Ultra Clean Holdings (UCTT)
NASDAQ:UCTT
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Ultra Clean Holdings
(NASDAQ:UCTT)
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Rating:58Neutral
Price Target:
$91.00
▲(14.45% Upside)
Action:ReiteratedDate:04/29/26
The score is held back primarily by weak financial performance (losses, thin margins, negative free cash flow, and elevated leverage). Offsetting this, the stock’s technical trend is strong and the latest earnings call featured constructive guidance and margin-improvement expectations, while valuation remains constrained by negative earnings.
Positive Factors
Scalable global footprint and capacity runway
A manufacturing and geographic footprint that can scale from ~$3B to ~$4B with modest capex is a durable competitive advantage. It lets Ultra Clean respond quickly to multiyear WFE demand, shorten customer lead times, and capture volume-driven operating leverage as fixed costs spread over higher production.
Negative Factors
Thin gross margins and recent net losses
Persistently thin product gross margins and negative net margins undermine the firm's ability to self-fund growth and make profitability highly sensitive to pricing pressure, cost inflation, or mix shifts. Without sustained margin recovery, scaling revenue may not translate into durable earnings improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Scalable global footprint and capacity runway
A manufacturing and geographic footprint that can scale from ~$3B to ~$4B with modest capex is a durable competitive advantage. It lets Ultra Clean respond quickly to multiyear WFE demand, shorten customer lead times, and capture volume-driven operating leverage as fixed costs spread over higher production.
Read all positive factors
Ultra Clean Holdings (UCTT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.90B
Dividend YieldN/A
Average Volume (3M)952.24K
Price to Earnings (P/E)―
Beta (1Y)2.30
Revenue Growth-3.24%
EPS Growth-786.94%
CountryUS
Employees6,773
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-4.29
Shares Outstanding44,828,354
10 Day Avg. Volume841,731
30 Day Avg. Volume952,238
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 Cap1.12
Enterprise Value/Revenue2.11
Enterprise Value/Gross Profit13.49
Enterprise Value/Ebitda-125.69
Forecast
1Y Price Target
$104.40Price Target Upside31.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.32
Revenue Forecast (FY)$2.49B
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
UCTT makes money primarily by selling (1) manufactured subsystems and components and (2) consumable products used in semiconductor fabrication environments. A significant portion of revenue comes from supplying semiconductor equipment OEMs with in...
Ultra Clean Holdings Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call presented several meaningful positives: sequential revenue and EPS growth, modest margin expansion, strong strategic positioning for an AI-driven WFE upcycle, materially improved financing (lower cost of capital) and bullish Q2 guidance. Key negatives centered on a sizeable operating cash flow swing to negative driven by inventory builds, a decline in services margin, modestly higher operating expenses and ongoing near-term variability and supply-chain/geopolitical risks. On balance, the highlights (notably demand momentum, financial engineering to reduce interest costs, and clear capacity runway) outweigh the lowlights, but company execution will need to manage working capital and margin dynamics as volumes ramp.Positive Updates
Quarterly Revenue Growth
Total revenue of $533.7M in Q1 2026, up from $506.6M in Q4 2025, a sequential increase of $27.1M or ~5.35%.
Negative Updates
Negative Operating Cash Flow
Operating cash flow was negative $33.3M in Q1 versus positive $8.1M last quarter, a swing of $41.4M driven primarily by higher working capital and inventory builds to meet near-term demand.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Total revenue of $533.7M in Q1 2026, up from $506.6M in Q4 2025, a sequential increase of $27.1M or ~5.35%.
Read all positive updates
Company Guidance
UCT guided Q2 revenue of $565–$605 million (midpoint $585M) and non‑GAAP EPS of $0.44–$0.60 (midpoint $0.52), expecting quarter‑over‑quarter double‑digit growth into the second half and gross margin to be slightly higher in Q2 and to continue improving toward Q4. In Q1 the company delivered $533.7M revenue ($465.7M products, $68.0M services), gross margin 16.5% (product 14.6%, services 30%), operating margin 5.1%, operating expense $61.1M (11.4% of revenue), net income $14.5M ($0.31 on 46.3M shares), cash $323.5M and operating cash flow of -$33.3M. Management said its global footprint supports about $3B in revenue today and can scale to ~$4B with modest incremental capex (current run rate ~$2.0–2.2B; brick‑and‑mortar expansion to $4B possible in ~6–9 months), expects services to be roughly 10–12% of revenue as wafer starts ramp, and reiterated a strong WFE backdrop (customers citing $140–145B for 2026 and ~15%+ for 2027). Corporate actions to strengthen the balance sheet include a $600M zero‑coupon convertible note, full repayment of Term Loan B (saving ~ $30M in annual cash interest), upsizing the revolver to $250M from $150M with a 75bp margin reduction and maturity to 2031, and an expected drop in weighted‑average borrowing cost from ~6.2% to ~1.4%; the 2026 tax rate is expected in the low‑20% range.Ultra Clean Holdings Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
44
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.07B | 2.05B | 2.10B | 1.73B | 2.37B | 2.10B |
| Gross Profit | 323.40M | 322.90M | 356.30M | 277.30M | 465.00M | 429.98M |
| EBITDA | -34.70M | -31.40M | 189.80M | 99.20M | 190.60M | 253.20M |
| Net Income | -194.10M | -181.20M | 23.70M | -31.10M | 40.40M | 119.50M |
Balance Sheet | ||||||
| Total Assets | 1.86B | 1.73B | 1.92B | 1.87B | 1.96B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 323.50M | 311.80M | 313.90M | 307.00M | 358.80M | 466.45M |
| Total Debt | 780.40M | 810.30M | 660.30M | 639.90M | 611.20M | 635.21M |
| Total Liabilities | 1.15B | 944.90M | 984.10M | 970.50M | 1.02B | 1.13B |
| Stockholders Equity | 627.90M | 711.00M | 873.60M | 838.90M | 887.90M | 848.88M |
Cash Flow | ||||||
| Free Cash Flow | -44.00M | 14.70M | 1.50M | 60.10M | -52.90M | 152.30M |
| Operating Cash Flow | 3.50M | 65.00M | 65.00M | 135.90M | 47.20M | 211.60M |
| Investing Cash Flow | -44.10M | -47.00M | -63.50M | -119.70M | -96.20M | -404.80M |
| Financing Cash Flow | 49.20M | -20.60M | 9.80M | -69.90M | -56.00M | 460.80M |
Ultra Clean Holdings Technical Analysis
Positive
79.51
Price Trends
61.06
Positive
46.77
Positive
36.18
Positive
Market Momentum
5.41
Negative
72.48
Negative
90.34
Negative
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 79.51 is above the 20-day moving average (MA) of 67.10, above the 50-day MA of 61.06, and above the 200-day MA of 36.18, indicating a bullish trend. The MACD of 5.41 indicates Negative momentum. The RSI at 72.48 is Negative, neither overbought nor oversold. The STOCH value of 90.34 is Negative, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.16B | 12.15 | 11.84% | ― | -0.06% | -1.01% | |
67 Neutral | $2.34B | -29.19 | -6.91% | ― | 23.10% | 35.49% | |
63 Neutral | $8.94B | -8.44 | -28.42% | ― | 40.89% | 42.62% | |
63 Neutral | $2.59B | -158.49 | -7.72% | ― | 7.53% | -203.93% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $3.03B | 56.38 | 4.96% | 4.48% | -8.01% | -44.59% | |
58 Neutral | $3.90B | -37.25 | -28.05% | ― | -3.24% | -786.94% |
* Technology Sector Average
UCTT
Ultra Clean Holdings
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64.86
291.64%
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Ultra Clean Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ultra Clean Announces CFO Retirement and Leadership Transition
Neutral
Apr 28, 2026
Ultra Clean Holdings, Inc., a key supplier of critical subsystems and ultra-high purity cleaning and analytical services to the semiconductor industry, operates Products and Services divisions that deliver integrated outsourced subassemblies, acce...
Business Operations and StrategyPrivate Placements and Financing
Ultra Clean Holdings Amends and Extends Revolving Credit Facility
Positive
Apr 24, 2026
On April 23, 2026, Ultra Clean Holdings, Inc. entered into a tenth amendment to its existing credit agreement, refinancing $250 million in revolving credit commitments and extending the maturity of its revolving credit facility to April 23, 2031. ...
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 ...
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.