Ultra Clean Holdings (UCTT) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: N/A
• Average Volume (3M): 561.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.51
• 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: 669,758
• 30 Day Avg. Volume: 561,256
• 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: 1.36
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -234.59
• 1Y Price Target: $35.00
• Price Target Upside: 33.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): $2.05B

• Rating: 52 Neutral
• Price Target: $27.00 ▲(2.90% Upside)

Ultra Clean Holdings faces significant financial challenges, with declining revenue and profitability impacting its financial performance score. Technical analysis provides a slightly positive outlook with short-term strength, but valuation concerns persist due to negative earnings and lack of dividend yield. While corporate events like the credit agreement amendment are positive, they do not significantly offset the broader financial and valuation concerns.

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. (UCTT) is a leading provider of critical subsystems for the semiconductor industry, specializing in the design, engineering, and manufacturing of ultra-pure delivery systems and other essential components. The company operates primarily in the semiconductor equipment and services sector, offering a diverse range of products, including gas and chemical delivery systems, wafer handling equipment, and other precision components that support the manufacturing of advanced semiconductor devices.

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	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	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: 26.24
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 26.24 is above the 20-day moving average (MA) of 24.67, below the 50-day MA of 26.80, and above the 200-day MA of 23.93, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 86.18 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	$1.42B	13.68	9.89%	―	-1.79%	-22.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HIMX	61 Neutral	$1.58B	25.21	7.17%	4.08%	-3.62%	-20.33%
COHU	61 Neutral	$1.07B	―	-8.53%	―	-4.50%	-45.79%
MXL	56 Neutral	$1.64B	-8.98	-35.16%	―	7.53%	22.97%
UCTT	52 Neutral	$1.19B	―	-20.61%	―	6.65%	-4652.36%
ICHR	49 Neutral	$605.51M	―	-5.94%	―	16.86%	-26.89%

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.

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.