UMS Integration (558) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 3.14%
• Average Volume (3M): 4.94M
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.12
• Revenue Growth: 1.24%
• EPS Growth: -10.12%
• Country: SG
• Employees: 592
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.02
• Shares Outstanding: 710,535,950
• 10 Day Avg. Volume: 4,540,090
• 30 Day Avg. Volume: 4,944,683
• PEG Ratio: -0.50
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 3.01
• P/FCF Ratio: 31.71
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 3.59
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 12.74
• 1Y Price Target: $1.78
• Price Target Upside: 23.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: S$1.50 ▲(3.45% Upside)

UMS Holdings scores well due to its strong financial performance and positive technical indicators, suggesting a stable and growing position in the semiconductor industry. The high P/E ratio is a concern, indicating potential overvaluation, but the dividend yield offers some compensation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Profitability

High gross profit margins indicate effective cost management and operational efficiency, supporting long-term financial health and competitiveness.

Low Financial Leverage

Low leverage enhances financial stability and flexibility, reducing risk and enabling the company to invest in growth opportunities.

Market Expansion

The secondary listing on Bursa Malaysia expands market presence, potentially increasing investor base and liquidity, supporting growth initiatives.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow may limit the company's ability to reinvest in the business, pay dividends, or reduce debt, impacting future growth.

Earnings Decline

A significant decline in EPS growth suggests challenges in maintaining profitability, which could affect investor confidence and stock performance.

Slightly Lower Net Profit Margin

A decrease in net profit margin may indicate rising costs or pricing pressures, potentially impacting long-term profitability and competitiveness.

UMS Integration Business Overview & Revenue Model

Company Description

UMS Holdings Limited, an investment holding company, manufactures and markets high precision front-end semiconductor components, and provides electromechanical assembly and final testing services. It operates in three segments: Semiconductor, Aerospace, and Others. The Semiconductor segment offers precision machining components and equipment modules for semiconductor equipment manufacturers. The aerospace segment provides precision machining services including milling, lathe, horizontal, cleaning, anodizing, and CMM for the aerospace, electronics, and automotive industries. The Others segment provides water disinfection systems shipment services, as well as trades in nonferrous metal alloys. It also offers metal finishing services, such as electroless and selective nickel, anodizing, plating, e-polish, chemical cleaning, and parts refurbishment; and system integration, refurbishment, prototyping, and vendor managed inventory services, as well as electroplating and anodizing services. In addition, it is involved in the assembly and integration of equipment and automated assembly lines; manufacture and assembly of stainless steel gaslines and weldment products; manufacture and repair of waste water treatment equipment; and holding of investment properties. Further, the company offers electrolyte water disinfection system and other related products. It serves semiconductor, electronic, machine tools, aerospace, and oil and gas industries. The company operates in Singapore, Malaysia, Taiwan, the United States, South Korea, the People's Republic of China, and internationally. UMS Holdings Limited was incorporated in 2001 and is headquartered in Singapore.

How the Company Makes Money

UMS Holdings generates revenue primarily through its precision engineering services and semiconductor equipment manufacturing. The company has established key revenue streams by supplying critical components and equipment to major players in the semiconductor industry, which are essential for the fabrication of integrated circuits. Additionally, UMS benefits from long-term contracts and partnerships with leading semiconductor firms, ensuring a steady flow of income. The company also generates income through maintenance and support services for the equipment it sells, further diversifying its revenue sources. By leveraging technological advancements and focusing on quality and reliability, UMS Holdings is able to maintain competitive pricing and attract repeat business from its clients.

UMS Integration Financial Statement Overview

Summary

UMS Holdings demonstrates solid financial health with strong profitability and a robust balance sheet characterized by low leverage and efficient equity utilization. While cash flow generation is generally strong, the recent decline in free cash flow warrants attention. Overall, the company is well-positioned in the semiconductor industry, with a positive outlook for continued growth and stability.

Income Statement

UMS Holdings shows strong profitability with a consistent gross profit margin above 50% in the TTM, indicating efficient cost management. The net profit margin is healthy at 16.17%, although slightly lower than previous years. Revenue growth has been positive in the TTM, recovering from a decline in the previous annual period, suggesting a rebound in sales. EBIT and EBITDA margins are robust, reflecting solid operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.023 in the TTM, indicating low financial leverage and a strong equity position. Return on equity is stable at 9.85%, showing effective use of equity to generate profits. The equity ratio is healthy, suggesting a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow remains strong, with a coverage ratio above 1, indicating sufficient cash generation to cover net income. However, free cash flow has decreased by 19.51% in the TTM, which could be a concern if the trend continues. The free cash flow to net income ratio is moderate, suggesting room for improvement in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	257.18M	242.12M	299.91M	371.77M	270.83M	164.42M
Gross Profit	137.70M	66.50M	144.22M	185.13M	142.69M	87.57M
EBITDA	72.39M	62.70M	87.66M	120.25M	92.60M	47.10M
Net Income	41.57M	40.61M	59.98M	98.17M	53.10M	36.47M
Balance Sheet
Total Assets	523.57M	508.97M	487.17M	489.42M	436.75M	309.54M
Cash, Cash Equivalents and Short-Term Investments	59.15M	79.93M	68.04M	62.64M	65.41M	53.79M
Total Debt	9.90M	10.70M	32.47M	41.01M	47.03M	25.46M
Total Liabilities	74.43M	65.05M	100.24M	121.05M	132.48M	56.59M
Stockholders Equity	422.88M	418.25M	359.84M	340.47M	278.90M	251.29M
Cash Flow
Free Cash Flow	16.67M	22.98M	50.10M	38.86M	56.19M	44.79M
Operating Cash Flow	57.32M	56.44M	79.78M	92.38M	66.16M	56.38M
Investing Cash Flow	-35.91M	-28.82M	-31.14M	-56.47M	-21.02M	-12.98M
Financing Cash Flow	-39.88M	-16.20M	-44.41M	-37.68M	-33.45M	-23.00M

UMS Integration Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.45
• 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 SG:558, the sentiment is Positive. The current price of 1.45 is below the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.41, and above the 200-day MA of 1.24, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 25.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:558.

UMS Integration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
558	73 Outperform	$1.09B	26.32	9.60%	3.14%	1.24%	-10.12%
5DD	72 Outperform	$246.09M	19.71	24.01%	3.41%	12.70%	48.43%
BIX	63 Neutral	S$45.83M	35.26	2.00%	21.43%	4.89%	―
AWX	63 Neutral	S$579.75M	42.53	2.87%	―	4.60%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JLB	61 Neutral	S$317.24M	32.58	7.60%	0.32%	47.45%	51.05%

UMS Integration Corporate Events

UMS Integration Limited to Begin Trading on Bursa Malaysia

UMS Integration Limited, a company listed on the Singapore Exchange, is set to begin trading its entire issued share capital on the Main Market of Bursa Malaysia Securities Berhad. The secondary listing will commence on August 1, 2025, with an initial reference price of RM5.00 per share, calculated based on the closing market price on the Singapore Exchange and the prevailing exchange rate.