Ultra Clean Holdings (UCTT) AI Stock Analysis

• Market Cap: $2.88B
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.34
• Revenue Growth: 6.65%
• EPS Growth: -4652.36%
• Country: US
• Employees: 6,773
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.22
• Shares Outstanding: 45,490,040
• 10 Day Avg. Volume: 2,466,853
• 30 Day Avg. Volume: 1,554,715
• PEG Ratio: <0.01
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 80.25
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 10.43
• Enterprise Value/Ebitda: -106.92
• 1Y Price Target: $81.25
• Price Target Upside: 28.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.49
• Revenue Forecast (FY): $2.19B

• Rating: 57 Neutral
• Price Target: $62.00 ▼(-1.93% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by weakened profitability and compressed margins (including a 2025 loss) and modest/uneven free cash flow, partially offset by improved leverage and continued positive operating cash generation. Technically, the stock is in a strong uptrend but appears overbought, which adds near-term risk. Guidance points to a back-half 2026 recovery, and the convertible financing improves flexibility, but execution on utilization and margin expansion remains the key swing factor.

Positive Factors

AI-driven WFE tailwinds

Management positions demand as structural, driven by AI infrastructure, HBM, advanced packaging and leading-edge logic transitions. These multi-year WFE tailwinds support durable end-market growth for Ultra Clean’s critical subsystems, increasing long-term addressable market and secular revenue opportunity if execution follows.

Installed capacity and scalability

A sizeable, underutilized installed base gives the company structural operating leverage: modest incremental capex can unlock substantial revenue upside. This scalable capacity reduces the marginal cost of growth and shortens time-to-fulfill customer ramps versus peers needing major buildouts.

Improving leverage and balance sheet

Material reduction in debt-to-equity improves financial flexibility and lowers refinancing risk, enabling investment in ramps or targeted buybacks. Combined with positive operating cash flow history, the stronger balance sheet supports multi-year execution and cushions cyclicality in the semiconductor equipment cycle.

Negative Factors

Profitability deterioration

Significant margin compression and a 2025 net loss reflect weaker pricing/mix and cost pressures. Persistent low or negative profitability undermines return on capital, limits reinvestment capacity, and makes margin recovery dependent on sustained utilization and product-mix improvements rather than short-term fixes.

Revenue volatility and flat top-line

Stagnant and volatile revenue across recent years reduces predictability for capacity planning and weakens operating leverage. Without durable top-line growth, margin expansion is harder to achieve and longer-term returns may lag peers benefiting more consistently from WFE cycles.

Leadership transition and execution risk

A COO change amid a planned capacity and utilization ramp creates execution risk: new leadership must quickly integrate, stabilize operations and deliver utilization gains. Any delay or mis-step could impede the company’s back-half demand capture and margin recovery plans.

Ultra Clean Holdings Business Overview & Revenue Model

Company Description

Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components and parts, and ultra-high purity cleaning and analytical services for the semiconductor industry in the United States and internationally. The company provides ultra-clean valves, high purity connectors, industrial process connectors and valves, pneumatic actuators, manifolds and safety solutions, hoses, pressure gauges, and gas line and component heaters; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; and gas delivery systems, such as weldments, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system. It also offers various industrial and automation production equipment; fluid delivery systems consist of one or more chemical delivery units, including PFA tubing, filters, flow controllers, regulators, component heaters, and an integrated electronic and/or pneumatic control system; precision robotic systems; top-plate assemblies; frame assemblies; process modules, a subsystem of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high-level assemblies. In addition, the company provides tool chamber parts cleaning and coating services; micro-contamination analysis services for tool parts, wafers and depositions, chemicals, cleanroom materials, deionized water, and airborne molecular contamination; and analytical verification services for process tool chamber part cleaning. It primarily serves original equipment manufacturing customers in the semiconductor capital equipment and semiconductor integrated device manufacturing industries, as well as display, consumer, medical, energy, industrial, and research equipment industries. The company was founded in 1991 and is headquartered in Hayward, California.

How the Company Makes Money

Ultra Clean Holdings generates revenue primarily through the sale of its products and services to semiconductor manufacturers and other related industries. Key revenue streams include the sale of subsystems and components, which are critical for the production of semiconductors, as well as maintenance and support services for its products. The company also benefits from significant partnerships with major semiconductor manufacturers, which leads to long-term contracts and recurring revenue. Additionally, UCTT invests in research and development to enhance its product offerings, ensuring they meet the evolving needs of the semiconductor market, thereby driving further sales growth.

Ultra Clean Holdings Financial Statement Overview

Summary

Financials reflect a cyclical profile with a notable profitability setback: revenue volatility and margin compression culminated in a 2025 net loss and negative EBITDA margin (Income Statement score 44). Offsetting this, leverage improved meaningfully in 2025 with lower debt-to-equity (Balance Sheet score 62), and operating cash flow remained positive with modest but positive free cash flow (Cash Flow score 55).

Income Statement

Revenue has been volatile, with strong growth in 2020–2021, a sharp contraction in 2023, a rebound in 2024, and a slight decline again in 2025 (annual revenue growth ~-2.7%). Profitability has deteriorated meaningfully: the company moved from modest profits in 2024 (net margin ~1.1%) to a sizeable loss in 2025 (net margin ~-8.8%) with negative EBITDA margin (~-5.2%). Gross margin has also compressed versus prior peak levels (roughly ~15.7% in 2025 vs ~20% in 2020–2021), signaling weaker pricing/mix and/or cost pressure.

Balance Sheet

Leverage is moderate-to-elevated but improving recently: debt-to-equity declined sharply in 2025 (~0.25) versus ~0.69–0.76 in 2022–2024, reducing balance-sheet risk. Equity remains sizable (~$711M in 2025) against a large asset base (~$1.73B). The key weakness is earnings volatility, which undermines returns on equity across the cycle (profits in 2024 but losses again in 2025).

Cash Flow

Cash generation is positive but uneven. Operating cash flow was positive in 2025 (~$66M) and 2024 (~$65M), but free cash flow remained relatively modest (~$15M in 2025; near breakeven in 2024) and declined year over year in 2025. A notable strength is that in loss-making periods, cash flow can still be positive (2025 free cash flow positive despite a net loss), but the low conversion versus reported earnings in profitable periods (e.g., 2024) and the volatility in free cash flow (including negative free cash flow in 2022) increase risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.05B	2.10B	1.73B	2.37B	2.10B
Gross Profit	322.90M	356.30M	277.30M	465.00M	429.98M
EBITDA	-31.40M	189.80M	99.20M	190.60M	253.20M
Net Income	-181.20M	23.70M	-31.10M	40.40M	119.50M
Balance Sheet
Total Assets	1.73B	1.92B	1.87B	1.96B	2.03B
Cash, Cash Equivalents and Short-Term Investments	311.80M	313.90M	307.00M	358.80M	466.45M
Total Debt	810.30M	660.30M	639.90M	611.20M	635.21M
Total Liabilities	944.90M	984.10M	970.50M	1.02B	1.13B
Stockholders Equity	711.00M	873.60M	838.90M	887.90M	848.88M
Cash Flow
Free Cash Flow	14.70M	1.50M	60.10M	-52.90M	152.30M
Operating Cash Flow	65.00M	65.00M	135.90M	47.20M	211.60M
Investing Cash Flow	-47.00M	-63.50M	-119.70M	-96.20M	-404.80M
Financing Cash Flow	-20.60M	9.80M	-69.90M	-56.00M	460.80M

Ultra Clean Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCTT, the sentiment is Positive. The current price of 63.22 is above the 20-day moving average (MA) of 55.33, above the 50-day MA of 43.16, and above the 200-day MA of 29.26, indicating a bullish trend. The MACD of 5.90 indicates Negative momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 41.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UCTT.

Ultra Clean Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAB	78 Outperform	$2.14B	15.75	11.67%	―	-2.04%	8.84%
ICHR	62 Neutral	$1.68B	-31.57	-7.75%	―	16.86%	-26.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UCTT	57 Neutral	$2.88B	-15.77	-22.87%	―	6.65%	-4652.36%
MXL	56 Neutral	$1.56B	-11.37	-28.23%	―	7.53%	22.97%
COHU	55 Neutral	$1.46B	-19.59	-9.04%	―	-4.50%	-45.79%
HIMX	55 Neutral	$1.27B	28.90	4.95%	4.48%	-3.62%	-20.33%

Ultra Clean Holdings Corporate Events

Ultra Clean Announces Upsized Zero-Coupon Convertible Notes Offering

On February 26, 2026, Ultra Clean priced an upsized private offering of $525 million in 0.00% convertible senior notes due 2031 to qualified institutional buyers under Rule 144A, with settlement expected on March 3, 2026 and an option for purchasers to buy up to an additional $75 million of notes. The notes carry an initial conversion price of about $84.75 per share, a 42.5% premium to the company’s February 26 closing price, and are paired with capped call transactions designed to limit dilution while allowing Ultra Clean to redeem or repurchase the securities under specified stock-price and corporate-event conditions.

Ultra Clean expects net proceeds of about $511.1 million, rising to $584.2 million if the overallotment is fully exercised, and plans to allocate roughly $21.9 million to capped call costs, $40 million to repurchase 672,608 shares at $59.47 per share, and the remainder to working capital, partial term-loan prepayment, or other general corporate purposes. The combination of the zero-coupon structure, stock repurchases and hedging via capped calls underscores the company’s effort to secure low-cost capital, manage leverage and mitigate shareholder dilution, while trading activity by hedge counterparties around the structure could influence Ultra Clean’s share price and the effective economics for noteholders.

The most recent analyst rating on (UCTT) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Ultra Clean Holdings stock, see the UCTT Stock Forecast page.

Ultra Clean Launches $400 Million Convertible Notes Offering

Ultra Clean announced on Feb. 25, 2026 that it plans a private offering of $400 million in convertible senior notes due 2031, with an option for purchasers to buy an additional $60 million, to fund capped call hedges, repurchase up to $40 million of stock, and support working capital, debt prepayment and general corporate needs. In connection with pricing the notes, the company expects to amend its credit agreement to temporarily loosen its maximum consolidated total gross leverage ratio on the revolving credit facility, while the capped call and concurrent buybacks are structured to limit shareholder dilution and potentially support the stock price during and after the transaction.

The most recent analyst rating on (UCTT) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on Ultra Clean Holdings stock, see the UCTT Stock Forecast page.

Ultra Clean Holdings Announces COO Transition and New Appointment

On January 25, 2026, Ultra Clean Holdings, Inc. terminated the employment of its Chief Operating Officer, Harjinder Bajwa, with immediate effect, and he will receive severance benefits under the company’s executive severance policy. On the same date, the board appointed industry veteran Robert Wunar as the new COO, effective March 23, 2026, granting him a $475,000 annual salary, eligibility for a management bonus targeted at 85% of base pay after his first full quarter, a $1.5 million equity award split between time-based and performance-based stock units, and a $200,000 sign-on bonus subject to clawback, underscoring a leadership transition designed to strengthen operational execution while affirming there are no related-party or conflict-of-interest concerns surrounding his appointment.

The most recent analyst rating on (UCTT) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Ultra Clean Holdings stock, see the UCTT Stock Forecast page.