10 Cash-Rich Undervalued Stocks To Invest In

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1. United Microelectronics Corporation (NYSE:UMC)

P/E Ratio as of March 3: 10.24

TTM Operating Cash Flow as of December 31, 2024: $87,111,640,000

Number of Hedge Fund Holders: 18

United Microelectronics Corporation (NYSE:UMC) is a Taiwanese semiconductor foundry that manufactures and sells integrated circuits globally. It offers backend and design support services for the mobile communications, IoT, computing, and automotive industries. UMC is one of the best cash rich stocks to watch, with a whopping $87 billion in TTM operating cash flow as of December 31, 2024. UMC earned the highest ‘A’ rating in Climate Change and Water Security from CDP for the third year in a row. The company aims for net-zero emissions by 2050 and 100% renewable energy use.

United Microelectronics Corporation (NYSE:UMC) brought in NT$60.39 billion in revenue for Q4 2024, staying nearly flat from the previous quarter but up 9.9% from last year. The company maintained a solid 30.4% gross margin and reported NT$8.50 billion in net income, with earnings per share at NT$0.68. Cash flow from operations hit NT$32.98 billion, while capital spending reached NT$18.93 billion, leaving NT$14.04 billion in free cash flow. UMC had a net cash inflow of NT$1.59 billion and it plans to repay NT$5.53 billion in bank loans over the next year.

According to Insider Monkey’s fourth quarter database, 18 hedge funds were bullish on United Microelectronics Corporation (NYSE:UMC), compared to 11 funds in the last quarter. Israel Englander’s Millennium Management was the leading stakeholder of the company, with 14.3 million shares worth $93 million.

Overall, United Microelectronics Corporation (NYSE:UMC) ranks first on our list of the best cash-rich undervalued stocks to buy. While we acknowledge the potential of UMC to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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