ULTRA CLEAN HOLDINGS INC (UCTT) Stock Fundamental Analysis
USA - NASDAQ:UCTT - US90385V1070 - Common Stock
28.76 USD
-0.23 (-0.81%)
28.76 USD
0 (0%)
UCTT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of UCTT have multiple concerns. UCTT is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
UCTT had positive earnings in the past year.
In the past year UCTT had a positive cash flow from operations.
UCTT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years UCTT had a positive operating cash flow.
1.2 Ratios
UCTT's Return On Assets of -8.76% is on the low side compared to the rest of the industry. UCTT is outperformed by 73.21% of its industry peers.
Looking at the Return On Equity, with a value of -21.27%, UCTT is doing worse than 75.00% of the companies in the same industry.
UCTT's Return On Invested Capital of 4.09% is fine compared to the rest of the industry. UCTT outperforms 61.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UCTT is significantly below the industry average of 10.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.76% | ||
| ROE | -21.27% | ||
| ROIC | 4.09% |
ROA(3y)0.54%
ROA(5y)2.91%
ROE(3y)1.19%
ROE(5y)6.44%
ROIC(3y)5.52%
ROIC(5y)7.36%
1.3 Margins
In the last couple of years the Profit Margin of UCTT has declined.
The Operating Margin of UCTT (3.47%) is comparable to the rest of the industry.
UCTT's Operating Margin has improved in the last couple of years.
The Gross Margin of UCTT (16.29%) is worse than 83.93% of its industry peers.
In the last couple of years the Gross Margin of UCTT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.47% | ||
| PM (TTM) | N/A | ||
| GM | 16.29% |
OM growth 3Y-20.77%
OM growth 5Y7.6%
PM growth 3Y-41.65%
PM growth 5YN/A
GM growth 3Y-6.02%
GM growth 5Y-1.65%
2. Health
2.1 Basic Checks
UCTT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
UCTT has more shares outstanding than it did 1 year ago.
UCTT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UCTT has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.74 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 2.74. This is comparable to the rest of the industry: UCTT outperforms 40.18% of its industry peers.
The Debt to FCF ratio of UCTT is 17.27, which is on the high side as it means it would take UCTT, 17.27 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 17.27, UCTT perfoms like the industry average, outperforming 45.54% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that UCTT is somewhat dependend on debt financing.
The Debt to Equity ratio of UCTT (0.65) is worse than 75.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 17.27 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.35
WACC11.84%
2.3 Liquidity
A Current Ratio of 3.06 indicates that UCTT has no problem at all paying its short term obligations.
UCTT has a Current ratio (3.06) which is comparable to the rest of the industry.
UCTT has a Quick Ratio of 1.86. This is a normal value and indicates that UCTT is financially healthy and should not expect problems in meeting its short term obligations.
UCTT has a Quick ratio (1.86) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
UCTT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.95%, which is quite impressive.
The Earnings Per Share has been growing by 8.60% on average over the past years. This is quite good.
UCTT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.28%.
Measured over the past years, UCTT shows a quite strong growth in Revenue. The Revenue has been growing by 14.49% on average per year.
EPS 1Y (TTM)71.95%
EPS 3Y-29.85%
EPS 5Y8.6%
EPS Q2Q%-15.62%
Revenue 1Y (TTM)14.28%
Revenue growth 3Y-0.06%
Revenue growth 5Y14.49%
Sales Q2Q%0.52%
3.2 Future
Based on estimates for the next years, UCTT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.91% on average per year.
Based on estimates for the next years, UCTT will show a quite strong growth in Revenue. The Revenue will grow by 9.30% on average per year.
EPS Next Y-24.73%
EPS Next 2Y0.56%
EPS Next 3Y12.98%
EPS Next 5Y26.91%
Revenue Next Year-2.01%
Revenue Next 2Y1.16%
Revenue Next 3Y6.22%
Revenue Next 5Y9.3%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.40 indicates a rather expensive valuation of UCTT.
Compared to the rest of the industry, the Price/Earnings ratio of UCTT indicates a rather cheap valuation: UCTT is cheaper than 85.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UCTT to the average of the S&P500 Index (27.42), we can say UCTT is valued slightly cheaper.
A Price/Forward Earnings ratio of 19.61 indicates a rather expensive valuation of UCTT.
80.36% of the companies in the same industry are more expensive than UCTT, based on the Price/Forward Earnings ratio.
UCTT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 19.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UCTT is valued cheaper than 92.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UCTT is valued a bit cheaper than the industry average as 69.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.07 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
A more expensive valuation may be justified as UCTT's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)N/A
PEG (5Y)2.37
EPS Next 2Y0.56%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
No dividends for UCTT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.76
-0.23 (-0.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.09%
Inst Owner Change-0.63%
Ins Owners1.61%
Ins Owner Change4.49%
Market Cap1.30B
Analysts84
Price Target31.88 (10.85%)
Short Float %3.46%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.06%
Min EPS beat(2)-12.16%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)0.71%
Min EPS beat(4)-12.16%
Max EPS beat(4)12.68%
EPS beat(8)5
Avg EPS beat(8)15.82%
EPS beat(12)6
Avg EPS beat(12)6.62%
EPS beat(16)7
Avg EPS beat(16)4.75%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-3.36%
Max Revenue beat(2)1.56%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-3.36%
Max Revenue beat(4)2.7%
Revenue beat(8)4
Avg Revenue beat(8)0.2%
Revenue beat(12)6
Avg Revenue beat(12)-0.28%
Revenue beat(16)8
Avg Revenue beat(16)-0.31%
PT rev (1m)0%
PT rev (3m)1.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 19.61 | ||
| P/S | 0.61 | ||
| P/FCF | 47.07 | ||
| P/OCF | 14.59 | ||
| P/B | 1.81 | ||
| P/tB | 3 | ||
| EV/EBITDA | 9.69 |
EPS(TTM)1.41
EY4.9%
EPS(NY)1.47
Fwd EY5.1%
FCF(TTM)0.61
FCFY2.12%
OCF(TTM)1.97
OCFY6.86%
SpS47.22
BVpS15.87
TBVpS9.59
PEG (NY)N/A
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.76% | ||
| ROE | -21.27% | ||
| ROCE | 5.18% | ||
| ROIC | 4.09% | ||
| ROICexc | 5.31% | ||
| ROICexgc | 7.15% | ||
| OM | 3.47% | ||
| PM (TTM) | N/A | ||
| GM | 16.29% | ||
| FCFM | 1.29% |
ROA(3y)0.54%
ROA(5y)2.91%
ROE(3y)1.19%
ROE(5y)6.44%
ROIC(3y)5.52%
ROIC(5y)7.36%
ROICexc(3y)7.05%
ROICexc(5y)9.7%
ROICexgc(3y)11.03%
ROICexgc(5y)17.01%
ROCE(3y)6.99%
ROCE(5y)9.32%
ROICexcg growth 3Y-29.69%
ROICexcg growth 5Y0.39%
ROICexc growth 3Y-24.76%
ROICexc growth 5Y7.61%
OM growth 3Y-20.77%
OM growth 5Y7.6%
PM growth 3Y-41.65%
PM growth 5YN/A
GM growth 3Y-6.02%
GM growth 5Y-1.65%
F-Score5
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 17.27 | ||
| Debt/EBITDA | 3.12 | ||
| Cap/Depr | 81.4% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 2.01 | ||
| Cash Conversion | 59.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 2.74 |
F-Score5
WACC11.84%
ROIC/WACC0.35
Cap/Depr(3y)117.55%
Cap/Depr(5y)104.35%
Cap/Sales(3y)3.87%
Cap/Sales(5y)3.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)71.95%
EPS 3Y-29.85%
EPS 5Y8.6%
EPS Q2Q%-15.62%
EPS Next Y-24.73%
EPS Next 2Y0.56%
EPS Next 3Y12.98%
EPS Next 5Y26.91%
Revenue 1Y (TTM)14.28%
Revenue growth 3Y-0.06%
Revenue growth 5Y14.49%
Sales Q2Q%0.52%
Revenue Next Year-2.01%
Revenue Next 2Y1.16%
Revenue Next 3Y6.22%
Revenue Next 5Y9.3%
EBIT growth 1Y34.85%
EBIT growth 3Y-20.82%
EBIT growth 5Y23.19%
EBIT Next Year4.85%
EBIT Next 3Y17.7%
EBIT Next 5Y24.69%
FCF growth 1Y939.39%
FCF growth 3Y-78.56%
FCF growth 5Y-56.35%
OCF growth 1Y-8.12%
OCF growth 3Y-32.53%
OCF growth 5Y-11.69%