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.

Rewards

Trading at 77.1% below its fair value

Earnings are forecast to grow 97.69% per year

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential and fair value.


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

Stable Share Price: UCTT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.6%

UCTT

4.8%

US Semiconductor

1.5%

US Market


1 Year Return

102.5%

UCTT

41.1%

US Semiconductor

20.1%

US Market

Return vs Industry: UCTT exceeded the US Semiconductor industry which returned 41.1% over the past year.

Return vs Market: UCTT exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

UCTTIndustryMarket
7 Day3.6%4.8%1.5%
30 Day1.2%4.3%1.4%
90 Day13.6%13.6%8.7%
1 Year102.5%102.5%43.8%41.1%22.7%20.1%
3 Year107.6%107.6%95.7%85.1%50.1%40.5%
5 Year208.5%208.5%158.6%133.8%73.1%54.1%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UCTT ($25.31) is trading below our estimate of fair value ($110.34)

Significantly Below Fair Value: UCTT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UCTT is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.

PE vs Market: UCTT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UCTT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UCTT is good value based on its PB Ratio (2.3x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

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

97.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UCTT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: UCTT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UCTT's is expected to become profitable in the next 3 years.

Revenue vs Market: UCTT's revenue (8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: UCTT's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UCTT's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

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

29.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UCTT is currently unprofitable.

Growing Profit Margin: UCTT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UCTT is unprofitable, but has reduced losses over the past 5 years at a rate of 29.6% per year.

Accelerating Growth: Unable to compare UCTT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UCTT is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-27.7%).


Return on Equity

High ROE: UCTT has a negative Return on Equity (0.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ultra Clean Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: UCTT's short term assets ($442.9M) exceed its short term liabilities ($162.6M).

Long Term Liabilities: UCTT's short term assets ($442.9M) exceed its long term liabilities ($373.5M).


Debt to Equity History and Analysis

Debt Level: UCTT's debt to equity ratio (68.6%) is considered high.

Reducing Debt: UCTT's debt to equity ratio has increased from 25.5% to 68.6% over the past 5 years.


Balance Sheet

Inventory Level: UCTT has a high level of physical assets or inventory.

Debt Coverage by Assets: UCTT's debt is covered by short term assets (assets are 1.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: UCTT has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: UCTT has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate UCTT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate UCTT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UCTT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UCTT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UCTT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Jim Scholhamer (53yo)

5.1yrs

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

Compensation vs Market: Jim's total compensation ($USD2.30M) is about average for companies of similar size in the US market ($USD2.47M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Scholhamer
President5.1yrsUS$2.30m0.65% $6.5m
Sheri Savage
CFO, Senior VP of Finance & Secretary4yrsUS$1.42m0.29% $2.9m
Joan Sterling
Senior Vice President of Global Human Resources4.1yrsUS$658.25k0.11% $1.1m
Joe Williams
Executive VP and President of the Semiconductor Products & Solutions Business3.3yrsUS$823.58k0.048% $480.8k
Vijayan Chinnasami
Chief Operating Officer0.9yrsno datano data
Chris Siu
Senior VP & Chief Accounting Officer0.8yrsno datano data
Rhonda Bennetto
Vice President of Investor Relations0yrsno datano data
Cheryl Knepfler
Managing Director of Marketing0yrsno datano data
Bill Bentinck
President of Semiconductor Services Business0.8yrsno datano data

3.3yrs

Average Tenure

53yo

Average Age

Experienced Management: UCTT's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Scholhamer
President5.1yrsUS$2.30m0.65% $6.5m
Barbara Scherer
Independent Director4.7yrsUS$168.46k0.088% $883.3k
Thomas Edman
Independent Director4.7yrsUS$171.91k0.063% $630.2k
David Ibnale
Independent Director17.3yrsUS$174.41k0.20% $2.0m
Ernest Maddock
Independent Director1.7yrsUS$142.04k0.041% $415.1k
Emily Liggett
Independent Director5.8yrsUS$166.16k0.083% $832.7k
Clarence Granger
Chairman of the Board13.3yrsUS$178.66k0.45% $4.6m
Leonid Mezhvinsky
Non-Executive Director13yrsUS$148.66k0.10% $1.0m
Jacqueline Seto
Director0.08yrsno data0.0057% $57.1k

5.1yrs

Average Tenure

62yo

Average Age

Experienced Board: UCTT's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.1%.


Top Shareholders

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$1.007b
  • Shares outstanding: 39.81m
  • 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 primarily in North America, Asia, and Europe. It offers precision robotic systems that are used when accurate controlled motion is required; gas delivery systems, which include one or more gas lines consisting of small diameter internally polished stainless steel tubing products, filters, mass flow controllers, regulators, pressure transducers and valves, component heaters, and an integrated electronic and/or pneumatic control system; and various industrial and automation production equipment products. The company also provides subsystems, such as wafer cleaning modules; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; frame assemblies, which are support structures fabricated from steel tubing or folded sheet metal; and top-plate assemblies. In addition, it offers fluid delivery systems consists of one or more chemical delivery units; process modules, which are the subsystems of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high level assemblies. The company primarily serves original equipment manufacturing customers in the semiconductor capital equipment, consumer, medical, energy, industrial, and research industries. Ultra Clean Holding, Inc. was founded in 1991 and is headquartered in Hayward, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:10
End of Day Share Price2020/02/14 00:00
Earnings2019/09/27
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.