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Ultra Clean Holdings
(NASDAQ:UCTT)
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Rating:53Neutral
Price Target:
$91.00
▼(-1.89% Downside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by weak current financial quality (negative TTM cash flow and thin/negative profitability) and a mixed technical setup (below key short-term moving averages with negative MACD). These are partly offset by a strong earnings call backdrop with record results and upbeat Q3 guidance, plus generally positive (but secondary) corporate updates; valuation is difficult to anchor given the negative P/E and no dividend yield data.
Positive Factors
Record Revenue & Product Momentum
Sustained, large product revenue (products $572.7M of Q2 sales) and a record quarter demonstrate durable OEM demand and execution. Strong product mix increases operating leverage potential, helping the company scale overhead and amortize fixed costs as volumes rise, supporting multi‑quarter growth stability.
Negative Factors
Negative Operating & Free Cash Flow
TTM cash burn indicates the business is consuming cash while investing in capacity and inventory. Persistent negative operating and free cash flows erode liquidity, raise the need for external funding, and limit flexibility to fund capex or weather WFE cyclical slowdowns without increasing leverage or diluting shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Record Revenue & Product Momentum
Sustained, large product revenue (products $572.7M of Q2 sales) and a record quarter demonstrate durable OEM demand and execution. Strong product mix increases operating leverage potential, helping the company scale overhead and amortize fixed costs as volumes rise, supporting multi‑quarter growth stability.
Read all positive factors
Ultra Clean Holdings (UCTT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.21B
Dividend YieldN/A
Average Volume (3M)1.43M
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth2.53%
EPS Growth84.78%
CountryUS
Employees6,948
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.52
Shares Outstanding45,277,027
10 Day Avg. Volume1,169,881
30 Day Avg. Volume1,432,691
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.66
Price to Sales (P/S)0.57
P/FCF Ratio77.10
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$137.00Price Target Upside47.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.58
Revenue Forecast (FY)$2.54B
Ultra Clean Holdings Business Overview & Revenue Model
Company Description
Ultra Clean Holdings, Inc. specializes in providing essential subsystems, intricate components, precision parts, and rigorous ultra-high purity cleaning and sophisticated analytical verification services. The company primarily caters to the global...
How the Company Makes Money
UCTT primarily makes money by selling engineered subsystems and components, and by providing specialized manufacturing services to original equipment manufacturers (OEMs), particularly in the semiconductor capital equipment ecosystem. Key revenue ...
Ultra Clean Holdings Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and execution: record revenue, robust product growth, improved overall margins, doubled net income and clear capacity expansion plans (26,000 sq ft added, $4B run-rate target by mid-2027). Strategic initiatives — MPX Center of Excellence and digital transformation — and proactive supply-chain actions support the growth thesis. Offsetting items include a meaningful decline in cash, negative operating cash flow from inventory buildups, higher absolute operating spend, services margin compression, and margin sensitivity to mix and regional factors. Management provided constructive Q3 guidance and reiterated targets (20% gross margin at a $4B run rate), but also flagged timing/recognition risks with large customers and potential industry supply-chain pressure as WFE scales. Overall, the positives from accelerating revenue, margin improvement and clear capacity roadmap outweigh the near-term liquidity and margin variability concerns.Positive Updates
Record Quarterly Revenue
Total revenue of $644.9M in Q2 FY2026, up from $533.7M in Q1 (increase of $111.2M, +20.8% QoQ).
Negative Updates
Cash Balance Decline
Cash and cash equivalents fell to $255.9M from $323.5M last quarter (decrease of $67.6M, -20.9%), driven by strategic working capital and inventory build.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total revenue of $644.9M in Q2 FY2026, up from $533.7M in Q1 (increase of $111.2M, +20.8% QoQ).
Read all positive updates
Company Guidance
The company guided Q3 revenue of $700–$750 million and EPS of $0.83–$1.03, noting a full‑year 2026 tax rate expected in the low‑20% range; this guidance follows Q2 record revenue of $644.9 million (products $572.7M, services $72.2M) and Q2 non‑GAAP EPS of $0.70 on $32.3 million net income (46 million shares outstanding). Looking further out, UCT expects to support an annualized $4.0 billion revenue run‑rate by mid‑2027 tied to a ~$200 billion WFE environment, is evaluating expansions to support a $5.0 billion run‑rate aligned with a $250 billion WFE opportunity (targeting capacity growth into 2028), and is targeting long‑term margins of roughly 20% gross and 10% operating at the $4B run‑rate (near‑term gross margin mid‑ to high‑teens, ~17% this year).Ultra Clean Holdings Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.20B | 2.05B | 2.10B | 1.73B | 2.37B | 2.10B |
| Gross Profit | 347.60M | 322.90M | 356.30M | 277.30M | 465.00M | 429.98M |
| EBITDA | 121.00M | -31.40M | 189.80M | 99.20M | 190.60M | 246.00M |
| Net Income | -23.40M | -181.20M | 23.70M | -31.10M | 40.40M | 119.50M |
Balance Sheet | ||||||
| Total Assets | 1.92B | 1.73B | 1.92B | 1.87B | 1.96B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 255.90M | 311.80M | 313.90M | 307.00M | 358.80M | 466.45M |
| Total Debt | 775.90M | 810.30M | 660.30M | 639.90M | 611.20M | 635.21M |
| Total Liabilities | 1.20B | 944.90M | 984.10M | 970.50M | 1.02B | 1.13B |
| Stockholders Equity | 639.80M | 711.00M | 873.60M | 838.90M | 887.90M | 848.88M |
Cash Flow | ||||||
| Free Cash Flow | -113.10M | 15.30M | 1.50M | 60.10M | -52.90M | 152.30M |
| Operating Cash Flow | -66.20M | 65.60M | 65.00M | 135.90M | 47.20M | 211.60M |
| Investing Cash Flow | -43.60M | -47.00M | -63.50M | -119.70M | -96.20M | -404.80M |
| Financing Cash Flow | 46.10M | -21.20M | 9.80M | -69.90M | -56.00M | 460.80M |
Ultra Clean Holdings Technical Analysis
Negative
92.75
Price Trends
99.12
Negative
88.11
Negative
63.64
Positive
Market Momentum
-3.19
Negative
46.05
Neutral
58.48
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 92.75 is above the 20-day moving average (MA) of 87.67, below the 50-day MA of 99.12, and above the 200-day MA of 63.64, indicating a neutral trend. The MACD of -3.19 indicates Negative momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 58.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UCTT.
Ultra Clean Holdings Risk Analysis
Ultra Clean Holdings disclosed 84 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.97B | 12.21 | 13.39% | ― | 0.52% | 41.86% | |
62 Neutral | $2.67B | -60.66 | -5.61% | ― | 9.10% | -92.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $2.76B | -71.35 | -4.91% | ― | 32.66% | 55.60% | |
53 Neutral | $4.21B | -163.33 | -3.48% | ― | 2.53% | 84.78% | |
53 Neutral | $6.95B | -71.29 | -22.37% | ― | 50.50% | 52.01% | |
49 Neutral | $2.50B | 76.69 | 3.94% | 2.00% | -7.60% | -52.67% |
* Technology Sector Average
UCTT
Ultra Clean Holdings
84.93
62.26
274.64%
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Ultra Clean Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ultra Clean Holdings Appoints New Chief Financial Officer
Positive
Jul 8, 2026
On July 8, 2026, Ultra Clean Holdings announced that veteran finance executive Michael Keogh will become Chief Financial Officer effective August 5, 2026, succeeding Sheri Savage and reporting to CEO James Xiao. Keogh brings more than 25 years of ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Ultra Clean Shareholders Approve Directors and Expanded Equity Plans
Positive
May 26, 2026
At its May 22, 2026 annual meeting, Ultra Clean Holdings’ stockholders elected eight directors to one-year terms, with all nominees receiving strong support, and approved on an advisory basis the compensation of the company’s named exe...
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.