Ultra Clean Holdings, Inc. (UCTT) AI Stock Analysis

Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components, and ultra-high purity cleaning and analytical services for the semiconductor industry. Headquartered in Hayward, California, the company operates both domestically and internationally. Its product portfolio features ultra-clean valves, high purity connectors, industrial process valves, pneumatic actuators, safety solutions, and chemical delivery modules. Additionally, the company delivers gas delivery systems including weldments, filters, and mass flow controllers, alongside fluid delivery systems with PFA tubing and heaters. Ultra Clean Holdings also offers precision robotic systems, process modules, tool chamber parts cleaning, coating, and micro-contamination analytical verification services for semiconductor production tools.

Ultra Clean Holdings delivered a 5-year revenue CAGR of 8.0% from FY2020 to FY2025. Annual revenue grew 50.3% to $2.10B in FY2021 and 13.0% to $2.37B in FY2022, before dropping 26.9% to $1.73B in FY2023. Revenue recovered 20.9% to $2.10B in FY2024, but slipped 2.1% to $2.05B in FY2025 with net income of -$181.2M and gross margin declining to 15.7%. Operating margin reached 2.1% in FY2025, down from 8.8% in FY2021. For the latest quarter ended June 30, 2026, quarterly revenue increased 24.3% year-over-year, while quarterly earnings declined 40.1%, bringing trailing twelve month revenue to $2.20B and net profit margin to -1.1%.

As of June 30, 2026, Ultra Clean Holdings held $255.9M in cash and short-term investments against total debt of $775.9M, resulting in net debt of $520.0M. The company maintains a current ratio of 2.73 and a debt-to-equity ratio of 1.21 on shareholders' equity of $639.8M. Operating cash flow in FY2025 was $65.6M, yielding free cash flow of $15.3M after capital expenditures of $50.3M. In FY2025, the company deployed $3.4M toward share buybacks and paid $100,000 in dividends.

Ultra Clean Holdings trades at a forward P/E of 12.1x, below the 18.8x median of its US-listed Technology peers. Its enterprise value stands at $3.99B, with an EV-to-EBITDA multiple of 28.4x compared to the peer median of 16.6x, and a price-to-sales ratio of 1.0x versus 2.8x for peers. Over the past year, the stock returned 75.9%, outperforming the S&P 500 (SPY) return of 16.8%. However, its 5-year return of 14.3% lagged the S&P 500 return of 83.0%, and the shares trade 30.8% below their 200-day average.

Wall Street sentiment is positive, with 5 Strong Buy ratings, 1 Buy rating, and zero Hold, Sell, or Strong Sell recommendations. The mean price target is $132.83, implying an upside of 160.5% over the last close of $51.00. For the current fiscal year ending December 31, 2026, analysts expect revenue of $2.72B and EPS of $3.11, representing 196.3% EPS growth. In FY2027, 6 analysts project revenue reaching $3.85B with EPS of $6.24. Ultra Clean beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for October 27, 2026.

This page is an AI-written research summary of Ultra Clean Holdings, Inc. (UCTT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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