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ULE

Ultra Electronics HoldingsLSE:ULE Stock Report

Market Cap

UK£2.3b

7D

-0.1%

1Y

55.6%

Updated

20 Oct, 2021

Data

Company Financials +
ULE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends5/6

ULE Overview

Ultra Electronics Holdings plc provides application-engineered bespoke solutions in the defense, security, critical detection, and control markets.

Ultra Electronics Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ultra Electronics Holdings
Historical stock prices
Current Share PriceUK£32.56
52 Week HighUK£18.45
52 Week LowUK£34.20
Beta0.38
1 Month Change1.75%
3 Month Change31.82%
1 Year Change55.64%
3 Year Change135.43%
5 Year Change75.43%
Change since IPO1,036.48%

Recent News & Updates

Jul 29
Is Ultra Electronics Holdings (LON:ULE) A Risky Investment?

Is Ultra Electronics Holdings (LON:ULE) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

ULEGB Aerospace & DefenseGB Market
7D-0.1%-0.5%1.4%
1Y55.6%38.6%25.2%

Return vs Industry: ULE exceeded the UK Aerospace & Defense industry which returned 34.1% over the past year.

Return vs Market: ULE exceeded the UK Market which returned 23.4% over the past year.

Price Volatility

Is ULE's price volatile compared to industry and market?
ULE volatility
ULE Beta0.38
Industry Beta1.14
Market Beta1

Stable Share Price: ULE is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: ULE's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
19934,253Simon Prycehttps://www.ultra.group

Ultra Electronics Holdings plc provides application-engineered bespoke solutions in the defense, security, critical detection, and control markets. It operates through three segments: Maritime, Intelligence & Communications, and Critical Detection & Control. The company offers sonobuoys and anti-submarine warfare systems; integrated hull and variable depth sonar systems for manned and unmanned platforms; torpedo defense systems; deployable underwater sensors; electronic warfare systems; and naval systems and sensors, such as acoustic and sonar systems, torpedo defense, and radar sensor solutions, as well as degaussing systems and power conversion solutions for naval applications, including electromagnetic analysis for naval platforms and ranges.

Ultra Electronics Holdings Fundamentals Summary

How do Ultra Electronics Holdings's earnings and revenue compare to its market cap?
ULE fundamental statistics
Market CapUK£2.30b
Earnings (TTM)UK£97.10m
Revenue (TTM)UK£851.20m

23.9x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ULE income statement (TTM)
RevenueUK£851.20m
Cost of RevenueUK£593.40m
Gross ProfitUK£257.80m
ExpensesUK£160.70m
EarningsUK£97.10m

Last Reported Earnings

Jul 02, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.36
Gross Margin30.29%
Net Profit Margin11.41%
Debt/Equity Ratio30.1%

How did ULE perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

42%

Payout Ratio

Valuation

Is Ultra Electronics Holdings undervalued compared to its fair value and its price relative to the market?

23.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ULE (£32.56) is trading above our estimate of fair value (£24.18)

Significantly Below Fair Value: ULE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ULE is good value based on its PE Ratio (23.9x) compared to the UK Aerospace & Defense industry average (26.2x).

PE vs Market: ULE is poor value based on its PE Ratio (23.9x) compared to the UK market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: ULE is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: ULE is overvalued based on its PB Ratio (4.7x) compared to the GB Aerospace & Defense industry average (2.6x).


Future Growth

How is Ultra Electronics Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULE's forecast earnings growth (5.8% per year) is above the savings rate (0.9%).

Earnings vs Market: ULE's earnings (5.8% per year) are forecast to grow slower than the UK market (12.9% per year).

High Growth Earnings: ULE's earnings are forecast to grow, but not significantly.

Revenue vs Market: ULE's revenue (4.6% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: ULE's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ULE's Return on Equity is forecast to be low in 3 years time (18.2%).


Past Performance

How has Ultra Electronics Holdings performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ULE has high quality earnings.

Growing Profit Margin: ULE's current net profit margins (11.4%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: ULE's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: ULE's earnings growth over the past year (42.2%) exceeds its 5-year average (13.8% per year).

Earnings vs Industry: ULE earnings growth over the past year (42.2%) exceeded the Aerospace & Defense industry 16.7%.


Return on Equity

High ROE: ULE's Return on Equity (19.5%) is considered low.


Financial Health

How is Ultra Electronics Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ULE's short term assets (£441.1M) exceed its short term liabilities (£263.9M).

Long Term Liabilities: ULE's short term assets (£441.1M) exceed its long term liabilities (£240.2M).


Debt to Equity History and Analysis

Debt Level: ULE's debt to equity ratio (30.1%) is considered satisfactory.

Reducing Debt: ULE's debt to equity ratio has reduced from 101.2% to 30.1% over the past 5 years.

Debt Coverage: ULE's debt is well covered by operating cash flow (89.5%).

Interest Coverage: ULE's interest payments on its debt are well covered by EBIT (15.9x coverage).


Balance Sheet


Dividend

What is Ultra Electronics Holdings's current dividend yield, its reliability and sustainability?

1.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ULE's dividend (1.77%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: ULE's dividend (1.77%) is low compared to the top 25% of dividend payers in the UK market (4.01%).


Stability and Growth of Payments

Stable Dividend: ULE's dividends per share have been stable in the past 10 years.

Growing Dividend: ULE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.2%), ULE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ULE's dividends in 3 years are forecast to be well covered by earnings (43% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Simon Pryce (59 yo)

3.33yrs

Tenure

UK£3,109,000

Compensation

Mr. Simon Pryce has been Chief Executive Officer and Director at Ultra Electronics Holdings plc since June 18, 2018. He served as the Group Chief Executive Officer of BBA Aviation Plc from June 11, 2007 to...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD4.30M) is above average for companies of similar size in the UK market ($USD1.66M).

Compensation vs Earnings: Simon's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ULE's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: ULE's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ULE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ultra Electronics Holdings plc's employee growth, exchange listings and data sources


Key Information

  • Name: Ultra Electronics Holdings plc
  • Ticker: ULE
  • Exchange: LSE
  • Founded: 1993
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£2.302b
  • Shares outstanding: 71.27m
  • Website: https://www.ultra.group

Number of Employees


Location

  • Ultra Electronics Holdings plc
  • 35 Portman Square
  • Marylebone
  • London
  • Greater London
  • W1H 6LR
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 21:59
End of Day Share Price2021/10/20 00:00
Earnings2021/07/02
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.