Cliff Note #77
Lithium battery company selling at low P/E about to enter a new period of extended earnings growth
Ultralife Corporation (ULBI)
Themes:
BigCapMicrocap- GARP - More Predictable Revenue - Strong Earnings Power Ranking
Data
Founded: 1990
Exchange: NASDAQ
Price: $8.24
Shares Outstanding: 16.34M
Market Cap: $134M
TTM Revenue: $144M
LT Debt: $24M
Current Portion of LT Debt: $2M
Cash: $9.3M
P/E trailing 12 months: 32x
P/E 2024 est: 11.7x
EV/S trailing 12 months: 1x
EV/S on 2024 revenue est: 0.85x
What they do:
Manufactures lithium batteries and communication equipment to sell into mission-critical markets.
Product Sales Breakdown: 84% Battery; 16% Communication
Industries served: 36% Government & Defense; 28% Oil & Gas, Subsea; 20% Medical/healthcare; 10% Safety & Security & Industrial; 6% Energy Storage
In the company’s words:
We offer products and services ranging from power solutions to communications and electronics systems to customers across the globe in the government, defense and commercial sectors. We report our results in two operating segments: Battery & Energy Products and Communications Systems.
The Battery & Energy Products segment includes: Lithium 9-volt, cylindrical, thin cell and other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories.
The Communications Systems segment includes: RF amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, integrated communication systems for fixed or vehicle applications and communications and electronics systems design. Under our McDowell Research and AMTI brands, we design and manufacture a line of communications systems and accessories to support military communications requirements and under
Commercial communication products offered to date under the Ultralife brand integrate information technology equipment and power conversion capability into rugged cases, supporting use in various industries. We market these products to automotive, cellular carriers and manufacturing industries.
Growth in sales and earnings have been unexciting over the last several years, but it seems the company’s focus on new market segments and new product rollouts could lead to some predictable growth over the next few years.