UMS Integration (558) AI Stock Analysis

• Market Cap: $1.29B
• Dividend Yield: 3.88%
• Average Volume (3M): 4.94M
• Price to Earnings (P/E): 31.0
• 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): 0.01
• Shares Outstanding: 888,167,850
• 10 Day Avg. Volume: 4,540,090
• 30 Day Avg. Volume: 4,944,683
• PEG Ratio: -0.40
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 2.41
• P/FCF Ratio: 25.37
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 3.99
• Enterprise Value/Gross Profit: 9.26
• Enterprise Value/Ebitda: 13.67
• 1Y Price Target: $1.48
• Price Target Upside: 2.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): $283.17M

• Rating: 67 Neutral
• Price Target: S$1.50 ▲(3.45% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is primarily driven by mixed financial performance: a very strong, low-debt balance sheet and solid margins are weighed down by declining revenue and materially weaker cash conversion/free cash flow. Technicals add support due to a clear uptrend and positive momentum, while valuation is a headwind given the elevated P/E despite a moderate dividend yield.

Positive Factors

Very low leverage / strong balance sheet

Extremely low leverage and a large equity base give the company durable financial flexibility. This balance-sheet strength supports investment, R&D or cyclical buffering without needing external financing, reducing refinancing risk and preserving strategic optionality over months.

Sustained profitability / healthy margins

Relatively high and stable margins indicate structural cost advantages or disciplined pricing that can sustain profitability through cycles. Healthy margins provide internal funding for operations and reinvestment, supporting long-term competitiveness and cash generation potential.

Positive operating cash flow

Ongoing positive operating cash flow shows the core business still generates cash to cover working needs. Even with weak free cash flow, positive OCF reduces reliance on external funding for day-to-day operations and supports near-term working-capital and capex needs.

Negative Factors

Declining revenue trend

A sustained top-line decline materially reduces scale and puts pressure on long-term growth prospects. Falling revenue can erode market share, make fixed-cost absorption harder, and limit the firm's ability to invest in new products or maintain R&D intensity over the next several months.

Weak free cash flow

Near-zero free cash flow limits discretionary spending and increases sensitivity to working-capital swings. With FCF barely positive, the company has less buffer for capex, dividends, or bolt-on M&A, making execution and strategic initiatives more dependent on improving cash conversion.

Earnings-to-cash quality deterioration

Operating cash flow covering only ~81% of net income signals deteriorating earnings quality and potential working-capital strain. This divergence raises the risk that reported profits may not translate into durable cash, complicating forecasting and increasing financing risk if trends persist.

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

Strong balance-sheet resilience (very low leverage; positive ROE) and still-solid profitability are offset by a weakening growth and cash profile: TTM revenue is down (-16.7%) and free cash flow is near breakeven with operating cash flow below net income, signaling weaker cash conversion versus prior years.

Income Statement

Profitability remains solid, with TTM (Trailing-Twelve-Months) net margin around 16.6% and healthy EBIT/EBITDA margins. However, the growth profile has deteriorated: revenue is down in TTM (Trailing-Twelve-Months) (-16.7%) and has been declining in recent annual periods as well, with net income also below prior peak levels (notably versus 2022–2023). Overall, strong margins are being offset by a weaker top-line trajectory.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (TTM (Trailing-Twelve-Months) debt-to-equity ~0.02) and a large equity base relative to assets, providing financial flexibility. Return on equity is positive (~9.8% TTM (Trailing-Twelve-Months)), but has cooled from earlier years, indicating reduced efficiency/profit generation versus the prior cycle. Key strength is balance-sheet resilience; key weakness is the downshift in returns.

Cash Flow

Cash generation has weakened materially: TTM (Trailing-Twelve-Months) operating cash flow is below net income (coverage ~0.81), and free cash flow is near breakeven (~0.9m) with negative free-cash-flow-to-net-income. This is a sharp deterioration versus 2023–2024 when free cash flow was meaningfully positive, suggesting higher working-capital needs and/or elevated spending pressuring cash conversion. Strength is that operating cash flow remains positive; weakness is the collapse in free cash flow and reduced earnings-to-cash quality.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	251.06M	242.12M	299.91M	371.77M	270.83M	164.42M
Gross Profit	108.02M	66.50M	144.22M	185.13M	142.69M	87.57M
EBITDA	73.18M	62.70M	87.66M	120.25M	92.60M	47.10M
Net Income	41.60M	40.61M	59.98M	98.17M	53.10M	36.47M
Balance Sheet
Total Assets	528.54M	508.97M	487.17M	489.42M	436.75M	309.54M
Cash, Cash Equivalents and Short-Term Investments	43.06M	79.93M	68.04M	62.64M	65.41M	53.79M
Total Debt	17.31M	10.70M	32.47M	41.01M	47.03M	25.46M
Total Liabilities	72.04M	65.05M	100.24M	121.05M	132.48M	56.59M
Stockholders Equity	428.69M	418.25M	359.84M	340.47M	278.90M	251.29M
Cash Flow
Free Cash Flow	852.00K	22.98M	50.10M	38.86M	56.19M	44.79M
Operating Cash Flow	39.47M	56.44M	79.78M	92.38M	66.16M	56.38M
Investing Cash Flow	-36.87M	-28.82M	-31.14M	-56.47M	-21.02M	-12.98M
Financing Cash Flow	-36.96M	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 1.34, above the 50-day MA of 1.26, and above the 200-day MA of 1.13, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 69.20 is Neutral, neither overbought nor oversold. The STOCH value of 80.91 is Negative, 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
5DD	75 Outperform	S$275.28M	20.82	24.01%	3.73%	12.70%	48.43%
BN2	73 Outperform	S$393.04M	12.75	11.96%	5.24%	―	―
558	67 Neutral	$1.29B	30.98	9.60%	3.88%	1.24%	-10.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AWX	59 Neutral	S$911.29M	53.80	2.87%	―	4.60%	―
BIX	54 Neutral	S$40.83M	54.44	2.00%	26.09%	4.89%	―