ULTRA CLEAN HOLDINGS INC (UCTT) Stock Fundamental Analysis
NASDAQ:UCTT - Nasdaq - US90385V1070 - Common Stock - Currency: USD
Overall UCTT gets a fundamental rating of 4 out of 10. We evaluated UCTT against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. There are concerns on the financial health of UCTT while its profitability can be described as average. UCTT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year UCTT was profitable.
In the past year UCTT had a positive cash flow from operations.
Of the past 5 years UCTT 4 years were profitable.
Each year in the past 5 years UCTT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.49%, UCTT is in line with its industry, outperforming 50.91% of the companies in the same industry.
UCTT has a Return On Equity of 3.22%. This is comparable to the rest of the industry: UCTT outperforms 51.82% of its industry peers.
UCTT's Return On Invested Capital of 4.40% is fine compared to the rest of the industry. UCTT outperforms 60.91% 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 10.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 3.22% | ||
| ROIC | 4.4% |
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
UCTT has a Profit Margin (1.31%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of UCTT has declined.
UCTT has a Operating Margin of 4.11%. This is comparable to the rest of the industry: UCTT outperforms 51.82% of its industry peers.
In the last couple of years the Operating Margin of UCTT has grown nicely.
The Gross Margin of UCTT (16.73%) is worse than 84.55% of its industry peers.
UCTT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.11% | ||
| PM (TTM) | 1.31% | ||
| GM | 16.73% |
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.
Compared to 1 year ago, UCTT has more shares outstanding
The number of shares outstanding for UCTT has been increased compared to 5 years ago.
UCTT has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 2.49 indicates that UCTT is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.49, UCTT is in line with its industry, outperforming 43.64% of the companies in the same industry.
The Debt to FCF ratio of UCTT is 18.86, which is on the high side as it means it would take UCTT, 18.86 years of fcf income to pay off all of its debts.
UCTT has a Debt to FCF ratio (18.86) which is comparable to the rest of the industry.
UCTT has a Debt/Equity ratio of 0.54. This is a neutral value indicating UCTT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, UCTT is not doing good in the industry: 73.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 18.86 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.42
WACC10.51%
2.3 Liquidity
A Current Ratio of 3.03 indicates that UCTT has no problem at all paying its short term obligations.
UCTT's Current ratio of 3.03 is in line compared to the rest of the industry. UCTT outperforms 50.00% of its industry peers.
UCTT has a Quick Ratio of 1.83. This is a normal value and indicates that UCTT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.83, UCTT is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 121.21% over the past year.
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 very strong growth in Revenue. The Revenue has grown by 20.21%.
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)121.21%
EPS 3Y-29.85%
EPS 5Y8.6%
EPS Q2Q%3.7%
Revenue 1Y (TTM)20.21%
Revenue growth 3Y-0.06%
Revenue growth 5Y14.49%
Sales Q2Q%8.56%
3.2 Future
The Earnings Per Share is expected to grow by 25.58% on average over the next years. This is a very strong growth
UCTT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.15% yearly.
EPS Next Y-21.37%
EPS Next 2Y3.87%
EPS Next 3Y6.14%
EPS Next 5Y25.58%
Revenue Next Year-3.65%
Revenue Next 2Y-0.94%
Revenue Next 3Y2.75%
Revenue Next 5Y7.15%
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 13.65 indicates a correct valuation of UCTT.
UCTT's Price/Earnings ratio is rather cheap when compared to the industry. UCTT is cheaper than 87.27% of the companies in the same industry.
UCTT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.74 indicates a correct valuation of UCTT.
Based on the Price/Forward Earnings ratio, UCTT is valued cheaper than 87.27% of the companies in the same industry.
UCTT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UCTT is valued cheaply inside the industry as 93.64% of the companies are valued more expensively.
68.18% of the companies in the same industry are more expensive than UCTT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.29 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y3.87%
EPS Next 3Y6.14%
5. Dividend
5.1 Amount
No dividends for UCTT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.93
-0.02 (-0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.19%
Inst Owner Change3.88%
Ins Owners1.59%
Ins Owner Change3.35%
Market Cap899.84M
Analysts84
Price Target31.37 (57.4%)
Short Float %3.08%
Short Ratio2.28
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)1
Avg EPS beat(2)0.26%
Min EPS beat(2)-12.16%
Max EPS beat(2)12.68%
EPS beat(4)3
Avg EPS beat(4)6.72%
Min EPS beat(4)-12.16%
Max EPS beat(4)22.07%
EPS beat(8)5
Avg EPS beat(8)11.4%
EPS beat(12)6
Avg EPS beat(12)6.71%
EPS beat(16)8
Avg EPS beat(16)4.91%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-3.36%
Max Revenue beat(2)-1.24%
Revenue beat(4)2
Avg Revenue beat(4)0.34%
Min Revenue beat(4)-3.36%
Max Revenue beat(4)3.25%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)6
Avg Revenue beat(12)-0.33%
Revenue beat(16)7
Avg Revenue beat(16)-0.41%
PT rev (1m)0%
PT rev (3m)-35.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-57.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 12.74 | ||
| P/S | 0.42 | ||
| P/FCF | 35.29 | ||
| P/OCF | 10.79 | ||
| P/B | 1.03 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 6.49 |
EPS(TTM)1.46
EY7.33%
EPS(NY)1.56
Fwd EY7.85%
FCF(TTM)0.56
FCFY2.83%
OCF(TTM)1.85
OCFY9.27%
SpS47.36
BVpS19.31
TBVpS9.5
PEG (NY)N/A
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 3.22% | ||
| ROCE | 5.57% | ||
| ROIC | 4.4% | ||
| ROICexc | 5.51% | ||
| ROICexgc | 8.5% | ||
| OM | 4.11% | ||
| PM (TTM) | 1.31% | ||
| GM | 16.73% | ||
| FCFM | 1.19% |
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-Score7
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 18.86 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 76.28% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 2.1 | ||
| Cash Conversion | 50.92% | ||
| Profit Quality | 90.75% | ||
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 2.49 |
F-Score7
WACC10.51%
ROIC/WACC0.42
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)121.21%
EPS 3Y-29.85%
EPS 5Y8.6%
EPS Q2Q%3.7%
EPS Next Y-21.37%
EPS Next 2Y3.87%
EPS Next 3Y6.14%
EPS Next 5Y25.58%
Revenue 1Y (TTM)20.21%
Revenue growth 3Y-0.06%
Revenue growth 5Y14.49%
Sales Q2Q%8.56%
Revenue Next Year-3.65%
Revenue Next 2Y-0.94%
Revenue Next 3Y2.75%
Revenue Next 5Y7.15%
EBIT growth 1Y96.21%
EBIT growth 3Y-20.82%
EBIT growth 5Y23.19%
EBIT Next Year4.91%
EBIT Next 3Y13.6%
EBIT Next 5Y24.27%
FCF growth 1Y-41.51%
FCF growth 3Y-78.56%
FCF growth 5Y-56.35%
OCF growth 1Y-41.51%
OCF growth 3Y-32.53%
OCF growth 5Y-11.69%