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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 44.2GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-21.8%
Sector: -1.4%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Ultra Clean Holdings, Inc. (UCTT) receives a "Hold" rating with a composite score of 46.5/100, ranked #1114 out of 4446 stocks. Key factor scores: Quality 44/100, Value 30/100, Momentum 77/100. This is quantitative analysis only — not investment advice.
Ultra Clean Holdings, Inc. (UCTT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Ultra Clean Holdings, Inc. Do?
Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components and parts, and ultra-high purity cleaning and analytical services for the semiconductor industry in the United States and internationally. The company provides ultra-clean valves, high purity connectors, industrial process connectors and valves, pneumatic actuators, manifolds and safety solutions, hoses, pressure gauges, and gas line and component heaters; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; and gas delivery systems, such as weldments, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system. It also offers various industrial and automation production equipment; fluid delivery systems consist of one or more chemical delivery units, including PFA tubing, filters, flow controllers, regulators, component heaters, and an integrated electronic and/or pneumatic control system; precision robotic systems; top-plate assemblies; frame assemblies; process modules, a subsystem of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high-level assemblies. In addition, the company provides tool chamber parts cleaning and coating services; micro-contamination analysis services for tool parts, wafers and depositions, chemicals, cleanroom materials, deionized water, and airborne molecular contamination; and analytical verification services for process tool chamber part cleaning. It primarily serves original equipment manufacturing customers in the semiconductor capital equipment and semiconductor integrated device manufacturing industries, as well as display, consumer, medical, energy, industrial, and research equipment industries. The company was founded in 1991 and is headquartered in Hayward, California. Ultra Clean Holdings, Inc. (UCTT) is classified as a mid-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO James P. Scholhamer and employs approximately 7,760 people, headquartered in Hayward, California. With a market capitalization of $2.9B, UCTT is one of the notable companies in the Technology sector.
Ultra Clean Holdings, Inc. (UCTT) Stock Rating — Hold (April 2026)
As of April 2026, Ultra Clean Holdings, Inc. receives a Hold rating with a composite score of 46.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.UCTT ranks #1,114 out of 4,446 stocks in our coverage universe. Within the Technology sector, Ultra Clean Holdings, Inc. ranks #110 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
UCTT Stock Price and 52-Week Range
Ultra Clean Holdings, Inc. (UCTT) currently trades at $75.82. The stock gained $3.04 (4.2%) in the most recent trading session. The 52-week high for UCTT is $73.80, which means the stock is currently trading 2.7% from its annual peak. The 52-week low is $16.66, putting the stock 355.2% above its annual trough. Recent trading volume was 911K shares, suggesting relatively thin trading activity.
Is UCTT Overvalued or Undervalued? — Valuation Analysis
Ultra Clean Holdings, Inc. (UCTT) carries a value factor score of 30/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 3.98x, versus the sector average of 3.16x. The price-to-sales ratio is 1.50x, compared to 1.06x for the average Technology stock. On an enterprise value basis, UCTT trades at 10.29x EV/EBITDA, versus 12.79x for the sector.
At current multiples, Ultra Clean Holdings, Inc. trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
Ultra Clean Holdings, Inc. Profitability — ROE, Margins, and Quality Score
Ultra Clean Holdings, Inc. (UCTT) earns a quality factor score of 44/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -21.8%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -9.9% versus the sector average of -1.0%.
On a margin basis, Ultra Clean Holdings, Inc. reports gross margins of 16.2%, compared to 50.9% for the sector. The operating margin is -4.5% (sector: -0.5%). Net profit margin stands at -8.2%, versus -1.5% for the average Technology stock. Revenue growth is running at -1.2% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
UCTT Debt, Balance Sheet, and Financial Health
Ultra Clean Holdings, Inc. has a debt-to-equity ratio of 61.0%, compared to the Technology sector average of 43.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 3.19x, indicating strong short-term liquidity. Total debt on the balance sheet is $481M. Cash and equivalents stand at $314M.
UCTT has a beta of 2.23, meaning it is more volatile than the broader market — a $10,000 investment in UCTT would be expected to move 122.7% more than the S&P 500 on any given day. The stability factor score for Ultra Clean Holdings, Inc. is 32/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
Ultra Clean Holdings, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Ultra Clean Holdings, Inc. reported revenue of $2.09B and earnings per share (EPS) of $-4.00. Net income for the quarter was $-171M. Gross margin was 16.2%. Operating income came in at $-93M.
In FY 2025, Ultra Clean Holdings, Inc. reported revenue of $2.05B and earnings per share (EPS) of $-4.00. Net income for the quarter was $-172M. Gross margin was 15.7%. Revenue grew -2.1% year-over-year compared to FY 2024. Operating income came in at $-107M.
In Q3 2025, Ultra Clean Holdings, Inc. reported revenue of $510M and earnings per share (EPS) of $-0.24. Net income for the quarter was $-8M. Gross margin was 16.1%. Revenue grew -5.6% year-over-year compared to Q3 2024. Operating income came in at $11M.
In Q2 2025, Ultra Clean Holdings, Inc. reported revenue of $519M and earnings per share (EPS) of $-3.58. Net income for the quarter was $-161M. Gross margin was 15.3%. Revenue grew 0.5% year-over-year compared to Q2 2024. Operating income came in at $-142M.
Over the past 8 quarters, Ultra Clean Holdings, Inc. has demonstrated a growth trajectory, with revenue expanding from $516M to $2.09B. Investors analyzing UCTT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
UCTT Dividend Yield and Income Analysis
Ultra Clean Holdings, Inc. (UCTT) does not currently pay a dividend. This is common among smaller companies in the Electronic Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
UCTT Momentum and Technical Analysis Profile
Ultra Clean Holdings, Inc. (UCTT) has a momentum factor score of 77/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 30/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
UCTT vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Ultra Clean Holdings, Inc. (UCTT) ranks #110 out of 584 stocks based on the Blank Capital composite score. This places UCTT in the top quartile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing UCTT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full UCTT vs S&P 500 (SPY) comparison to assess how Ultra Clean Holdings, Inc. stacks up against the broader market across all factor dimensions.
UCTT Next Earnings Date
No upcoming earnings date has been announced for Ultra Clean Holdings, Inc. (UCTT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy UCTT? — Investment Thesis Summary
Ultra Clean Holdings, Inc. presents a balanced picture with arguments on both sides. The value score of 30/100 indicates premium valuation. Price momentum is positive at 77/100, suggesting the trend favors buyers. High volatility (stability score 32/100) increases portfolio risk.
In summary, Ultra Clean Holdings, Inc. (UCTT) earns a Hold rating with a composite score of 46.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on UCTT stock.
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Institutional Research Dossier
Ultra Clean Holdings, Inc. (UCTT) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Ultra Clean Holdings (UCTT) receives a Hold rating, reflecting a balanced view of its potential and challenges. While the company operates in a critical segment of the semiconductor industry, providing essential subsystems and services, its recent financial performance, marked by net losses and declining margins, raises concerns. The Hold rating acknowledges the company's strategic importance and momentum in a cyclical industry, but also recognizes the need for improved profitability and operational efficiency before a more bullish stance can be justified.
The most critical takeaway is UCTT's dependence on the volatile semiconductor capital equipment market. While the company's solutions are integral to semiconductor manufacturing, its financial performance is directly tied to the investment cycles of its OEM customers. Therefore, investors should closely monitor industry trends, capital expenditure plans of major semiconductor manufacturers, and UCTT's ability to translate revenue into sustainable profits.
Business Strategy & Overview
Ultra Clean Holdings operates within the semiconductor industry, focusing on the development and supply of critical subsystems, components, and services essential for semiconductor manufacturing. The company's core business revolves around providing ultra-high purity cleaning and analytical services, along with manufacturing and supplying critical components like valves, connectors, and chemical delivery modules. These products are vital for maintaining the integrity and efficiency of semiconductor fabrication processes, directly impacting yield and performance.
UCTT's strategic positioning centers on serving original equipment manufacturers (OEMs) in the semiconductor capital equipment sector. By partnering with these OEMs, UCTT integrates its subsystems and components into the overall manufacturing tools used by semiconductor integrated device manufacturers (IDMs). This close collaboration allows UCTT to benefit from the growth and technological advancements within the semiconductor industry, as demand for more advanced and efficient manufacturing processes drives demand for UCTT's solutions.
The company's product pipeline likely focuses on developing and refining its existing product lines to meet the evolving needs of its customers. This includes improving the performance, reliability, and cost-effectiveness of its subsystems and components. Furthermore, UCTT likely invests in research and development to create new solutions that address emerging challenges in semiconductor manufacturing, such as the increasing complexity of chip designs and the need for higher levels of precision and cleanliness.
The semiconductor industry is characterized by cyclical demand patterns, driven by fluctuations in global economic conditions and technological advancements. This cyclicality directly impacts UCTT's business, as capital expenditure plans of semiconductor manufacturers are often adjusted based on market conditions. UCTT's strategy involves diversifying its customer base and expanding its product offerings to mitigate the impact of these cycles. Additionally, the company focuses on operational efficiency and cost management to maintain profitability during periods of lower demand.
UCTT also serves other industries including display, consumer, medical, energy, industrial, and research equipment industries. This diversification helps to reduce reliance on the semiconductor industry and provides additional revenue streams. However, the semiconductor industry remains the primary driver of UCTT's business.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-1.2%
Sector: 14.2%
-108% VS SCTR
Economic Moat Analysis
Ultra Clean Holdings possesses a Narrow economic moat, primarily derived from switching costs and specialized expertise within the semiconductor manufacturing ecosystem. The company's critical subsystems and components are deeply integrated into the complex manufacturing processes of its OEM customers. Changing suppliers would require significant validation and qualification efforts, creating a degree of stickiness in customer relationships.
The semiconductor industry demands extremely high levels of precision, cleanliness, and reliability. UCTT's expertise in ultra-high purity cleaning and analytical services, along with its ability to manufacture components that meet stringent industry standards, provides a competitive advantage. This specialized knowledge and experience are difficult to replicate, creating a barrier to entry for new competitors.
However, the moat is considered narrow due to the presence of other established players in the market and the potential for technological disruption. While UCTT has built strong relationships with its OEM customers, these relationships are not necessarily exclusive, and customers may choose to diversify their supplier base to mitigate risk. Furthermore, advancements in semiconductor manufacturing technology could render some of UCTT's existing solutions obsolete, requiring the company to continuously innovate and adapt.
The company's reliance on a relatively concentrated customer base also limits the strength of its moat. A significant portion of UCTT's revenue is derived from a small number of key OEM customers. The loss of one or more of these customers could have a material adverse impact on the company's financial performance. While UCTT strives to diversify its customer base, its dependence on these key relationships remains a vulnerability.
The semiconductor capital equipment industry is also subject to intense competition. UCTT faces competition from both large, established players and smaller, specialized companies. These competitors may offer similar products and services, potentially putting pressure on UCTT's pricing and margins. To maintain its competitive position, UCTT must continuously invest in research and development, improve its operational efficiency, and provide superior customer service.
Financial Health & Profitability
Ultra Clean Holdings' financial health presents a mixed picture. While the company maintains a strong current ratio of 3.19, indicating ample liquidity to cover short-term obligations, its recent profitability has been a concern. The company reported a net loss of $171.60 million on revenue of $2.05 billion for the most recent fiscal year, translating to a negative net margin of -8.2%. This contrasts sharply with the sector average net margin of -1.5%.
The company's gross margin of 16.2% is significantly lower than the sector average of 51.2%, suggesting potential challenges in cost management or pricing power. Similarly, the operating margin of -4.5% lags behind the sector average of -0.5%. These margin discrepancies highlight the need for UCTT to improve its operational efficiency and cost structure.
Examining the quarterly financial history reveals a volatile trend in profitability. While some quarters have shown positive net income and operating margins, others have experienced significant losses. The Q2 FY2025 results were particularly concerning, with a net loss of $160.50 million and an operating margin of -27.3%. This volatility underscores the cyclical nature of the semiconductor industry and the challenges UCTT faces in maintaining consistent profitability.
The company's debt-to-equity ratio of 61.00 is higher than the sector average of 43.00, indicating a higher level of financial leverage. While the company has a substantial cash balance of $314.10 million, its total debt of $481.40 million represents a significant financial obligation. The company's ability to generate sufficient cash flow to service its debt will be crucial for its long-term financial stability.
Free cash flow data is unavailable, making it difficult to assess the company's ability to generate cash from its operations. However, the negative net income and operating margins suggest that the company may be facing challenges in generating positive cash flow. Improving profitability and cash flow generation will be essential for UCTT to strengthen its financial health and support future growth initiatives.
Valuation Assessment
Ultra Clean Holdings' valuation is complex, given its recent financial performance. The company's negative net income results in an N/A P/E ratio, rendering this metric useless for valuation purposes. However, the EV/EBITDA ratio of 10.3x is below the sector average of 13.0x, suggesting that the company may be undervalued relative to its peers based on enterprise value.
However, the negative EBITDA raises concerns about the reliability of the EV/EBITDA multiple. A negative EBITDA can distort the ratio and make it difficult to draw meaningful conclusions about the company's valuation. Furthermore, the lack of free cash flow data makes it challenging to assess the company's intrinsic value using traditional discounted cash flow analysis.
Given the company's cyclical business and volatile earnings, a more appropriate valuation approach may involve analyzing its historical performance and comparing it to its peers during similar periods of industry downturns. This would provide a more realistic assessment of the company's potential upside and downside risks.
The company's momentum score of 75/100 suggests that the stock has been performing well recently, potentially driven by positive sentiment or expectations of future growth. However, investors should be cautious about relying solely on momentum indicators, as they can be influenced by short-term factors and may not reflect the company's underlying fundamentals.
Overall, UCTT's valuation appears to be fair, considering its strategic importance in the semiconductor industry and its potential for future growth. However, the company's recent financial performance and the cyclical nature of its business warrant a cautious approach. Investors should closely monitor the company's progress in improving its profitability and cash flow generation before making a significant investment.
Risk & Uncertainty
Ultra Clean Holdings faces several specific risks that could impact its business and financial performance. One of the most significant risks is its dependence on the cyclical semiconductor industry. Downturns in the semiconductor market can lead to reduced capital expenditures by OEMs, resulting in lower demand for UCTT's products and services. This cyclicality can create volatility in the company's revenue and earnings.
Another risk is customer concentration. A significant portion of UCTT's revenue is derived from a small number of key OEM customers. The loss of one or more of these customers could have a material adverse impact on the company's financial performance. While UCTT strives to diversify its customer base, its dependence on these key relationships remains a vulnerability.
Competition is also a significant risk. UCTT faces competition from both large, established players and smaller, specialized companies. These competitors may offer similar products and services, potentially putting pressure on UCTT's pricing and margins. To maintain its competitive position, UCTT must continuously invest in research and development, improve its operational efficiency, and provide superior customer service.
Technological obsolescence is another risk. The semiconductor industry is characterized by rapid technological advancements. UCTT's existing solutions could become obsolete if the company fails to keep pace with these advancements. To mitigate this risk, UCTT must continuously invest in research and development and adapt its product offerings to meet the evolving needs of its customers.
Bulls Say / Bears Say
The Bull Case
BULL VIEWUCTT is strategically positioned to benefit from the long-term growth of the semiconductor industry, driven by increasing demand for advanced chips in various applications.
BULL VIEWThe company's strong relationships with leading OEMs and its expertise in critical subsystems and components provide a competitive advantage and create switching costs for customers.
The Bear Case
BEAR VIEWUCTT's recent financial performance, marked by net losses and declining margins, raises concerns about its ability to generate sustainable profits.
BEAR VIEWThe company's high debt-to-equity ratio and reliance on a cyclical industry make it vulnerable to economic downturns and reduced capital expenditures by OEMs.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score UCTT and 4,400+ other equities.
Ultra Clean Holdings, Inc. exhibits a 23% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
-9.9%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
16.2%
Sector: 50.9%
Operating Margin
Core business profitability
-4.5%
Sector: -0.5%
Net Margin
Bottom-line profitability
-8.2%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Ultra Clean Holdings (UCTT) Is Up 15.2% After Raising 2026 Outlook On AI Chip Spending Tailwinds – Has The Bull Case Changed?
In recent days, Ultra Clean Holdings attracted positive analyst commentary after issuing strong first‑quarter 2026 guidance and outlining a favorable multi‑year outlook, including expectations for meaningful revenue growth supported by semiconductor spending.
This combination of upbeat guidance and analyst endorsement has sharpened investor attention on how Ultra Clean might capitalize on accelerating investment in advanced semiconductor manufacturing and AI‑related infrastructure.
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