Stock fact sheet · data as of
United Microelectronics Corporation (UMC): fair value, margin of safety and Wheel Score
Ticker symbol UMC · Technology · Semiconductors · Taiwan · ADR · Blend
UMC is an American depositary share (ADR): the US listing of United Microelectronics Corporation, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is UMC undervalued?
At 16.06 (close of 5 Nov 2026), UMC trades 18% over the GLS average fair value of 13.65. 3 of the 9 models land above the price and 6 below. A negative margin of safety fails the "below fair value" Wheel Trade Filter - the models see no discount, which does not make the business a poor one, only the price a full one.
There is a wide gap between GLS Growth (3.26) and Graham Growth (33.49). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for UMC, so the nightly engine files it under Blend (value score 38, growth score 24, out of 100).
Nine valuation models for UMC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 4.70 | -71% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 10.77 | -33% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 33.49 | +109% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 12.39 | -23% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 3.26 | -80% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 23.84 | +48% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 16.20 | +1% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 5.83 | -64% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 12.39 | -23% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.0687 | -100% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 10.20 | -36% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
United Microelectronics Corporation scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 4.7/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 9.2%, ROE 10.6%, ROA 7.0% - with debt at 0.16 times equity and a free-cash-flow yield of 5.6%.
The dividend yield is 2.47% at a payout ratio of 0%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Wafer 96%, Other Products 5% (fiscal year FY2024).
Institutional ownership scores 1/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 9.2% |
|---|---|---|---|
| GLS Moat | 4.7 / 10 | ROE | 10.6% |
| Debt / equity | 0.16 | ROA | 7.0% |
| Free-cash-flow yield | 5.6% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 43: Weak
With a Wheel Score of 43 United Microelectronics Corporation sits in the Weak band. It fails filter 3, below fair value - trades 18% above our fair value; Value (weak) is its weakest part.
Implied volatility is 56% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 69,912 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 14.1M shares a day on a market cap of $40.1B, with a beta of 1.56 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 18% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 18% above fair value | |
| Premium | Strong | implied volatility 56% | |
| Moat | Fair | moat 4.7/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Good | 1,525 contracts a day, 69,912 open interest | |
| Stability | Good | beta 1.56, $40.1B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 27 Jan 2027, 83 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to United Microelectronics Corporation by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| STM STMicroelectronics N.V. | 45.60 | 14.88 | -206% | 42Weak | $40.8B |
| MCHP Microchip Technology Incorporated | 75.34 | 22.56 | -234% | 41Weak | $40.9B |
| TER Teradyne, Inc. | 250.99 | 145.98 | -72% | 44Weak | $39.2B |
| ALAB Astera Labs, Inc. Common Stock | 223.27 | 79.52 | -181% | 29Weak | $38.7B |
| ON ON Semiconductor Corporation | 71.24 | 48.86 | -46% | 42Weak | $27.7B |
| MPWR Monolithic Power Systems, Inc. | 1,261.08 | 467.50 | -170% | 41Weak | $61.5B |
| CRDO Credo Technology Group Holding Ltd | 136.50 | 83.65 | -63% | 24Weak | $25.7B |
| TEL TE Connectivity plc | 220.22 | 216.76 | -2% | 48Weak | $63.8B |
| Q Qnity Electronics, Inc. | 118.78 | 44.98 | -164% | 40Weak | $24.8B |
| NXPI NXP Semiconductors N.V. | 265.01 | 178.55 | -48% | 45Weak | $66.8B |
| GFS GLOBALFOUNDRIES Inc. | 40.34 | 26.95 | -50% | 39Weak | $22.1B |
| ENTG Entegris, Inc. | 142.87 | 55.00 | -160% | 39Weak | $21.8B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about UMC
Is UMC undervalued right now?
No: at 16.06 the stock trades 18% above the GLS average fair value of 13.65 (data as of 5 Nov 2026). The margin of safety is negative.
What is the Wheel Score of UMC and what does it mean?
UMC scores 43 out of 100 (Weak) - it fails Wheel Trade Filter 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for UMC?
13.65 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does United Microelectronics Corporation report earnings next?
The next earnings report is due on 27 Jan 2027, 83 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does UMC have listed options, and how liquid are they?
Yes. The nightly snapshot found 70 listed contracts with 69,912 open interest across all expiries and implied volatility of 56% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is UMC an ADR?
Yes. UMC is an American depositary share (ADR): the US listing of United Microelectronics Corporation, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.