Ultra Clean Holdings, Inc.UCTT
NASDAQ • Technology
$83.34
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+2.9% YoY
Gross Margin
15.8%
Health Score
4/10
D/E Ratio
1.14
Confidence
LOW
Business Snapshot
Ultra Clean Holdings designs and manufactures precision components, subsystems, and modules used in semiconductor capital equipment. It operates as a key supplier to original equipment manufacturers in the semiconductor fabrication market, competing alongside other niche specialty component makers. The company generated $2.07 billion in trailing twelve-month revenue, placing it at a mid-tier scale within the semiconductor supply chain. A defining characteristic is its heavy cyclical exposure to semiconductor capital spending, which drives demand for its precision subsystems.
Financial Health
Gross margin of 15.8% improved slightly from 15.3% in the prior year, but net margin remains deeply negative at -9.4%, reflecting persistent unprofitability. The balance sheet shows moderate leverage with a debt-to-equity ratio of 1.14x, while the current ratio of 3.19x indicates strong short-term liquidity...
Risk Assessment
- VALUATION — FMP DCF fair value of $1.35 versus the current price of $83.34 implies a 6,073% premium, indicating extreme overvaluation relative to that model’s intrinsic estimate.
- PROFITABILITY — TTM net margin of -9.4% and net income of -$194.1 million reflect persistent unprofitability and shareholder value destruction.
- CASH CONVERSION — Free cash flow of $14.7 million is very low relative to TTM revenue of $2.07 billion, suggesting limited cash generation efficiency.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....