Ultralife (ULBI) AI Stock Analysis

• Market Cap: $116.01M
• Dividend Yield: N/A
• Average Volume (3M): 49.85K
• Price to Earnings (P/E): 36.4
• Beta (1Y): 1.80
• Revenue Growth: 5.86%
• EPS Growth: -68.66%
• Country: US
• Employees: 671
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 16,643,614
• 10 Day Avg. Volume: 70,369
• 30 Day Avg. Volume: 49,848
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: $7.50 ▲(12.78% Upside)

Ultralife's overall stock score reflects a stable financial position with strong balance sheet metrics but challenges in profitability and cash flow. Technical analysis indicates mixed signals, with short-term stability but potential medium-term weakness. The stock appears overvalued, and while the earnings call showed optimism for future growth, current operational challenges remain significant.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility, allowing Ultralife to invest in growth opportunities without the burden of significant debt.

Government Defense Sales Growth

The significant growth in government defense sales underscores Ultralife's strong position in the defense sector, providing a stable and expanding revenue stream that supports long-term growth.

New Product Development

Continued innovation in product development enhances Ultralife's competitive edge and market position, potentially opening new revenue streams and strengthening its product portfolio.

Negative Factors

Decline in Operating Income

The decline in operating income indicates challenges in maintaining profitability, particularly in the Communication Systems segment, which could impact overall financial performance if not addressed.

Gross Margin Decline

A declining gross margin suggests cost pressures and efficiency issues, which could erode profitability if persistent, necessitating strategic adjustments to improve cost management.

Commercial Sales Decline

The significant decline in commercial sales, particularly in key sectors like medical and oil and gas, highlights potential vulnerabilities in market demand that could affect revenue stability.

Ultralife Business Overview & Revenue Model

Company Description

Ultralife Corporation (ULBI) is a global leader in the design and manufacture of advanced battery and energy solutions. The company operates primarily in two segments: the Battery and Energy Products segment, which focuses on lithium batteries for various applications, including medical devices, military, and consumer electronics; and the Communications segment, which provides critical communication systems and solutions for the defense and commercial sectors. Ultralife's core products include rechargeable batteries, power systems, and specialty communications equipment, making it a key player in the energy and power solutions market.

How the Company Makes Money

Ultralife generates revenue through the sale of its battery and energy products, which constitute the majority of its earnings. The company has established key revenue streams through long-term contracts with government and military clients, providing specialized batteries and communication solutions. Additionally, Ultralife benefits from partnerships with various manufacturers and suppliers to enhance its product offerings and expand its market reach. Significant sales are also derived from the commercial sector, including medical and industrial applications, where reliable power solutions are essential. The company's focus on innovation and quality has positioned it favorably in a competitive market, allowing it to capitalize on emerging trends in energy storage and management.

Ultralife Financial Statement Overview

Summary

Ultralife shows strong financial performance with significant revenue growth and robust cash flow generation. The company maintains a conservative balance sheet with low leverage and a high equity ratio, providing financial stability. However, there is room for improvement in profitability metrics to align with industry leaders.

Income Statement

Ultralife demonstrates strong revenue growth, with a notable increase from $131.8 million in 2022 to $173.3 million in the TTM period. Gross profit margin is healthy at 25.2%, and the net profit margin improved to 3.1%. EBIT and EBITDA margins are stable at 5.4% and 7.1%, respectively, indicating efficient operations. However, profitability has room for improvement relative to industry leaders.

Balance Sheet

The company maintains a solid balance sheet with an equity ratio of 61% and a low debt-to-equity ratio of 0.02, reflecting strong financial stability. Return on equity (ROE) is modest at 3.9%, suggesting potential for higher returns on equity investments. Overall, the balance sheet indicates a conservative capital structure with ample equity buffer.

Cash Flow

Operating cash flow is strong at $20.1 million, with a robust free cash flow of $17.6 million, reflecting effective cash management. The operating cash flow to net income ratio is 3.8, highlighting efficient cash generation relative to net income. The free cash flow to net income ratio is favorable at 3.3, indicating a strong cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	178.85M	164.46M	158.64M	131.84M	98.27M	107.71M
Gross Profit	43.63M	42.31M	39.20M	29.40M	24.64M	29.16M
EBITDA	12.38M	14.40M	15.04M	4.59M	4.05M	8.64M
Net Income	3.20M	6.31M	7.20M	-119.00K	-234.00K	5.23M
Balance Sheet
Total Assets	220.96M	220.45M	178.28M	168.43M	159.05M	137.70M
Cash, Cash Equivalents and Short-Term Investments	10.94M	6.85M	10.28M	5.71M	8.41M	10.65M
Total Debt	3.44M	54.25M	29.16M	23.51M	23.47M	1.36M
Total Liabilities	82.32M	86.26M	52.85M	52.03M	41.31M	20.78M
Stockholders Equity	138.45M	134.00M	125.33M	116.28M	117.62M	116.80M
Cash Flow
Free Cash Flow	13.90M	14.70M	-623.00K	-2.94M	1.51M	18.62M
Operating Cash Flow	17.09M	16.64M	1.93M	-1.26M	4.33M	21.72M
Investing Cash Flow	-51.22M	-49.95M	-2.55M	-1.68M	-26.33M	-2.98M
Financing Cash Flow	38.27M	29.86M	5.49M	518.00K	19.64M	-15.69M

Ultralife Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ULBI, the sentiment is Positive. The current price of 6.65 is below the 20-day moving average (MA) of 6.82, below the 50-day MA of 6.87, and below the 200-day MA of 6.75, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 58.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ULBI.

Ultralife Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	―	$114.05M	12.51	17.68%	2.51%	13.46%	34.71%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ULBI	―	$116.01M	36.42	2.35%	―	5.86%	-68.66%
SKYX	―	$203.77M	―	-481.19%	―	5.71%	7.97%
CBAT	―	$79.67M	-8.83	-7.47%	―	-35.70%	-151.26%
FLUX	―	$71.05M	―	―	―	9.22%	20.66%
DFLI	―	$130.45M	―	―	―	4.80%	16.72%

Ultralife Corporate Events

Ultralife’s Earnings Call: Growth Amid Challenges

Ultralife Corporation’s recent earnings call painted a mixed picture for investors, with notable achievements and challenges. The company reported significant revenue growth in its Battery & Energy Products segment and successfully integrated Electrochem’s systems. However, it faced hurdles such as a decline in Communication Systems revenue, tariff challenges, and lower gross margins. Despite these issues, Ultralife’s ongoing product development and debt reduction efforts offer optimism for future growth.

Ultralife Corporation Reports Mixed Q2 2025 Results

Ultralife Corporation is a global provider of power solutions and communications systems, serving both government/defense and commercial sectors with a focus on engineering and collaborative problem-solving. In its second quarter earnings report for 2025, Ultralife Corporation reported a 13% increase in sales to $48.6 million, driven by the acquisition of Electrochem Solutions, Inc., although organic sales in its Battery & Energy Products segment remained flat and Communications Systems sales saw a significant decline. Key financial metrics revealed a gross profit of $11.6 million, consistent with the previous year, but with a reduced gross margin of 23.9% due to tariffs and product mix shifts. Operating income decreased to $2.3 million from $3.9 million in the prior year, and GAAP earnings per share fell to $0.05 from $0.18. Despite these challenges, Ultralife’s management remains optimistic about the second half of 2025 and into 2026, expecting a rebound in Communications Systems and growth in new product programs, supported by increased defense spending and operational efficiency initiatives.