Ultra Electronics (ULE)

Business description

Ultra Electronics is a global aerospace and defence electronics company, with operations across three divisions: Aerospace & Infrastructure (26% of 2016 sales); Communications & Security (33%); and Maritime & Land (41%).

Stock data

Market cap.£1367.8m
Last close1,760.00p
High / Low (52 weeks)2204.0p / 1730.0p
Stock market listingLN
Forecast net debt (£m)97.4
Forecast gearing ratio (%)19
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual(3.6)(13.3)(0.5)
Relative *(2.4)(12.1)(6.6)

* % Relative to local index

Other companies in sector Show

Company news

Ultra Electronics to buy US partner Sparton for $235m

Fri, 07 Jul 2017 08:29:16 GMT

What fired Ultra Electronics to record high?

Mon, 06 Mar 2017 17:37:30 GMT

US DoJ Seeks Addl Information On Ultra Electronics - Sparton Deal

Mon, 25 Sep 2017 11:26:15 GMT

Ultra Electronics in talks to buy Sparton

Sat, 24 Jun 2017 12:22:30 GMT

EXTRA: Ultra Electronics Growth From Orders Capped By Costs And Delays

Mon, 07 Aug 2017 12:00:00 GMT

Investment summary

The outlook for FY17 is for slightly improved organic growth, marginally offset by dilution from the ID disposal. The interim statement supported the existing outlook, with a strengthening order inflow and a strong balance sheet. The $235m offer for Sparton Corporation appears a logical and focused expansion of Ultra’s core business to leverage the improving defence spending environment, which should accelerate in FY18. The offer looks financially compelling with $9m of cost savings delivering value creation in FY19. Completion should be in early 2018.

Last updated on 06/09/2017

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 726.3 134.8 112.4 123.9 14.2 14.4
2016A 785.8 148.0 120.1 134.6 13.1 10.5
2017E 802.5 147.0 120.4 127.7 13.8 12.1
2018E 840.0 153.9 130.1 130.6 13.5 9.9

Last updated on 23/08/2017

Latest video

Analyst Interview - Ultra Electronics

Industry outlook

With defence drivers moving towards greater demand for electronic equipment and information management, Ultra is well positioned to benefit from more frequent upgrade cycles. In addition, it appears that defence spending may have turned a corner in the western world. Also, with civil airport infrastructure booming in emerging economies and an increasing civil aircraft build rate, Ultra stands to benefit from its diversified end-markets.

Last updated on 06/09/2017

Key management

Douglas Caster, Chairman
Rakesh Sharma, CEO
Ami Sharma, CFO

Company address

417 Bridport Road
Greenford
Middlesex
UB6 8UA
United Kingdom
+44 (0) 20 8813 4321
View website