Ultralife Corporation, a prominent player in the Electrical Equipment industry, has shown considerable stability with a Beta of 1.2923, indicating a level of volatility that is slightly higher than the market average. As of August 3, 2023, the company boasts a total asset of
168.43M and a net asset of
168.43M, with total revenue reaching
131.8M. However, the company's operating margin is relatively low at 0.0289%, and it reported a net interest income loss of 951K. Despite this, the company's Z Score of 4.56 suggests a low probability of bankruptcy (13.26%). Ultralife's Price to Earning ratio stands at 13.93X, which is relatively attractive, and its Price to Book ratio is 0.59X, indicating that the stock is undervalued relative to its book value of 7.401. With 65.32% of shares owned by institutions and a short ratio of 1.96, there may be untapped potential in Ultralife stock this September. It appears that FuelCell Energy is on a faster recovery path, despite its price decreasing by 5.63% today, compared to Ultralife's 0.24% drop. Given the heightened interest in the electrical equipment sector, we will evaluate both Ultralife and FuelCell Energy as potential short-term investment opportunities. Our focus will be on examining some of the competitive aspects of both Ultralife and FuelCell Energy.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Ultralife. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Ultralife, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Ultralife's Liquidity
Ultralife
financial leverage refers to using borrowed capital as a funding source to finance Ultralife ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ultralife financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Ultralife's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Ultralife's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Ultralife's total debt and its cash.
Breaking down Ultralife Further
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Ultralife revenue. Based on the latest financial disclosure, Ultralife reported 131.84
M of revenue. This is 96.23% lower than that of the Electrical Equipment sector and significantly higher than that of the
Industrials industry. The revenue for all United States stocks is 98.6% higher than that of Ultralife. As for FuelCell Energy we see revenue of 130.48
M, which is much higher than that of the Industrials
| Ultralife | 131.84 Million |
| Sector | 0.0 |
| FuelCell | 130.48 Million |
Ultralife Corporation, a key player in the Industrials sector, specifically in the Machinery, Tools, Heavy Vehicles, Trains & Ships industry, has been showing signs of untapped potential this September.
Despite a negative operating income of $4.3M and a net income loss of $120K, the company's quarterly revenue growth stands at 0.329, indicating a promising upward trend. The company's current ratio of 3.24X and net assets of
$168.43M further strengthen its financial stability. The stock's beta of 1.29 suggests a higher volatility compared to the market, which could be attractive for risk-tolerant investors. The company's price to book ratio stands at 0.59X, significantly lower than the industry average, suggesting that the stock may be undervalued. Despite a short percent of 0.0049, the number of shares shorted has increased from 42.3K to 45.9K, indicating a bearish sentiment among some investors. However, with a target price of $12 and a potential upside of 5.35, there is a strong case for investment in Ultralife. The company's market capitalization stands at
$135.6M, and with a total debt of $21.31M, the debt to equity ratio is a comfortable 0.20%. Given these factors, Ultralife stock presents an intriguing investment opportunity this September. .
Ultralife is likely to close below $8.57 next week
Despite Ultralife's recent risk-adjusted performance increase over 0.13, which suggests a potential for higher returns, the stock is expected to face a downward trend in the coming week. The company's current market dynamics and external factors indicate a potential closing price below $8.57. Investors are advised to exercise caution and closely monitor the stock's performance in the upcoming week before making any investment decisions. As of August 2nd, Ultralife has a Semi Deviation of 1.05, a risk-adjusted performance of 0.1259, and a Coefficient Of Variation of 551.0. With respect to fundamental indicators, the
technical analysis model allows you to examine existing technical drivers of Ultralife, as well as their interrelationships. In other words, this information can be used to determine if the company will indeed reflect its model of past prices and volume data, or if the prices will eventually revert. We have analyzed nineteen technical drivers for Ultralife, which can be compared to its
competitors. Please verify Ultralife's Jensen Alpha, potential upside, as well as the relationship between the Potential Upside and Skewness to decide if Ultralife is priced accurately, given that the market reflects its current price of $8.4 per share.
Given that Ultralife has a Jensen Alpha of 1.23, we recommend that you double-check Ultralife's current market performance to ensure the company can sustain itself in the future. In conclusion, Ultralife Corporation, with a fiscal year end in December, presents a promising investment opportunity. The analyst overall consensus is a
Strong Buy, with one analyst offering a strong buy recommendation. The analyst target price estimated value stands at
$12, which is also the highest and lowest estimated target price, suggesting a consensus on the stock's potential. The valuation real value of
$9.73 is slightly above the valuation market value of
$8.4, indicating a potential upside. However, investors should also consider the possible downside price of
$2.98. With a valuation hype value of
9.11 and a naive expected forecast value of
$9.95, Ultralife's stock could offer substantial returns in September. .
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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