ULTRA CLEAN HOLDINGS INC (UCTT) Stock Fundamental Analysis
NASDAQ:UCTT - US90385V1070 - Common Stock
24.02 USD
-0.76 (-3.07%)
24.02 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to UCTT. UCTT was compared to 112 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
UCTT had positive earnings in the past year.
UCTT had a positive operating cash flow in the past year.
UCTT had positive earnings in 4 of the past 5 years.
UCTT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of UCTT (-8.76%) is worse than 73.21% of its industry peers.
UCTT's Return On Equity of -21.27% is on the low side compared to the rest of the industry. UCTT is outperformed by 75.00% of its industry peers.
The Return On Invested Capital of UCTT (4.09%) is better than 61.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UCTT is significantly below the industry average of 10.74%.
| 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.
Looking at the Operating Margin, with a value of 3.47%, UCTT is in line with its industry, outperforming 50.89% of the companies in the same industry.
UCTT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.29%, UCTT is doing worse than 84.82% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UCTT 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.
The debt/assets ratio for UCTT has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.61 indicates that UCTT is not a great score, but indicates only limited risk for bankruptcy at the moment.
UCTT has a Altman-Z score (2.61) which is in line with its industry peers.
UCTT has a debt to FCF ratio of 17.27. This is a negative value and a sign of low solvency as UCTT would need 17.27 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.27, UCTT perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that UCTT is somewhat dependend on debt financing.
UCTT has a worse Debt to Equity ratio (0.65) than 76.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 17.27 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.35
WACC11.64%
2.3 Liquidity
UCTT has a Current Ratio of 3.06. This indicates that UCTT is financially healthy and has no problem in meeting its short term obligations.
UCTT has a Current ratio (3.06) which is in line with its industry peers.
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.
UCTT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.60% yearly.
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
UCTT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.91% yearly.
The Revenue is expected to grow by 9.30% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 17.04, UCTT is valued on the expensive side.
Based on the Price/Earnings ratio, UCTT is valued cheaper than 84.82% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.13, UCTT is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.38, which indicates a correct valuation of UCTT.
Based on the Price/Forward Earnings ratio, UCTT is valued cheaper than 83.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, UCTT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UCTT is valued cheaper than 94.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UCTT indicates a somewhat cheap valuation: UCTT is cheaper than 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.32 | ||
| EV/EBITDA | 8.26 |
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)1.98
EPS Next 2Y0.56%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
UCTT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.02
-0.76 (-3.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.19%
Inst Owner Change1.26%
Ins Owners1.44%
Ins Owner Change3.17%
Market Cap1.09B
Analysts84
Price Target31.88 (32.72%)
Short Float %3.21%
Short Ratio2.6
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)1.63%
PT rev (3m)1.63%
EPS NQ rev (1m)-11.19%
EPS NQ rev (3m)-54.13%
EPS NY rev (1m)-4.27%
EPS NY rev (3m)-4.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.18%
Revenue NY rev (1m)1.7%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 16.38 | ||
| P/S | 0.51 | ||
| P/FCF | 39.32 | ||
| P/OCF | 12.18 | ||
| P/B | 1.51 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 8.26 |
EPS(TTM)1.41
EY5.87%
EPS(NY)1.47
Fwd EY6.1%
FCF(TTM)0.61
FCFY2.54%
OCF(TTM)1.97
OCFY8.21%
SpS47.22
BVpS15.87
TBVpS9.59
PEG (NY)N/A
PEG (5Y)1.98
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 | 2.61 |
F-Score5
WACC11.64%
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%