Ultralife Corp

Ultralife Corp's capital structure shows a market cap of $101.6 million and a price-to-book ratio of 0.78, indicating a discount to tangible book value. The company has a debt-to-equity ratio of 0.38, suggesting a relatively conservative leverage profile. However, the free cash flow of -$4.3 million and negative operating income of -$5.9 million highlight liquidity constraints despite a current ratio of 2.83. Profitability metrics are weak, with a return on equity of -4.54% and a return on assets of -2.72%. The gross margin of 24.1% is below the industry median of 32.5%, and the operating margin is negative at -3.1%, compared to a median of 8.2%. These figures suggest operational inefficiencies and pricing pressures. The company's revenue is concentrated in a few key markets, with 62% of revenue derived from the defense segment and 38% from commercial and industrial applications. Geographically, 78% of revenue comes from North America, with the remaining 22% from international markets. This concentration increases exposure to defense budget cycles and regional economic shifts. Growth trajectory is mixed. Revenue in the latest period was $191.16 million, a 3.2% decline year-over-year. The company expects a 1.5% revenue contraction in the current fiscal year and a 2.1% decline in the next fiscal year. These projections reflect ongoing challenges in the defense and industrial markets. Risk factors include liquidity constraints, with net cash negative after subtracting total debt. The dilution risk is low, with no near-term pressure from share issuance. However, the company's negative operating income and free cash flow raise concerns about its ability to sustain operations without external financing. Recent events include a 10-K filing disclosing supply chain disruptions and a Q4 earnings call where management outlined cost-cutting initiatives. The ESG profile shows a governance score of 19.01 and a social score of 14.99, with a controversies score of 100.00, indicating no major controversies.