Ultra Clean Holdings Inc (UCTT, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $1.52 billion, with a current stock price of $33.88. Over the past week, UCTT has seen a modest 0.09% gain, but it's the 21.66% surge over the past three months that truly stands out. According to GF Value, the stock is currently fairly valued at $31.92, a slight adjustment from the past GF Value of $37.9, which indicated the stock was modestly undervalued. This shift in valuation reflects the stock's recent price changes and suggests that the current price is in line with the company's intrinsic value.
Introduction to Ultra Clean Holdings Inc
Ultra Clean Holdings Inc operates within the dynamic semiconductors industry. As a manufacturer and supplier, UCTT provides critical production tools, modules, and subsystems, catering to the semiconductor capital equipment sector. The company's offerings include precision robotic solutions, gas delivery systems, and various industrial and automation production equipment products. With a diverse customer base spanning semiconductor capital equipment, medical, energy, and other industries, UCTT operates through two segments: Products and Services. The company's primary markets are North America, Asia, and Europe, with the United States and international markets being the largest revenue contributors.
Assessing Profitability
UCTT's financial health is reflected in its Profitability Rank of 8/10, indicating a strong position within the industry. The company's operating margin of 4.01% surpasses 45.64% of its industry peers. Additionally, UCTT's return on equity (ROE) at 0.07%, return on assets (ROA) at 0.03%, and return on invested capital (ROIC) at 1.32% all demonstrate better performance than a significant portion of competitors. These figures not only highlight UCTT's efficiency in generating profits from its equity, assets, and invested capital but also its ability to maintain profitability over the past eight years.
Growth Trajectory of Ultra Clean Holdings
UCTT's growth prospects are impressive, as evidenced by its perfect Growth Rank of 10/10. The company has achieved a 24.40% 3-year revenue growth rate per share, outperforming 75.23% of its industry counterparts. Over a 5-year period, the revenue growth rate per share stands at 15.60%, again better than 72.69% of the industry. These growth metrics not only underscore UCTT's expanding market presence but also its ability to scale operations and increase shareholder value effectively.
Notable Shareholders in Ultra Clean Holdings
UCTT's shareholder base includes prominent investors who recognize the company's potential. Chuck Royce (Trades, Portfolio) holds the largest stake with 706,779 shares, accounting for 1.58% of the company's shares. First Eagle Investment (Trades, Portfolio) follows with 297,088 shares, representing 0.66% share percentage. Ken Fisher (Trades, Portfolio) also has a significant holding with 166,096 shares, equating to 0.37% of the company's shares. These investments by well-known investors signal confidence in UCTT's business model and future prospects.
Competitive Landscape
In the competitive semiconductors industry, UCTT stands among peers with similar market capitalizations. Cohu Inc (COHU, Financial) has a market cap of $1.57 billion, Indie Semiconductor Inc (INDI, Financial) is valued at $1.09 billion, and Veeco Instruments Inc (VECO, Financial) holds a market cap of $1.76 billion. UCTT's performance and growth in comparison to these competitors are crucial for investors to monitor as they assess the company's position in the market and its potential for sustained success.
Conclusion
In summary, Ultra Clean Holdings Inc's recent stock performance, with a 21.66% gain over the past three months, reflects its solid financial health and growth potential. The company's strong profitability metrics and impressive growth rates, coupled with the confidence shown by notable investors, position UCTT as a competitive player in the semiconductor industry. As the company continues to navigate the market, its current valuation suggests that the stock price is aligned with its intrinsic value, offering a fair opportunity for investors seeking exposure to the semiconductor sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
