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

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UMC Electronics Co., Ltd.

(Frankfurt:6615)

Rating:53Neutral
Price Target:
¥312.00
▲(11.03%Upside)
The overall stock score of 52.5 reflects a blend of strong cash flow management and significant financial risks. Despite robust liquidity, the company's negative profitability and high leverage are concerning. Technical indicators suggest a neutral to bearish trend, and the valuation is hampered by negative earnings. The attractive dividend yield provides a slight offset.

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

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

Company DescriptionUMC Electronics Co., Ltd. (6615) is a Japan-based company engaged in the design, manufacture, and sale of electronic equipment. The company operates in various sectors, including automotive electronics, industrial equipment, and consumer electronics. It offers a wide range of products such as printed circuit boards, power supply units, and electronic control units, serving both domestic and international markets.
How the Company Makes MoneyUMC 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. Robust cash flow management is a key strength, with substantial growth in free cash flow and strong cash generation relative to net income. However, profitability remains a challenge with negative net income margins, and the high leverage on the balance sheet poses potential risks.
Income Statement
62
Positive
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
58
Neutral
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
75
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue131.94B131.29B161.71B134.55B136.18B
Gross Profit7.57B7.34B8.26B7.67B7.65B
EBITDA5.48B5.07B5.08B5.17B3.86B
Net Income-2.59B1.02B637.00M1.57B-97.00M
Balance Sheet
Total Assets73.63B79.02B84.78B73.37B67.36B
Cash, Cash Equivalents and Short-Term Investments11.56B10.27B9.75B7.93B9.17B
Total Debt31.75B35.83B38.23B26.70B19.20B
Total Liabilities58.40B59.30B66.78B56.28B52.44B
Stockholders Equity15.21B19.70B18.00B17.03B14.87B
Cash Flow
Free Cash Flow7.87B4.51B-2.82B-5.96B735.00M
Operating Cash Flow10.35B8.66B361.00M-3.51B2.59B
Investing Cash Flow-3.65B-4.74B-8.76B-2.09B-1.95B
Financing Cash Flow-5.57B-3.45B10.14B6.09B4.53B

UMC Electronics Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price281.00
Price Trends
50DMA
314.80
Negative
100DMA
302.62
Negative
200DMA
312.30
Negative
Market Momentum
MACD
-7.06
Negative
RSI
34.74
Neutral
STOCH
26.03
Neutral
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 281 is below the 20-day moving average (MA) of 291.80, below the 50-day MA of 314.80, and below the 200-day MA of 312.30, indicating a bearish trend. The MACD of -7.06 indicates Negative momentum. The RSI at 34.74 is Neutral, neither overbought nor oversold. The STOCH value of 26.03 is Neutral, 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥9.96B24.68
5.83%-2.94%-52.90%
75
Outperform
¥33.13B14.87
3.35%7.79%47.38%
73
Outperform
¥8.49B4.09
5.32%1.75%29.95%
68
Neutral
¥228.97B14.577.50%2.69%9.28%6.70%
68
Neutral
¥12.91B17.78
1.75%0.69%-25.68%
53
Neutral
€8.09B5.36-14.61%3.50%0.49%-346.99%
48
Neutral
¥4.72B
2.01%-32.99%-1509.50%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6615
UMC Electronics Co., Ltd.
289.00
-105.55
-26.75%
JP:6658
Shirai Electronics Industrial Co., Ltd.
562.00
-43.18
-7.14%
JP:6772
Tokyo Cosmos Electric Co., Ltd.
9,330.00
5,517.97
144.75%
JP:6800
Yokowo Co., Ltd.
1,421.00
-476.46
-25.11%
JP:6919
KEL Corporation
1,363.00
-321.89
-19.10%
JP:6926
Okaya Electric Industries Co., Ltd.
211.00
-42.00
-16.60%

UMC Electronics Co., Ltd. Corporate Events

UMC Electronics Co., Ltd. Reports on Relationship with Toyota Industries Corporation
Jun 27, 2025

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
Jun 27, 2025

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.

UMC Electronics Revises Financial Results for FY 2025
May 29, 2025

UMC Electronics Co., Ltd. announced corrections to its consolidated and individual financial results for the fiscal year ending March 2025. The revisions were primarily due to adjustments in tax-related liabilities and provisions for losses in its Mexican subsidiary, resulting in a decrease in the recorded tax amount and a downward revision of excess liabilities. Despite these corrections, the company reported an increase in net sales and operating profit compared to the previous forecast, although the profit attributable to owners of the parent was negative, indicating financial challenges.

UMC Electronics Revises Financial Results for FY 2025
May 29, 2025

UMC Electronics Co., Ltd. announced corrections to its consolidated financial results for the fiscal year ended March 31, 2025, due to adjustments in tax-related figures and sales categorization. These revisions reflect a decrease in the recorded tax amount and an expense due to a shortfall in deferred tax assets, impacting the company’s financial statements and potentially affecting stakeholder perceptions.

UMC Electronics Reports Financial Discrepancies and Tax Dispute Impact
May 15, 2025

UMC Electronics Co., Ltd. announced discrepancies between its forecasted and actual financial results for the fiscal year ending March 2025. The company reported an increase in ordinary profit due to reduced interest-bearing debt and lower foreign currency interest rates. However, profit attributable to owners of the parent decreased significantly due to a tax resolution against its subsidiary, UMC Mexico, which the company plans to contest in court. The resolution has led to an extraordinary loss impacting the company’s financial performance.

UMC Electronics Faces Financial Challenges Despite Sales Growth
May 15, 2025

UMC Electronics Co., Ltd. reported a slight increase in net sales for the fiscal year ended March 31, 2025, with a 0.5% rise compared to the previous year. Despite this, the company faced a significant loss attributable to owners of the parent, amounting to ¥2,592 million, indicating financial challenges. The equity-to-asset ratio decreased, reflecting a weaker financial position. The company also announced a consistent dividend payout, maintaining a total of ¥10.00 per share. These results suggest ongoing financial strain, impacting stakeholders’ confidence and potentially affecting the company’s market positioning.

UMC Electronics Challenges Mexican Tax Ruling with Legal Action
Apr 24, 2025

UMC Electronics Co., Ltd. has announced its decision to file a lawsuit in the Tax Court against a ruling by Mexican tax authorities that ordered its subsidiary, UMC Electronics Mexico, to pay 463 million Mexican pesos. The company plans to provisionally pay a reduced amount of 448 million pesos to avoid additional interest, while it seeks to reassert the legitimacy of its claims.

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: Jun 21, 2025