Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. Fundamental Analysis
Ultra Clean Holdings, Inc. (UCTT) shows moderate financial fundamentals with a PE ratio of -16.65, profit margin of -7.66%, and ROE of -20.36%. The company generates $2.1B in annual revenue with strong year-over-year growth of 20.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze UCTT's fundamental strength across five key dimensions:
Efficiency Score
WeakUCTT struggles to generate sufficient returns from assets.
Valuation Score
ModerateUCTT shows balanced valuation metrics.
Growth Score
ModerateUCTT shows steady but slowing expansion.
Financial Health Score
ExcellentUCTT maintains a strong and stable balance sheet.
Profitability Score
WeakUCTT struggles to sustain strong margins.
Key Financial Metrics
Is UCTT Expensive or Cheap?
P/E Ratio
UCTT trades at -16.65 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, UCTT's PEG of 2.96 indicates potential overvaluation.
Price to Book
The market values Ultra Clean Holdings, Inc. at 3.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -341.16 times EBITDA. This is generally considered low.
How Well Does UCTT Make Money?
Net Profit Margin
For every $100 in sales, Ultra Clean Holdings, Inc. keeps $-7.66 as profit after all expenses.
Operating Margin
Core operations generate -4.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-20.36 in profit for every $100 of shareholder equity.
ROA
Ultra Clean Holdings, Inc. generates $-9.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ultra Clean Holdings, Inc. generates limited operating cash flow of $74.58M, signaling weaker underlying cash strength.
Free Cash Flow
Ultra Clean Holdings, Inc. generates weak or negative free cash flow of $17.10M, restricting financial flexibility.
FCF Per Share
Each share generates $0.38 in free cash annually.
FCF Yield
UCTT converts 0.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-16.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.20
vs 25 benchmark
ROA
Return on assets percentage
-0.09
vs 25 benchmark
ROCE
Return on capital employed
-0.06
vs 25 benchmark
How UCTT Stacks Against Its Sector Peers
| Metric | UCTT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -16.65 | 35.19 | Better (Cheaper) |
| ROE | -20.36% | 1155.00% | Weak |
| Net Margin | -7.66% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.92 | 0.41 | Weak (High Leverage) |
| Current Ratio | 3.21 | 4.71 | Strong Liquidity |
| ROA | -9.39% | -314918.00% (disorted) | Weak |
UCTT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ultra Clean Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.07%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
373.65%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-52.73%
Industry Style: Growth, Innovation, High Beta
Declining