Ultra Clean Holdings supplies semiconductor equipment components with strong price momentum above its 200-day moving average, but a quality score of 2.4 out of 10, negative free cash flow, and nearly 76% of revenue tied to two customers create material concentration and business quality risks.
Thesis pillars
- Customer Concentration 59 Pct Two Clients↑Improving
- Negative Fcf Quality Below Floor↑Improving
- International Revenue Concentration↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 23, 2026
Ultra Clean Holdings, Inc. (UCTT) Stock Analysis
Technology · Semiconductor Equipment & Materials
Sell if holding. Engine safety override at $54.70: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 6.3/10 and A.R:R 5.7:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Below long-term trend.
Ultra Clean Holdings designs, manufactures, and services critical subsystems and components—including gas delivery systems, chemical delivery modules, and precision robotics—primarily for semiconductor capital equipment OEMs, plus ultra-high purity cleaning and coating services... Read more
Sell if holding. Engine safety override at $54.70: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 6.3/10 and A.R:R 5.7:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Score 6.3/10, moderate confidence.
Passes 6/7 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity 116d clear, materials cycle peak clear). Fails on cycle peak fwd=8.5x,ratio=0.09x. Suitability: speculative.
About Ultra Clean Holdings, Inc.
About Ultra Clean Holdings, Inc.
Ultra Clean Holdings' top two customers—Applied Materials, Inc. and Lam Research Corporation—accounted for 58.7% of total revenues in fiscal year 2025, with international revenues representing 75.9% of the total. The company employed 7,411 people as of December 26, 2025, including 3,772 in Asia Pacific and 1,663 in EMEA, across Products and Services segments serving semiconductor capital equipment manufacturers and integrated device makers.
UCT earns revenue through two segments. The Products segment designs, engineers, and manufactures subsystems—including gas delivery systems, chemical delivery modules, fluid delivery systems, precision robotics, frame assemblies, and process modules—primarily for OEM customers who retain ownership of the intellectual property to the products manufactured on their behalf. The Services segment provides ultra-high purity parts cleaning, coating, and micro-contamination analytical services to semiconductor device makers and wafer fabrication equipment markets. For fiscal 2025, approximately 95.7% of revenues came from the semiconductor industry, including IDM, memory, foundry, OEM, and sub-tier suppliers. Principal competitors include Ichor Systems and Fujikin for gas delivery systems, Foxsemicon, Jabil, Celestica, and VDL ETG for critical subsystems, and KoMiCo, SHT, and EnPro for cleaning and coating services. Revenue is closely tied to semiconductor capital expenditure cycles, which have historically been rapid and difficult to predict.
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UCT's customer concentration is structurally embedded in the OEM supply chain: Applied Materials and Lam Research each individually accounted for more than 10% of revenues in each of fiscal years 2023, 2024, and 2025, together reaching 58.7% of fiscal 2025 revenues. The 10-K states that any lost revenue from these customers "would be difficult to replace." Compounding the exposure, most OEM customers own the designs and intellectual property to the products UCT manufactures, leaving them legally free to license those designs to competitors or bring manufacturing in-house without restriction. The Services segment's proprietary cleaning and analytical processes provide some switching friction, but the Products segment carries no analogous protection against customer insourcing or competitor diversion.
See also: Technology · Semiconductor Equipment & Materials
From Ultra Clean Holdings, Inc.'s most recent 10-K filing, extracted June 16, 2026.
Recent developments
updated 2026-10-30Recent Developments — Ultra Clean Holdings, Inc.
Latest news
- NEWS Needham Cuts Ultra Clean Holdings Price Target to $80 — fiscal.ai Oct 28, 2026 negative
- NEWS TD Cowen Maintains Buy on Ultra Clean Hldgs, Lowers Price Target to $100 — benzinga Oct 28, 2026 neutral
- NEWS Vertiv, Evercore, Brinker, GE HealthCare And Other Big Stocks Moving Higher On Wednesday — benzinga Oct 28, 2026 neutral
- NEWS Coca-Cola To Rally Around 13%? Here Are 10 Top Analyst Forecasts For Wednesday — benzinga Oct 28, 2026 neutral
- NEWS 12 Information Technology Stocks Moving In Wednesday's Pre-Market Session — benzinga Oct 28, 2026 neutral
Generated 2026-10-30T12:27:49Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerApplied Materials and Lam Research59%10-K Item 1: 'Our two largest revenue customers...were Applied Materials, Inc. and Lam Research Corporation...top two customers accounted for 58.7%...of the Company's revenues for fiscal years 2025'
- HIGHGeographicinternational revenues76%10-K Item 1: 'Our international revenues represented 75.9%...of total revenues for fiscal years ended 2025'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $54.70: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 6.3/10 and A.R:R 5.7:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $50.87. Score 6.3/10, moderate confidence.
Analyst target: $101.07 (+84.8% upside). Prior stop was $50.87. Stop-loss: $50.87.
Semi cycle peak: fwd P/E 8.5× (below 10) + fwd/trail 0.09× (below 0.30). EPS just expanded off a trough — likely peak cyclical earnings.; Concentration risk — Customer: Applied Materials and Lam Research (58.7%); Concentration risk — Geographic: international revenues (75.9%).
Ultra Clean Holdings, Inc. trades at a P/E of 94.3 (forward 8.5). TrendMatrix value score: 7.3/10. Verdict: Sell.
11 analysts cover UCTT with a consensus score of 4.2/5. Average price target: $116.
What does Ultra Clean Holdings, Inc. do?Ultra Clean Holdings designs, manufactures, and services critical subsystems and components—including gas delivery...
Ultra Clean Holdings designs, manufactures, and services critical subsystems and components—including gas delivery systems, chemical delivery modules, and precision robotics—primarily for semiconductor capital equipment OEMs, plus ultra-high purity cleaning and coating services for chip manufacturers. Its two largest customers, Applied Materials and Lam Research, together accounted for 58.7% of fiscal 2025 revenues, with international markets generating 75.9% of the total.