Universal Microwave Technology, Inc. (3491) AI Stock Analysis

Universal Microwave Technology, Inc.

(TPEx:3491)

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Rating:54Neutral

Price Target:TWD 1,107.00▼(-15.17% Downside)

Action:initiatedcoverage

Date:11/09/26

Universal Microwave Technology earns a below-average score of 54. The main drag is the combination of an expensive valuation (P/E of 92.8 with a thin 0.63% yield) and a decisively weak technical setup, with the stock trading below all major moving averages and showing negative MACD momentum. Financially, the company is on firmer ground: multi-year revenue growth, materially higher margins than in 2020, and a conservatively financed balance sheet with debt-to-equity of just 0.23x. However, the latest year introduced real caution flags — operating margin compression of more than nine percentage points, a dip in net income, lower return on equity, and a swing to negative free cash flow driven by heavy capital spending. The investment phase could support future growth, but until that capex converts into renewed earnings and cash generation, the high multiple and downward price trend keep the risk-reward balance unattractive.

Positive Factors

Revenue GrowthThe return to stronger revenue growth indicates improving demand for the company’s RF and microwave products after a weak prior year. Sustained top-line expansion can support operating leverage, fund product development, and reinforce its position in communications and high-frequency electronics markets.

Negative Factors

Free Cash Flow DeficitA large negative free-cash-flow result weakens the quality of current earnings and may constrain internally funded investment or shareholder returns. The reversal from positive generation also raises concern that reinvestment or working-capital needs could remain a material drain on cash.

Universal Microwave Technology, Inc. (3491) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 98.49B
Dividend Yield: 0.52%
Average Volume (3M): 1.51M
Price to Earnings (P/E): 105.8
Beta (1Y): 1.57
Revenue Growth: 35.74%
EPS Growth: 60.85%
Country: TW
Employees: 750
Sector: General
Sector Strength: 55
Industry: Communication Equipment

Universal Microwave Technology, Inc. Business Overview & Revenue Model

Company Description

Universal Microwave Technology, Inc. (UMT) specializes in the engineering and production of bespoke microwave and millimeter-wave devices, alongside a variety of antennas, all designed to facilitate advanced broadband wireless communications. Their e...

Universal Microwave Technology, Inc. Financial Statement Overview

Summary

Solid overall financial foundation with uneven momentum. Revenue has grown roughly 65% since 2020, including a 9.9% gain in the latest year on top of 2024's 47% surge, and margins (≈50% gross, 21% net) remain far above 2020 levels (Income Statement: 72). The balance sheet is the standout strength (80): equity rose to NT$3.62bn, total debt fell to NT$834m, and debt-to-equity sits at a conservative 0.23x. Cash flow is the clear weak spot (48): operating cash flow fell to NT$471m and free cash flow swung to negative NT$345m as capex of ~NT$816m outpaced inflows. Add in operating margin compression (32.7% to 23.4%), a slight dip in net income, and ROE falling to 14.3% from 22.3%, and the picture is a financially sound company in a heavy investment phase that has yet to prove it will generate incremental returns.

Income Statement

72Positive

Balance Sheet

80Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.24B	2.45B	2.33B	1.59B	1.84B	1.76B
Gross Profit	1.80B	1.22B	1.20B	641.13M	750.90M	655.32M
EBITDA	996.83M	687.38M	850.36M	388.66M	497.62M	426.08M
Net Income	865.34M	519.11M	546.87M	200.11M	271.00M	236.64M
Balance Sheet
Total Assets	7.24B	5.20B	4.28B	3.40B	3.45B	3.53B
Cash, Cash Equivalents and Short-Term Investments	2.76B	1.42B	1.33B	1.44B	1.37B	1.29B
Total Debt	1.23B	833.80M	1.04B	441.22M	557.23M	561.39M
Total Liabilities	2.70B	1.58B	1.77B	937.14M	1.06B	1.15B
Stockholders Equity	4.54B	3.62B	2.45B	2.06B	1.97B	1.99B
Cash Flow
Free Cash Flow	-322.26M	-344.63M	165.16M	416.36M	333.54M	150.40M
Operating Cash Flow	640.50M	471.15M	713.01M	527.40M	420.31M	184.36M
Investing Cash Flow	-1.06B	-816.74M	-160.39M	-375.69M	230.68M	-297.19M
Financing Cash Flow	1.43B	400.11M	-45.92M	-379.68M	-284.41M	-76.19M

Universal Microwave Technology, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3491 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4979	61Neutral	TWD 54.47B	61.63	―	0.56%	23.09%	43.10%
TW:6285	59Neutral	TWD 92.58B	15.99	―	2.25%	29.79%	88.44%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4991	54Neutral	TWD 42.26B	78.98	―	―	52.19%	―
TW:3491	54Neutral	TWD 89.88B	105.82	―	0.52%	35.74%	60.85%
TW:3167	53Neutral	TWD 71.70B	56.60	―	0.49%	103.13%	231.77%

* General Sector Average

Performance Comparison

TW:3491 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3491	Universal Microwave Technology, Inc.	1305.00	839.95	180.61%
TW:3167	Ta Liang Technology Co., Ltd.	801.00	592.01	283.28%
TW:4979	Luxnet Corporation	383.00	179.05	87.79%
TW:4991	GCS Holdings, Inc.	352.00	186.17	112.27%
TW:6285	WNC Corporation	191.50	90.21	89.06%
TW:7861	Bellwether Electronic Corp.	679.00	360.94	113.48%

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 Microwave Technology, Inc. AI Stock Analysis