ULTRA CLEAN HOLDINGS INC (UCTT) Stock Fundamental Analysis
USA - NASDAQ:UCTT - US90385V1070 - Common Stock
27.87 USD
-1.34 (-4.59%)
27.87 USD
0 (0%)
Taking everything into account, UCTT scores 4 out of 10 in our fundamental rating. UCTT was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of UCTT have multiple concerns. UCTT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year UCTT was profitable.
UCTT had a positive operating cash flow in the past year.
UCTT had positive earnings in 4 of the past 5 years.
In the past 5 years UCTT always reported a positive cash flow from operatings.
1.2 Ratios
UCTT has a Return On Assets of -8.76%. This is in the lower half of the industry: UCTT underperforms 73.21% of its industry peers.
With a Return On Equity value of -21.27%, UCTT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
The Return On Invested Capital of UCTT (4.09%) is better than 61.61% of its industry peers.
UCTT had an Average Return On Invested Capital over the past 3 years of 5.52%. This is significantly below the industry average of 10.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.76% | ||
| ROE | -21.27% | ||
| ROIC | 4.09% |
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
UCTT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.47%, UCTT is in line with its industry, outperforming 50.89% of the companies in the same industry.
In the last couple of years the Operating Margin of UCTT has grown nicely.
Looking at the Gross Margin, with a value of 16.29%, UCTT is doing worse than 83.93% of the companies in the same industry.
In the last couple of years the Gross Margin of UCTT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.47% | ||
| PM (TTM) | N/A | ||
| GM | 16.29% |
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.
Compared to 1 year ago, UCTT has about the same debt to assets ratio.
2.2 Solvency
UCTT has an Altman-Z score of 2.71. 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.
Looking at the Altman-Z score, with a value of 2.71, UCTT is in line with its industry, outperforming 40.18% of the companies in the same industry.
The Debt to FCF ratio of UCTT is 17.27, which is on the high side as it means it would take UCTT, 17.27 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 17.27, UCTT perfoms like the industry average, outperforming 45.54% of the companies in the same industry.
UCTT has a Debt/Equity ratio of 0.65. This is a neutral value indicating UCTT is somewhat dependend on debt financing.
The Debt to Equity ratio of UCTT (0.65) is worse than 75.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 17.27 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.35
WACC11.83%
2.3 Liquidity
UCTT has a Current Ratio of 3.06. This indicates that UCTT is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.06, UCTT perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
UCTT has a Quick Ratio of 1.86. This is a normal value and indicates that UCTT is financially healthy and should not expect problems in meeting its short term obligations.
UCTT has a Quick ratio of 1.86. This is comparable to the rest of the industry: UCTT outperforms 44.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.95% over the past year.
UCTT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.60% yearly.
Looking at the last year, UCTT shows a quite strong growth in Revenue. The Revenue has grown by 14.28% in the last year.
Measured over the past years, UCTT shows a quite strong growth in Revenue. The Revenue has been growing by 14.49% on average per year.
EPS 1Y (TTM)71.95%
EPS 3Y-29.85%
EPS 5Y8.6%
EPS Q2Q%-15.62%
Revenue 1Y (TTM)14.28%
Revenue growth 3Y-0.06%
Revenue growth 5Y14.49%
Sales Q2Q%0.52%
3.2 Future
The Earnings Per Share is expected to grow by 26.91% on average over the next years. This is a very strong growth
UCTT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.30% yearly.
EPS Next Y-24.73%
EPS Next 2Y0.56%
EPS Next 3Y12.98%
EPS Next 5Y26.91%
Revenue Next Year-2.01%
Revenue Next 2Y1.16%
Revenue Next 3Y6.22%
Revenue Next 5Y9.3%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.77, UCTT is valued on the expensive side.
85.71% of the companies in the same industry are more expensive than UCTT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of UCTT to the average of the S&P500 Index (27.57), we can say UCTT is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.01, which indicates a rather expensive current valuation of UCTT.
Based on the Price/Forward Earnings ratio, UCTT is valued cheaper than 82.14% of the companies in the same industry.
UCTT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 19.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UCTT is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UCTT is valued a bit cheaper than 69.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.62 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
A more expensive valuation may be justified as UCTT's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)N/A
PEG (5Y)2.3
EPS Next 2Y0.56%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
UCTT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.87
-1.34 (-4.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.09%
Inst Owner Change-0.63%
Ins Owners1.61%
Ins Owner Change4.49%
Market Cap1.26B
Revenue(TTM)2.14B
Net Income(TTM)-153000000
Analysts84
Price Target31.88 (14.39%)
Short Float %3.46%
Short Ratio3.73
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)0
Avg EPS beat(2)-7.06%
Min EPS beat(2)-12.16%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)0.71%
Min EPS beat(4)-12.16%
Max EPS beat(4)12.68%
EPS beat(8)5
Avg EPS beat(8)15.82%
EPS beat(12)6
Avg EPS beat(12)6.62%
EPS beat(16)7
Avg EPS beat(16)4.75%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-3.36%
Max Revenue beat(2)1.56%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-3.36%
Max Revenue beat(4)2.7%
Revenue beat(8)4
Avg Revenue beat(8)0.2%
Revenue beat(12)6
Avg Revenue beat(12)-0.28%
Revenue beat(16)8
Avg Revenue beat(16)-0.31%
PT rev (1m)0%
PT rev (3m)1.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 19.01 | ||
| P/S | 0.59 | ||
| P/FCF | 45.62 | ||
| P/OCF | 14.13 | ||
| P/B | 1.76 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)1.41
EY5.06%
EPS(NY)1.47
Fwd EY5.26%
FCF(TTM)0.61
FCFY2.19%
OCF(TTM)1.97
OCFY7.07%
SpS47.22
BVpS15.87
TBVpS9.59
PEG (NY)N/A
PEG (5Y)2.3
Graham Number22.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.76% | ||
| ROE | -21.27% | ||
| ROCE | 5.18% | ||
| ROIC | 4.09% | ||
| ROICexc | 5.31% | ||
| ROICexgc | 7.15% | ||
| OM | 3.47% | ||
| PM (TTM) | N/A | ||
| GM | 16.29% | ||
| FCFM | 1.29% |
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%
ROICexgc growth 3Y-29.69%
ROICexgc 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-Score5
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 17.27 | ||
| Debt/EBITDA | 3.12 | ||
| Cap/Depr | 81.4% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 2.01 | ||
| Cash Conversion | 59.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 2.71 |
F-Score5
WACC11.83%
ROIC/WACC0.35
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)71.95%
EPS 3Y-29.85%
EPS 5Y8.6%
EPS Q2Q%-15.62%
EPS Next Y-24.73%
EPS Next 2Y0.56%
EPS Next 3Y12.98%
EPS Next 5Y26.91%
Revenue 1Y (TTM)14.28%
Revenue growth 3Y-0.06%
Revenue growth 5Y14.49%
Sales Q2Q%0.52%
Revenue Next Year-2.01%
Revenue Next 2Y1.16%
Revenue Next 3Y6.22%
Revenue Next 5Y9.3%
EBIT growth 1Y34.85%
EBIT growth 3Y-20.82%
EBIT growth 5Y23.19%
EBIT Next Year4.85%
EBIT Next 3Y17.7%
EBIT Next 5Y24.69%
FCF growth 1Y939.39%
FCF growth 3Y-78.56%
FCF growth 5Y-56.35%
OCF growth 1Y-8.12%
OCF growth 3Y-32.53%
OCF growth 5Y-11.69%