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Ultra Clean Holdings
(NASDAQ:UCTT)
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Rating:47Neutral
Price Target:
$51.00
▼(-30.21% Downside)
Action:Reiterated
Date:10/28/26
The score is held back primarily by weak cash generation (negative operating and free cash flow) alongside elevated leverage, despite improving revenue/profitability. Technicals also weigh heavily due to a pronounced downtrend and bearish momentum signals. These risks are partly offset by a strong earnings call with upbeat guidance, improving margins, and positive demand/program-win momentum, but valuation support is limited given the very high P/E and no dividend yield provided.
Positive Factors
Strong demand and growth
Record revenue growth and constructive near-term guidance indicate broadening demand for UCT’s semiconductor subsystems. Exposure to AI, gate-all-around, and high-bandwidth memory investment can support continued expansion as customers increase equipment and fab spending.
Negative Factors
Negative cash generation
Negative operating and free cash flow show that current earnings are not converting into internal funding. Working-capital and investment demands may require external financing, limiting flexibility to reduce debt, fund expansion, or withstand a downturn in semiconductor spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong demand and growth
Record revenue growth and constructive near-term guidance indicate broadening demand for UCT’s semiconductor subsystems. Exposure to AI, gate-all-around, and high-bandwidth memory investment can support continued expansion as customers increase equipment and fab spending.
Read all positive factors
Ultra Clean Holdings (UCTT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.33B
Dividend YieldN/A
Average Volume (3M)1.15M
Price to Earnings (P/E)88.8
Beta (1Y)2.31
Revenue Growth2.53%
EPS Growth84.78%
CountryUS
Employees6,948
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.58
Shares Outstanding45,277,027
10 Day Avg. Volume1,464,522
30 Day Avg. Volume1,147,481
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.66
Price to Sales (P/S)0.57
P/FCF Ratio77.10
Enterprise Value/Market Cap4.22
Enterprise Value/Revenue4.03
Enterprise Value/Gross Profit24.99
Enterprise Value/Ebitda53.83
Forecast
1Y Price Target
$128.67Price Target Upside76.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)3.11
Revenue Forecast (FY)$2.72B
Ultra Clean Holdings Business Overview & Revenue Model
Company Description
Ultra Clean Holdings, Inc. specializes in providing essential subsystems, intricate components, precision parts, and rigorous ultra-high purity cleaning and sophisticated analytical verification services. The company primarily caters to the global...
How the Company Makes Money
UCTT primarily makes money by selling outsourced manufacturing and value-added services to customers in the semiconductor ecosystem, with revenue recognized from product shipments and services delivered. Key revenue streams include: (1) Products—m...
Ultra Clean Holdings Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call was strongly positive. UCT reported record revenue, significant sequential and year-over-year growth, improved margins, strong execution during supply-chain pressure, favorable AI and semiconductor demand trends, multiple new program wins, expanded capacity, and positive fourth-quarter guidance. The main challenges were negative operating cash flow, elevated inventory and working-capital needs, continuing MFC and broader supply-chain constraints, and the need for substantial additional capacity investment.Positive Updates
Record Quarterly Revenue and Earnings Outperformance
Third-quarter revenue reached a record $759 million, up 17.7% sequentially and 48.8% year-over-year, and results were above the high end of guidance. Gross margin was 17.3%, up 60 basis points from Q2; operating margin was 9.0%, up from 7.0%; and EPS was $1.15, up $0.45 from the prior quarter.
Negative Updates
Negative Operating Cash Flow
Operating cash flow was negative $42.3 million, reflecting demand acceleration and the working capital required to ensure timely delivery to customers.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue and Earnings Outperformance
Third-quarter revenue reached a record $759 million, up 17.7% sequentially and 48.8% year-over-year, and results were above the high end of guidance. Gross margin was 17.3%, up 60 basis points from Q2; operating margin was 9.0%, up from 7.0%; and EPS was $1.15, up $0.45 from the prior quarter.
Read all positive updates
Company Guidance
UCT expects 2027 wafer fab equipment spending to be above $200 billion; for the fourth quarter, it expects revenue of $800 million to $860 million, up 9.4% sequentially at the midpoint, EPS of $1.11 to $1.35 and approximately 48.9 million diluted shares. UCT expects to be at approximately $4 billion of capacity in Q1, with about 15% to 20% burst capacity, and sees a path to additional capacity and increased utilization through further optimization of its current footprint through 2027; growing to $5-plus billion will require additional capacity, supported by roughly $80 million to $100 million incrementally through 2027 and 2028. Over the next few quarters, it expects to double weldment capacity in Cebu, Philippines, bring additional clean room capacity online in Singapore and the Czech Republic, and double its vertical integrated manufacturing capacity in Malaysia and Thailand next year. It expects Services revenue to increase incrementally over time, with a larger contribution as wafer starts increase throughout 2027 and 2028, sees a path to its target of 20% gross margin at $4 billion of revenue, and said MFC constraints may continue for a quarter or 2.Ultra Clean Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
54
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.44B | 2.05B | 2.10B | 1.73B | 2.37B | 2.10B |
| Gross Profit | 393.80M | 322.90M | 356.30M | 277.30M | 465.00M | 429.98M |
| EBITDA | 182.80M | -31.40M | 189.80M | 99.20M | 190.60M | 246.00M |
| Net Income | 26.60M | -181.20M | 23.70M | -31.10M | 40.40M | 119.50M |
Balance Sheet | ||||||
| Total Assets | 2.10B | 1.73B | 1.92B | 1.87B | 1.96B | 2.03B |
| Cash, Cash Equivalents and Short-Term Investments | 270.90M | 311.80M | 313.90M | 307.00M | 358.80M | 466.45M |
| Total Debt | 810.10M | 810.30M | 660.30M | 639.90M | 611.20M | 635.21M |
| Total Liabilities | 1.29B | 944.90M | 984.10M | 970.50M | 1.02B | 1.13B |
| Stockholders Equity | 727.50M | 711.00M | 873.60M | 838.90M | 887.90M | 848.88M |
Cash Flow | ||||||
| Free Cash Flow | -164.00M | 15.30M | 1.50M | 60.10M | -52.90M | 152.30M |
| Operating Cash Flow | -108.60M | 65.60M | 65.00M | 135.90M | 47.20M | 211.60M |
| Investing Cash Flow | -55.20M | -47.00M | -63.50M | -119.70M | -96.20M | -404.80M |
| Financing Cash Flow | 117.70M | -21.20M | 9.80M | -69.90M | -56.00M | 460.80M |
Ultra Clean Holdings Technical Analysis
Negative
73.08
Price Trends
68.00
Negative
83.50
Negative
74.35
Negative
Market Momentum
-7.04
Positive
36.76
Neutral
28.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCTT, the sentiment is Negative. The current price of 73.08 is above the 20-day moving average (MA) of 61.00, above the 50-day MA of 68.00, and below the 200-day MA of 74.35, indicating a bearish trend. The MACD of -7.04 indicates Positive momentum. The RSI at 36.76 is Neutral, neither overbought nor oversold. The STOCH value of 28.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UCTT.
Ultra Clean Holdings Risk Analysis
Ultra Clean Holdings disclosed 42 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.35B | 72.20 | 10.96% | ― | 18.01% | 161.14% | |
70 Outperform | $4.10B | 34.67 | 13.55% | 1.05% | 44.44% | 2283.94% | |
66 Neutral | $22.94B | 75.05 | 7.61% | 0.25% | 3.19% | 2.73% | |
63 Neutral | $2.41B | -61.34 | -4.91% | 1.11% | 32.66% | 55.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $1.53B | -34.79 | -5.61% | ― | 9.10% | -92.70% | |
47 Neutral | $2.33B | 88.76 | 3.93% | ― | 2.53% | 84.78% |
* Technology Sector Average
UCTT
Ultra Clean Holdings
51.48
21.64
72.52%
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Ultra Clean Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ultra Clean Holdings Adds Veteran Executive to Board
Positive
Sep 30, 2026
On September 28, 2026, Ultra Clean Holdings appointed former National Instruments chief executive Alexander Davern to its Board of Directors, a move announced publicly in a September 30, 2026 press release. Davern brings more than 30 years of lead...
Private Placements and FinancingRegulatory Filings and Compliance
Ultra Clean Holdings Launches $400 Million ATM Program
Neutral
Aug 14, 2026
Ultra Clean Holdings, Inc. on August 14, 2026 entered into a sales agreement with UBS Securities LLC, Barclays Capital Inc., Craig-Hallum Capital Group LLC and Oppenheimer Co. Inc. to establish an at-the-market equity offering of up to $400 milli...
Executive/Board Changes
Ultra Clean Names Michael Keogh as New CFO
Neutral
Aug 6, 2026
Ultra Clean Holdings, Inc. has formalized its previously announced chief financial officer transition, with former CFO Sheri Savage stepping down from her officer roles on August 5, 2026, and Michael Keogh assuming the CFO position from that date....
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.