ULTRAPAR PARTICPAC-SPON ADR (UGP) Stock Fundamental Analysis
NYSE:UGP - New York Stock Exchange, Inc. - US90400P1012 - ADR - Currency: USD
Overall UGP gets a fundamental rating of 5 out of 10. We evaluated UGP against 208 industry peers in the Oil, Gas & Consumable Fuels industry. UGP has only an average score on both its financial health and profitability. UGP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes UGP very considerable for value investing!
1. Profitability
1.1 Basic Checks
UGP had positive earnings in the past year.
UGP had a positive operating cash flow in the past year.
Each year in the past 5 years UGP has been profitable.
UGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UGP's Return On Assets of 6.00% is fine compared to the rest of the industry. UGP outperforms 65.38% of its industry peers.
UGP's Return On Equity of 14.90% is fine compared to the rest of the industry. UGP outperforms 73.08% of its industry peers.
With an excellent Return On Invested Capital value of 11.14%, UGP belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UGP is significantly below the industry average of 23.87%.
The 3 year average ROIC (10.37%) for UGP is below the current ROIC(11.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 14.9% | ||
| ROIC | 11.14% |
ROA(3y)5.76%
ROA(5y)4.39%
ROE(3y)16.34%
ROE(5y)13.37%
ROIC(3y)10.37%
ROIC(5y)7.58%
1.3 Margins
The Profit Margin of UGP (1.66%) is worse than 62.50% of its industry peers.
In the last couple of years the Profit Margin of UGP has grown nicely.
UGP has a worse Operating Margin (3.61%) than 69.71% of its industry peers.
In the last couple of years the Operating Margin of UGP has grown nicely.
UGP has a worse Gross Margin (7.16%) than 74.04% of its industry peers.
In the last couple of years the Gross Margin of UGP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.61% | ||
| PM (TTM) | 1.66% | ||
| GM | 7.16% |
OM growth 3Y42.59%
OM growth 5Y11.25%
PM growth 3Y31.69%
PM growth 5Y33.44%
GM growth 3Y17.53%
GM growth 5Y1.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UGP is creating some value.
The number of shares outstanding for UGP has been reduced compared to 1 year ago.
The number of shares outstanding for UGP has been reduced compared to 5 years ago.
UGP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.07 indicates that UGP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.07, UGP belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
The Debt to FCF ratio of UGP is 6.09, which is on the high side as it means it would take UGP, 6.09 years of fcf income to pay off all of its debts.
UGP has a Debt to FCF ratio (6.09) which is comparable to the rest of the industry.
UGP has a Debt/Equity ratio of 0.80. This is a neutral value indicating UGP is somewhat dependend on debt financing.
UGP's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. UGP is outperformed by 63.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.16
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.76 indicates that UGP should not have too much problems paying its short term obligations.
UGP's Current ratio of 1.76 is fine compared to the rest of the industry. UGP outperforms 73.56% of its industry peers.
UGP has a Quick Ratio of 1.26. This is a normal value and indicates that UGP is financially healthy and should not expect problems in meeting its short term obligations.
UGP's Quick ratio of 1.26 is fine compared to the rest of the industry. UGP outperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
UGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.60%.
Measured over the past years, UGP shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.25% on average per year.
Looking at the last year, UGP shows a quite strong growth in Revenue. The Revenue has grown by 8.37% in the last year.
UGP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.37% yearly.
EPS 1Y (TTM)-15.6%
EPS 3Y39.09%
EPS 5Y43.25%
EPS Q2Q%-22.8%
Revenue 1Y (TTM)8.37%
Revenue growth 3Y6.75%
Revenue growth 5Y8.37%
Sales Q2Q%9.65%
3.2 Future
Based on estimates for the next years, UGP will show a small growth in Earnings Per Share. The EPS will grow by 7.16% on average per year.
UGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y-9.93%
EPS Next 2Y2.81%
EPS Next 3Y7.16%
EPS Next 5YN/A
Revenue Next Year2.52%
Revenue Next 2Y2.23%
Revenue Next 3Y3.58%
Revenue Next 5Y5.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
UGP is valuated reasonably with a Price/Earnings ratio of 8.38.
UGP's Price/Earnings ratio is rather cheap when compared to the industry. UGP is cheaper than 80.77% of the companies in the same industry.
UGP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.91.
With a Price/Forward Earnings ratio of 7.58, the valuation of UGP can be described as very cheap.
UGP's Price/Forward Earnings ratio is rather cheap when compared to the industry. UGP is cheaper than 81.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.11, UGP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
73.56% of the companies in the same industry are more expensive than UGP, based on the Enterprise Value to EBITDA ratio.
82.69% of the companies in the same industry are more expensive than UGP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.51 | ||
| EV/EBITDA | 4.8 |
4.3 Compensation for Growth
UGP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y2.81%
EPS Next 3Y7.16%
5. Dividend
5.1 Amount
UGP has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.37, UGP has a dividend in line with its industry peers.
UGP's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
On average, the dividend of UGP grows each year by 6.93%, which is quite nice.
UGP has been paying a dividend for at least 10 years, so it has a reliable track record.
UGP has decreased its dividend recently.
Dividend Growth(5Y)6.93%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
39.03% of the earnings are spent on dividend by UGP. This is a low number and sustainable payout ratio.
UGP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP39.03%
EPS Next 2Y2.81%
EPS Next 3Y7.16%
3.1
+0.05 (+1.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners36.92%
Inst Owner Change-1.31%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.32B
Analysts77.14
Price Target4.13 (33.23%)
Short Float %0.97%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend0.14
Dividend Growth(5Y)6.93%
DP39.03%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)38.29%
Min EPS beat(2)-16.03%
Max EPS beat(2)92.62%
EPS beat(4)2
Avg EPS beat(4)16.75%
Min EPS beat(4)-16.03%
Max EPS beat(4)92.62%
EPS beat(8)4
Avg EPS beat(8)24.65%
EPS beat(12)7
Avg EPS beat(12)57.93%
EPS beat(16)10
Avg EPS beat(16)48.9%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-4.43%
Max Revenue beat(2)-1.67%
Revenue beat(4)0
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-6.32%
Max Revenue beat(4)-0.39%
Revenue beat(8)0
Avg Revenue beat(8)-3.16%
Revenue beat(12)1
Avg Revenue beat(12)-2.82%
Revenue beat(16)2
Avg Revenue beat(16)-4.35%
PT rev (1m)-0.66%
PT rev (3m)1.14%
EPS NQ rev (1m)-14.96%
EPS NQ rev (3m)-20.62%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-4.04%
Revenue NQ rev (1m)-2.66%
Revenue NQ rev (3m)-8.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.58 | ||
| P/S | 0.14 | ||
| P/FCF | 7.51 | ||
| P/OCF | 4.3 | ||
| P/B | 1.22 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 4.8 |
EPS(TTM)0.37
EY11.94%
EPS(NY)0.41
Fwd EY13.2%
FCF(TTM)0.41
FCFY13.31%
OCF(TTM)0.72
OCFY23.25%
SpS22.81
BVpS2.54
TBVpS2.19
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 14.9% | ||
| ROCE | 16.71% | ||
| ROIC | 11.14% | ||
| ROICexc | 12.28% | ||
| ROICexgc | 13.32% | ||
| OM | 3.61% | ||
| PM (TTM) | 1.66% | ||
| GM | 7.16% | ||
| FCFM | 1.81% |
ROA(3y)5.76%
ROA(5y)4.39%
ROE(3y)16.34%
ROE(5y)13.37%
ROIC(3y)10.37%
ROIC(5y)7.58%
ROICexc(3y)13.22%
ROICexc(5y)9.68%
ROICexgc(3y)14.75%
ROICexgc(5y)10.75%
ROCE(3y)15.56%
ROCE(5y)11.37%
ROICexcg growth 3Y48.25%
ROICexcg growth 5Y16.56%
ROICexc growth 3Y47.61%
ROICexc growth 5Y16.73%
OM growth 3Y42.59%
OM growth 5Y11.25%
PM growth 3Y31.69%
PM growth 5Y33.44%
GM growth 3Y17.53%
GM growth 5Y1.18%
F-Score5
Asset Turnover3.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 6.09 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 148.98% | ||
| Cap/Sales | 1.35% | ||
| Interest Coverage | 4.24 | ||
| Cash Conversion | 70% | ||
| Profit Quality | 109.05% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 5.07 |
F-Score5
WACC9.6%
ROIC/WACC1.16
Cap/Depr(3y)125.7%
Cap/Depr(5y)121.29%
Cap/Sales(3y)1.07%
Cap/Sales(5y)1.18%
Profit Quality(3y)77.27%
Profit Quality(5y)121.89%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.6%
EPS 3Y39.09%
EPS 5Y43.25%
EPS Q2Q%-22.8%
EPS Next Y-9.93%
EPS Next 2Y2.81%
EPS Next 3Y7.16%
EPS Next 5YN/A
Revenue 1Y (TTM)8.37%
Revenue growth 3Y6.75%
Revenue growth 5Y8.37%
Sales Q2Q%9.65%
Revenue Next Year2.52%
Revenue Next 2Y2.23%
Revenue Next 3Y3.58%
Revenue Next 5Y5.98%
EBIT growth 1Y3.79%
EBIT growth 3Y52.22%
EBIT growth 5Y20.57%
EBIT Next Year52.1%
EBIT Next 3Y19.54%
EBIT Next 5Y15.95%
FCF growth 1Y96.08%
FCF growth 3Y13.86%
FCF growth 5Y2.14%
OCF growth 1Y74.11%
OCF growth 3Y13.04%
OCF growth 5Y5.01%