Ultralife Corporation (ULBI) has shown promising signs of a potential rebound, making it an attractive investment option. The company's Mean Deviation of 2.69 and Standard Deviation of 6.78 indicate a relatively stable performance, while its Total Risk Alpha of 0.2341 suggests a low risk-adjusted performance. The company's EPS estimates for the current year, next year, and current quarter are $0.28, $0.68, and $0.04 respectively, indicating a positive earnings outlook. However, investors should note that Ultralife reported a loss in Free Cash Flow of
2.9M. Despite this, the company has a healthy cash reserve of
5.7M. With a Market Capitalization of
135.6M, Ultralife is a small-cap stock, but its potential upside of 5.35 suggests room for growth. Given these factors, now may be a good time to consider investing in Ultralife.
Deep-dive analysis
By examining the fundamental drivers between Ultralife and FuelCell, we can assess the impact of market volatilities on the prices of both companies and determine if they can mitigate market risk when combined in one of your portfolios. Pair trading strategies can also be employed, matching a long position in FuelCell with a short position in Ultralife. For more information, please visit our
pair correlation module.
Now, let's delve into the assets. The asset utilization indicator reflects the revenue generated for every dollar of assets a company currently reports. Ultralife has an asset utilization ratio of 78.28 percent, which implies that the company is generating $0.78 for each dollar of assets. An increasing asset utilization ratio indicates that Ultralife is becoming more efficient with each dollar of assets it uses for daily operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Ultralife or NeoVolta is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
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.
Correlation Between Ultralife and NeoVolta Common Stock
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Ultralife together with similar or unrelated positions with a negative correlation. For example, you can also add NeoVolta Common to your portfolio. If NeoVolta Common is not perfectly correlated to Ultralife it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Ultralife, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Ultralife and NeoVolta Common in your portfolio? Please note if you are using this as a pair-trade strategy between Ultralife and NeoVolta Common, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between ULBI and NEOV for more information.
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
Let me take a closer look at 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 (NASDAQ: ULBI), a player in the Electrical Components & Equipment sector, has been showing signs of a potential rebound. The company's current ratio stands at a healthy 3.24X, indicating its ability to meet short-term obligations.
Despite a loss per share of $0.02, the company's EPS estimate for the current year is $0.28, hinting at a potential turnaround. Ultralife's net assets are valued at
$168.43 million, with a book value of $7.401 per share. The price to book ratio is a modest 0.59X, suggesting the stock may be undervalued. The company's risk-adjusted performance is 0.1259, and it has a Sortino Ratio of 0.6348, indicating a good risk-reward balance. The company's total debt is manageable at $21.31 million, especially considering its revenue of
$131.84 million. The quarterly revenue growth of 0.329 is a positive sign, and the company's return on assets stands at 0.0154. Institutional ownership is high at 65.32%, indicating confidence from large investors. The Wall Street target price for Ultralife is $12, a significant upside from the current price. Given these factors, it may be time to consider investing in Ultralife. .
Ultralife is likely to close below $8.23 next week
The recent surge in semi-variance over 1.1 for Ultralife's stock signals an uptick in volatility and potential risk. This heightened unpredictability, combined with other market factors, implies that Ultralife may struggle to maintain its current market position. Consequently, it is reasonable to predict that Ultralife's stock could drop below $8.23 in the upcoming week. Investors are advised to exercise caution and take this potential downward trend into account when making investment decisions. As of August 2nd, Ultralife has a Coefficient Of Variation of 551.0, a semi-deviation of 1.05, and a Risk Adjusted Performance of 0.1259. In relation to fundamental indicators, the
technical analysis model allows you to examine current technical drivers of Ultralife, as well as their interrelationships. In other words, this information can be used to determine if the company will mirror its model of historical prices and volume data, or if 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 the current market price of $8.4 per share. Considering that Ultralife has a Jensen Alpha of 1.23, we recommend that you reassess Ultralife's current market performance to ensure the company can sustain itself in the future. In conclusion, Ultralife Corporation (NASDAQ:ULBI) presents a compelling investment opportunity. Despite the potential downside price of
$2.98, the analyst's highest estimated target price stands at
$12, with a strong buy consensus from the single analyst covering the stock. This indicates a possible upside price of $16.92, a significant potential return on investment. The company's valuation real value of $9.73 also surpasses its market value of $8.4, suggesting that the stock is undervalued. Therefore, given the strong buy recommendation and the potential for substantial upside, investors should consider adding Ultralife to their portfolios. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Ultralife. Please refer to our
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