LSE:ULE

Stock Analysis Report

Ultra Electronics Holdings

Executive Summary

Ultra Electronics Holdings plc, an electrical and electronics engineering company, provides various solutions and products in the defense and aerospace, security, transport, and energy markets.

Snowflake

Fundamentals

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Ultra Electronics Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.5%

LSE:ULE

-0.6%

GB Aerospace & Defense

1.6%

GB Market


1 Year Return

27.7%

LSE:ULE

-0.4%

GB Aerospace & Defense

0.3%

GB Market

ULE outperformed the Aerospace & Defense industry which returned -0.4% over the past year.

ULE outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 0.3% over the past year.


Share holder returns

ULEIndustryMarket
7 Day-5.5%-0.6%1.6%
30 Day-2.5%3.0%5.0%
90 Day32.6%19.5%1.2%
1 Year31.6%27.7%3.1%-0.4%5.1%0.3%
3 Year29.2%18.1%23.4%10.4%23.7%9.0%
5 Year33.0%15.3%32.2%5.2%29.9%2.5%

Price Volatility Vs. Market

How volatile is Ultra Electronics Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ultra Electronics Holdings undervalued based on future cash flows and its price relative to the stock market?

31.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ultra Electronics Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ultra Electronics Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ultra Electronics Holdings is overvalued based on earnings compared to the GB Aerospace & Defense industry average.

Ultra Electronics Holdings is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Ultra Electronics Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Ultra Electronics Holdings is overvalued based on assets compared to the GB Aerospace & Defense industry average.


Next Steps

Future Growth

How is Ultra Electronics Holdings expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ultra Electronics Holdings's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Ultra Electronics Holdings's earnings are expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).

Ultra Electronics Holdings's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Ultra Electronics Holdings's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Ultra Electronics Holdings's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Ultra Electronics Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

14.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ultra Electronics Holdings's year on year earnings growth rate has been positive over the past 5 years.

Ultra Electronics Holdings's 1-year earnings growth exceeds its 5-year average (27.4% vs 14.6%)

Ultra Electronics Holdings's earnings growth has exceeded the GB Aerospace & Defense industry average in the past year (27.4% vs -17.5%).


Return on Equity

Ultra Electronics Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ultra Electronics Holdings used its assets more efficiently than the GB Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

Ultra Electronics Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ultra Electronics Holdings's financial position?


Financial Position Analysis

Ultra Electronics Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ultra Electronics Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ultra Electronics Holdings's level of debt (71%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (55% vs 71% today).

Debt is well covered by operating cash flow (31.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

2.67%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ultra Electronics Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).

Ultra Electronics Holdings's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.5%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

What is the CEO of Ultra Electronics Holdings's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Simon Pryce (57yo)

1.3yrs

Tenure

UK£1,059,670

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

Simon's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Insufficient data for Simon to compare compensation growth.


Management Age and Tenure

2.3yrs

Average Tenure

The tenure for the Ultra Electronics Holdings management team is about average.


Board Age and Tenure

2.4yrs

Average Tenure

57yo

Average Age

The average tenure for the Ultra Electronics Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Ultra Electronics Holdings individual insiders in the past 3 months.


Recent Insider Transactions

BuyUK£57,81529 Aug 19
William Rice
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares2,687
Max PriceUK£21.52
BuyUK£49,72929 Aug 19
William Rice
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares2,313
Max PriceUK£21.50
BuyUK£4,96721 Dec 18
Amitabh Sharma
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares381
Max PriceUK£13.04

Ownership Breakdown


Management Team

  • Carlos Santiago

    COO & Executive VP of Commercial & Corporate Affairs

    • Tenure: 0yrs
  • Simon Pryce (57yo)

    CEO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£1.06m
  • Ami Sharma (52yo)

    Group Finance Director & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£726.00k
  • Mike Clayton

    Managing Director of Precision Control Systems

    • Tenure: 0yrs
  • Doug Burd

    Managing Director of Avalon Systems & Ultra Electronics Australia pty

    • Tenure: 0yrs
  • Graeme Stacey

    Divisional Managing Director of Aerospace & Infrastructure

    • Tenure: 9.7yrs
  • Gabby Clinkard

    Head of Investor Relations

    • Tenure: 0yrs
  • Louise Ruppel

    General Counsel & Company Secretary

    • Tenure: 0.7yrs
  • Chris Binsley

    Corporate Marketing Director

    • Tenure: 0yrs
  • Steve Izquierdo

    Chief Human Resources Officer

    • Tenure: 0yrs

Board Members

  • Victoria Hull (57yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: UK£53.00k
  • Tony Rice (67yo)

    Chairman of the Board

    • Tenure: 0.7yrs
  • Simon Pryce (57yo)

    CEO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£1.06m
  • Rob Walmsley (78yo)

    Senior Independent Director

    • Tenure: 4.5yrs
    • Compensation: UK£58.00k
  • Dan Shook (52yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Ami Sharma (52yo)

    Group Finance Director & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£726.00k
  • Martin Broadhurst (66yo)

    Independent Non-Executive Director

    • Tenure: 7.2yrs
    • Compensation: UK£58.00k
  • Geeta Gopalan (55yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: UK£53.00k

Company Information

Ultra Electronics Holdings plc's company bio, 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£1.484b
  • Shares outstanding: 70.67m
  • Website: https://www.ultra-electronics.com

Number of Employees


Location

  • Ultra Electronics Holdings plc
  • 417 Bridport Road
  • Greenford
  • Middlesex
  • UB6 8UA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ULELSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1975
UEHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1975
UEHP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1975
ULELBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1975
UEHP.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Ultra Electronics Holdings plc, an electrical and electronics engineering company, provides various solutions and products in the defense and aerospace, security, transport, and energy markets. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 20:38
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.