Is the business good?
How good a business is UMC?
United Microelectronics Corporation earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
20%
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 22%
Operating margin · Semiconductors median 8.5% · fiscal year to FY2024
- Cash conversion
- 0.11×
Cash conversion · −0.09× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −0.13%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2019 | 3.3% |
| FY2020 | 12% |
| FY2021 | 24% |
| FY2022 | 37% |
| FY2023 | 26% |
| FY2024 | 22% |
Details›
- Gross marginfiscal year to FY2024
- 33%
- Operating marginfiscal year to FY2024
- 22%
- Net marginfiscal year to FY2024
- 21%
- Free cash flow margin
- 2.3%
- R&D as % of revenue
- 6.7%
- Revenue, trailing twelve months
- $232.3B
- Free cash flow, trailing twelve months
- $5.33B
- Net income, trailing twelve months
- $48.8B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.