Ultra Clean Holdings (UCTT)
NASDAQ:UCTT
Want to see UCTT full AI Analyst Report?
Top Page
Ultra Clean Holdings
(NASDAQ:UCTT)
Select Model
Select Model
Rating:58Neutral
Price Target:
$83.00
▲(4.39% Upside)
Action:ReiteratedDate:04/18/26
The score is held back primarily by weakened profitability/margins and uneven free-cash-flow quality, partially offset by improving leverage and positive operating cash flow. Technically the stock has strong upward momentum (above key moving averages with positive MACD), though overbought signals add risk. Guidance and commentary point to a back-half 2026 improvement, while the convertible financing is modestly supportive but introduces potential overhang.
Positive Factors
Scalable installed capacity
Existing facilities that support ~$3B revenue today and need only modest clean-room investment to reach $4B represent structural scalability. Low incremental capex to expand meaningful capacity provides durable operating leverage potential and faster response to multi‑year WFE demand growth if ramps materialize.
Negative Factors
Compressed margins
Material margin compression and a return to net losses erode internally generated funds and reduce return on invested capital. Persistently lower gross and net margins make the business more sensitive to input-cost, mix and pricing swings and constrain long‑term reinvestment and shareholder return capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Scalable installed capacity
Existing facilities that support ~$3B revenue today and need only modest clean-room investment to reach $4B represent structural scalability. Low incremental capex to expand meaningful capacity provides durable operating leverage potential and faster response to multi‑year WFE demand growth if ramps materialize.
Read all positive factors
Ultra Clean Holdings (UCTT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.46B
Dividend YieldN/A
Average Volume (3M)992.02K
Price to Earnings (P/E)―
Beta (1Y)2.35
Revenue Growth6.65%
EPS Growth-4652.36%
CountryUS
Employees6,773
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.22
Shares Outstanding45,490,040
10 Day Avg. Volume793,260
30 Day Avg. Volume992,023
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 Cap1.19
Enterprise Value/Revenue2.00
Enterprise Value/Gross Profit12.74
Enterprise Value/Ebitda-130.65
Forecast
1Y Price Target
$81.25Price Target Upside2.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.49
Revenue Forecast (FY)$2.19B
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:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong strategic positioning and significant long-term opportunity driven by AI-related WFE expansion, ample installed capacity and a clear operational plan (UCT 3.0) are important positives. However, near-term financials show flat full-year revenue, sequential and year-over-year margin and EPS pressures, and current utilization (~65%) leaves leverage to be achieved only if the expected back-half 2026 ramps occur. Given the combination of credible growth catalysts and near-term execution/financial headwinds, the tone is cautiously optimistic but balanced.Positive Updates
AI-driven Market Opportunity and WFE Outlook
Management frames the current environment as an AI-driven structural expansion of wafer fab equipment (WFE) rather than a normal cyclical upturn, forecasting WFE growth of ~15%–20% year-over-year and multi-year tailwinds driven by AI infrastructure, HBM, advanced packaging and leading-edge logic transitions.
Negative Updates
Quarterly Revenue Slightly Declined Sequentially
Total Q4 revenue of $506.6M was down from $510.0M in Q3 (≈‑0.7% sequential decline); product revenue $442.4M vs $445.0M (≈‑0.6%); services $64.2M vs $65.0M (≈‑1.2%).
Read all updates
Q4-2025 Updates
Positive
Negative
AI-driven Market Opportunity and WFE Outlook
Management frames the current environment as an AI-driven structural expansion of wafer fab equipment (WFE) rather than a normal cyclical upturn, forecasting WFE growth of ~15%–20% year-over-year and multi-year tailwinds driven by AI infrastructure, HBM, advanced packaging and leading-edge logic transitions.
Read all positive updates
Company Guidance
UCT provided Q1 2026 guidance of $505–$545 million in revenue and $0.18–$0.34 in EPS, said Q1 gross margin should be roughly flat-to-slightly up versus Q4’s 16.1% (product 14.1%, services 29.7%) and reiterated a 2026 tax rate in the low‑20% range (Q4 tax 21%); management noted FY‑end 2025 revenue of $2.1 billion (flat YoY), Q4 revenue $506.6M (products $442.4M, services $64.2M), Q4 net income $10M (EPS $0.22 on 45.8M shares), cash $311.8M, Q4 operating cash flow $8.1M (FY operating cash flow $65.6M), capacity to support ~$3B of revenue today at ~65% utilization (50% Asia today, targeting 60%), only modest clean‑room spend needed to reach a $4B run‑rate, an industry WFE outlook of ~15–20% YoY, a back‑half‑weighted 2026 demand profile with sequential margin expansion expected through the year, and double‑digit services growth in 2026.Ultra Clean Holdings Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.05B | 2.10B | 1.73B | 2.37B | 2.10B |
| Gross Profit | 322.90M | 356.30M | 277.30M | 465.00M | 429.98M |
| EBITDA | -31.40M | 189.80M | 99.20M | 190.60M | 253.20M |
| Net Income | -181.20M | 23.70M | -31.10M | 40.40M | 119.50M |
Balance Sheet | |||||
| Total Assets | 1.73B | 1.92B | 1.87B | 1.96B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 311.80M | 313.90M | 307.00M | 358.80M | 466.45M |
| Total Debt | 810.30M | 660.30M | 639.90M | 611.20M | 635.21M |
| Total Liabilities | 944.90M | 984.10M | 970.50M | 1.02B | 1.13B |
| Stockholders Equity | 711.00M | 873.60M | 838.90M | 887.90M | 848.88M |
Cash Flow | |||||
| Free Cash Flow | 14.70M | 1.50M | 60.10M | -52.90M | 152.30M |
| Operating Cash Flow | 65.00M | 65.00M | 135.90M | 47.20M | 211.60M |
| Investing Cash Flow | -47.00M | -63.50M | -119.70M | -96.20M | -404.80M |
| Financing Cash Flow | -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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.70B | 12.15 | 11.84% | ― | -2.04% | 8.84% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.24B | ― | -7.72% | ― | 16.86% | -26.89% | |
59 Neutral | $1.74B | 32.53 | 4.96% | 4.48% | -3.62% | -20.33% | |
58 Neutral | $3.46B | ― | -24.06% | ― | 6.65% | -4652.36% | |
57 Neutral | $1.83B | ― | -9.07% | ― | -4.50% | -45.79% | |
57 Neutral | $1.90B | -11.04 | -28.80% | ― | 7.53% | 22.97% |
* Technology Sector Average
UCTT
Ultra Clean Holdings
79.51
60.86
326.33%
COHU
Cohu
41.26
26.96
188.53%
HIMX
Himax Technologies
11.10
5.06
83.77%
MXL
Maxlinear
26.27
16.36
165.09%
PLAB
Photronics
48.38
30.69
173.49%
ICHR
Ichor Holdings
65.75
48.54
282.05%
Ultra Clean Holdings Corporate Events
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 ...
Business Operations and StrategyExecutive/Board Changes
Ultra Clean Holdings Announces COO Transition and New Appointment
Neutral
Jan 28, 2026
On January 25, 2026, Ultra Clean Holdings, Inc. terminated the employment of its Chief Operating Officer, Harjinder Bajwa, with immediate effect, and he will receive severance benefits under the company’s executive severance policy. On the s...
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.