ULTRA CLEAN HOLDINGS INC (UCTT)
US90385V1070 - Common Stock
UCTT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. UCTT may be in some trouble as it scores bad on both profitability and health. UCTT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year UCTT was profitable.
UCTT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: UCTT reported negative net income in multiple years.
UCTT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UCTT's Return On Assets of -1.67% is in line compared to the rest of the industry. UCTT outperforms 43.40% of its industry peers.
UCTT has a Return On Equity (-3.71%) which is comparable to the rest of the industry.
UCTT's Return On Invested Capital of 1.79% is in line compared to the rest of the industry. UCTT outperforms 47.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UCTT is below the industry average of 10.84%.
The last Return On Invested Capital (1.79%) for UCTT is well below the 3 year average (7.05%), which needs to be investigated, but indicates that UCTT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.67% | ||
| ROE | -3.71% | ||
| ROIC | 1.79% |
ROA(3y)2.1%
ROA(5y)2.48%
ROE(3y)4.97%
ROE(5y)5.47%
ROIC(3y)7.05%
ROIC(5y)7.03%
1.3 Margins
The Operating Margin of UCTT (2.03%) is comparable to the rest of the industry.
UCTT's Operating Margin has declined in the last couple of years.
UCTT has a Gross Margin of 15.99%. This is amonst the worse of the industry: UCTT underperforms 86.79% of its industry peers.
In the last couple of years the Gross Margin of UCTT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.03% | ||
| PM (TTM) | N/A | ||
| GM | 15.99% |
OM growth 3Y-38.71%
OM growth 5Y-20.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.49%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UCTT is destroying value.
Compared to 1 year ago, UCTT has more shares outstanding
Compared to 5 years ago, UCTT has more shares outstanding
Compared to 1 year ago, UCTT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.69 indicates that UCTT is not a great score, but indicates only limited risk for bankruptcy at the moment.
UCTT has a Altman-Z score of 2.69. This is in the lower half of the industry: UCTT underperforms 60.38% of its industry peers.
UCTT has a debt to FCF ratio of 7.97. This is a slightly negative value and a sign of low solvency as UCTT would need 7.97 years to pay back of all of its debts.
UCTT's Debt to FCF ratio of 7.97 is in line compared to the rest of the industry. UCTT outperforms 53.77% of its industry peers.
UCTT has a Debt/Equity ratio of 0.55. This is a neutral value indicating UCTT is somewhat dependend on debt financing.
UCTT has a worse Debt to Equity ratio (0.55) than 72.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 7.97 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.15
WACC11.9%
2.3 Liquidity
A Current Ratio of 2.88 indicates that UCTT has no problem at all paying its short term obligations.
The Current ratio of UCTT (2.88) is comparable to the rest of the industry.
UCTT has a Quick Ratio of 1.67. This is a normal value and indicates that UCTT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.67, UCTT is doing worse than 66.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for UCTT have decreased strongly by -85.93% in the last year.
UCTT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.56% yearly.
UCTT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -26.94%.
The Revenue has been growing by 9.61% on average over the past years. This is quite good.
EPS 1Y (TTM)-85.93%
EPS 3Y-41.59%
EPS 5Y-20.56%
EPS growth Q2Q-79.57%
Revenue 1Y (TTM)-26.94%
Revenue growth 3Y7.44%
Revenue growth 5Y9.61%
Revenue growth Q2Q-21.49%
3.2 Future
The Earnings Per Share is expected to grow by 138.30% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.74% on average over the next years. This is quite good.
EPS Next Y159.37%
EPS Next 2Y138.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.15%
Revenue Next 2Y14.45%
Revenue Next 3Y14.74%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 74.93, which means the current valuation is very expensive for UCTT.
Compared to the rest of the industry, the Price/Earnings ratio of UCTT is on the same level as its industry peers.
UCTT is valuated expensively when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.89, UCTT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, UCTT is valued a bit cheaper than the industry average as 65.09% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.49. UCTT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.93 | ||
| Fwd PE | 28.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UCTT indicates a somewhat cheap valuation: UCTT is cheaper than 66.98% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, UCTT is valued a bit cheaper than the industry average as 74.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.17 | ||
| EV/EBITDA | 20.58 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UCTT's earnings are expected to grow with 138.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y138.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UCTT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ULTRA CLEAN HOLDINGS INC
NASDAQ:UCTT (4/26/2024, 7:21:24 PM)
After market: 41.96 0 (0%)41.96
+1.14 (+2.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.93 | ||
| Fwd PE | 28.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.67% | ||
| ROE | -3.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.03% | ||
| PM (TTM) | N/A | ||
| GM | 15.99% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.88 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-85.93%
EPS 3Y-41.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y159.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-26.94%
Revenue growth 3Y7.44%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y