Ultra Clean Holdings Inc. Common Stock (UCTT)

FairStock Score: 22/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Ultra Clean as a cyclical supplier to the semiconductor industry, not a franchise with a wide moat. It develops subsystems, components, and cleaning services. In fiscal 2025, the year ended 2025-12-26, revenue was $2.1B and net income was a loss of $181.2M, or diluted EPS of -$4.00. That followed fiscal 2024 net income of $23.7M and EPS $0.52. The swing is exactly the kind of instability Graham warned against: profits are not durable. The latest filed quarter, fiscal Q2 2026 ended 2026-06-26, showed revenue of $644.9M and net income of $8.7M, or EPS $0.19, a sharp improvement from fiscal Q2 2025's $518.8M revenue and $162.0M loss. But one profitable quarter at a 1.35% margin does not prove the turnaround. FairStock's data show trailing free cash flow of -$113.1M and a -4.1% FCF yield, so the business is consuming cash. Debt-to-equity is 1.08, Altman Z-Score is 2.36, and Piotroski F-Score is 5/9; none of that screams balance-sheet strength. At the 2026-10-13 close of $61.02, FairStock's P/B is 4.35, EV/EBITDA is 23.40, and the P/E is -122.04. Paying a premium multiple for cyclical, currently unprofitable earnings leaves no margin of safety. The Lynch category is TURNAROUND, loss in latest year after earlier profits. I would need consistent profits and positive cash generation before calling this cheap. Beta of 1.88 suggests the market price can swing widely around semiconductor cycles.

In plain English: Ultra Clean makes parts and cleaning services for chipmaking equipment. The business lost money in its latest full year and is not generating positive cash, although one recent quarter showed a small profit and higher sales. At $61.02, the price looks expensive compared with those weak results.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-26) · fiscal Q1 2026 10-Q (period ended 2026-03-27) · fiscal Q3 2025 10-Q (period ended 2025-09-26) · fiscal Q2 2025 10-Q (period ended 2025-06-27) · FY2025 10-K (period ended 2025-12-26) · FY2024 10-K (period ended 2024-12-27) · FY2023 10-K (period ended 2023-12-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer