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Ultralife (ULBI)
NASDAQ:ULBI
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Ultralife
(NASDAQ:ULBI)
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Rating:55Neutral
Price Target:
$6.00
▲(3.45% Upside)
Ultralife's overall stock score is driven by moderate financial performance and mixed earnings call results. The stock's technical indicators suggest bearish momentum, and its high P/E ratio indicates overvaluation. Despite revenue growth and strategic initiatives, challenges in profitability and cash flow weigh heavily on the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Ultralife's products, enhancing its market position and supporting long-term business expansion.
Backlog Growth
A growing backlog suggests strong future sales and demand, providing revenue visibility and stability for the company.
New Product Development
Investment in new products can drive future growth and competitiveness, ensuring the company remains innovative and relevant in its industry.
Negative Factors
Operating Loss
Operating losses indicate financial strain and inefficiencies, which could impact long-term profitability and require strategic adjustments.
Gross Margin Decline
Declining gross margins suggest increased production costs or pricing pressures, potentially reducing profitability and competitive edge.
Increased Operating Expenses
Rising operating expenses can strain financial resources and reduce net income, impacting the company's ability to invest in growth opportunities.
Ultralife (ULBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$97.90M
Dividend YieldN/A
Average Volume (3M)27.95K
Price to Earnings (P/E)60.8
Beta (1Y)1.64
Revenue Growth12.94%
EPS Growth-81.09%
CountryUS
Employees671
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.07
Shares Outstanding16,648,947
10 Day Avg. Volume24,245
30 Day Avg. Volume27,954
Financial Highlights & Ratios
PEG Ratio-1.43
Price to Book (P/B)0.92
Price to Sales (P/S)0.75
P/FCF Ratio8.39
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit3.55
Enterprise Value/Ebitda13.74
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ultralife Business Overview & Revenue Model
Company DescriptionUltralife Corporation, together with its subsidiaries, designs, manufactures, installs, and maintains power, and communication and electronics systems worldwide. The company operates in two segments, Battery & Energy Products and Communications Systems. The Battery & Energy Products segment offers lithium 9-volt, cylindrical, thin lithium manganese dioxide, rechargeable, and other non-rechargeable batteries; lithium-ion cells, multi-kilowatt module lithium ion battery systems, and uninterruptable power supplies; and rugged military and commercial battery charging systems and accessories, including smart chargers, multi-bay charging systems, and various cables. The Communications Systems segment provides communications systems and accessories to support military communications systems, such as radio frequency amplifiers, power supplies and cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, and integrated communication systems for fixed or vehicle applications comprising vehicle adapters, vehicle installed power enhanced rifleman appliqué systems, and SATCOM systems. This segment's military communications systems and accessories are designed to enhance and extend the operation of communications equipment, such as vehicle-mounted, manpack, and handheld transceivers. It sells its products under the Ultralife, Ultralife Thin Cell, Utralife HiRate, Ultralife and design, Ultra, Lithium Power, LithiumPower and Design, McDowell Research, AMTI, ABLE, ACCUTRONICS, ACCUPRO, ENTELLION, SWE Southwest Electronic Energy Group, SWE DRILL-DATA, and SWE SEASAFE brands through original equipment manufacturers, and industrial and defense supply distributors, as well as directly to the United States and international defense departments. In addition, the company sells its 9-volt battery to the broader consumer market through national and regional retail chains and online retailers. Ultralife Corporation serves government, defense, and commercial sectors. The company was incorporated in 1990 and is headquartered in Newark, New York.
How the Company Makes MoneyUltralife generates revenue through multiple key streams, primarily centered around its core product offerings. The company sells rechargeable and non-rechargeable batteries, battery management systems, and communications equipment, catering to both military and commercial markets. A significant portion of its income comes from contracts with governmental defense agencies and commercial partnerships, which often include long-term agreements for supply and support services. Additionally, Ultralife capitalizes on its technological advancements by developing customized solutions for specific client needs, allowing for premium pricing on specialized products. Strategic alliances and collaborations with other technology firms also contribute to its revenue, enhancing its market reach and product capabilities.
Ultralife Earnings Call Summary
Earnings Call Date:Nov 18, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with revenue growth and a growing backlog as positive indicators, but challenges such as an operating loss, decreased gross margin, and increased operating expenses weigh on the results. The company is showing promise with new product developments and strategic initiatives to improve efficiency and integration.Q3-2025 Updates
Positive Updates
Revenue Growth
Q3 sales increased to $43.4 million compared to $35.7 million in the same period last year, representing a year-over-year growth in revenue.
Government Defense Sales Increase
Government Defense sales increased by 19% due to strong demand from a U.S.-based global prime contractor.
Backlog Growth
The total backlog increased by 6.5% to $90.1 million from $84.5 million at the end of the second quarter.
Communications Systems Revenue Increase
Revenues from the Communications Systems segment increased by 8.2% to $3.4 million from $3.2 million last year.
Successful Transition of Electrochem
Completion of Electrochem transition with integration into Ultralife's information systems, leading to expanded vertical integration opportunities.
New Product Development and Opportunities
Significant investments in new product development in both Communications and Battery & Energy segments, with multiple new product launches expected in 2026.
Negative Updates
Operating Loss
An operating loss of $1 million was reported due to various challenges including a onetime adjustment of $1.1 million.
Gross Margin Decline
Consolidated gross margin declined by 210 basis points to 22.2% from 24.3% last year, primarily due to manufacturing inefficiencies and quality issues with incoming materials.
Commercial Sales Decline
Commercial sales decreased by 5.7%, including a 13.3% decline in oil and gas sales and a 10.4% decline in medical battery sales.
Net Loss
Net loss for the quarter was $1.2 million or $0.07 per share, compared to net income of $0.3 million or $0.02 per share last year.
Increased Operating Expenses
Operating expenses increased by $2.4 million or 29.4% from the year-earlier quarter, due to the inclusion of Electrochem and nonrecurring costs.
Company Guidance
In the Ultralife Corporation's third-quarter 2025 earnings call, the company reported revenues of $43.4 million, noting a year-over-year increase from $35.7 million in 2024. Despite the revenue growth, the company faced an operating loss of $1 million, influenced by a $1.1 million onetime cost related to the transition of Electrochem and the closure of the Calgary facility. Gross profit rose to $9.6 million, a 10.8% increase from the previous year, although gross margin declined by 210 basis points to 22.2%. The Battery & Energy Products segment revenue grew to $39.9 million, with a gross margin of 22.1%, while the Communications Systems segment saw an 8.2% revenue increase to $3.4 million, with a gross margin of 23.3%. The overall backlog grew to $90.1 million, a 6.5% increase over Q2. Despite challenges, the company is focusing on operational efficiencies, rebranding, and leveraging M&A activities to drive profitability and growth. Adjusted EBITDA was $2.0 million, representing 4.7% of sales, with a TTM basis of $15.5 million, or 8.3% of sales.Ultralife Financial Statement Overview
Summary
Ultralife shows moderate financial health with stable revenue growth but declining profitability margins. The balance sheet is strong with low leverage, enhancing financial stability. However, cash flow challenges, particularly in free cash flow growth, pose potential risks.Income Statement
Ultralife's income statement shows moderate revenue growth with a TTM increase of 4.29%. However, profitability margins have declined, with a TTM net profit margin of 0.92% compared to 3.84% in the previous year. The gross profit margin also decreased slightly from 25.73% to 23.89%. The EBIT and EBITDA margins have similarly contracted, indicating pressure on operational efficiency.Balance Sheet
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.03 in TTM, significantly improved from 0.40 in the previous year. Return on equity has decreased to 1.26% from 4.71%, suggesting reduced profitability on equity. The equity ratio remains robust, indicating financial stability.Cash Flow
Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -35.78% in TTM. The operating cash flow to net income ratio is 0.51, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is relatively healthy at 0.81, but overall cash flow performance is weakened.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 186.53M | 164.46M | 158.64M | 131.84M | 98.27M | 107.71M |
| Gross Profit | 44.56M | 42.31M | 39.20M | 29.40M | 24.64M | 29.16M |
| EBITDA | 11.52M | 14.40M | 15.04M | 4.96M | 3.63M | 10.39M |
| Net Income | 1.72M | 6.31M | 7.20M | -119.00K | -234.00K | 5.23M |
Balance Sheet | ||||||
| Total Assets | 222.25M | 220.45M | 178.28M | 168.43M | 159.54M | 137.70M |
| Cash, Cash Equivalents and Short-Term Investments | 9.26M | 6.85M | 10.28M | 5.71M | 8.41M | 10.65M |
| Total Debt | 53.80M | 58.39M | 29.16M | 23.51M | 23.47M | 3.56M |
| Total Liabilities | 84.81M | 86.26M | 52.85M | 52.03M | 41.80M | 20.78M |
| Stockholders Equity | 137.26M | 134.00M | 125.33M | 116.28M | 117.62M | 116.80M |
Cash Flow | ||||||
| Free Cash Flow | 8.93M | 14.70M | -623.00K | -2.94M | 1.51M | 18.62M |
| Operating Cash Flow | 12.52M | 16.64M | 1.93M | -1.26M | 4.33M | 21.72M |
| Investing Cash Flow | -51.61M | -49.95M | -2.55M | -1.68M | -26.33M | -2.98M |
| Financing Cash Flow | 41.72M | 29.86M | 5.49M | 518.00K | 19.64M | -15.69M |
Ultralife Technical Analysis
Neutral
5.80
Price Trends
5.87
Positive
6.37
Negative
6.53
Negative
Market Momentum
0.06
Negative
58.94
Neutral
80.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ULBI, the sentiment is Neutral. The current price of 5.8 is below the 20-day moving average (MA) of 5.84, below the 50-day MA of 5.87, and below the 200-day MA of 6.53, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.94 is Neutral, neither overbought nor oversold. The STOCH value of 80.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ULBI.
Ultralife Risk Analysis
Ultralife disclosed 29 risk factors in its most recent earnings report. Ultralife reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ultralife Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
87 Outperform | $138.89M | 15.03 | 18.65% | 3.85% | 4.90% | 31.13% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $97.90M | 60.84 | 1.26% | ― | 12.94% | -81.09% | |
55 Neutral | $232.05M | ― | -1421.39% | ― | 7.06% | 12.25% | |
48 Neutral | $77.40M | -12.35 | -5.16% | ― | -22.02% | -156.65% | |
42 Neutral | $33.93M | -3.50 | ― | ― | 2.14% | 5.01% | |
38 Underperform | $47.23M | -0.13 | ― | ― | 18.24% | 24.49% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.