Ultra Clean Holdings Inc (UCTT) Stock Analysis
Verdict: WATCH (do not buy)
AI-driven WFE recovery boosts top-line growth, but severe inventory cash burn and high leverage keep the model on the sidelines.
Investment score: 45/100
Analysis as of
Is Ultra Clean Holdings Inc stock worth reviewing? AI model thesis
The model assigns UCTT a WATCH verdict as surging AI-related subsystem orders are counterbalanced by persistent cash burn, high financial debt ($775.9M), and substantial equity dilution risks.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 35/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 60/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
Ultra Clean Holdings Inc opportunities and risks
What speaks for UCTT
- Secular WFE Expansion Driven by AI Infrastructure
What speaks against UCTT
- Severe Working Capital Cash Burn
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| UCTT | n/a | 1.1x | 20.8x | 15.8% | -1.1% | -4.7% |
| ACMR | 25.3x | 3.5x | 11.4x | 43.8% | 14.5% | -3.3% |
| AXTI | 2414.2x | 30.1x | 235.4x | 32.2% | 3.2% | -0.5% |
| ACLS | 37.6x | 4.0x | 26.4x | 43.0% | 10.7% | 1.9% |
| VECO | 115.6x | 4.0x | 56.7x | 37.8% | 3.4% | 3.1% |
| COHU | n/a | 4.9x | 124.7x | 39.2% | -7.4% | 1.4% |
| Peer median | 37.6x | 4.0x | 56.7x | 39.2% | 3.4% | 1.4% |
Frequently asked questions about Ultra Clean Holdings Inc (UCTT)
Is UCTT stock a good investment?
The cached TradeMates AI model rates Ultra Clean Holdings Inc as WATCH (do not buy) with an investment score of 45/100. The model assigns UCTT a WATCH verdict as surging AI-related subsystem orders are counterbalanced by persistent cash burn, high financial debt ($775.9M), and substantial equity dilution risks. This is algorithmic model output, not personal investment advice.
Is UCTT stock a buy?
The TradeMates model verdict for UCTT is WATCH (do not buy) with an investment score of 45/100. Treat this as a model signal to review, not a personal buy recommendation.