UCTTNEUTRAL

Gross Margin

15.8%

Higher than 1% of Technology sector peers

Updated 46h ago

Sector Performance

1th percentile

UCTT

15.8%

Sector Median

65.2%

Sector Avg

60.6%

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Deep Analysis

Ultra Clean Holdings currently reports a gross margin of 15.8%, meaning that for every dollar of revenue, only about 16 cents remains after subtracting the direct costs of manufacturing its products.

Among Technology sector peers, that figure is well below the median of 65.2%, placing UCTT in the 1st percentile—the lowest tier relative to its industry. There is no trend data available: the year-over-year change is not reported, the quarter-over-quarter change is not reported, and no historical values exist beyond the current single period. The combination of a very low profit margin with an absent trend makes it difficult to assess whether the company is stabilizing or deteriorating, which adds uncertainty for investors. This metric directly contradicts the overall NEUTRAL verdict because gross margin at the 1st percentile signals a structural profitability weakness that would normally warrant a negative assessment, yet the lack of trend prevents a conclusive downgrade.

Frequently Asked Questions

What does the Gross Margin tell investors about UCTT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does UCTT's Gross Margin compare to its sector?

UCTT's Gross Margin of 15.8% compares to a Technology sector median of 65.2%, placing it in the 1th percentile.

Who are UCTT's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: FORM (47.9%), LYFT (47.6%), COHU (46.3%), UBER (45.0%), LSPD (44.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.