Is Ultra Clean Holdings (UCTT) Halal to invest in?
How much of Ultra Clean Holdings’ revenue comes from haram?
Ultra Clean Holdings is a developer and supplier of critical subsystems which are used in the process of manufacturing semiconductors.
The company earns its revenue from the following revenue sources:
- Products:
Includes revenue generated from providing precision robotic solutions, gas delivery systems, a variety of industrial and automation production equipment products, and subsystems that include wafer cleaning modules, chemical delivery modules, top-plate assemblies, frame assemblies, and process modules.
In addition, Ultra Clean Holdings provides other high-level assemblies used in semiconductor manufacturing, display, medical, energy, industrial, and research industries.
- Services:
Includes revenue generated from ultra-high purity parts cleaning, process tool recoating, and high sensitivity micro contamination analysis services.
The contributions from each of Ultra Clean Holdings’ revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of Ultra Clean Holdings’ revenue comes from anything inherently haram.
Does Ultra Clean Holdings rely on interest to operate?
| Year-to-Date for period ended 6/25/2021 | Fiscal year ended 12/25/2020 | Fiscal year ended 12/27/2019 | |
|---|---|---|---|
| Interest Income | $200 | $900 | $400 |
| Total Revenue | $932,800 | $1,398,600 | $1,066,200 |
| Interest Expense | $10,700 | $16,900 | $25,600 |
| Total Expenses | $860,500 | $1,277,200 | $1,036,300 |
| Interest Income / Revenue | 0.02% | 0.06% | 0.04% |
| Interest Expense / Total Expense | 1.24% | 1.32% | 2.47% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in Ultra Clean Holdings’ operations.
What is Ultra Clean Holdings’ Environmental, Social, and Governance (ESG) impact?
Environment
No notable environmental highlights.
Social
Ultra Clean Holdings has an average Glassdoor rating of 3.3 out of 5.0 from over 190 current and previous employees.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Ultra Clean Holdings has a net positive ESG impact.
Comfort Rating
From Ultra Clean Holdings’ business, financial, and ESG reviews, Practical Islamic Finance rates Ultra Clean Holdings stock as: