Ultra Clean Holdings (UCTT) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: N/A
• Average Volume (3M): 425.73K
• Price to Earnings (P/E): 38.8
• Beta (1Y): 2.29
• Revenue Growth: 14.28%
• EPS Growth: -1644.64%
• Country: US
• Employees: 6,773
• Sector: Technology
• Sector Strength: 85
• Industry: Semiconductors
• EPS (TTM): 0.27
• Shares Outstanding: 45,343,967
• 10 Day Avg. Volume: 307,052
• 30 Day Avg. Volume: 425,732
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 4.07
• Enterprise Value/Ebitda: -113.54
• 1Y Price Target: $31.25
• Price Target Upside: 27.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $24.00 ▼(-2.40% Downside)

Ultra Clean Holdings faces significant financial and valuation challenges, with negative profitability metrics and a negative P/E ratio. Technical analysis provides some stability, while recent corporate events and strategic initiatives offer potential for future improvement. However, uncertainties in earnings guidance and market conditions weigh on the overall score.

Positive Factors

Leadership Changes

The appointment of a new CEO with extensive semiconductor industry experience is expected to drive growth and enhance strategic positioning.

New Business Wins

New business wins in the Czech Republic facility indicate potential for increased revenue, supporting long-term growth and market expansion.

Cost Reduction Initiatives

Cost reduction initiatives improve operational efficiency, potentially enhancing margins and profitability over the long term.

Negative Factors

Negative Profit Margins

Negative profit margins indicate operational inefficiencies, which can hinder long-term financial stability and growth potential.

Flat Revenue Growth

Stagnant revenue growth suggests challenges in expanding market reach and product adoption, impacting future growth prospects.

Tariff and Supply Chain Concerns

Tariff and supply chain issues can increase costs and disrupt operations, affecting profitability and competitive positioning.

Ultra Clean Holdings Business Overview & Revenue Model

Company Description

Ultra Clean Holdings, Inc. (UCTT) is a leading provider of critical system components, subsystems, and services for the semiconductor and flat panel display industries. The company operates in two primary segments: Systems and Engineering Services. UCTT designs and manufactures a range of products including gas delivery systems, chemical delivery systems, and various precision components that are essential for the manufacturing processes of advanced technologies. With a focus on innovation and quality, UCTT serves a global customer base, helping drive advancements in semiconductor technology and production efficiency.

How the Company Makes Money

Ultra Clean Holdings generates revenue through the sale of its products and services within the semiconductor and flat panel display markets. Key revenue streams include the sale of system components and subsystems, which are integral to the manufacturing processes of semiconductor fabrication and display technology. The company also offers engineering services, providing specialized support and solutions to optimize customer operations. UCTT's financial performance is bolstered by strategic partnerships with major semiconductor manufacturers, which not only enhance its product offerings but also create a stable demand for its services. Additionally, the company benefits from ongoing technological advancements in the semiconductor space, leading to increased production capacity and the need for advanced systems.

Ultra Clean Holdings Financial Statement Overview

Summary

Ultra Clean Holdings is facing financial challenges, with negative profitability metrics and cash flow issues. The income statement shows a negative net profit margin and EBIT margin, indicating operational inefficiencies. The balance sheet reflects moderate stability with a low debt-to-equity ratio, but negative return on equity. Cash flow analysis shows some strengths in operating cash flow but highlights cash flow challenges.

Income Statement

The income statement shows a challenging period for Ultra Clean Holdings, with a negative net profit margin of -7.15% for TTM, indicating losses. Gross profit margin is at 16.29%, showing some ability to cover basic costs, but a negative EBIT margin of -3.63% reflects operational inefficiencies. Revenue growth for TTM is 2.08%, suggesting slow growth, which might not be sufficient to offset the negative profitability metrics.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.24 for TTM, indicating a relatively low level of debt compared to equity. However, the equity ratio of 41.20% shows that nearly half of the assets are financed by liabilities. The return on equity is negative at -21.26% for TTM, indicating poor returns on shareholders' equity.

Cash Flow

Cash flow analysis reveals some strengths with a positive operating cash flow to net income ratio of -0.58 for TTM, implying better cash generation than net income suggests. Free cash flow has improved from previous periods, but free cash flow to net income ratio is negative at -0.18, indicating cash flow challenges despite improvements in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.14B	2.10B	1.73B	2.37B	2.10B	1.40B
Gross Profit	348.70M	356.30M	277.30M	465.00M	429.98M	291.76M
EBITDA	-12.50M	189.80M	99.20M	266.20M	253.20M	166.20M
Net Income	-153.00M	23.70M	-31.10M	40.40M	119.50M	77.60M
Balance Sheet
Total Assets	1.75B	1.92B	1.87B	1.96B	2.03B	1.10B
Cash, Cash Equivalents and Short-Term Investments	327.40M	313.90M	307.00M	358.80M	466.45M	200.27M
Total Debt	170.00M	660.30M	639.90M	611.20M	635.21M	311.75M
Total Liabilities	955.80M	984.10M	970.50M	1.02B	1.13B	551.33M
Stockholders Equity	719.40M	873.60M	838.90M	887.90M	848.88M	532.65M
Cash Flow
Free Cash Flow	27.70M	1.50M	60.10M	-52.90M	153.72M	60.85M
Operating Cash Flow	89.40M	65.00M	135.90M	47.20M	213.06M	97.28M
Investing Cash Flow	-61.70M	-63.50M	-119.70M	-96.20M	-406.76M	-29.83M
Financing Cash Flow	-21.50M	9.80M	-69.90M	-56.00M	460.83M	-31.11M

Ultra Clean Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 24.59 is above the 20-day moving average (MA) of 23.67, above the 50-day MA of 23.87, and below the 200-day MA of 27.20, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 56.22 is Neutral, neither overbought nor oversold. The STOCH value of 79.82 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
VECO	70 Neutral	$1.49B	24.47	7.83%	―	-0.19%	-28.72%
HIMX	66 Neutral	$1.47B	19.67	8.64%	4.42%	-2.16%	-2.77%
Sector *	61 Neutral	$36.58B	11.16	-10.39%	1.86%	8.71%	-7.09%
COHU	56 Neutral	$959.31M	―	-10.09%	―	-21.27%	-207.30%
UCTT	55 Neutral	$1.11B	38.78	-19.47%	―	14.28%	-1644.64%
MXL	48 Neutral	$1.38B	―	-37.97%	―	-15.65%	-7.18%
ICHR	46 Neutral	$575.33M	―	-2.98%	―	15.45%	49.82%

Ultra Clean Holdings Corporate Events

Ultra Clean Holdings Appoints New CEO James Xiao

On August 6, 2025, Ultra Clean Holdings announced the appointment of Jinsong (‘James’) Xiao as the new Chief Executive Officer, effective September 2, 2025. Mr. Xiao, who has extensive experience in the semiconductor industry, will succeed Clarence L. Granger, who will remain as non-executive Chairperson of the Board. The company also promoted Christopher S. Cook to Chief Business Officer, effective immediately, to oversee growth and strategic initiatives across all business divisions. These leadership changes are expected to drive Ultra Clean’s continued growth and enhance its strategic positioning in the semiconductor capital equipment industry.

Ultra Clean Holdings Announces Leadership Change in Services Division

Ultra Clean Holdings announced the retirement of Bill Bentinck, President of the Services Division, effective August 15, 2025, marking the end of his 40-year career in the semiconductor industry. Sam Johnson will succeed him, bringing extensive experience in driving organizational transformation and innovation, aligning with UCT’s growth strategy. This leadership change is expected to support UCT’s continued expansion and enhancement of its service offerings globally.