Ultra Clean (UCTT)
NASDAQ:UCTT
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Ultra Clean Holdings
(NASDAQ:UCTT)
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Rating:57Neutral
Price Target:
$52.00
▼(-11.67% Downside)
Action:ReiteratedDate: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
Capacity & Scalability
Having existing capacity to support ~$3B revenue and only modest incremental clean-room investment to reach $4B is a durable operational advantage. It lowers required capital intensity to scale into multi-year WFE tailwinds, enabling faster realization of operating leverage and higher long-term margins if demand materializes.
Negative Factors
Profitability Deterioration
A shift from modest profits to a sizeable net loss and negative EBITDA margin signals structural pressure on pricing, cost, or mix. Persistently compressed margins undermine ROIC and limit reinvestment capacity, meaningfully raising the bar for sustained recovery and shareholder value creation absent durable margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Capacity & Scalability
Having existing capacity to support ~$3B revenue and only modest incremental clean-room investment to reach $4B is a durable operational advantage. It lowers required capital intensity to scale into multi-year WFE tailwinds, enabling faster realization of operating leverage and higher long-term margins if demand materializes.
Read all positive factors
Ultra Clean Holdings (UCTT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.68B
Dividend YieldN/A
Average Volume (3M)1.69M
Price to Earnings (P/E)―
Beta (1Y)2.28
Revenue Growth6.65%
EPS Growth-4652.36%
CountryUS
Employees6,773
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.22
Shares Outstanding45,490,040
10 Day Avg. Volume1,058,062
30 Day Avg. Volume1,692,435
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.66
Price to Sales (P/S)0.57
P/FCF Ratio80.25
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue1.55
Enterprise Value/Gross Profit9.83
Enterprise Value/Ebitda-100.84
Forecast
1Y Price Target
$81.25Price Target Upside38.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.49
Revenue Forecast (FY)$2.19B
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-...
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 t...
Ultra Clean Holdings Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong strategic positioning and significant long-term opportunity driven by AI-related WFE expansion, ample installed capacity and a clear operational plan (UCT 3.0) are important positives. However, near-term financials show flat full-year revenue, sequential and year-over-year margin and EPS pressures, and current utilization (~65%) leaves leverage to be achieved only if the expected back-half 2026 ramps occur. Given the combination of credible growth catalysts and near-term execution/financial headwinds, the tone is cautiously optimistic but balanced.Positive Updates
AI-driven Market Opportunity and WFE Outlook
Management frames the current environment as an AI-driven structural expansion of wafer fab equipment (WFE) rather than a normal cyclical upturn, forecasting WFE growth of ~15%–20% year-over-year and multi-year tailwinds driven by AI infrastructure, HBM, advanced packaging and leading-edge logic transitions.
Negative Updates
Quarterly Revenue Slightly Declined Sequentially
Total Q4 revenue of $506.6M was down from $510.0M in Q3 (≈‑0.7% sequential decline); product revenue $442.4M vs $445.0M (≈‑0.6%); services $64.2M vs $65.0M (≈‑1.2%).
Read all updates
Q4-2025 Updates
Positive
Negative
AI-driven Market Opportunity and WFE Outlook
Management frames the current environment as an AI-driven structural expansion of wafer fab equipment (WFE) rather than a normal cyclical upturn, forecasting WFE growth of ~15%–20% year-over-year and multi-year tailwinds driven by AI infrastructure, HBM, advanced packaging and leading-edge logic transitions.
Read all positive updates
Company Guidance
UCT provided Q1 2026 guidance of $505–$545 million in revenue and $0.18–$0.34 in EPS, said Q1 gross margin should be roughly flat-to-slightly up versus Q4’s 16.1% (product 14.1%, services 29.7%) and reiterated a 2026 tax rate in the low‑20% range (Q4 tax 21%); management noted FY‑end 2025 revenue of $2.1 billion (flat YoY), Q4 revenue $506.6M (products $442.4M, services $64.2M), Q4 net income $10M (EPS $0.22 on 45.8M shares), cash $311.8M, Q4 operating cash flow $8.1M (FY operating cash flow $65.6M), capacity to support ~$3B of revenue today at ~65% utilization (50% Asia today, targeting 60%), only modest clean‑room spend needed to reach a $4B run‑rate, an industry WFE outlook of ~15–20% YoY, a back‑half‑weighted 2026 demand profile with sequential margin expansion expected through the year, and double‑digit services growth in 2026.Ultra Clean Holdings Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| 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
Positive
58.87
Price Trends
54.11
Positive
40.53
Positive
32.80
Positive
Market Momentum
2.08
Positive
51.63
Neutral
47.98
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 58.87 is above the 20-day moving average (MA) of 58.48, above the 50-day MA of 54.11, and above the 200-day MA of 32.80, indicating a bullish trend. The MACD of 2.08 indicates Positive momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 47.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UCTT.
Ultra Clean Holdings Risk Analysis
Ultra Clean Holdings disclosed 40 risk factors in its most recent earnings report. Ultra Clean Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ultra Clean Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.34B | 12.15 | 11.84% | ― | -2.04% | 8.84% | |
62 Neutral | $1.57B | ― | -7.72% | ― | 16.86% | -26.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.41B | 32.53 | 4.96% | 4.48% | -3.62% | -20.33% | |
57 Neutral | $2.68B | -6.51 | -24.06% | ― | 6.65% | -4652.36% | |
56 Neutral | $1.47B | -11.04 | -28.80% | ― | 7.53% | 22.97% | |
55 Neutral | $1.41B | -14.78 | -9.07% | ― | -4.50% | -45.79% |
* Technology Sector Average
UCTT
Ultra Clean Holdings
58.87
36.86
167.47%
COHU
Cohu
29.98
14.88
98.54%
HIMX
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8.09
0.84
11.56%
MXL
Maxlinear
17.00
6.01
54.69%
PLAB
Photronics
39.60
19.00
92.23%
ICHR
Ichor Holdings
45.23
22.04
95.04%
Ultra Clean Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Ultra Clean Raises Capital via Private Convertible Notes Issuance
Neutral
Mar 3, 2026
Ultra Clean Holdings privately issued convertible notes to initial purchasers under exemptions from registration in the Securities Act, targeting qualified institutional buyers under Rule 144A rather than conducting a public offering. The structur...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Ultra Clean Announces Upsized Zero-Coupon Convertible Notes Offering
Positive
Feb 27, 2026
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 purchase...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Ultra Clean Launches $400 Million Convertible Notes Offering
Positive
Feb 25, 2026
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 ...
Business Operations and StrategyExecutive/Board Changes
Ultra Clean Holdings Announces COO Transition and New Appointment
Neutral
Jan 28, 2026
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 s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.