Ultra Clean Holdings (Ultra Clean Holdings) Gross Margin % : 15.97% (As of Dec. 2023)

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What is Ultra Clean Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ultra Clean Holdings's Gross Profit for the three months ended in Dec. 2023 was $71 Mil. Ultra Clean Holdings's Revenue for the three months ended in Dec. 2023 was $445 Mil. Therefore, Ultra Clean Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 15.97%.

The historical rank and industry rank for Ultra Clean Holdings's Gross Margin % or its related term are showing as below:

UCTT' s Gross Margin % Range Over the Past 10 Years
Min: 14.23 Med: 17.09 Max: 20.86
Current: 15.99

During the past 13 years, the highest Gross Margin % of Ultra Clean Holdings was 20.86%. The lowest was 14.23%. And the median was 17.09%.

UCTT's Gross Margin % is ranked worse than
74.69% of 972 companies
in the Semiconductors industry
Industry Median: 28.165 vs UCTT: 15.99

Ultra Clean Holdings had a gross margin of 15.97% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ultra Clean Holdings was 0.40% per year.

Ultra Clean Holdings Gross Margin % Historical Data

The historical data trend for Ultra Clean Holdings's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ultra Clean Holdings Gross Margin % Chart

Ultra Clean Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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18.46

20.86

20.46

19.58

15.99

Ultra Clean Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															19.14	16.85	16.16	14.99	15.97

Competitive Comparison of Ultra Clean Holdings's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, Ultra Clean Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ultra Clean Holdings's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Ultra Clean Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ultra Clean Holdings's Gross Margin % falls into.

Ultra Clean Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Ultra Clean Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	277.3	/	1734.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1734.5 - 1457.2)	/	1734.5
	=	15.99 %

Ultra Clean Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	71	/	444.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(444.7 - 373.7)	/	444.7
	=	15.97 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Ultra Clean Holdings (NAS:UCTT) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Ultra Clean Holdings had a gross margin of 15.97% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Ultra Clean Holdings Gross Margin % Related Terms

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Ultra Clean Holdings (Ultra Clean Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Ultra Clean Holdings Inc (NAS:UCTT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

UCE:Germany

Address

26462 Corporate Avenue, Hayward, CA, USA, 94545

Website

https://www.uct.com

Ultra Clean Holdings Inc, through its subsidiaries, manufactures and supplies production tools, modules, and subsystems for the semiconductor capital equipment industry. The product includes precision robotic solutions, gas delivery systems, and a variety of industrial and automation production equipment products; subsystems include wafer cleaning subsystems, chemical delivery modules, top-plate assemblies, frame assemblies, and process modules. Its customer base includes firms in the semiconductor capital equipment industry, medical, energy, industrial, flat panel, and research equipment industries. It has two segments Products and Services. Its principal markets are North America, Asia, and Europe. Its largest end markets by revenue are the United States and the International market.

Executives

Paul Yoonku Cho	officer: General Counsel and Secretary	C/O ULTRA CLEAN HOLDINGS, INC., 26462 CORPORATE AVENUE, HAYWARD CA 94545
Jeffrey L. Mckibben	officer: Chief Information Officer	C/O ULTRA CLEAN HOLDINGS, INC., 26462 CORPORATE AVENUE, HAYWARD, CA 94545
Jamie J. Palfrey	officer: SVP, Global Human Resources	ULTRA CLEAN HOLDINGS, INC., 26462 CORPORATE AVENUE, HAYWARD CA 94545
Bill Bentinck	officer: Pres, Semiconductor Svcs Bus.	C/O ULTRA CLEAN HOLDINGS, INC., 26462 CORPORATE AVE, HAYWARD CA 94545
Emily M Liggett	director
Sheri Brumm	officer: SVP, Finance & CAO	C/O ULTRA CLEAN HOLDINGS, INC., 26462 CORPORATE AVENUE, HAYWARD CA 94545
Vijayan S. Chinnasami	officer: Chief Operating Officer	C/O ULTRA CLEAN HOLDINGS, INC., 26462 CORPORATE AVENUE, HAYWARD CA 94545
Brian E Harding	officer: Chief Accounting Officer	27700 SW PARKWAY AVE, WILSONVILLE OR 97070
Jacqueline A. Seto	director	C/O ULTRA CLEAN HOLDINGS, INC., 26462 CORPORATE AVENUE, HAYWARD CA 94545
James P Scholhamer	director, officer: CEO	9586I-25 FRONTAGE ROAD, LONGMONT CO 80504
Christopher S Cook	officer: President, Products Div	ULTRA CLEAN HOLDINGS, INC., 26462 CORPORATE AVENUE, HAYWARD CA 94545
David T Ibnale	director	150 INDEPENDENCE DR, C/O ULTRA CLEAN, MENLO PARK CA 94025
Clarence L Granger	director, officer: President, CEO, COO	150 INDEPENDENCE DR, C/O ULTRA CLEAN, MENLO PARK CA 94025
William Joe Williams	officer: SVP, Customer Business Mgmt	ULTRA CLEAN HOLDINGS, INC., 26462 CORPORATE AVE, HAYWARD CA 94545
Barbara Vaughn Scherer	director	337 ENCINAL ST, SANTA CRUZ CA 95060