Ultra Clean Holdings, Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 1✗ 27▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio3.0x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value4.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.1%, ROC=11.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)32.1x

  ✗Dreman< 8x

  Price / Book Value per Share3.0x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessOE Yield=-8.7%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldFCF Yield=0.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=3.0x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share137.8x

  ✗Ackman<= 25

  Price vs. Trailing Low248% of trailing low ($18.70)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+1.20%; #2929/6340 (top 46.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.3273; #3572/6449 (top 55.4%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share4.79x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+18.3%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+1.0996; #1668/5247 (top 31.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-7.38%; #3114/4519 (top 68.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-38.86%; #4760/6202 (top 76.7%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 6▾

  UCTT overvalued: all 6 models price fair value below $46.35 (median $6.42)

  Greenblatt fair value$1.10

  ✗Greenblatt-4113.6% margin vs $46.35

  Munger fair value$6.13

  ✗Munger-656.1% margin vs $46.35

  Pabrai fair value$17.69

  ✗Pabrai-162.0% margin vs $46.35

  Akre fair value$14.17

  ✗Akre-227.1% margin vs $46.35

  Marks fair value$6.70

  ✗Marks-591.8% margin vs $46.35

  Ackman fair value$3.42

  ✗Ackman-1255.3% margin vs $46.35
• Profitability6% pass✓ 4✗ 31▾

  15 of 16 flag UCTT's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)17/23 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)17/23 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-1.6%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-5.2% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-183.6M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE3.7%

  ✗Lynch> 15%

  EBIT / Enterprise Value4.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.1%, ROC=11.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-10.48%

  ✗PiotroskiROA > 0

  ROA Change YoY1.23% -> -10.48% (delta: -11.71%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=3.79%, ROA=-10.48%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY17.0% -> 15.7%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue3.6%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity3.7%

  ✗Dreman> 12%

  Margin of SafetyP/B=3.0x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-8.8% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency17/22 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue4.3%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity3.7%

  ✗Ackman>= 15%

  5-Year EPS CAGR-27.6% CAGR over 4 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend2.0% (2023) -> -5.2% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 16.0% -> 15.7%, operating margin 2.0% -> -5.2%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+1.20%; #2929/6340 (top 46.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+18.71%; #2140/3702 (top 57.8%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+3.66%; #2598/5226 (top 49.7%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0562; #2724/5884 (top 46.3%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-27.6% over 4 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years7/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth13% pass✓ 2✗ 11▾

  7 of 8 flag UCTT's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 89.2% vs Rev: 15.8%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency17/22 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth-2.1%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR-27.6% CAGR over 4 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 16.0% -> 15.7%, operating margin 2.0% -> -5.2%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR8.0%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-27.6% over 4 years

  ✗Neff7%-20% annualized
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (1/9)✗LynchFAIL (0/7)✗GreenblattRank #1482✓PiotroskiPASS (F-Score 4)✗DremanFAIL (2/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✗AckmanFAIL (3/9)✗TempletonFAIL (2/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1179/2370 (Top 49.7%))✗NeffFAIL (1/6)•SchlossNEUTRAL (4/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag UCTT's cash flow — Buffett, Lynch, Dreman +4 more

  Free Cash Flow Proxy$-183.6M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-164.0M

  ✗LynchPositive and growing

  Operating Cash Flow$65.6M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=3.79%, ROA=-10.48%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)32.1x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=0.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive14/17 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-7.8%

  ✗Ackman>= 4%

  Price / FCF per Share137.8x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency19/20 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-164.0M

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization-7.38%; #3114/4519 (top 68.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage33% pass✓ 6✗ 9▾

  8 of 12 flag UCTT's debt & leverage — Buffett, Lynch, Piotroski +5 more

  Total Debt / Shareholders' Equity0.87

  ✗Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  LT Debt vs Net Current AssetsLT Debt $635.1M vs NCA $855.6M

  ✓GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.87, IC: 5.8x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.87

  ✗Lynch< 0.33

  Cash - Long-term Debt$-364.2M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change26.03% -> 27.84%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities2.79

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Debt Levels0.87

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=5.8x, D/EBITDA=4.1x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.87

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.8730; #3066/4210 (top 72.8%)

  ✗AsnessTop 30% of eligible cross-section
• Efficiency38% pass✓ 4✗ 7▾

  5 of 8 flag UCTT's efficiency — Buffett, Greenblatt, Munger +2 more

  Current Ratio2.79

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)7.6%

  ✗Buffett> 10%

  ROIC - WACC-2.4%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)11.4%

  ✗Greenblatt> 25%

  Current Ratio Change YoY2.89 -> 3.19

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.09x -> 1.19x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities2.79

  ✓Dreman> 1.5

  Return on Invested Capital6.1%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=5.2%; FY2025: ROIC=-7.1%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/4 years above 12% (latest -7.1%)

  ✗SleepROIC > 12% in a majority of years