Ultra Clean Holdings (UCTT) AI Stock Analysis

• Market Cap: $919.69M
• Dividend Yield: N/A
• Average Volume (3M): 492.87K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 2.23
• Revenue Growth: 20.20%
• EPS Growth: N/A
• Country: US
• Employees: 6,773
• Sector: Technology
• Sector Strength: 82
• Industry: Semiconductors
• EPS (TTM): 0.28
• Shares Outstanding: 45,149,090
• 10 Day Avg. Volume: 639,238
• 30 Day Avg. Volume: 492,873
• PEG Ratio: -0.55
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.32
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 4.89
• Enterprise Value/Ebitda: 2.84
• 1Y Price Target: $30.75
• Price Target Upside: 54.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $21.00 ▲(5.26%Upside)

Ultra Clean Holdings' overall score reflects mixed financial performance with low profitability margins, technical indicators showing bearish momentum, and a high P/E ratio. The earnings call highlights strategic initiatives but also indicates ongoing challenges, including revenue declines and margin pressures.

Positive Factors

Demand Growth

Positive AI and HBM related demand are driving growth in Ultra Clean's CMP and chemistry plating business.

Profitability

Management announced plans to optimize the company's global footprint to improve efficiency and protect profitability.

Negative Factors

Market Conditions

Slower than anticipated semiconductor market recovery and uncertainty from tariffs continue to pose challenges.

Revenue Decline

A sharp decline in China revenue is impacting the stock, as the company faces weakening demand and product qualification delays from a top Chinese customer.

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 critical subsystems and ultra-high purity cleaning services to OEMs in the semiconductor industry. The company's revenue model is centered around manufacturing and supplying these essential components that are embedded in the production equipment of semiconductor fabrication facilities. UCTT's key revenue streams include the sale of gas delivery systems, chemical delivery modules, and other customized subsystems tailored to the specific needs of its clients. Additionally, the company provides ultra-high purity cleaning and analytical services, which are crucial for maintaining the operational efficiency and quality assurance of semiconductor manufacturing processes. Significant partnerships with major semiconductor OEMs also contribute to its earnings, as these collaborations often result in ongoing and long-term contracts that provide a steady flow of revenue.

Ultra Clean Holdings Financial Statement Overview

Summary

Ultra Clean Holdings shows moderate financial performance with stable revenue but low profitability margins. The balance sheet is strong with low leverage, and cash flows are adequate but could benefit from improved capital management.

Income Statement

Ultra Clean Holdings shows moderate performance in its income statement. The TTM gross profit margin stands at 16.73%, indicating efficient production cost management. However, the net profit margin is relatively low at 1.31%, suggesting challenges in controlling operational costs or high interest expenses. Revenue growth has been inconsistent, with a recent increase of 1.95% over the previous year, reflecting stability but also potential market pressures. The EBIT and EBITDA margins at 4.06% and 7.03% respectively, highlight a need for improved operational efficiency.

Balance Sheet

The balance sheet of Ultra Clean Holdings reflects a healthy equity position with a debt-to-equity ratio of 0.19, indicating low financial leverage and reduced risk of insolvency. The return on equity (ROE) is 3.22%, which, while positive, suggests room for improvement in utilizing equity to generate profits. The equity ratio of 46.11% demonstrates a solid capital structure, providing a cushion against liabilities.

Cash Flow

Cash flow analysis reveals areas for improvement. The operating cash flow to net income ratio of 2.97 indicates strong cash generation relative to accounting profits, although the free cash flow is modest at $25.5M. Free cash flow growth is positive, but the company needs to manage capital expenditures more effectively to enhance liquidity.

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
357.70M	356.30M	277.30M	465.00M	429.98M	291.76M
	EBIT
86.90M	91.20M	35.20M	199.60M	185.67M	121.37M
	EBITDA
171.30M	189.80M	99.20M	266.20M	253.20M	166.20M
	Net Income Common Stockholders
28.10M	23.70M	-31.10M	40.40M	119.50M	77.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
317.60M	313.90M	307.00M	358.80M	466.45M	200.27M
	Total Assets
1.89B	1.92B	1.87B	1.96B	2.03B	1.10B
	Total Debt
646.40M	660.30M	639.90M	611.20M	635.21M	311.75M
	Net Debt
328.80M	346.40M	332.90M	252.40M	168.76M	111.48M
	Total Liabilities
954.20M	984.10M	970.50M	1.02B	1.13B	551.33M
	Stockholders Equity
872.00M	873.60M	838.90M	887.90M	848.88M	532.65M
Cash Flow		Free Cash Flow
25.50M	1.50M	60.10M	-52.90M	153.72M	60.85M
	Operating Cash Flow
83.40M	65.00M	135.90M	47.20M	213.06M	97.28M
	Investing Cash Flow
-58.00M	-63.50M	-119.70M	-96.20M	-406.76M	-29.83M
	Financing Cash Flow
2.10M	9.80M	-69.90M	-56.00M	460.83M	-31.11M

Ultra Clean Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 19.95 is below the 20-day moving average (MA) of 20.50, below the 50-day MA of 20.48, and below the 200-day MA of 30.63, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 18.24 is Positive, 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
HIMX	74 Outperform	$1.64B	18.72	9.79%	3.09%	0.61%	80.97%
VECO	72 Outperform	$1.21B	19.01	8.68%	―	3.30%	―
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
COHU	60 Neutral	$845.42M	―	-9.87%	―	-30.75%	-3668.44%
UCTT	58 Neutral	$919.69M	32.97	3.30%	―	20.20%	―
ICHR	57 Neutral	$595.73M	―	-2.35%	―	13.41%	72.56%
MXL	52 Neutral	$1.13B	―	-39.36%	―	-33.12%	-39.38%

Ultra Clean Holdings Corporate Events

Ultra Clean Holdings Approves Key Proposals at Annual Meeting

On May 21, 2025, Ultra Clean Holdings, Inc. held its Annual Meeting of Stockholders where three proposals were approved. The first proposal involved the election of directors for a one-year term, with several directors receiving varying levels of support. The second proposal ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for fiscal 2025. The third proposal, which was a non-binding advisory vote, approved the compensation paid to the Company’s Named Executive Officers.

The most recent analyst rating on (UCTT) stock is a Buy 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.