OTCPK:UEHP.F

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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

Flawless balance sheet with solid track record 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: UEHP.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

UEHP.F

2.4%

US Aerospace & Defense

0.5%

US Market


1 Year Return

26.2%

UEHP.F

-22.8%

US Aerospace & Defense

18.7%

US Market

Return vs Industry: UEHP.F exceeded the US Aerospace & Defense industry which returned -22.8% over the past year.

Return vs Market: UEHP.F exceeded the US Market which returned 18.7% over the past year.


Shareholder returns

UEHP.FIndustryMarket
7 Day0%2.4%0.5%
30 Dayn/a6.6%4.9%
90 Dayn/a13.2%19.8%
1 Year26.2%26.2%-8.4%-22.8%21.2%18.7%
3 Yearn/a15.7%-8.0%46.2%36.8%
5 Yearn/a66.9%25.5%85.3%65.1%

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

No news available

Valuation

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

25.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UEHP.F ($32.31) is trading above our estimate of fair value ($23.67)

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


Price To Earnings Ratio

PE vs Industry: UEHP.F is poor value based on its PE Ratio (25.5x) compared to the US Aerospace & Defense industry average (21.4x).

PE vs Market: UEHP.F is poor value based on its PE Ratio (25.5x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: UEHP.F is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: UEHP.F is overvalued based on its PB Ratio (3.6x) compared to the US Aerospace & Defense industry average (2.4x).


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?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UEHP.F's forecast earnings growth (13.9% per year) is above the savings rate (2.2%).

Earnings vs Market: UEHP.F's earnings (13.9% per year) are forecast to grow slower than the US market (24.1% per year).

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

Revenue vs Market: UEHP.F's revenue (4.2% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: UEHP.F's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UEHP.F's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

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

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UEHP.F has high quality earnings.

Growing Profit Margin: UEHP.F's current net profit margins (8%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: UEHP.F has become profitable over the past 5 years, growing earnings by 18.9% per year.

Accelerating Growth: UEHP.F's earnings growth over the past year (41.7%) exceeds its 5-year average (18.9% per year).

Earnings vs Industry: UEHP.F earnings growth over the past year (41.7%) exceeded the Aerospace & Defense industry -0.2%.


Return on Equity

High ROE: UEHP.F's Return on Equity (14.1%) is considered low.


Next Steps

Financial Health

How is Ultra Electronics Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: UEHP.F's short term assets (£436.1M) exceed its short term liabilities (£266.9M).

Long Term Liabilities: UEHP.F's short term assets (£436.1M) exceed its long term liabilities (£294.7M).


Debt to Equity History and Analysis

Debt Level: UEHP.F's debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: UEHP.F's debt to equity ratio has reduced from 62.1% to 30.6% over the past 5 years.

Debt Coverage: UEHP.F's debt is well covered by operating cash flow (95.5%).

Interest Coverage: UEHP.F's interest payments on its debt are well covered by EBIT (54.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UEHP.F's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: UEHP.F's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (4.31%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.9%), UEHP.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UEHP.F's dividends in 3 years are forecast to be well covered by earnings (43.2% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Simon Pryce (58 yo)

2.17yrs

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 ($USD2.08M) is below average for companies of similar size in the US market ($USD4.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Simon Pryce
CEO & Director2.17yrsUK£1.59m0.051%
£ 1.1m
Jos Sclater
CFO & Director0.67yrUK£456.43k0.000040%
£ 906.8
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 Secretary1.58yrsno data0.0030%
£ 68.7k
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 & Infrastructure10.58yrsno data0.0024%
£ 54.9k
Mike Williams
Managing Director of Command & Sonar Systemsno datano datano data
Sebastien Jodeau
Managing Director of Airport Systemsno datano datano data

1.9yrs

Average Tenure

Experienced Management: UEHP.F's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Simon Pryce
CEO & Director2.17yrsUK£1.59m0.051%
£ 1.1m
Jos Sclater
CFO & Director0.67yrUK£456.43k0.000040%
£ 906.8
Victoria Hull
Independent Non-Executive Director3.33yrsUK£55.00k0.0024%
£ 54.0k
William Rice
Chairman of the Board1.58yrsUK£194.00k0.021%
£ 479.7k
Daniel Shook
Independent Non-Executive Director0.92yrUK£21.00k0.0035%
£ 80.0k
Martin Broadhurst
Independent Non-Executive Director8.08yrsUK£63.00k0.0035%
£ 80.0k
Geeta Gopalan
Independent Non-Executive Director3.33yrsUK£55.00kno data
Ken Hunzeker
Independent Non-Executive Director0.083yrno data0.0028%
£ 63.9k

1.9yrs

Average Tenure

58yo

Average Age

Experienced Board: UEHP.F's board of directors are not considered experienced ( 1.9 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: UEHP.F 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: UEHP.F
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£1.733b
  • Listing Market Cap: UK£2.267b
  • Shares outstanding: 70.90m
  • 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; marit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 12:39
End of Day Share Price2020/08/05 00:00
Earnings2020/06/30
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.