overall profitability remains a challenge.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.09, indicating significant leverage. The return on equity (ROE) was negative at -17.04% for 2025, reflecting poor returns for shareholders. The equity ratio was relatively low at 20.65%, pointing to a reliance on debt financing. The company's financial stability is somewhat strained due to high leverage and low equity.

Cash Flow

Cash flow analysis shows strong performance in 2025. Free cash flow grew substantially by 74.47% from the previous year. The operating cash flow to net income ratio was positive at 3.99, indicating strong cash generation relative to net income. Free cash flow to net income ratio was also favorable at 3.03. Despite profitability issues, the company demonstrates robust cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	131.94B	131.94B	131.29B	161.71B	134.55B	136.18B
Gross Profit	7.57B	7.57B	7.34B	8.26B	7.67B	7.65B
EBITDA	5.48B	5.48B	5.07B	5.08B	5.17B	3.86B
Net Income	-2.59B	-2.59B	1.02B	637.00M	1.57B	-97.00M
Balance Sheet
Total Assets	73.63B	73.63B	79.02B	84.78B	73.37B	67.36B
Cash, Cash Equivalents and Short-Term Investments	11.56B	11.56B	10.27B	9.75B	7.93B	9.17B
Total Debt	31.75B	31.75B	35.83B	38.23B	26.70B	19.20B
Total Liabilities	58.40B	58.40B	59.30B	66.78B	56.28B	52.44B
Stockholders Equity	15.21B	15.21B	19.70B	18.00B	17.03B	14.87B
Cash Flow
Free Cash Flow	0.00	7.87B	4.51B	-2.82B	-5.96B	735.00M
Operating Cash Flow	0.00	10.35B	8.66B	361.00M	-3.51B	2.59B
Investing Cash Flow	0.00	-3.65B	-4.74B	-8.76B	-2.09B	-1.95B
Financing Cash Flow	0.00	-5.57B	-3.45B	10.14B	6.09B	4.53B

UMC Electronics Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 300.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6615, the sentiment is Positive. The current price of 300 is above the 20-day moving average (MA) of 300.00, above the 50-day MA of 294.88, and above the 200-day MA of 297.86, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6615.

UMC Electronics Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6919	75 Outperform	10.73B	56.31	2.64%	5.42%	-2.65%	-74.99%
6658	73 Outperform	9.98B	4.84	20.90%	4.55%	2.22%	28.89%
6800	66 Neutral	36.08B	43.60	4.29%	3.10%	4.30%	-66.03%
6772	65 Neutral	12.70B	20.55	9.36%	1.78%	1.49%	-26.82%
6615	60 Neutral	¥8.43B	5.36	-17.13%	3.36%	-2.78%	-253.13%
6926	46 Neutral	4.63B	-2.61	-24.13%	―	-21.49%	-155.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

UMC Electronics Co., Ltd. Corporate Events

UMC Electronics Seeks Market Category Change to Tokyo Stock Exchange Standard Market

UMC Electronics Co., Ltd. has announced its decision to apply for a change in market classification to the Tokyo Stock Exchange Standard Market. This strategic move comes as the company acknowledges the challenge of meeting Prime Market standards by March 2026. Despite the market category change, UMC Electronics remains committed to sustainable growth and aims to eventually requalify for the Prime Market through medium- to long-term growth strategies.

The most recent analyst rating on (JP:6615) stock is a Hold with a Yen314.00 price target. To see the full list of analyst forecasts on UMC Electronics Co., Ltd. stock, see the JP:6615 Stock Forecast page.

UMC Electronics Reports Decline in Q1 2025 Financial Results

UMC Electronics Co., Ltd. reported a decline in its financial performance for the first quarter ended June 30, 2025, with net sales decreasing by 12.3% year-on-year. The company’s operating profit and ordinary profit also saw significant declines, impacting its profitability. Despite these challenges, the company maintains its dividend forecast for the fiscal year ending March 31, 2026, indicating a stable outlook for shareholder returns.

UMC Electronics Co., Ltd. Reports on Relationship with Toyota Industries Corporation

UMC Electronics Co., Ltd. has announced that Toyota Industries Corporation holds 34.6% of its voting rights, categorizing it as an ‘other affiliated company.’ Despite this substantial ownership, UMC Electronics maintains operational independence, with no business restrictions imposed by Toyota. However, the company’s performance is closely tied to the sales trends of the Toyota Industries Group, which represents 32.9% of its total sales. The company’s transactions with Toyota Industries include product sales and outsourcing, highlighting a significant business relationship.

UMC Electronics Outlines Strategy to Meet Tokyo Stock Exchange Listing Criteria

UMC Electronics Co., Ltd. has announced a plan to comply with the Tokyo Stock Exchange’s listing maintenance criteria after failing to meet the standards for market capitalization and average daily trading value. The company is implementing initiatives to improve corporate value and achieve sustainable growth, including a mid-to-long-term plan called the ‘2030 Vision,’ targeting 200 billion yen in sales and a 3% operating profit margin. Despite recent challenges, UMC Electronics has seen improvements in operating profit and ordinary profit, and it continues to focus on increasing transaction volumes across its main business areas.