UCTTCAUTIOUS

UCTT Gross Margin Analysis

16.1%

Updated 180h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so 16.1% means UCTT retains $0.161 for every dollar of sales before other expenses.

Sector Performance

7th percentile

UCTT

16.1%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

15.8%(Aug 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so 16.1% means UCTT retains $0.161 for every dollar of sales before other expenses.

That level is far below the sector median of 46.4%, placing UCTT in the 8th percentile among peers, indicating unusually thin profitability relative to its industry. The year-over-year change is not available, and the quarter-over-quarter change is +1.9%, while the longer eight-quarter trend direction is also not available based on supplied data. The combination of a very low margin with only a modest sequential improvement offers limited evidence of a turnaround, so the risk is that UCTT remains structurally less profitable than competitors. This metric directly supports the overall CAUTIOUS verdict, as a persistent margin gap leaves little buffer for cost shocks or pricing pressure.

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.

Who are UCTT's closest peers by Gross Margin?

The closest peers by Gross Margin include: HII (12.6%), VLO (12.3%), EXPD (12.3%), LMT (12.2%), EPD (12.1%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.