Ultra Clean Holdings, Inc. (UCTT)
Valuation Overview•Is Ultra Clean Holdings, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 21/100; weak margins or elevated debt leverage warrant caution.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
UCTT struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-4.7% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-5.3%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $533.7M | -2.1% | -4.7% | +8.0% | +15.9% | |
| EBITDA | $11.4M | — | -14.1% | — | — | |
| Net Income | -$17.9M | -864.6% | — | — | -32.7% | |
| EPS (Diluted) | $-0.40 | -869.2% | — | — | -28.0% | |
| Free Cash Flow | -$42.9M | +880.0% | — | -24.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 15.6% | 16.2% | 17.7% | 17.8% |
| Operating Margin | -5.3% | 2.8% | 4.5% | 5.3% |
| Net Margin | -9.4% | -3.2% | -0.4% | 1.6% |
| FCF Margin | -2.1% | 1.4% | 1.9% | 2.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.27 | $0.31 | +14.8% | ||
| Q1'26 | $0.23 | $0.22 | -4.3% | ||
| Q4'25 | $0.24 | $0.28 | +16.7% | ||
| Q3'25 | $0.27 | $0.27 | +0.0% | ||
| Q2'25 | $0.31 | $0.28 | -9.7% | ||
| Q1'25 | $0.44 | $0.51 | +15.9% | ||
| Q4'24 | $0.36 | $0.35 | -2.8% | ||
| Q3'24 | $0.26 | $0.32 | +23.1% |
Total return is +495.4% (1Y), outperforming the benchmark by +470.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +343.9% | +334.6% | — |
| 1Y | +495.4% | +470.4% | — |
| 3YCAGR | +47.2% | +23.6% | — |
| 5YCAGR | +19.4% | +2.9% | — |
| 10YCAGR | +35.7% | +21.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Ultra Clean Holdings, Inc. (UCTT) valuation, health, and returns.
Ultra Clean Holdings, Inc. is estimated to be fairly valued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. trading near fair value (DCF: $0.00)
Ultra Clean Holdings, Inc. has multiple valuation anchors: DCF Intrinsic Value: $0.00 | Peer Relative Fair Value: $66.87 | Wall Street Analyst Target: $103.75 (implying -14.5% upside). A convergence of these signals offers higher conviction.
Ultra Clean Holdings, Inc. displays weak financial health with a composite quality score of 21/100, supported by a Altman Z-Score of 4.9 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 2.6%.
Ultra Clean Holdings, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Ultra Clean Holdings, Inc.'s current growth trajectory is Accelerating. The company achieved -2.1% 1Y revenue growth and -869.2% 1Y EPS growth, compared to its 3Y revenue CAGR of -4.7%.
Wall Street consensus is Buy based on 12 analysts, beating EPS expectations in 50% of recent quarters with a 1-quarter streak. The consensus price target represents a -14.5% change from current levels.
Investment risks for Ultra Clean Holdings, Inc. include: -29.7% 1-year max drawdown, high beta (3.28x market volatility). Volatility risk is characterized by a beta of 3.28x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.