Ultralife (ULBI) AI Stock Analysis

• Market Cap: $138.05M
• Dividend Yield: N/A
• Average Volume (3M): 102.74K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.87
• Revenue Growth: 2.74%
• EPS Growth: -50.31%
• Country: US
• Employees: 671
• Sector: Industrials
• Sector Strength: 83
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.11
• Shares Outstanding: 16,632,965
• 10 Day Avg. Volume: 143,336
• 30 Day Avg. Volume: 102,738
• PEG Ratio: 10.75
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.16
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 1.29
• 1Y Price Target: $14.00
• Price Target Upside: 72.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $8.50 ▲(4.81%Upside)

Ultralife's stock is bolstered by strong financial performance and revenue growth, despite some profitability challenges. Bullish technical indicators suggest positive momentum, though overbought signals warrant caution. The valuation appears slightly high relative to peers, and mixed earnings call insights highlight both growth potential and operational challenges.

Positive Factors

Financial Performance

ULBI reported sales were $50.7M, up 32% year-over-year, exceeding the estimate of $48.0M.

Market Expansion

The Electrochem integration is nearly complete, expanding ULBI into new markets such as pipeline inspection, seismic telemetry, and sonobuoys.

Regulatory Approval

ULBI's partner on the medical wearable opportunity received FDA approval, which should translate to material orders.

Negative Factors

Product Sales Decline

Organic growth was partially offset by a 12.3% decrease in medical battery sales.

Ultralife Business Overview & Revenue Model

Company Description

Ultralife Corporation (ULBI) is a diversified technology company that operates primarily in the energy storage and communications sectors. The company designs, manufactures, installs, and maintains power solutions and communications systems, catering to a wide range of industries including defense, aerospace, medical, and industrial sectors. Ultralife's core products include non-rechargeable and rechargeable batteries, power systems, and communication systems.

How the Company Makes Money

Ultralife makes money through the sale of its energy storage and communications products and services. The company's revenue model is based on manufacturing and selling a variety of battery types and energy solutions, such as lithium-ion batteries, lithium-manganese dioxide batteries, and advanced communications systems. Ultralife also generates income through service contracts related to the maintenance and installation of its products. Key revenue streams include sales to government agencies, defense contractors, and commercial markets. Additionally, strategic partnerships and long-term contracts with major clients contribute significantly to its earnings, providing a stable and recurring revenue base.

Ultralife Financial Statement Overview

Summary

Ultralife demonstrates solid financial performance with strong revenue growth and effective cash flow management. The balance sheet shows low leverage and high equity ratio. However, there is potential for improvement in profitability metrics.

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
173.28M	164.46M	158.64M	131.84M	98.27M	107.71M
	Gross Profit
43.59M	42.31M	39.20M	29.40M	24.64M	29.16M
	EBIT
9.30M	9.96M	9.47M	-4.33M	-3.50M	1.17M
	EBITDA
12.36M	14.40M	15.04M	4.59M	4.05M	8.64M
	Net Income Common Stockholders
5.29M	6.31M	7.20M	-120.00K	-230.00K	5.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.72M	6.85M	10.28M	5.71M	8.41M	10.65M
	Total Assets
223.75M	220.45M	178.28M	168.43M	159.05M	137.70M
	Total Debt
3.09M	54.25M	29.16M	21.31M	20.86M	1.36M
	Net Debt
-5.63M	47.40M	18.88M	15.60M	12.44M	-9.29M
	Total Liabilities
87.15M	86.26M	52.85M	52.03M	41.31M	20.78M
	Stockholders Equity
136.40M	134.00M	125.33M	116.28M	117.62M	116.80M
Cash Flow		Free Cash Flow
17.63M	14.70M	-623.00K	-2.94M	1.51M	18.62M
	Operating Cash Flow
20.09M	16.64M	1.93M	-1.26M	4.33M	21.72M
	Investing Cash Flow
-50.48M	-49.95M	-2.55M	-1.68M	-26.33M	-2.98M
	Financing Cash Flow
28.99M	29.86M	5.49M	518.00K	19.64M	-15.69M

Ultralife Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 8.11 is above the 20-day moving average (MA) of 7.14, above the 50-day MA of 5.72, and above the 200-day MA of 7.21, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 70.32 is Negative, neither overbought nor oversold. The STOCH value of 72.59 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	82 Outperform	$115.95M	15.27	16.59%	2.44%	18.62%	34.63%
ULBI	76 Outperform	$138.05M	25.74	3.99%	―	2.74%	-50.31%
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%
CBAT	64 Neutral	$99.83M	287.50	0.31%	―	-30.85%	-95.67%
FCEL	57 Neutral	$134.47M	―	-20.52%	―	48.62%	0.23%
SDST	26 Underperform	$11.68M	―	-860.70%	―	―	-12310.81%

Ultralife Corporate Events

Ultralife Completes Electrochem Acquisition and Secures Financing

Ultralife Corporation has completed the acquisition of Electrochem Solutions, Inc. for $50 million, enhancing its market position with advanced battery technology for military and industrial applications. The acquisition was financed through a new Credit and Security Agreement with KeyBank. This strategic move aims to capitalize on cost efficiencies and expand revenue opportunities by integrating Electrochem’s expertise and products into Ultralife’s operations, thereby strengthening its competitive edge across global markets.