Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Ultralife Corporation (NASDAQ:ULBI) due to its excellent fundamentals in more than one area. ULBI is a company with great financial health as well as a a great track record of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, take a look at the report on Ultralife here.
Outstanding track record with excellent balance sheet
ULBI delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 23%, which is what investors like to see! ULBI’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. ULBI appears to have made good use of debt, producing operating cash levels of 0.31x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Ultralife, I’ve put together three relevant factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for ULBI’s future growth? Take a look at our free research report of analyst consensus for ULBI’s outlook.
- Valuation: What is ULBI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ULBI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ULBI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.