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

• Market Cap: ¥10.04B
• Dividend Yield: 2.98%
• Average Volume (3M): 51.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -5.25%
• EPS Growth: -281.76%
• Country: JP
• Employees: 5,689
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 5.50
• Shares Outstanding: 28,284,620
• 10 Day Avg. Volume: 78,540
• 30 Day Avg. Volume: 51,836
• PEG Ratio: <0.01
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 1.08
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥415.00 ▲(22.42% Upside)

UMC Electronics Co., Ltd. has a mixed outlook. The strong technical indicators suggest bullish momentum, which is a positive sign for short-term traders. However, the financial performance is concerning due to negative profitability and high leverage, which could pose risks in the long term. The valuation is also challenging with a negative P/E ratio, although the dividend yield offers some compensation. Overall, while there are opportunities in the technical momentum, fundamental financial challenges need to be addressed.

Positive Factors

Cash Flow Management

Strong cash flow growth indicates effective cash management, providing liquidity and operational efficiency, which supports long-term stability.

Strategic Partnerships

Strategic partnerships with major manufacturers ensure steady revenue streams and enhance market position in the automotive sector.

Revenue Model

A diversified revenue model with direct sales and partnerships ensures resilience and adaptability to market changes, supporting sustained growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility, increasing risk and potentially impacting long-term financial stability.

Negative Profitability

Negative profitability reflects challenges in cost management and pricing power, which can hinder long-term growth and shareholder returns.

Low Equity Ratio

A low equity ratio indicates dependence on debt, which can limit financial resilience and increase vulnerability to economic downturns.

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. exhibits a mixed financial performance. While cash flow is robust, indicating strong liquidity and operational efficiency, profitability remains a key challenge with negative net income margins. The high leverage reflected in the balance sheet poses potential risks, but the company's ability to generate cash provides a cushion.

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	127.89B	131.94B	131.29B	161.71B	134.55B	136.18B
Gross Profit	7.47B	7.57B	7.34B	8.26B	7.67B	7.65B
EBITDA	5.01B	5.48B	5.07B	5.08B	5.17B	3.86B
Net Income	-2.94B	-2.59B	1.02B	637.00M	1.57B	-97.00M
Balance Sheet
Total Assets	72.28B	73.63B	79.02B	84.78B	73.37B	67.36B
Cash, Cash Equivalents and Short-Term Investments	11.82B	11.56B	10.27B	9.75B	7.93B	9.17B
Total Debt	33.00B	31.75B	35.83B	38.23B	26.70B	19.20B
Total Liabilities	57.18B	58.40B	59.30B	66.78B	56.28B	52.44B
Stockholders Equity	15.07B	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: 339.00
• 50DMA: Positive
• 100DMA: Positive
• 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 339 is below the 20-day moving average (MA) of 341.60, above the 50-day MA of 312.24, and above the 200-day MA of 297.46, indicating a bullish trend. The MACD of 8.42 indicates Positive momentum. The RSI at 61.56 is Neutral, neither overbought nor oversold. The STOCH value of 70.06 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
6800	79 Outperform	¥51.10B	17.12	―	2.20%	4.75%	164.54%
6658	76 Outperform	¥10.82B	5.87	―	4.44%	1.68%	15.79%
6919	66 Neutral	¥10.78B	32.85	―	5.75%	-0.23%	-32.32%
6615	65 Neutral	¥10.04B	-6.10	-10.20%	2.98%	-5.25%	-281.76%
6772	65 Neutral	¥10.43B	26.74	―	1.78%	-1.17%	-42.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6926	46 Neutral	¥4.38B	-2.33	―	―	-6.31%	-64.22%

UMC Electronics Co., Ltd. Corporate Events

UMC Electronics Reports Q2 Financial Results with Stable Profit Amid Sales Decline

UMC Electronics Co., Ltd. reported its consolidated financial results for the second quarter ending September 30, 2025, showing a decline in net sales by 13.9% compared to the previous year, yet achieving a slight increase in operating profit. The company maintained its dividend forecast and showed a stable financial position with a slight improvement in equity-to-asset ratio, indicating resilience in a challenging market environment.

The most recent analyst rating on (JP:6615) stock is a Hold with a Yen300.00 price target. To see the full list of analyst forecasts on UMC Electronics Co., Ltd. stock, see the JP:6615 Stock Forecast page.