Ultra Clean Holdings (UCTT) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: N/A
• Average Volume (3M): 479.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.45
• Revenue Growth: 6.65%
• EPS Growth: -4652.36%
• Country: US
• Employees: 6,773
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.28
• Shares Outstanding: 45,387,090
• 10 Day Avg. Volume: 484,248
• 30 Day Avg. Volume: 479,531
• PEG Ratio: -0.39
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 1.09K
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -234.59
• 1Y Price Target: $35.00
• Price Target Upside: 43.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): $2.05B

• Rating: 45 Neutral
• Price Target: $24.00 ▼(-1.56% Downside)

Ultra Clean Holdings faces significant challenges, primarily due to declining financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh on the stock's attractiveness. While there are some operational improvements, the cautious outlook and market uncertainties limit the potential for near-term recovery.

Positive Factors

Gross Margin Improvement

The improvement in gross margin indicates enhanced operational efficiency and cost management, which can contribute to better profitability over time.

Tariff Recovery Efforts

Successful tariff recovery enhances margin sustainability and reduces cost pressures, supporting long-term financial health.

Capital Structure Optimization

Lower borrowing costs improve financial flexibility and reduce long-term expenses, aiding in sustainable cash flow management.

Negative Factors

Decline in Revenue

A decline in revenue suggests potential challenges in market demand or competitive positioning, impacting future growth prospects.

Increased Operating Expenses

Rising operating expenses can erode profitability and indicate inefficiencies, posing a risk to long-term margin sustainability.

Limited Growth in China

Flat revenue in China and manufacturing shifts due to political uncertainties may limit growth opportunities in a key market.

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 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 difficulties, particularly in profitability and cash flow generation. The income statement shows negative profit margins and slow revenue growth. The balance sheet reflects moderate stability with a low debt-to-equity ratio, but negative return on equity. Cash flow analysis indicates challenges despite some improvements.

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	2.11B	2.10B	1.73B	2.37B	2.10B	1.40B
Gross Profit	337.50M	356.30M	277.30M	465.00M	429.98M	291.76M
EBITDA	-6.90M	189.80M	99.20M	190.60M	253.20M	166.20M
Net Income	-158.80M	23.70M	-31.10M	40.40M	119.50M	77.60M
Balance Sheet
Total Assets	1.72B	1.92B	1.87B	1.96B	2.03B	1.10B
Cash, Cash Equivalents and Short-Term Investments	314.10M	313.90M	307.00M	358.80M	466.45M	200.27M
Total Debt	173.70M	660.30M	639.90M	611.20M	635.21M	311.75M
Total Liabilities	939.20M	984.10M	970.50M	1.02B	1.13B	551.33M
Stockholders Equity	709.90M	873.60M	838.90M	887.90M	848.88M	532.65M
Cash Flow
Free Cash Flow	17.10M	1.50M	60.10M	-52.90M	153.72M	60.85M
Operating Cash Flow	74.60M	65.00M	135.90M	47.20M	213.06M	97.28M
Investing Cash Flow	-54.30M	-63.50M	-119.70M	-96.20M	-406.76M	-29.83M
Financing Cash Flow	-21.30M	9.80M	-69.90M	-56.00M	460.83M	-31.11M

Ultra Clean Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCTT, the sentiment is Negative. The current price of 24.38 is below the 20-day moving average (MA) of 27.75, below the 50-day MA of 27.42, and below the 200-day MA of 24.94, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 38.20 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UCTT.

Ultra Clean Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAB	73 Outperform	$1.32B	12.19	9.89%	―	-1.79%	-22.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HIMX	60 Neutral	$1.33B	21.12	7.17%	5.01%	-3.62%	-20.33%
COHU	59 Neutral	$1.06B	-14.47	-8.53%	―	-4.50%	-45.79%
UCTT	45 Neutral	$1.18B	―	-20.61%	―	6.65%	-4652.36%
MXL	45 Neutral	$1.30B	―	-35.16%	―	7.53%	22.97%
ICHR	45 Neutral	$554.96M	―	-5.94%	―	16.86%	-26.89%

Ultra Clean Holdings Corporate Events

Ultra Clean’s Mixed Q3 Earnings Call Highlights

The recent earnings call for Ultra Clean (UCT) presented a mixed outlook, reflecting both positive and negative developments. On the positive side, the company reported improvements in gross margin and operational efficiencies. However, these gains were overshadowed by a decline in revenue, increased operating expenses, and uncertainties in the China market, as well as a cautious near-term demand outlook.

Ultra Clean Holdings Reports Q3 2025 Financial Results

Ultra Clean Holdings, Inc. is a prominent developer and supplier of essential subsystems and ultra-high-purity cleaning services primarily for the semiconductor industry, offering integrated solutions for major subassemblies and high-precision manufacturing. In its latest earnings report, Ultra Clean reported a total revenue of $510 million for the third quarter of 2025, with products contributing $445 million and services adding $65 million. The company achieved its highest gross margins for the year, despite facing near-term volatility and reduced visibility in the market. Key financial metrics for the quarter included a GAAP gross margin of 16.1% and a non-GAAP gross margin of 17.0%, with a GAAP net loss of $10.9 million and a non-GAAP net income of $12.9 million. The company also reported an operating margin of 2.1% on a GAAP basis and 5.7% on a non-GAAP basis. Looking ahead, Ultra Clean expects fourth-quarter revenue to range between $480 million and $530 million, with GAAP diluted net income per share projected to be between $(0.11) and $0.09, and non-GAAP diluted net income per share expected to be between $0.11 and $0.31. The company’s management remains optimistic about the future, emphasizing the role of AI-enabled high-performance computing in driving semiconductor innovation.

Ultra Clean Holdings Announces $150M Share Buyback Plan

On October 23, 2025, Ultra Clean Holdings‘ Board of Directors approved a share repurchase program authorizing the company to buy back up to $150 million of its common stock over three years. This move is expected to be executed through various means, including open market purchases and privately negotiated transactions, based on market conditions and other factors. In its third-quarter financial results for 2025, Ultra Clean Holdings reported a total revenue of $510 million, with a net loss of $10.9 million under GAAP, while achieving its highest gross margins for the year. The company remains optimistic about its position in the semiconductor industry, driven by AI-enabled high-performance computing despite facing near-term volatility.

The most recent analyst rating on (UCTT) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Ultra Clean Holdings stock, see the UCTT Stock Forecast page.

Ultra Clean Holdings Amends Credit Agreement to Lower Rates

On September 15, 2025, Ultra Clean Holdings, Inc. announced an amendment to its existing credit agreement with Barclays Bank PLC and other lenders. This amendment, known as the Eighth Amendment, reduces the interest rate on the company’s term loan facility by 0.5% per annum, potentially lowering financial costs and improving cash flow for the company.

The most recent analyst rating on (UCTT) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Ultra Clean Holdings stock, see the UCTT Stock Forecast page.