LSE:ULE

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Ultra Electronics Holdings

Executive Summary

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


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.1%

ULE

7.2%

GB Aerospace & Defense

5.8%

GB Market


1 Year Return

30.5%

ULE

3.5%

GB Aerospace & Defense

-9.1%

GB Market

Return vs Industry: ULE exceeded the UK Aerospace & Defense industry which returned 3% over the past year.

Return vs Market: ULE exceeded the UK Market which returned -9.2% over the past year.


Shareholder returns

ULEIndustryMarket
7 Day7.1%7.2%5.8%
30 Day7.4%6.2%9.7%
90 Day9.0%-12.7%3.2%
1 Year31.5%30.5%5.1%3.5%-4.8%-9.1%
3 Year7.7%0.1%-11.8%-19.2%-1.0%-13.0%
5 Year29.1%14.0%19.8%2.0%18.4%-7.9%

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?

20.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ULE (£21.16) is trading above our estimate of fair value (£15.27)

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 (20.1x) compared to the Aerospace & Defense industry average (20.1x).

PE vs Market: ULE is poor value based on its PE Ratio (20.1x) compared to the UK market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: ULE is poor value based on its PEG Ratio (6.1x)


Price to Book Ratio

PB vs Industry: ULE is overvalued based on its PB Ratio (3.5x) compared to the GB Aerospace & Defense industry average (2.2x).


Next Steps

Future Growth

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

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULE's forecast earnings growth (3.3% per year) is above the savings rate (1.2%).

Earnings vs Market: ULE's earnings (3.3% 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 (4.5% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: ULE's revenue (4.5% 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 (19.3%).


Next Steps

Past Performance

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

21.6%

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%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: ULE's earnings have grown significantly by 21.6% per year over the past 5 years.

Accelerating Growth: ULE's earnings growth over the past year (129.9%) exceeds its 5-year average (21.6% per year).

Earnings vs Industry: ULE earnings growth over the past year (129.9%) exceeded the Aerospace & Defense industry 8.3%.


Return on Equity

High ROE: ULE's Return on Equity (17.3%) is considered low.


Next Steps

Financial Health

How is Ultra Electronics Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ULE's short term assets (£412.5M) exceed its short term liabilities (£227.6M).

Long Term Liabilities: ULE's short term assets (£412.5M) exceed its long term liabilities (£338.6M).


Debt to Equity History and Analysis

Debt Level: ULE's debt to equity ratio (45.5%) is considered high.

Reducing Debt: ULE's debt to equity ratio has reduced from 55% to 45.5% over the past 5 years.

Debt Coverage: ULE's debt is well covered by operating cash flow (48.3%).

Interest Coverage: ULE's interest payments on its debt are well covered by EBIT (246.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ULE's dividend (2.56%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: ULE's dividend (2.56%) is low compared to the top 25% of dividend payers in the UK market (5.44%).


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 reasonable payout ratio (51.6%), ULE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ULE's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Simon Pryce (57yo)

2yrs

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 ($USD2.02M) is about average for companies of similar size in the UK market ($USD1.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Simon Pryce
CEO & Director2yrsUK£1.59m0.031% £465.1k
Jos Sclater
CFO & Director0.50yrUK£456.43k0.000040% £599.7
Carlos Santiago
COO & Executive VP of Commercial & Corporate Affairsno datano datano data
Gabriella Colley
Head of Investor Relationsno datano datano data
Louise Ruppel
General Counsel & Company Secretary1.42yrsno data0.0030% £45.4k
Richard Cashin
President of Strategy & Corporate Developmentno datano datano data
Steve Izquierdo
Chief Human Resources Officerno datano datano data
Mike Clayton
Managing Director of Precision Control Systemsno datano datano data
Doug Burd
Managing Director of Avalon Systems & Ultra Electronics Australia ptyno datano datano data
Graeme Stacey
Divisional Managing Director of Aerospace & Infrastructure10.42yrsno data0.0024% £36.4k

1.7yrs

Average Tenure

Experienced Management: ULE's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Simon Pryce
CEO & Director2yrsUK£1.59m0.031% £465.1k
Jos Sclater
CFO & Director0.50yrUK£456.43k0.000040% £599.7
Victoria Hull
Independent Non-Executive Director3.17yrsUK£55.00k0.0024% £35.7k
William Rice
Chairman of the Board1.42yrsUK£194.00k0.0071% £105.8k
Daniel Shook
Independent Non-Executive Director0.75yrUK£21.00k0.0035% £52.9k
Martin Broadhurst
Independent Non-Executive Director7.92yrsUK£63.00k0.0035% £52.9k
Geeta Gopalan
Independent Non-Executive Director3.17yrsUK£55.00kno data

2.0yrs

Average Tenure

57yo

Average Age

Experienced Board: ULE's board of directors are not considered experienced ( 2 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£1.499b
  • Shares outstanding: 70.85m
  • 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

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, provides application-engineered bespoke solutions in the defense and aerospace, security and cyber, transport, and energy markets. It offers command and sonar systems; maritime systems; ocean systems; and electronic system solutions across surface and sub-surface platforms. The company also provides electronic systems, devices, and specialized components across the maritime and land defense domains; and range of solutions across the maritime, communications, and intelligence defense domains. In addition, it provides information advantage and supply chain assurance solutions; develops, delivers, and supports real-time, network-centric command, control, and integrated intelligence solutions; designs, manufactures, and delivers, as well as provides in-service support services for military grade technology; offers electronics for missions; and designs, develops, and manufactures advanced tactical radio communications systems for defense, security, and public safety applications. Further, the company engages in the design and supply of market-leading safety and mission-critical solutions mainly for military and commercial aerospace; optical imagery systems, together with database management and data analytics software to prevent and solve crime; and safety-critical sensors and control systems mainly to the nuclear industry. Additionally, it is involved in the design, manufacture, supply, and support safety sensors and critical systems to nuclear and selected industrial applications. The company operates in North America, the United Kingdom, Continental Europe, and internationally. Ultra Electronics Holdings plc was founded in 1993 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 23:17
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.