Ultra Clean Holdings (UCTT) AI Stock Analysis

• Market Cap: $1.97B
• Dividend Yield: N/A
• Average Volume (3M): 604.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.44
• 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: 1,054,037
• 30 Day Avg. Volume: 604,151
• 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: 0.82
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -234.59
• 1Y Price Target: $35.00
• Price Target Upside: -20.00% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.49
• Revenue Forecast (FY): $2.17B

• Rating: 51 Neutral
• Price Target: $44.00 ▲(0.57% Upside)

The score is primarily constrained by weak financial performance (profitability pressure, negative ROE, and weaker free cash flow). Technicals are moderately supportive due to an established uptrend, but overbought signals raise near-term risk. Valuation is a headwind given the negative P/E, while the earnings call adds modest support from margin improvement and operational progress despite cautious guidance.

Positive Factors

Critical supplier with recurring contracts

Ultra Clean’s specialization in ultra‑pure delivery systems and precision subsystems creates high switching costs and long product lifecycles. Deep engineering ties and long‑term contracts with chipmakers support recurring product and service revenue, underpinning durable cash flows.

Improving gross margins and tariff recovery

Margin expansion driven by higher‑value product mix, improved site utilization and tariff pass‑through points to structural margin repair. Sustained product mix shifts and preserved tariff recovery can support margin resilience through semiconductor cycles and improve long‑term profitability.

Lower borrowing cost enhances flexibility

Reducing the Term B loan margin by 50 bps cuts ongoing interest expense and improves free cash flow generation structurally. Combined with a moderate debt/equity ratio, this enhances financial flexibility for R&D, capex, or capital returns over the medium term.

Negative Factors

Weak profitability and negative returns

Negative ROE and negative EBIT/EBITDA margins signal persistent profitability challenges. Over months this undermines the company’s ability to reinvest, fund growth, and restore shareholder returns unless operational improvements sustainably reverse margin and revenue trends.

Declining free cash flow

A ~38% TTM drop in free cash flow materially reduces capacity to fund capex, R&D, and working capital needs. Lower FCF increases reliance on external financing and limits strategic flexibility, raising execution risk in a capital‑intensive semiconductor supply chain.

China exposure and demand visibility risk

Flat Chinese revenue and reshoring of non‑Chinese manufacturing create structural uncertainty and potential cost increases. Geopolitical shifts and cautious Q4 guidance reduce demand visibility and complicate capacity planning, pressuring growth and margins over coming quarters.

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 products and services to semiconductor manufacturers and other related industries. Key revenue streams include the sale of subsystems and components, which are critical for the production of semiconductors, as well as maintenance and support services for its products. The company also benefits from significant partnerships with major semiconductor manufacturers, which leads to long-term contracts and recurring revenue. Additionally, UCTT invests in research and development to enhance its product offerings, ensuring they meet the evolving needs of the semiconductor market, thereby driving further sales growth.

Ultra Clean Holdings Financial Statement Overview

Summary

Ultra Clean Holdings is facing financial headwinds, with declining revenue and profitability in the TTM period. While the balance sheet remains relatively stable with manageable leverage, the negative return on equity and cash flow challenges highlight areas of concern. The company needs to address operational inefficiencies and improve cash generation to enhance its financial health.

Income Statement

Ultra Clean Holdings has faced challenges in maintaining profitability, as evidenced by negative net profit margins and declining revenue growth in the TTM period. The company experienced a revenue decline of 1.42% in the TTM, following a modest growth in the previous year. Gross profit margins have also decreased over time, indicating pressure on cost management. The negative EBIT and EBITDA margins in the TTM period highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.24 in the TTM, indicating manageable leverage. However, the return on equity has turned negative, reflecting the company's struggle to generate returns for shareholders. The equity ratio remains stable, suggesting a solid capital structure, but the declining ROE is a concern.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 38.27% in the TTM, indicating challenges in cash generation. The operating cash flow to net income ratio is positive, suggesting that the company is still generating cash from operations despite net losses. However, the free cash flow to net income ratio is low, reflecting limited free cash flow relative to net income.

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	650.10M	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	152.30M	60.85M
Operating Cash Flow	74.60M	65.00M	135.90M	47.20M	211.60M	97.28M
Investing Cash Flow	-54.30M	-63.50M	-119.70M	-96.20M	-404.80M	-29.83M
Financing Cash Flow	-21.30M	9.80M	-69.90M	-56.00M	460.80M	-31.11M

Ultra Clean Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 43.75 is above the 20-day moving average (MA) of 31.11, above the 50-day MA of 27.59, and above the 200-day MA of 24.59, indicating a bullish trend. The MACD of 4.08 indicates Negative momentum. The RSI at 86.97 is Negative, neither overbought nor oversold. The STOCH value of 90.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UCTT.

Ultra Clean Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAB	74 Outperform	$2.02B	15.08	11.89%	―	-2.04%	8.84%
HIMX	69 Neutral	$1.47B	23.40	7.17%	4.48%	-3.62%	-20.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MXL	60 Neutral	$1.68B	-9.21	-35.16%	―	7.53%	22.97%
ICHR	54 Neutral	$990.95M	-25.00	-5.94%	―	16.86%	-26.89%
COHU	53 Neutral	$1.36B	-18.03	-8.53%	―	-4.50%	-45.79%
UCTT	51 Neutral	$1.97B	-12.23	-20.61%	―	6.65%	-4652.36%

Ultra Clean Holdings Corporate Events

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.