UMS Holdings (558) AI Stock Analysis

• Market Cap: $944.13M
• Dividend Yield: 3.27%
• Average Volume (3M): 4.94M
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.15
• Revenue Growth: 0.96%
• EPS Growth: -20.30%
• Country: SG
• Employees: 592
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.01
• Shares Outstanding: 710,535,950
• 10 Day Avg. Volume: 4,540,090
• 30 Day Avg. Volume: 4,944,683
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.59
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 12.74
• 1Y Price Target: $1.71
• Price Target Upside: 22.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: S$1.50 ▲(7.14% Upside)

UMS Holdings demonstrates strong financial performance with robust profitability and a stable balance sheet, which is the most significant factor in its overall score. However, technical indicators suggest bearish momentum, and the valuation indicates potential overvaluation, which slightly dampens the overall score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Strong Profitability

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

Stable Balance Sheet

A low debt-to-equity ratio suggests minimal financial risk, providing the company with flexibility to invest in growth opportunities and withstand economic fluctuations.

Strategic Partnerships

Partnerships with tech leaders allow UMS to leverage advancements in technology, expand service offerings, and strengthen its competitive position in the semiconductor industry.

Negative Factors

Cash Flow Challenges

Decreasing free cash flow growth may limit the company's ability to reinvest in the business and manage unexpected expenses, potentially impacting long-term growth.

Volatile Revenue Growth

Inconsistent revenue growth can signal market challenges or operational inefficiencies, which may affect the company's ability to maintain steady expansion over time.

Decreasing Return on Equity

A declining return on equity suggests reduced efficiency in generating profits from shareholders' equity, potentially impacting investor confidence and future capital raising.

UMS Holdings 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 semiconductor services, including wafer probing, packaging, and testing solutions for semiconductor manufacturers. The company also earns income from its precision engineering services, where it designs and manufactures components for various applications. Key revenue streams include long-term contracts with major semiconductor companies, which provide a stable income base, as well as project-based revenues from custom engineering solutions. Additionally, strategic partnerships with leading technology firms enhance UMS's market position and contribute to its earnings, allowing the company to leverage advancements in technology and expand its service offerings.

UMS Holdings Financial Statement Overview

Summary

UMS Holdings presents a strong financial profile with robust profitability and a stable balance sheet. The company benefits from low leverage and efficient operations, although recent cash flow challenges highlight areas for improvement. The overall financial health is solid, with potential for growth as revenue trends stabilize.

Income Statement

UMS Holdings demonstrates strong profitability with a consistent gross profit margin above 50% in recent periods, indicating efficient cost management. The net profit margin is healthy at 16.17% for TTM, although slightly lower than previous periods. Revenue growth has been volatile, with a recent positive growth of 4.64% in TTM following a decline in the previous year. Overall, the company maintains solid EBIT and EBITDA margins, reflecting robust operational efficiency.

Balance Sheet

The balance sheet of UMS Holdings is stable, characterized by a low debt-to-equity ratio of 0.023, indicating minimal leverage and financial risk. The return on equity is reasonable at 9.85%, although it has decreased from previous years. The equity ratio remains strong, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

UMS Holdings' cash flow position is moderate, with a decline in free cash flow growth by 19.51% in TTM, reflecting potential challenges in cash generation. However, the operating cash flow to net income ratio is healthy at 1.04, indicating good cash conversion. The free cash flow to net income ratio is lower at 0.29, suggesting room for improvement in cash flow management.

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 Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.40
• 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 1.4 is below the 20-day moving average (MA) of 1.41, above the 50-day MA of 1.38, and above the 200-day MA of 1.20, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 27.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:558.

UMS Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5DD	73 Outperform	$237.74M	19.17	25.77%	3.43%	12.65%	54.33%
558	68 Neutral	$944.13M	22.74	9.87%	3.27%	0.96%	-20.30%
AWX	65 Neutral	S$535.87M	39.31	2.87%	―	4.60%	―
JLB	64 Neutral	S$317.24M	32.58	7.60%	0.32%	47.45%	51.05%
BIX	63 Neutral	S$46.67M	35.90	2.00%	3.33%	4.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

UMS Holdings Corporate Events

UMS Holdings Reports Strong Growth in Semiconductor Sales

UMS Holdings, a Singapore-based company, specializes in manufacturing precision machining components and equipment for semiconductor, aerospace, and other industries. In its latest earnings report for the first half of 2025, UMS Holdings reported a 14% increase in revenue to S$125 million compared to the same period in 2024. This growth was primarily driven by a 17% rise in semiconductor sales, which offset a slight decline in the ‘Others’ segment. The company’s net profit also saw a 6% increase, reaching S$20.6 million. Despite challenges in the aerospace sector, UMS Holdings demonstrated resilience with significant growth in its semiconductor business, particularly in Malaysia, which saw a 270% increase in sales. Looking ahead, UMS Holdings remains optimistic about its growth prospects, with a focus on expanding its semiconductor segment and capitalizing on new customer opportunities.

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.

The most recent analyst rating on (SG:558) stock is a Hold with a S$0.95 price target. To see the full list of analyst forecasts on UMS Holdings stock, see the SG:558 Stock Forecast page.