Universal Microelectronics Co., Ltd. (2413) AI Stock Analysis

Universal Microelectronics Co., Ltd.

(TWSE:2413)

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Rating:51Neutral

Price Target:TWD 42.00▼(-8.79% Downside)

Action:initiatedcoverage

Date:11/09/26

Universal Microelectronics scores below average, driven primarily by fragile earnings quality: revenue remains far below its 2022 peak and net margin of just 1.6% leaves almost no buffer against pricing or cost shocks, with return on equity of only 2.6%. Offsetting this, the company generated strong free cash flow of NT$624M and has materially reduced leverage, making the balance sheet notably safer than a few years ago. Technicals are the second drag — the stock trades well below all key moving averages with negative MACD momentum, though deeply oversold readings suggest the selling may be extended. A modest P/E of 11.7 and a small 1.19% dividend yield provide some valuation support, but durable revenue growth and margin expansion are needed before the turnaround can be considered sustainable.

Positive Factors

Strong Cash GenerationStrong operating and free cash flow in 2025 indicates improved internal funding capacity and better earnings quality, with free cash flow close to net income. This supports ongoing operations, reduces reliance on external financing, and provides flexibility for investment or balance-sheet repair.

Negative Factors

Declining RevenueMulti-year revenue contraction signals that the company has not yet established durable demand growth across its PCB-related business. Continued top-line pressure can limit operating leverage, constrain investment capacity, and make the recent return to profitability harder to sustain over coming quarters.

Universal Microelectronics Co., Ltd. (2413) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.26B
Dividend Yield: 1.09%
Average Volume (3M): 4.37M
Price to Earnings (P/E): 12.3
Beta (1Y): 1.29
Revenue Growth: 7.73%
EPS Growth: ―
Country: TW
Employees: 1,788
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Universal Microelectronics Co., Ltd. Business Overview & Revenue Model

Company Description

Universal Microelectronics Co., Ltd. (UMC), established in 1984 and headquartered in Taichung, Taiwan, is a prominent international enterprise specializing in the development, manufacturing, and global distribution of a diverse array of electronic co...

Universal Microelectronics Co., Ltd. Financial Statement Overview

Summary

A mixed picture led by a weak income statement (38): revenue of NT$3.34B remains ~30% below the 2022 peak and margins are wafer-thin (1.6% net, 0.7% operating), though the company returned to profit after a 2024 loss and gross margin improved to 15.2%. The balance sheet (57) has de-risked meaningfully, with debt cut to NT$1.28B and debt-to-equity down to 0.64x from 1.25x in 2020, but return on equity is only 2.6%. Cash flow (68) is the standout, with operating cash flow of NT$648M and free cash flow of NT$624M on light capex, although much of this stems from working-capital release as the business shrinks rather than earnings growth.

Income Statement

38Negative

Balance Sheet

57Neutral

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.58B	3.34B	3.23B	4.60B	4.83B	4.04B
Gross Profit	569.18M	508.47M	392.99M	684.86M	838.69M	625.52M
EBITDA	360.58M	176.44M	124.08M	336.58M	431.83M	238.50M
Net Income	478.18M	52.39M	-55.49M	106.49M	262.58M	44.71M
Balance Sheet
Total Assets	4.69B	4.16B	4.30B	4.85B	5.54B	4.92B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.16B	902.03M	762.01M	653.01M	627.82M
Total Debt	1.26B	1.28B	1.68B	1.75B	1.96B	1.98B
Total Liabilities	2.43B	2.15B	2.35B	2.83B	3.51B	3.06B
Stockholders Equity	2.26B	2.01B	1.95B	2.02B	2.04B	1.86B
Cash Flow
Free Cash Flow	588.83M	623.74M	241.82M	225.40M	211.65M	-424.14M
Operating Cash Flow	600.13M	648.42M	287.71M	346.95M	294.31M	-314.93M
Investing Cash Flow	-158.28M	-126.10M	-179.00M	19.89M	-195.10M	-21.46M
Financing Cash Flow	-120.01M	-393.75M	-94.08M	-280.94M	-41.64M	-8.74M

Universal Microelectronics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2413 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3169	71Outperform	TWD 5.84B	23.45	―	3.47%	4.81%	4.09%
TW:3577	68Neutral	TWD 5.37B	16.64	―	2.38%	32.35%	164.16%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2413	51Neutral	TWD 5.84B	12.31	―	1.09%	7.73%	―
TW:3558	45Neutral	TWD 6.20B	50.00	―	2.86%	-3.32%	-69.25%
TW:8040	44Neutral	TWD 6.60B	765.55	―	―	13.49%	―
TW:3062	43Neutral	TWD 6.39B	-9.65	―	―	-1.21%	-212.49%

* General Sector Average

Performance Comparison

TW:2413 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2413	Universal Microelectronics Co., Ltd.	46.05	25.78	127.24%
TW:3062	CyberTAN Technology, Inc.	19.35	-7.00	-26.57%
TW:3169	Asix Electronics Co. Ltd.	92.30	4.13	4.69%
TW:3558	Senao Networks, Inc.	105.00	-29.33	-21.83%
TW:3577	ICP Das Co., Ltd.	83.90	23.92	39.88%
TW:8040	IC Plus Corp.	68.50	19.00	38.38%

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: Nov 09, 2026

Universal Microelectronics Co., Ltd. AI Stock Analysis