Ultra Clean Holdings, Inc. (UCTT) Stock

Ultra Clean Holdings, Inc. (UCTT) is a Technology stock trading at $66.12 (as of 2026-09-02), with a market capitalization of $2.92B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

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.

Understand Ultra Clean Holdings, Inc.: how it makes money

Ultra Clean Holdings sells ultra-pure valves, connectors, and gas/chemical delivery systems that sit inside semiconductor wafer fabs, earning revenue from component sales and cleaning services. The bulk of revenue (78%) comes from hardware products, with the rest from recurring service contracts tied to fab uptime.

The profit model is a capex play, not an opex play: 78% of revenue is one-time hardware sold during fab construction, and the 12% services slice is too small to smooth the trough between buildout cycles.

Revenue by segment (latest quarter)
Products$0.5B
Services$0.1B

Business quality (Mixed): Mixed. 16% gross and 5% operating margins are thin for a specialized components maker, and negative ROE signals the equity base is still absorbing losses. The technical niche is defensible, but the margin profile leaves little room for pricing pressure.

Bull case

  • AI capex is structural: Management frames the current wafer-fab-equipment expansion as a multi-year structural shift driven by AI infrastructure, not a one-quarter spike. If the 24% YoY quarterly growth to $600M is the early stage of that cycle, the addressable order book could compound well beyond the current period.
  • Quarterly growth already inflecting: Quarterly revenue reached $600M, up 24% year over year, confirming that the product pipeline is converting into booked revenue rather than remaining a forward-looking promise. The 78% products mix means these are durable hardware orders, not one-off events.
  • Capacity will not bottleneck the ramp: Management stated that existing capacity could support substantial revenue growth without infrastructure becoming a constraint. That means the company does not need heavy new capital outlays to capture the AI-driven demand wave, preserving operating leverage as volumes scale.

Bear case

  • Margins are compressing, not expanding: Annual gross margin declined 100 basis points from the prior year, and Q1 is guided to be only flat or slightly higher sequentially. With gross margins at 16% and operating margins at 5% (per the 10-Q), there is very little cushion before volume growth starts eroding rather than expanding profitability.
  • China adds little 2026 upside: Management expects China wafer-fab equipment spending to be flattish in 2026, removing what has historically been a meaningful growth engine. The AI-driven upside therefore rests almost entirely on North American and other advanced-node fabs, concentrating the demand thesis in a narrower set of customers.
Valuation — source: SEC EDGAR (first-party)
Price$66.12
Market Cap$2.92B
EV / EBITDA29.6
Price / Book4.07
Price / Sales1.33
FCF Yield0.5%
DCF Value (model)$6.01
DCF Upside vs Price-90.9%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$2.05B
Net Margin-8.8%
Revenue Growth (YoY)24.3%
EPS Growth (YoY)-105.3%
FCF Growth (YoY)-562.1%
Financial Health — source: SEC EDGAR
Altman Z-Score3.47 (safe)
Piotroski F-Score4/9 (moderate)
Valuation vs Sector & Industry
Sector P/E (Technology)31.8
Industry P/E (Electronic Equipment)38.0
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($424.85M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryElectronic Equipment
CEOJames Xiao
Employees6,773
CountryUS
IPO Date2004-03-25

Ultra Clean Holdings, Inc. earnings call transcripts

  • UCTT Q4 FY25 earnings call transcript (reported 2026-02-23) · analysis

All UCTT earnings calls

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UCTT earnings history · UCTT institutional & insider holders · UCTT KPIs & operating metrics · UCTT financials · UCTT investor presentations & press releases · UCTT SEC filings · UCTT peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.