ULTRA CLEAN HOLDINGS INC (UCTT) Stock Fundamental Analysis
NASDAQ:UCTT - Nasdaq - US90385V1070 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to UCTT. UCTT was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. While UCTT is still in line with the averages on profitability rating, there are concerns on its financial health. UCTT is not priced too expensively while it is growing strongly. 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.
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 has a Return On Assets (1.49%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 3.22%, UCTT is in line with its industry, outperforming 51.82% of the companies in the same industry.
The Return On Invested Capital of UCTT (4.40%) is better than 61.82% 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 11.29%.
| 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 of 1.31%. This is comparable to the rest of the industry: UCTT outperforms 48.18% of its industry peers.
In the last couple of years the Profit Margin of UCTT has declined.
UCTT's Operating Margin of 4.11% is in line compared 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.
UCTT's Gross Margin of 16.73% is on the low side compared to the rest of the industry. UCTT is outperformed by 82.73% of its industry peers.
In the last couple of years the Gross Margin of UCTT has declined.
| 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
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.
Compared to 1 year ago, UCTT has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.50 indicates that UCTT is not a great score, but indicates only limited risk for bankruptcy at the moment.
UCTT has a Altman-Z score (2.50) which is in line with its industry peers.
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.
With a Debt to FCF ratio value of 18.86, UCTT perfoms like the industry average, outperforming 44.55% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that UCTT is somewhat dependend on debt financing.
UCTT has a worse Debt to Equity ratio (0.54) than 73.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 18.86 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.38
WACC11.49%
2.3 Liquidity
UCTT has a Current Ratio of 3.03. This indicates that UCTT is financially healthy and has no problem in meeting its short term obligations.
UCTT has a Current ratio (3.03) which is comparable to the rest of the industry.
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.
UCTT's Quick ratio of 1.83 is on the low side compared to the rest of the industry. UCTT is outperformed by 61.82% of its industry peers.
| 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.
The Earnings Per Share has been growing by 8.60% on average over the past years. This is quite good.
The Revenue has grown by 20.21% in the past year. This is a very strong growth!
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
Based on estimates for the next years, UCTT will show a very strong growth in Earnings Per Share. The EPS will grow by 33.99% on average per year.
UCTT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.33% yearly.
EPS Next Y-21.37%
EPS Next 2Y3.87%
EPS Next 3Y6.14%
EPS Next 5Y33.99%
Revenue Next Year-3.65%
Revenue Next 2Y-0.94%
Revenue Next 3Y2.75%
Revenue Next 5Y10.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.82 indicates a correct valuation of UCTT.
Based on the Price/Earnings ratio, UCTT is valued cheaper than 85.45% of the companies in the same industry.
UCTT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.89 indicates a correct valuation of UCTT.
Based on the Price/Forward Earnings ratio, UCTT is valued cheaply inside the industry as 84.55% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.10. UCTT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 12.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UCTT indicates a rather cheap valuation: UCTT is cheaper than 92.73% of the companies listed 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 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.71 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.61
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 |
NASDAQ:UCTT (5/29/2025, 2:18:45 PM)
20.17
-0.1 (-0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners95.22%
Inst Owner Change3.89%
Ins Owners1.24%
Ins Owner Change3.25%
Market Cap910.68M
Analysts84
Price Target31.37 (55.53%)
Short Float %3.37%
Short Ratio2.25
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)-35.94%
PT rev (3m)-46.75%
EPS NQ rev (1m)-33.33%
EPS NQ rev (3m)-55.79%
EPS NY rev (1m)-35.48%
EPS NY rev (3m)-57.69%
Revenue NQ rev (1m)-6.62%
Revenue NQ rev (3m)-11.67%
Revenue NY rev (1m)-6.58%
Revenue NY rev (3m)-13.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 12.89 | ||
| P/S | 0.43 | ||
| P/FCF | 35.71 | ||
| P/OCF | 10.92 | ||
| P/B | 1.04 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)1.46
EY7.24%
EPS(NY)1.56
Fwd EY7.76%
FCF(TTM)0.56
FCFY2.8%
OCF(TTM)1.85
OCFY9.16%
SpS47.36
BVpS19.31
TBVpS9.5
PEG (NY)N/A
PEG (5Y)1.61
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 | 2.5 |
F-Score7
WACC11.49%
ROIC/WACC0.38
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 5Y33.99%
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 5Y10.33%
EBIT growth 1Y96.21%
EBIT growth 3Y-20.82%
EBIT growth 5Y23.19%
EBIT Next Year4.91%
EBIT Next 3Y13.6%
EBIT Next 5Y27.41%
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%