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Ultra Electronics Holdings

BATS-CHIXE:ULEL
Snowflake Description

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

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ULEL
BATS-CHIXE
£1B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Ultra Electronics Holdings plc, an electrical and electronics engineering company, provides various solutions and products in the defense and aerospace, security, transport, and energy markets. The last earnings update was 28 days ago. More info.


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ULEL Share Price and Events
7 Day Returns
-5.4%
BATS-CHIXE:ULEL
0.6%
GB Aerospace & Defense
0.1%
GB Market
1 Year Returns
15.7%
BATS-CHIXE:ULEL
-0.8%
GB Aerospace & Defense
-23.6%
GB Market
ULEL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ultra Electronics Holdings (ULEL) -5.4% -3.1% -15.2% 15.7% -9.8% 9.9%
GB Aerospace & Defense 0.6% -15.8% -19.2% -0.8% -15.2% -21.8%
GB Market 0.1% -15.5% -27% -23.6% -24.3% -23.5%
1 Year Return vs Industry and Market
  • ULEL outperformed the Aerospace & Defense industry which returned -0.8% over the past year.
  • ULEL outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -23.6% over the past year.
Price Volatility
ULEL
Industry
5yr Volatility vs Market

Value

 Is Ultra Electronics Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ultra Electronics Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ultra Electronics Holdings.

BATS-CHIXE:ULEL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BATS-CHIXE:ULEL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.846 (1 + (1- 19%) (17.7%))
0.978
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.978 * 6.07%)
6.47%

Discounted Cash Flow Calculation for BATS-CHIXE:ULEL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ultra Electronics Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BATS-CHIXE:ULEL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.47%)
2020 71.63 Analyst x4 67.27
2021 79.30 Analyst x6 69.96
2022 97.80 Analyst x4 81.04
2023 104.33 Est @ 6.68% 81.20
2024 109.37 Est @ 4.83% 79.96
2025 113.25 Est @ 3.54% 77.76
2026 116.24 Est @ 2.64% 74.97
2027 118.57 Est @ 2.01% 71.83
2028 120.42 Est @ 1.56% 68.52
2029 121.93 Est @ 1.25% 65.16
Present value of next 10 years cash flows £737.00
BATS-CHIXE:ULEL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £121.93 × (1 + 0.53%) ÷ (6.47% – 0.53%)
£2,064.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £2,064.97 ÷ (1 + 6.47%)10
£1,103.57
BATS-CHIXE:ULEL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £737.00 + £1,103.57
£1,840.57
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,840.57 / 70.75
£26.02
BATS-CHIXE:ULEL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:ULEL represents 0.99314x of LSE:ULE
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99314x
Value per Share
(Listing Adjusted, GBP)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 26.02 x 0.99314
£25.84
Value per share (GBP) From above. £25.84
Current discount Discount to share price of £18.80
= -1 x (£18.80 - £25.84) / £25.84
27.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ultra Electronics Holdings is available for.
Intrinsic value
27%
Share price is £18.8 vs Future cash flow value of £25.84
Current Discount Checks
For Ultra Electronics Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ultra Electronics Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ultra Electronics Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ultra Electronics Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ultra Electronics Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BATS-CHIXE:ULEL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in GBP £1.05
LSE:ULE Share Price ** LSE (2020-04-07) in GBP £18.93
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PE Ratio Median Figure of 9 Publicly-Listed Aerospace & Defense Companies 17.96x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ultra Electronics Holdings.

BATS-CHIXE:ULEL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:ULE Share Price ÷ EPS (both in GBP)

= 18.93 ÷ 1.05

18.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ultra Electronics Holdings is overvalued based on earnings compared to the GB Aerospace & Defense industry average.
  • Ultra Electronics Holdings is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Ultra Electronics Holdings's expected growth come at a high price?
Raw Data
BATS-CHIXE:ULEL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
3.4%per year
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PEG Ratio Median Figure of 8 Publicly-Listed Aerospace & Defense Companies 2.01x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 517 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

BATS-CHIXE:ULEL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.01x ÷ 3.4%

5.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ultra Electronics Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ultra Electronics Holdings's assets?
Raw Data
BATS-CHIXE:ULEL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in GBP £6.07
LSE:ULE Share Price * LSE (2020-04-07) in GBP £18.93
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PB Ratio Median Figure of 13 Publicly-Listed Aerospace & Defense Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.11x
BATS-CHIXE:ULEL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:ULE Share Price ÷ Book Value per Share (both in GBP)

= 18.93 ÷ 6.07

3.12x

* Primary Listing of Ultra Electronics Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ultra Electronics Holdings is overvalued based on assets compared to the GB Aerospace & Defense industry average.
X
Value checks
We assess Ultra Electronics Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Ultra Electronics Holdings has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ultra Electronics Holdings expected to grow at an attractive rate?
  • Ultra Electronics Holdings's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Ultra Electronics Holdings's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Ultra Electronics Holdings's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:ULEL Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:ULEL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 3.4%
BATS-CHIXE:ULEL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 4.6%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BATS-CHIXE:ULEL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BATS-CHIXE:ULEL Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 952 124 81 5
2021-12-31 897 113 75 10
2020-12-31 857 101 65 10
2020-04-07
BATS-CHIXE:ULEL Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-12-31 825 95 75
2019-09-30 814 95 61
2019-06-30 803 96 48
2019-03-31 785 91 40
2018-12-31 767 87 32
2018-09-30 763 80 35
2018-06-30 760 73 38
2018-03-31 767 75 43
2017-12-31 775 78 49
2017-09-30 780 79 53
2017-06-30 786 80 58
2017-03-31 786 87 58

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ultra Electronics Holdings's earnings are expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
  • Ultra Electronics Holdings's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BATS-CHIXE:ULEL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Ultra Electronics Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:ULEL Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.12 1.16 1.09 2.00
2021-12-31 1.05 1.09 1.00 5.00
2020-12-31 0.92 0.96 0.83 5.00
2020-04-07
BATS-CHIXE:ULEL Past Financials Data
Date (Data in GBP Millions) EPS *
2019-12-31 1.05
2019-09-30 0.86
2019-06-30 0.67
2019-03-31 0.55
2018-12-31 0.44
2018-09-30 0.46
2018-06-30 0.49
2018-03-31 0.57
2017-12-31 0.66
2017-09-30 0.74
2017-06-30 0.82
2017-03-31 0.82

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ultra Electronics Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ultra Electronics Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ultra Electronics Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ultra Electronics Holdings's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ultra Electronics Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Ultra Electronics Holdings's 1-year earnings growth exceeds its 5-year average (130.1% vs 21.6%)
  • Ultra Electronics Holdings's earnings growth has exceeded the GB Aerospace & Defense industry average in the past year (130.1% vs 12.4%).
Earnings and Revenue History
Ultra Electronics Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ultra Electronics Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:ULEL Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 825.40 74.50 137.50
2019-09-30 814.38 61.21 137.08
2019-06-30 803.36 47.91 136.65
2019-03-31 785.05 40.15 139.44
2018-12-31 766.75 32.38 142.22
2018-09-30 763.13 35.00 139.32
2018-06-30 759.52 37.62 136.42
2018-03-31 767.46 43.29 137.54
2017-12-31 775.40 48.96 138.66
2017-09-30 780.47 53.39 144.46
2017-06-30 785.54 57.82 150.26
2017-03-31 785.65 58.04 149.61
2016-12-31 785.76 58.26 148.96
2016-09-30 773.48 50.94 150.19
2016-07-01 761.19 43.61 151.43
2016-04-01 743.74 34.30 149.54
2015-12-31 726.29 24.99 147.65
2015-09-30 715.39 8.50 148.58
2015-06-30 704.50 -7.99 149.51
2015-03-31 709.12 6.41 146.37
2014-12-31 713.74 20.80 143.23
2014-09-30 716.05 31.87 131.78
2014-06-30 718.36 42.93 120.33
2014-03-31 731.76 40.55 126.00
2013-12-31 745.15 38.16 131.66
2013-09-30 751.78 51.74 138.26
2013-06-30 758.41 65.31 144.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ultra Electronics Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ultra Electronics Holdings used its assets more efficiently than the GB Aerospace & Defense industry average last year based on Return on Assets.
  • Ultra Electronics Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ultra Electronics Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ultra Electronics Holdings has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ultra Electronics Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ultra Electronics Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ultra Electronics Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ultra Electronics Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ultra Electronics Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ultra Electronics Holdings Company Filings, last reported 3 months ago.

BATS-CHIXE:ULEL Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 430.60 237.00 82.20
2019-09-30 430.60 237.00 82.20
2019-06-30 424.22 301.14 92.94
2019-03-31 424.22 301.14 92.94
2018-12-31 420.79 253.72 96.32
2018-09-30 420.79 253.72 96.32
2018-06-30 444.13 294.43 124.35
2018-03-31 444.13 294.43 124.35
2017-12-31 512.21 223.98 149.52
2017-09-30 512.21 223.98 149.52
2017-06-30 367.82 340.75 80.39
2017-03-31 367.82 340.75 80.39
2016-12-31 363.57 331.33 74.63
2016-09-30 363.57 331.33 74.63
2016-07-01 359.93 365.17 39.78
2016-04-01 359.93 365.17 39.78
2015-12-31 316.84 341.05 45.47
2015-09-30 316.84 341.05 45.47
2015-06-30 299.76 191.80 41.88
2015-03-31 299.76 191.80 41.88
2014-12-31 303.45 170.75 41.26
2014-09-30 303.45 170.75 41.26
2014-06-30 334.34 183.84 46.10
2014-03-31 334.34 183.84 46.10
2013-12-31 321.18 72.66 30.57
2013-09-30 321.18 72.66 30.57
2013-06-30 351.35 96.92 50.33
  • Ultra Electronics Holdings's level of debt (55%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (56.4% vs 55% today).
  • Debt is well covered by operating cash flow (39.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 234.3x coverage).
X
Financial health checks
We assess Ultra Electronics Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ultra Electronics Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.86%
Current annual income from Ultra Electronics Holdings dividends. Estimated to be 3.05% next year.
If you bought £2,000 of Ultra Electronics Holdings shares you are expected to receive £57 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ultra Electronics Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.59%).
  • Ultra Electronics Holdings's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.08%).
Upcoming dividend payment

Purchase Ultra Electronics Holdings before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BATS-CHIXE:ULEL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 3.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 588 Stocks 5.6%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.6%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BATS-CHIXE:ULEL Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.64 5.00
2021-12-31 0.58 10.00
2020-12-31 0.54 10.00
2020-04-07
BATS-CHIXE:ULEL Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2020-03-10 0.542 2.983
2019-03-27 0.516 2.713
2019-03-06 0.516 3.325
2018-08-13 0.496 3.492
2018-03-12 0.496 3.234
2018-03-05 0.496 3.536
2017-03-22 0.478 2.792
2017-03-06 0.478 2.212
2016-03-24 0.461 2.543
2016-02-29 0.461 2.595
2015-03-24 0.443 2.460
2015-03-02 0.443 2.534
2014-08-19 0.427 2.415
2014-03-27 0.422 2.363
2014-03-03 0.422 2.308
2013-08-07 0.405 2.130
2013-03-04 0.400 2.318
2012-02-29 0.385 2.368
2012-02-27 0.385 2.275
2011-02-28 0.346 2.205
2011-02-25 0.346 1.975
2010-04-07 0.312 1.878
2010-03-01 0.312 2.096
2009-08-17 0.276 2.106

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Ultra Electronics Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Ultra Electronics Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ultra Electronics Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ultra Electronics Holdings has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ultra Electronics Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Simon Pryce
COMPENSATION £1,059,670
AGE 57
TENURE AS CEO 1.8 years
CEO Bio

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 June 30, 2017. Mr. Pryce served at GKN Plc for 9 years in a variety of roles, served as the Chief Executive Officer of GKN's Diversified Businesses Group. He served as Director of Finance and Controlling, GKN Driveline at GKN PLC. He served as Senior Vice President at JP Morgan & Co and a Director of Lazard. Mr. Pryce serves as a Director of General Aviation Manufacturers Association. He joined Electrocomponents plc in September 2016. He has been an Independent Non-Executive Director of Electrocomponents plc since September 26, 2016. He served as an Executive Director of BBA Aviation Plc from June 11, 2007 to June 30, 2017. He is a member of the Council of The University of Reading. He is a Chartered Accountant and has previously worked in investment banking. He is a Member of the Chartered Institute of Securities & Investment, a Fellow of the Royal Aeronautical Society. He held a range of international finance and management roles at GKN plc, JP Morgan and Lazards in London and New York. Mr. Pryce holds a BSc from the University of Reading. His Skills and experience includes: • Strategy • International operations • Emerging markets • Manufacturing • Mergers and acquisitions • Integration • Strategic financing and capital markets • Leadership • Service industry • Group Chief Executive

CEO Compensation
  • Insufficient data for Simon to compare compensation growth.
  • Simon's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Ultra Electronics Holdings management team in years:

1.5
Average Tenure
  • The average tenure for the Ultra Electronics Holdings management team is less than 2 years, this suggests a new team.
Management Team

Simon Pryce

TITLE
CEO & Director
COMPENSATION
£1M
AGE
57
TENURE
1.8 yrs

Jos Sclater

TITLE
Director & Group Finance Director
AGE
46
TENURE
0.3 yrs

Carlos Santiago

TITLE
COO & Executive VP of Commercial & Corporate Affairs

Gabby Clinkard

TITLE
Head of Investor Relations

Louise Ruppel

TITLE
General Counsel & Company Secretary
TENURE
1.3 yrs

Chris Binsley

TITLE
Corporate Marketing Director

Steve Izquierdo

TITLE
Chief Human Resources Officer

Mike Clayton

TITLE
Managing Director of Precision Control Systems

Doug Burd

TITLE
Managing Director of Avalon Systems & Ultra Electronics Australia pty

Graeme Stacey

TITLE
Divisional Managing Director of Aerospace & Infrastructure
TENURE
10.3 yrs
Board of Directors Tenure

Average tenure and age of the Ultra Electronics Holdings board of directors in years:

2.4
Average Tenure
57
Average Age
  • The average tenure for the Ultra Electronics Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Tony Rice

TITLE
Chairman of the Board
AGE
67
TENURE
1.3 yrs

Simon Pryce

TITLE
CEO & Director
COMPENSATION
£1M
AGE
57
TENURE
1.8 yrs

Jos Sclater

TITLE
Director & Group Finance Director
AGE
46
TENURE
0.3 yrs

Martin Broadhurst

TITLE
Independent Non-Executive Director
COMPENSATION
£58K
AGE
66
TENURE
7.8 yrs

Dan Shook

TITLE
Independent Non-Executive Director
AGE
52
TENURE
0.6 yrs

Rob Walmsley

TITLE
Senior Independent Director
COMPENSATION
£58K
AGE
78
TENURE
5.1 yrs

Geeta Gopalan

TITLE
Independent Non-Executive Director
COMPENSATION
£53K
AGE
55
TENURE
3 yrs

Victoria Hull

TITLE
Independent Non-Executive Director
COMPENSATION
£53K
AGE
57
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Ultra Electronics Holdings individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
19. Mar 20 Buy Martin Broadhurst Individual 19. Mar 20 19. Mar 20 500 £14.85 £7,425
17. Mar 20 Buy Simon Pryce Individual 13. Mar 20 13. Mar 20 4,100 £18.33 £75,137
13. Mar 20 Buy Simon Pryce Individual 12. Mar 20 12. Mar 20 3,900 £19.19 £74,826
06. Dec 19 Buy Daniel Shook Individual 05. Dec 19 05. Dec 19 2,500 £20.10 £50,237
29. Aug 19 Buy William Rice Individual 28. Aug 19 28. Aug 19 2,313 £21.50 £49,729
29. Aug 19 Buy William Rice Individual 29. Aug 19 29. Aug 19 2,687 £21.52 £57,815
X
Management checks
We assess Ultra Electronics Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ultra Electronics Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Ultra Electronics Holdings plc, an electrical and electronics engineering company, provides various solutions and products in the defense and aerospace, security, transport, and energy markets. The company operates in three segments: Aerospace & Infrastructure, Communications & Security, and Maritime & Land. The Aerospace & Infrastructure segment offers military and civil aerospace systems and sub-systems, as well as control systems and instrumentation for the operation of energy generating plants. The Communications & Security segment provides mission critical solutions, including secure communications and encryption solutions, as well as capabilities related to command and control, security and surveillance solutions, and military electronic warfare. The Maritime & Land segment offers underwater warfare and maritime systems for surface, sub-surface, and unmanned platforms for military, paramilitary, and civil domains, as well as provides modern military manned and unmanned vehicles. The company operates in the United Kingdom, Continental Europe, Canada, the United States, and internationally. Ultra Electronics Holdings plc was founded in 1993 and is headquartered in Greenford, the United Kingdom.

Details
Name: Ultra Electronics Holdings plc
ULEL
Exchange: BATS-CHIXE
Founded: 1993
£1,339,270,354
70,748,566
Website: http://www.ultra-electronics.com
Address: Ultra Electronics Holdings plc
417 Bridport Road,
Greenford,
Middlesex, UB6 8UA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE ULE Ordinary Shares London Stock Exchange GB GBP 31. Jan 1975
OTCPK UEHP.F Ordinary Shares Pink Sheets LLC US USD 31. Jan 1975
DB UEH Ordinary Shares Deutsche Boerse AG DE EUR 31. Jan 1975
BATS-CHIXE ULEL Ordinary Shares BATS 'Chi-X Europe' GB GBP 31. Jan 1975
OTCPK UEHP.Y ADR Pink Sheets LLC US USD 06. Oct 2008
Number of employees
Current staff
Staff numbers
4,089
Ultra Electronics Holdings employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 20:53
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/03/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.