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Ultra Clean Holdings Inc (UCTT) Stock: How Does it Score on Fundamental Metrics?

Thursday, October 28, 2021 10:05 AM | InvestorsObserver Analysts
Ultra Clean Holdings Inc (UCTT) Stock: How Does it Score on Fundamental Metrics?

InvestorsObserver gives Ultra Clean Holdings Inc (UCTT) a strong valuation score of 76 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. UCTT currently holds a better value than 76% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 76
UCTT gets a 76 Valuation Rank today. Find out what this means to you and get the rest of the rankings on UCTT!

Metrics Analysis

UCTT has a trailing twelve month Price to Earnings (PE) ratio of 20.2. The historical average of roughly 15 shows a poor value for UCTT stock as investors are paying higher share prices relative to the company's earnings. UCTT's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 2.12 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. UCTT has a 12 month forward PE to Growth (PEG) ratio of 1.5. Markets are overvaluing UCTT in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 2.11999988's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

All together these valuation metrics paint a pretty poor picture for UCTT at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for UCTT are worse than the average of the market resulting in a valuation score of 76. Click Here to get the full Report on Ultra Clean Holdings Inc (UCTT) stock.

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