Ultralife Corp (NASDAQ: ULBI)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0000875657
Market Cap 106.86 Mn
P/B 0.78
P/E 62.20
P/S 0.57
ROIC (Qtr) 2.32
Div Yield % 0.00
Rev 1y % (Qtr) 21.51
Total Debt (Qtr) 50.30 Mn
Debt/Equity (Qtr) 0.37
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About

Ultralife Corporation, with its ticker symbol ULBI, is a company that operates in the power solutions, communications, and electronics systems industry. The company has a global presence, with sales, operations, and product development facilities in North America, Europe, and Asia. Ultralife's main business activities are focused on two operating segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes non-rechargeable batteries, rechargeable batteries, and battery charging systems. The Communications...

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Investment thesis

Bull case

  • Healthy cash reserves of 9.26M provide 2.45x coverage of short-term debt 3.78M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 12.55M provides exceptional 738.06x coverage of minority interest expenses 17000, showing strong core operations.
  • Strong tangible asset base of 153.50M provides 3.05x coverage of total debt 50.30M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 12.55M provides strong 13.85x coverage of stock compensation 906000, indicating sustainable incentive practices.
  • Robust free cash flow of 8.96M exceeds capital expenditure of 3.59M by 2.49x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 12.55M barely covers its investment activities of (51.61M), with a coverage ratio of -0.24, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 9.26M against inventory of 52.75M, the 0.18 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of (51.61M) provide weak support for R&D spending of 9.99M, which is -5.17x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 9.26M provide limited coverage of acquisition spending of (48.02M), which is -0.19x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 6.13M show weak coverage of depreciation charges of 5.37M, with a 1.14 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Customer Breakdown of Revenue (2024)

Peer comparison

Companies in the Electrical Equipment & Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRT Vertiv Holdings Co 93.00 Bn 69.78 9.09 3.16 Bn
2 BE Bloom Energy Corp 34.73 Bn -392.76 17.16 2.99 Bn
3 HUBB Hubbell Inc 27.97 Bn 31.52 4.78 2.33 Bn
4 NVT nVent Electric plc 19.43 Bn 76.81 8.40 1.56 Bn
5 AYI Acuity Inc. (De) 12.85 Bn 109.95 6.86 0.91 Bn
6 AEIS Advanced Energy Industries Inc 11.80 Bn 79.52 6.56 0.68 Bn
7 NVX NOVONIX Ltd 11.53 Bn -174.00 1,943.36 -
8 ENS EnerSys 6.79 Bn 21.71 1.82 1.18 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.66 3.49
EV to Cash from Ops. EV/CFO 11.71 9.10
EV to Debt EV to Debt 2.92 113.17
EV to EBIT EV/EBIT 23.95 -17.64
EV to EBITDA EV/EBITDA 12.72 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF 16.40 39.13
EV to Market Cap EV to Market Cap 1.37 2.59
EV to Revenue EV/Rev 0.79 77.74
Price to Book Value [P/B] P/B 0.78 4.98
Price to Earnings [P/E] P/E 62.20 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.27
Dividend per Basic Share Div per Share (Qtr) 0.00 0.37
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.79
Interest Coverage Int. cover (Qtr) 1.59 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -54.10 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 36.70 92.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -55.59 -45.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -28.20 -56.26
EBIT Growth (1y) % EBIT 1y % (Qtr) -51.19 -64.20
EBT Growth (1y) % EBT 1y % (Qtr) -79.00 8.52
EPS Growth (1y) % EPS 1y % (Qtr) -81.82 13.91
FCF Growth (1y) % FCF 1y % (Qtr) -34.59 -66.58
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.36 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.84 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 0.27 3.50
Current Ratio Curr Ratio (Qtr) 2.99 5.07
Debt to Equity Ratio Debt/Equity (Qtr) 0.37 0.41
Interest Cover Ratio Int Coverage (Qtr) 1.59 -16.86
Times Interest Earned Times Interest Earned (Qtr) 1.59 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 6.20 -1,947.23
EBIT Margin % EBIT Margin % (Qtr) 3.29 -2,051.19
EBT Margin % EBT Margin % (Qtr) 1.23 -2,170.94
Gross Margin % Gross Margin % (Qtr) 23.90 2.02
Net Profit Margin % Net Margin % (Qtr) 0.90 -2,202.04