43.49 USD
-0.65 (-1.47%)
42.6244 USD
-0.87 (-1.99%)
UCTT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. UCTT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
- Of the past 5 years UCTT 4 years were profitable.
- UCTT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- UCTT's Return On Assets of -9.39% is on the low side compared to the rest of the industry. UCTT is outperformed by 74.34% of its industry peers.
- UCTT has a worse Return On Equity (-22.76%) than 74.34% of its industry peers.
- UCTT's Return On Invested Capital of 3.30% is in line compared to the rest of the industry. UCTT outperforms 56.64% of its industry peers.
- UCTT had an Average Return On Invested Capital over the past 3 years of 5.52%. This is significantly below the industry average of 10.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.39% | ||
| ROE | -22.76% | ||
| ROIC | 3.3% |
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.
- UCTT's Operating Margin of 2.83% is in line compared to the rest of the industry. UCTT outperforms 51.33% of its industry peers.
- In the last couple of years the Operating Margin of UCTT has grown nicely.
- UCTT has a Gross Margin of 15.99%. This is amonst the worse of the industry: UCTT underperforms 83.19% of its industry peers.
- UCTT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.83% | ||
| PM (TTM) | N/A | ||
| GM | 15.99% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UCTT is destroying value.
- The number of shares outstanding for UCTT has been increased compared to 1 year ago.
- Compared to 5 years ago, UCTT has more shares outstanding
- The debt/assets ratio for UCTT has remained at the same level compared to a year ago.
2.2 Solvency
- UCTT has an Altman-Z score of 3.12. This indicates that UCTT is financially healthy and has little risk of bankruptcy at the moment.
- UCTT has a Altman-Z score (3.12) which is in line with its industry peers.
- UCTT has a debt to FCF ratio of 27.86. This is a negative value and a sign of low solvency as UCTT would need 27.86 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 27.86, UCTT is in line with its industry, outperforming 45.13% of the companies in the same industry.
- A Debt/Equity ratio of 0.66 indicates that UCTT is somewhat dependend on debt financing.
- UCTT has a worse Debt to Equity ratio (0.66) than 72.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 27.86 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.3
WACC11.01%
2.3 Liquidity
- A Current Ratio of 3.21 indicates that UCTT has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.21, UCTT is in line with its industry, outperforming 54.87% of the companies in the same industry.
- A Quick Ratio of 1.91 indicates that UCTT should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.91, UCTT is in line with its industry, outperforming 43.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
- UCTT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.58%, which is quite good.
- Measured over the past years, UCTT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.60% on average per year.
- Looking at the last year, UCTT shows a small growth in Revenue. The Revenue has grown by 6.66% in the last year.
- UCTT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.49% yearly.
EPS 1Y (TTM)18.58%
EPS 3Y-29.85%
EPS 5Y8.6%
EPS Q2Q%-20%
Revenue 1Y (TTM)6.66%
Revenue growth 3Y-0.06%
Revenue growth 5Y14.49%
Sales Q2Q%-5.63%
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 27.07% on average per year.
- UCTT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.57% yearly.
EPS Next Y-25.8%
EPS Next 2Y2.34%
EPS Next 3Y12.05%
EPS Next 5Y27.07%
Revenue Next Year-2.01%
Revenue Next 2Y1.79%
Revenue Next 3Y6.67%
Revenue Next 5Y9.57%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- UCTT is valuated quite expensively with a Price/Earnings ratio of 32.46.
- Based on the Price/Earnings ratio, UCTT is valued cheaper than 80.53% of the companies in the same industry.
- UCTT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 28.64, which means the current valuation is very expensive for UCTT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of UCTT indicates a somewhat cheap valuation: UCTT is cheaper than 72.57% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, UCTT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 28.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UCTT is valued cheaper than 83.19% of the companies in the same industry.
- UCTT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 115.44 | ||
| EV/EBITDA | 15.77 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as UCTT's earnings are expected to grow with 12.05% in the coming years.
PEG (NY)N/A
PEG (5Y)3.78
EPS Next 2Y2.34%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
- No dividends for UCTT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ULTRA CLEAN HOLDINGS INC / UCTT FAQ
What is the fundamental rating for UCTT stock?
ChartMill assigns a fundamental rating of 4 / 10 to UCTT.
What is the valuation status of ULTRA CLEAN HOLDINGS INC (UCTT) stock?
ChartMill assigns a valuation rating of 4 / 10 to ULTRA CLEAN HOLDINGS INC (UCTT). This can be considered as Fairly Valued.
How profitable is ULTRA CLEAN HOLDINGS INC (UCTT) stock?
ULTRA CLEAN HOLDINGS INC (UCTT) has a profitability rating of 3 / 10.
What are the PE and PB ratios of ULTRA CLEAN HOLDINGS INC (UCTT) stock?
The Price/Earnings (PE) ratio for ULTRA CLEAN HOLDINGS INC (UCTT) is 32.46 and the Price/Book (PB) ratio is 2.78.
What is the expected EPS growth for ULTRA CLEAN HOLDINGS INC (UCTT) stock?
The Earnings per Share (EPS) of ULTRA CLEAN HOLDINGS INC (UCTT) is expected to decline by -25.8% in the next year.