NasdaqGS:UCTT

Stock Analysis Report

Executive Summary

Ultra Clean Holdings, Inc. designs, develops, prototypes, engineers, manufactures, and tests production tools, modules, and subsystems for the semiconductor and display capital equipment industries primarily in North America, Asia, and Europe.

Snowflake

Fundamentals

Fair value with moderate growth potential.

Risks

  • Ultra Clean Holdings has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Ultra Clean Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

20.8%

NasdaqGS:UCTT

2.0%

US Semiconductor

1.2%

US Market


1 Year Return

16.8%

NasdaqGS:UCTT

10.9%

US Semiconductor

1.7%

US Market

UCTT outperformed the Semiconductor industry which returned 10.9% over the past year.

UCTT outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

UCTTIndustryMarket
7 Day20.8%2.0%1.2%
30 Day27.7%10.8%4.9%
90 Day24.1%17.2%3.7%
1 Year16.8%16.8%13.0%10.9%3.9%1.7%
3 Year130.7%130.7%83.8%73.0%47.2%37.7%
5 Year70.8%70.8%122.5%100.0%60.0%42.4%

Price Volatility Vs. Market

How volatile is Ultra Clean Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ultra Clean Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ultra Clean Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Ultra Clean Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Ultra Clean Holdings is loss making, we can't compare its value to the US Semiconductor industry average.

Ultra Clean Holdings is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Ultra Clean Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Ultra Clean Holdings is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is Ultra Clean Holdings expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

74.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ultra Clean Holdings's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Ultra Clean Holdings's earnings are expected to grow significantly at over 20% yearly.

Ultra Clean Holdings's revenue growth is positive but not above the United States of America market average.

Ultra Clean Holdings's earnings growth is expected to exceed the United States of America market average.

Ultra Clean Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ultra Clean Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Ultra Clean Holdings performed over the past 5 years?

33.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ultra Clean Holdings does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Ultra Clean Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Ultra Clean Holdings's 1-year growth to the US Semiconductor industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Ultra Clean Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Ultra Clean Holdings used its assets less efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Ultra Clean Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Ultra Clean Holdings's financial position?


Financial Position Analysis

Ultra Clean Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ultra Clean Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ultra Clean Holdings's level of debt (74.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (26.6% vs 74.4% today).

Debt is well covered by operating cash flow (36%, greater than 20% of total debt).

Ultra Clean Holdings is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

What is Ultra Clean Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Ultra Clean Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Ultra Clean Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Ultra Clean Holdings has not reported any payouts.

Unable to verify if Ultra Clean Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Ultra Clean Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Ultra Clean Holdings's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Jim Scholhamer (53yo)

4.7yrs

Tenure

US$2,297,632

Compensation

Mr. James P. Scholhamer, also known as Jim, has been the Chief Executive Officer at Ultra Clean Holdings Inc. since January 19, 2015 and serves as its President. Mr. Scholhamer serves as the President and  ...


CEO Compensation Analysis

Jim's remuneration is about average for companies of similar size in United States of America.

Jim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

53yo

Average Age

The tenure for the Ultra Clean Holdings management team is about average.


Board Age and Tenure

5.0yrs

Average Tenure

62yo

Average Age

The tenure for the Ultra Clean Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$517,94621 May 19
Joan Sterling
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Global Human Resources
Shares38,384
Max PriceUS$13.49
BuyUS$283,18513 May 19
Clarence Granger
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares21,000
Max PriceUS$13.49
BuyUS$623,90509 May 19
Clarence Granger
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares44,000
Max PriceUS$14.25
SellUS$122,72009 May 19
Sheri Savage
EntityIndividual
Role
Top Key Executive
CFO, Senior VP of Finance & Secretary
Shares8,670
Max PriceUS$14.15
SellUS$305,22311 Mar 19
Sheri Savage
EntityIndividual
Role
Top Key Executive
CFO, Senior VP of Finance & Secretary
Shares30,000
Max PriceUS$10.17

Ownership Breakdown


Management Team

  • Jim Scholhamer (53yo)

    • Tenure: 4.7yrs
    • Compensation: US$2.30m
  • Rhonda Bennetto

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Chris Siu (48yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0.3yrs
  • Vijayan Chinnasami (53yo)

    Chief Operating Officer

    • Tenure: 0.5yrs
  • Sheri Savage (48yo)

    CFO, Senior VP of Finance & Secretary

    • Tenure: 3.6yrs
    • Compensation: US$1.42m
  • Joan Sterling (61yo)

    Senior Vice President of Global Human Resources

    • Tenure: 3.7yrs
    • Compensation: US$658.25k
  • Joe Williams (46yo)

    Executive VP and President of the Semiconductor Products & Solutions Business

    • Tenure: 2.9yrs
    • Compensation: US$823.58k
  • Bill Bentinck (58yo)

    President of Semiconductor Services Business

    • Tenure: 0.3yrs

Board Members

  • Barbara Scherer (63yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$168.46k
  • Tom Edman (57yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$171.91k
  • David Ibnale (47yo)

    Director

    • Tenure: 16.8yrs
    • Compensation: US$174.41k
  • Jim Scholhamer (53yo)

    • Tenure: 4.7yrs
    • Compensation: US$2.30m
  • Ernie Maddock (61yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$142.04k
  • Emily Liggett (64yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$166.16k
  • Clarence Granger (70yo)

    Chairman of the Board

    • Tenure: 12.9yrs
    • Compensation: US$178.66k
  • Leonid Mezhvinsky (65yo)

    Non-Executive Director

    • Tenure: 12.6yrs
    • Compensation: US$148.66k

Company Information

Ultra Clean Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ultra Clean Holdings, Inc.
  • Ticker: UCTT
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$632.330m
  • Shares outstanding: 39.55m
  • Website: https://www.uct.com

Number of Employees


Location

  • Ultra Clean Holdings, Inc.
  • 26462 Corporate Avenue
  • Hayward
  • California
  • 94545
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UCTTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2004
UCEDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2004
0LIDLSE (London Stock Exchange)YesCommon StockGBUSDMar 2004

Biography

Ultra Clean Holdings, Inc. designs, develops, prototypes, engineers, manufactures, and tests production tools, modules, and subsystems for the semiconductor and display capital equipment industries primari ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 00:01
End of Day Share Price2019/09/13 00:00
Earnings2019/06/28
Annual Earnings2018/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.