On December 31, 2024, SHAPIRO CAPITAL MANAGEMENT LLC (Trades, Portfolio) executed a significant transaction involving Ultra Clean Holdings Inc (UCTT, Financial). The firm added 1,099,699 shares of UCTT to its portfolio, marking a substantial increase of 66.79% in its position. This acquisition brings the firm's total holdings in UCTT to 2,746,282 shares, representing 6.10% of its portfolio. The transaction was executed at a price of $35.95 per share, reflecting a strategic move by the firm to bolster its investment in the semiconductor industry.
Profile of SHAPIRO CAPITAL MANAGEMENT LLC (Trades, Portfolio)
SHAPIRO CAPITAL MANAGEMENT LLC (Trades, Portfolio) is a well-regarded investment firm based in Atlanta, Georgia, known for its focus on value investing. The firm manages an equity portfolio valued at $3.2 billion, with significant holdings in companies such as PENN Entertainment Inc (PENN, Financial) and Graphic Packaging Holding Co (GPK, Financial). The firm's investment philosophy centers around identifying undervalued opportunities in the market, with a particular emphasis on the technology and consumer cyclical sectors.
Overview of Ultra Clean Holdings Inc
Ultra Clean Holdings Inc, a USA-based company, operates in the semiconductor capital equipment industry. The company specializes in manufacturing and supplying production tools, modules, and subsystems, including precision robotic solutions and gas delivery systems. With a market capitalization of $1.67 billion, UCTT serves a diverse customer base across North America, Asia, and Europe. The company is segmented into Products and Services, catering to industries such as medical, energy, and industrial sectors.
Financial Metrics and Valuation
UCTT is currently trading at $36.99, with a high price-to-earnings (PE) ratio of 462.38, indicating a high valuation relative to earnings. The stock is considered fairly valued with a GF Value of $34.36, resulting in a Price to GF Value ratio of 1.08. This suggests that the stock is trading slightly above its intrinsic value, as calculated by GuruFocus's exclusive method.
Performance and Growth Indicators
Since the transaction, UCTT has shown a 2.89% gain, with a year-to-date price change of 0.96%. The company boasts a strong GF Score of 90/100, indicating good outperformance potential. Additionally, UCTT has a Growth Rank of 10/10, reflecting its robust growth prospects in the semiconductor industry.
Financial Health and Profitability
UCTT's balance sheet is ranked 6/10, with a cash to debt ratio of 0.48, indicating moderate financial leverage. The company's profitability is ranked 7/10, with a gross margin growth of 0.40% and an operating margin growth of -4.80%. These metrics suggest a stable financial position, albeit with room for improvement in operational efficiency.
Market Position and Competitive Landscape
Operating in the competitive semiconductor industry, UCTT focuses on innovation and precision solutions. The largest holder of UCTT shares is First Eagle Investment (Trades, Portfolio) Management, LLC, with other notable investors including Ken Fisher (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio). This diverse investor base underscores the company's strong market position and potential for future growth.
Conclusion
SHAPIRO CAPITAL MANAGEMENT LLC (Trades, Portfolio)'s increased stake in UCTT reflects confidence in the company's potential within the semiconductor industry. This transaction highlights the firm's strategic focus on technology and consumer cyclical sectors, aligning with its investment philosophy. As UCTT continues to demonstrate strong growth indicators and a solid market position, the firm's investment could yield significant returns in the long term.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
