UCTTCAUTIOUS

Return on Equity (ROE)

-22.5%

Higher than 18% of Technology sector peers

Updated 129h ago

Sector Performance

18th percentile

UCTT

-22.5%

Sector Median

8.2%

Sector Avg

2.4%

📊

Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and a negative value indicates losses.

The current ROE of -22.5% is far below the sector median of 8.7%, placing UCTT in the 17th percentile among Technology peers. The year-over-year change is not available, but the quarter-over-quarter change of +11.8% shows the ROE improved from -25.5% to -22.5% in the most recent period. Although the negative ROE signals ongoing weakness in profitability, the quarter-over-quarter improvement suggests the losses are narrowing, which may reduce near-term downside risk. However, the combination of a deeply negative level and only a modest sequential gain implies the company still has considerable ground to cover before reaching breakeven. This metric supports the overall CAUTIOUS verdict because the ROE remains solidly below the sector norm and well into negative territory.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about UCTT?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does UCTT's Return on Equity (ROE) compare to its sector?

UCTT's Return on Equity (ROE) of -22.5% compares to a Technology sector median of 8.2%, placing it in the 18th percentile.

Who are UCTT's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), U (-20.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.