ULTRA CLEAN HOLDINGS INC (UCTT) Stock Fundamental Analysis
NASDAQ:UCTT - Nasdaq - US90385V1070 - Common Stock - Currency: USD
UCTT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. There are concerns on the financial health of UCTT while its profitability can be described as average. UCTT has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
UCTT had positive earnings in the past year.
UCTT had a positive operating cash flow in the past year.
Of the past 5 years UCTT 4 years were profitable.
In the past 5 years UCTT always reported a positive cash flow from operatings.
1.2 Ratios
UCTT has a Return On Assets (1.23%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 2.71%, UCTT is in line with its industry, outperforming 52.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.60%, UCTT is in the better half of the industry, outperforming 64.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UCTT is significantly below the industry average of 11.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.71% | ||
| ROIC | 4.6% |
ROA(3y)0.54%
ROA(5y)2.91%
ROE(3y)1.19%
ROE(5y)6.44%
ROIC(3y)5.52%
ROIC(5y)7.36%
1.3 Margins
The Profit Margin of UCTT (1.13%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of UCTT has declined.
With a Operating Margin value of 4.40%, UCTT perfoms like the industry average, outperforming 53.21% of the companies in the same industry.
In the last couple of years the Operating Margin of UCTT has grown nicely.
The Gross Margin of UCTT (16.99%) is worse than 80.73% of its industry peers.
In the last couple of years the Gross Margin of UCTT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.4% | ||
| PM (TTM) | 1.13% | ||
| GM | 16.99% |
OM growth 3Y-20.77%
OM growth 5Y7.6%
PM growth 3Y-41.65%
PM growth 5YN/A
GM growth 3Y-6.02%
GM growth 5Y-1.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UCTT is destroying value.
Compared to 1 year ago, UCTT has more shares outstanding
UCTT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UCTT has about the same debt to assets ratio.
2.2 Solvency
UCTT has an Altman-Z score of 2.40. This is not the best score and indicates that UCTT is in the grey zone with still only limited risk for bankruptcy at the moment.
UCTT has a Altman-Z score (2.40) which is in line with its industry peers.
The Debt to FCF ratio of UCTT is 328.33, which is on the high side as it means it would take UCTT, 328.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UCTT (328.33) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.55 indicates that UCTT is somewhat dependend on debt financing.
UCTT has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: UCTT underperforms 75.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 328.33 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.41
WACC11.31%
2.3 Liquidity
UCTT has a Current Ratio of 2.89. This indicates that UCTT is financially healthy and has no problem in meeting its short term obligations.
UCTT has a Current ratio of 2.89. This is comparable to the rest of the industry: UCTT outperforms 49.54% of its industry peers.
A Quick Ratio of 1.76 indicates that UCTT should not have too much problems paying its short term obligations.
UCTT's Quick ratio of 1.76 is on the low side compared to the rest of the industry. UCTT is outperformed by 64.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 158.93% over the past year.
The Earnings Per Share has been growing by 8.60% on average over the past years. This is quite good.
The Revenue has grown by 20.93% in the past year. This is a very strong growth!
The Revenue has been growing by 14.49% on average over the past years. This is quite good.
EPS 1Y (TTM)158.93%
EPS 3Y-29.85%
EPS 5Y8.6%
EPS Q2Q%168.42%
Revenue 1Y (TTM)20.93%
Revenue growth 3Y-0.06%
Revenue growth 5Y14.49%
Sales Q2Q%26.64%
3.2 Future
Based on estimates for the next years, UCTT will show a very strong growth in Earnings Per Share. The EPS will grow by 33.99% on average per year.
The Revenue is expected to grow by 10.33% on average over the next years. This is quite good.
EPS Next Y34.01%
EPS Next 2Y45.22%
EPS Next 3Y17.23%
EPS Next 5Y33.99%
Revenue Next Year5.34%
Revenue Next 2Y7.69%
Revenue Next 3Y3.54%
Revenue Next 5Y10.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.85, UCTT is valued correctly.
UCTT's Price/Earnings ratio is rather cheap when compared to the industry. UCTT is cheaper than 81.65% of the companies in the same industry.
UCTT is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.59, the valuation of UCTT can be described as reasonable.
Based on the Price/Forward Earnings ratio, UCTT is valued cheaply inside the industry as 93.58% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.08. UCTT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
UCTT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UCTT is cheaper than 89.91% of the companies in the same industry.
UCTT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 560.51 | ||
| EV/EBITDA | 6.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UCTT's earnings are expected to grow with 17.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)1.49
EPS Next 2Y45.22%
EPS Next 3Y17.23%
5. Dividend
5.1 Amount
UCTT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.63
-0.15 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners95.22%
Inst Owner Change0%
Ins Owners1.24%
Ins Owner Change0.92%
Market Cap840.77M
Analysts84
Price Target48.96 (162.8%)
Short Float %2.25%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.49%
Min EPS beat(2)4.3%
Max EPS beat(2)12.68%
EPS beat(4)4
Avg EPS beat(4)36.19%
Min EPS beat(4)4.3%
Max EPS beat(4)105.73%
EPS beat(8)5
Avg EPS beat(8)9.62%
EPS beat(12)6
Avg EPS beat(12)7.21%
EPS beat(16)9
Avg EPS beat(16)6.07%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)2.7%
Revenue beat(4)3
Avg Revenue beat(4)1.92%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)3.25%
Revenue beat(8)4
Avg Revenue beat(8)-0.2%
Revenue beat(12)6
Avg Revenue beat(12)-0.23%
Revenue beat(16)8
Avg Revenue beat(16)0.07%
PT rev (1m)0%
PT rev (3m)-16.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.66%
EPS NY rev (1m)-27.89%
EPS NY rev (3m)-31.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.4 | ||
| P/FCF | 560.51 | ||
| P/OCF | 12.93 | ||
| P/B | 0.96 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 6.05 |
EPS(TTM)1.45
EY7.78%
EPS(NY)1.94
Fwd EY10.43%
FCF(TTM)0.03
FCFY0.18%
OCF(TTM)1.44
OCFY7.73%
SpS46.48
BVpS19.36
TBVpS9.38
PEG (NY)0.38
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.71% | ||
| ROCE | 5.83% | ||
| ROIC | 4.6% | ||
| ROICexc | 5.74% | ||
| ROICexgc | 8.89% | ||
| OM | 4.4% | ||
| PM (TTM) | 1.13% | ||
| GM | 16.99% | ||
| FCFM | 0.07% |
ROA(3y)0.54%
ROA(5y)2.91%
ROE(3y)1.19%
ROE(5y)6.44%
ROIC(3y)5.52%
ROIC(5y)7.36%
ROICexc(3y)7.05%
ROICexc(5y)9.7%
ROICexgc(3y)11.03%
ROICexgc(5y)17.01%
ROCE(3y)6.99%
ROCE(5y)9.32%
ROICexcg growth 3Y-29.69%
ROICexcg growth 5Y0.39%
ROICexc growth 3Y-24.76%
ROICexc growth 5Y7.61%
OM growth 3Y-20.77%
OM growth 5Y7.6%
PM growth 3Y-41.65%
PM growth 5YN/A
GM growth 3Y-6.02%
GM growth 5Y-1.65%
F-Score7
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 328.33 | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 83.44% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 2.28 | ||
| Cash Conversion | 38.6% | ||
| Profit Quality | 6.33% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 2.4 |
F-Score7
WACC11.31%
ROIC/WACC0.41
Cap/Depr(3y)117.55%
Cap/Depr(5y)104.35%
Cap/Sales(3y)3.87%
Cap/Sales(5y)3.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)158.93%
EPS 3Y-29.85%
EPS 5Y8.6%
EPS Q2Q%168.42%
EPS Next Y34.01%
EPS Next 2Y45.22%
EPS Next 3Y17.23%
EPS Next 5Y33.99%
Revenue 1Y (TTM)20.93%
Revenue growth 3Y-0.06%
Revenue growth 5Y14.49%
Sales Q2Q%26.64%
Revenue Next Year5.34%
Revenue Next 2Y7.69%
Revenue Next 3Y3.54%
Revenue Next 5Y10.33%
EBIT growth 1Y131.33%
EBIT growth 3Y-20.82%
EBIT growth 5Y23.19%
EBIT Next Year39.09%
EBIT Next 3Y17.94%
EBIT Next 5Y27.41%
FCF growth 1Y-97.5%
FCF growth 3Y-78.56%
FCF growth 5Y-56.35%
OCF growth 1Y-52.17%
OCF growth 3Y-32.53%
OCF growth 5Y-11.69%