ULTRA CLEAN HOLDINGS INC (UCTT) Stock Fundamental Analysis
NASDAQ:UCTT - Nasdaq - US90385V1070 - Common Stock - Currency: USD
Taking everything into account, UCTT scores 5 out of 10 in our fundamental rating. UCTT was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. While UCTT is still in line with the averages on profitability rating, there are concerns on its financial health. UCTT is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year UCTT was profitable.
UCTT had a positive operating cash flow in the past year.
Of the past 5 years UCTT 4 years were profitable.
Each year in the past 5 years UCTT had a positive operating cash flow.
1.2 Ratios
UCTT has a Return On Assets (1.23%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.71%, UCTT is in line with its industry, outperforming 51.85% of the companies in the same industry.
UCTT's Return On Invested Capital of 4.60% is fine compared to the rest of the industry. UCTT outperforms 64.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UCTT is significantly below the industry average of 11.47%.
| 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
Looking at the Profit Margin, with a value of 1.13%, UCTT is in line with its industry, outperforming 47.22% of the companies in the same industry.
In the last couple of years the Profit Margin of UCTT has declined.
UCTT's Operating Margin of 4.40% is in line compared to the rest of the industry. UCTT outperforms 54.63% of its industry peers.
UCTT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 16.99%, UCTT is not doing good in the industry: 81.48% of the companies in the same industry are doing better.
UCTT's Gross Margin has declined in the last couple of years.
| 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
UCTT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
UCTT has more shares outstanding than it did 1 year ago.
UCTT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UCTT has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 indicates that UCTT is not a great score, but indicates only limited risk for bankruptcy at the moment.
UCTT has a Altman-Z score of 2.55. This is comparable to the rest of the industry: UCTT outperforms 42.59% of its industry peers.
UCTT has a debt to FCF ratio of 328.33. This is a negative value and a sign of low solvency as UCTT would need 328.33 years to pay back of all of its debts.
With a Debt to FCF ratio value of 328.33, UCTT perfoms like the industry average, outperforming 45.37% of the companies in the same industry.
UCTT has a Debt/Equity ratio of 0.55. This is a neutral value indicating 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 75.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 328.33 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.39
WACC11.77%
2.3 Liquidity
A Current Ratio of 2.89 indicates that UCTT has no problem at all paying its short term obligations.
UCTT has a Current ratio of 2.89. This is comparable to the rest of the industry: UCTT outperforms 50.93% of its industry peers.
UCTT has a Quick Ratio of 1.76. This is a normal value and indicates that UCTT is financially healthy and should not expect problems in meeting 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 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
UCTT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 158.93%, which is quite impressive.
Measured over the past years, UCTT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.60% on average per year.
Looking at the last year, UCTT shows a very strong growth in Revenue. The Revenue has grown by 20.93%.
UCTT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.49% yearly.
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
UCTT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.82% yearly.
Based on estimates for the next years, UCTT will show a quite strong growth in Revenue. The Revenue will grow by 11.79% on average per year.
EPS Next Y85.83%
EPS Next 2Y66.15%
EPS Next 3Y19.4%
EPS Next 5Y35.82%
Revenue Next Year11.52%
Revenue Next 2Y18.2%
Revenue Next 3Y7.6%
Revenue Next 5Y11.79%
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.10, the valuation of UCTT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of UCTT indicates a rather cheap valuation: UCTT is cheaper than 81.48% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.75. UCTT is valued slightly cheaper when compared to this.
UCTT is valuated reasonably with a Price/Forward Earnings ratio of 8.66.
96.30% of the companies in the same industry are more expensive than UCTT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UCTT to the average of the S&P500 Index (22.44), we can say UCTT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
UCTT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UCTT is cheaper than 90.74% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UCTT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 702.22 | ||
| EV/EBITDA | 7.65 |
4.3 Compensation for Growth
UCTT's 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 19.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)1.87
EPS Next 2Y66.15%
EPS Next 3Y19.4%
5. Dividend
5.1 Amount
UCTT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.34
-1.26 (-5.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners95.22%
Inst Owner Change0.86%
Ins Owners1.24%
Ins Owner Change0.38%
Market Cap1.05B
Analysts84
Price Target58.91 (152.4%)
Short Float %2.52%
Short Ratio3.54
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)0%
EPS NQ rev (1m)-41.91%
EPS NQ rev (3m)-43.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.48%
Revenue NQ rev (1m)-6.28%
Revenue NQ rev (3m)-7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 8.66 | ||
| P/S | 0.5 | ||
| P/FCF | 702.22 | ||
| P/OCF | 16.21 | ||
| P/B | 1.21 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 7.65 |
EPS(TTM)1.45
EY6.21%
EPS(NY)2.69
Fwd EY11.54%
FCF(TTM)0.03
FCFY0.14%
OCF(TTM)1.44
OCFY6.17%
SpS46.48
BVpS19.36
TBVpS9.38
PEG (NY)0.19
PEG (5Y)1.87
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 | 2.55 |
F-Score7
WACC11.77%
ROIC/WACC0.39
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 Y85.83%
EPS Next 2Y66.15%
EPS Next 3Y19.4%
EPS Next 5Y35.82%
Revenue 1Y (TTM)20.93%
Revenue growth 3Y-0.06%
Revenue growth 5Y14.49%
Sales Q2Q%26.64%
Revenue Next Year11.52%
Revenue Next 2Y18.2%
Revenue Next 3Y7.6%
Revenue Next 5Y11.79%
EBIT growth 1Y131.33%
EBIT growth 3Y-20.82%
EBIT growth 5Y23.19%
EBIT Next Year74.44%
EBIT Next 3Y21.4%
EBIT Next 5Y29.4%
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%