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Ultra Electronics Holdings

Market Cap

UK£1.5b

Last Updated

2021/04/12 18:17 UTC

Data Sources

Company Financials +

Executive Summary

Ultra Electronics Holdings plc, provides application-engineered bespoke solutions in the defense and aerospace, security and cyber, transport, and energy markets. More Details


Snowflake Analysis

Flawless balance sheet 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

Stable Share Price: ULE is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ULE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.1%

ULE

0.8%

GB Aerospace & Defense

2.4%

GB Market


1 Year Return

4.7%

ULE

6.1%

GB Aerospace & Defense

23.6%

GB Market

Return vs Industry: ULE underperformed the UK Aerospace & Defense industry which returned 6.1% over the past year.

Return vs Market: ULE underperformed the UK Market which returned 23.6% over the past year.


Shareholder returns

ULEIndustryMarket
7 Day-2.1%0.8%2.4%
30 Day-3.1%2.7%3.0%
90 Day-0.6%4.0%4.0%
1 Year9.3%4.7%10.2%6.1%29.4%23.6%
3 Year57.3%44.8%6.9%-3.8%14.8%1.3%
5 Year32.2%14.8%27.5%7.6%40.4%14.0%

Long-Term 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 compared to its fair value and its price relative to the market?

26.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ULE (£20.44) is trading below our estimate of fair value (£27.84)

Significantly Below Fair Value: ULE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ULE is good value based on its PE Ratio (17.3x) compared to the GB Aerospace & Defense industry average (19.7x).

PE vs Market: ULE is good value based on its PE Ratio (17.3x) compared to the UK market (25.7x).


Price to Earnings Growth Ratio

PEG Ratio: ULE is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: ULE is overvalued based on its PB Ratio (3.1x) compared to the GB Aerospace & Defense industry average (2.2x).


Future Growth

How is Ultra Electronics Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULE's forecast earnings growth (7.3% per year) is above the savings rate (1%).

Earnings vs Market: ULE's earnings (7.3% per year) are forecast to grow slower than the UK market (21.5% per year).

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

Revenue vs Market: ULE's revenue (3.1% per year) is forecast to grow slower than the UK market (6.7% per year).

High Growth Revenue: ULE's revenue (3.1% 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 (18.6%).


Past Performance

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

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ULE has high quality earnings.

Growing Profit Margin: ULE's current net profit margins (9.7%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: ULE's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: ULE's earnings growth over the past year (12.5%) is below its 5-year average (12.8% per year).

Earnings vs Industry: ULE earnings growth over the past year (12.5%) exceeded the Aerospace & Defense industry 3.3%.


Return on Equity

High ROE: ULE's Return on Equity (18%) is considered low.


Financial Health

How is Ultra Electronics Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ULE's short term assets (£421.1M) exceed its short term liabilities (£263.3M).

Long Term Liabilities: ULE's short term assets (£421.1M) exceed its long term liabilities (£267.1M).


Debt to Equity History and Analysis

Debt Level: ULE's debt to equity ratio (33%) is considered satisfactory.

Reducing Debt: ULE's debt to equity ratio has reduced from 103.3% to 33% over the past 5 years.

Debt Coverage: ULE's debt is well covered by operating cash flow (84.9%).

Interest Coverage: ULE's interest payments on its debt are well covered by EBIT (15.7x coverage).


Balance Sheet


Dividend

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

2.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ULE's dividend (2.78%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: ULE's dividend (2.78%) is low compared to the top 25% of dividend payers in the UK market (4.18%).


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 (48.2%), 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 (43.3% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Simon Pryce (58 yo)

2.83yrs

Tenure

UK£1,592,000

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 ($USD2.18M) is above average for companies of similar size in the UK market ($USD1.50M).

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 (2.5 years average tenure).


Board Members

Experienced Board: ULE's board of directors are not considered experienced ( 2.5 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 bought more shares than they have sold 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 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£1.452b
  • Shares outstanding: 71.06m
  • 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


Biography

Ultra Electronics Holdings plc, provides application-engineered bespoke solutions in the defense and aerospace, security and cyber, transport, and energy markets. It offers command and sonar systems; marit...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/12 18:17
End of Day Share Price2021/04/12 00:00
Earnings2020/12/31
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.