Ultra Clean Holdings: Undercovered And Undervalued


  • Ultra Clean Holdings is a provider of tools and equipment to the larger semiconductor capital equipment players - primarily Applied Materials and Lam Research.
  • Being further downstream than their better-known semi-cap peers means UCTT is more exposed to the industry's cyclical nature.
  • Long-term investors should see these cyclical moves as an opportunity to add to their existing positions or enter new ones - not a signal to run.

3D rendering of cyberpunk AI. Circuit board. Technology background. Central Computer Processors CPU and GPU concept. Motherboard digital chip. Tech science background.

jiefeng jiang


Ultra Clean Holdings (NASDAQ:UCTT) are set to report Q3 earnings tomorrow (26 October) after markets close.

Q2 results delivered beats on both revenue (by about 3%) and earnings (by about 1.2%), however the share price was down almost 7% the following day.

Quarterly results (revenue)

Quarterly results (revenue) (Bloomberg Terminal)

Share price movements after earnings release

Share price movements after earnings release (WSJ )

Share Price Volatility

Share Price Volatility (Created by Author)

Main Customers

Main Customers (Created by Author)

UCT market share as % of WFE

UCT market share as % of WFE (Created by Author)

UCTT outgrowing the market

UCTT outgrowing the market (UCTT Earnings Reports)

UCTT Revenue Growth

UCTT Revenue Growth (Author, data from 10K)


UCTT PE (f) (Bloomberg Terminal)

This article was written by

Flagship Asset Management is a boutique asset manager based in Cape Town, South Africa.We invest in a concentrated selection of high-conviction global equities. We follow a long-term, valuation based investment approach, and will only invest in businesses we consider to be high quality, and when our research leads us to believe they are priced below their fair value. Employees of Flagship Asset Management who contribute to Seeking Alpha in their personal capacities - are Kyle Wales.

Disclosure: I/we have a beneficial long position in the shares of UCTT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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