Ultra Clean Stock Analysis, Valuation (NASDAQ:UCTT)

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$13.92 $0.13 (0.93%) UCTT stock closing price Aug 21, 2018 (Closing)

Take a look at Amigobulls Ultra Clean stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for UCTT stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Ultra Clean Holdings Inc Stock Rating 3.7/5

Amigobulls UCTT stock analysis relies on business fundamentals such as Ultra Clean revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We compare Ultra Clean valuation with its sector peers to gauge relative attractiveness of UCTT stock. Ultra Clean stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy UCTT stock?

  • The Year Over Year (YoY) revenue growth for Ultra Clean was 27.1% in 2018-06.
  • The TTM operating margin was good at 8.64 for Ultra Clean.
  • With its debt/equity ratio of 0.12, Ultra Clean has a lower debt burden when compared to the Computer and Technology average.
  • The Ultra Clean stock currently trades at a price to earnings ratio of 5.4, compared to the sector average of 25.4. We rate this as a positive.
  • When compared with the Computer and Technology sector average PS ratio of 2.9, the price-to-sales ratio of 0.5 for UCTT stock is attractive.
  • Ultra Clean's return on invested capital of 28.9 is good.
  • The LTM ROE of 24.9 for Ultra Clean is attractive.

Should you sell UCTT stock?

  • The company's operations consume more cash than it generates. This is not a healthy sign.
  • The company has a negative free cash flow margin of -7.2.

Comments on this video and Ultra Clean stock

Investors can make use of the Amigobulls Ultra Clean stock analysis to ascertain how UCTT stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

Ultra Clean revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of UCTT technical analysis to check whether the fundamental story is reflected in the market sentiment.