ULTRAPAR PARTICPAC-SPON ADR (UGP)
US90400P1012 - ADR
We assign a fundamental rating of 4 out of 10 to UGP. UGP was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of UGP get a neutral evaluation. Nothing too spectacular is happening here. UGP has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years UGP has always been profitable.
UGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of UGP (6.38%) is comparable to the rest of the industry.
UGP has a Return On Equity (18.06%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 12.51%, UGP is doing good in the industry, outperforming 68.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UGP is significantly below the industry average of 43.80%.
The last Return On Invested Capital (12.51%) for UGP is above the 3 year average (8.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 18.06% | ||
| ROIC | 12.51% |
ROA(3y)4.5%
ROA(5y)3.43%
ROE(3y)13.96%
ROE(5y)11.04%
ROIC(3y)8.9%
ROIC(5y)7.21%
1.3 Margins
The Profit Margin of UGP (1.94%) is worse than 73.71% of its industry peers.
UGP's Profit Margin has improved in the last couple of years.
UGP's Operating Margin of 3.53% is on the low side compared to the rest of the industry. UGP is outperformed by 78.87% of its industry peers.
UGP's Operating Margin has improved in the last couple of years.
UGP's Gross Margin of 7.39% is on the low side compared to the rest of the industry. UGP is outperformed by 78.40% of its industry peers.
In the last couple of years the Gross Margin of UGP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.53% | ||
| PM (TTM) | 1.94% | ||
| GM | 7.39% |
OM growth 3Y25.4%
OM growth 5Y10.72%
PM growth 3Y17.07%
PM growth 5Y8.82%
GM growth 3Y11.01%
GM growth 5Y1.71%
2. Health
2.1 Basic Checks
UGP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, UGP has about the same amount of shares outstanding.
Compared to 5 years ago, UGP has more shares outstanding
The debt/assets ratio for UGP has been reduced compared to a year ago.
2.2 Solvency
UGP has an Altman-Z score of 4.84. This indicates that UGP is financially healthy and has little risk of bankruptcy at the moment.
UGP has a Altman-Z score of 4.84. This is amongst the best in the industry. UGP outperforms 89.20% of its industry peers.
The Debt to FCF ratio of UGP is 5.19, which is a neutral value as it means it would take UGP, 5.19 years of fcf income to pay off all of its debts.
UGP has a Debt to FCF ratio of 5.19. This is comparable to the rest of the industry: UGP outperforms 59.15% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that UGP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.81, UGP is not doing good in the industry: 68.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 4.84 |
ROIC/WACC1.01
WACC12.42%
2.3 Liquidity
UGP has a Current Ratio of 1.66. This is a normal value and indicates that UGP is financially healthy and should not expect problems in meeting its short term obligations.
UGP has a better Current ratio (1.66) than 69.48% of its industry peers.
A Quick Ratio of 1.28 indicates that UGP should not have too much problems paying its short term obligations.
UGP has a Quick ratio of 1.28. This is in the better half of the industry: UGP outperforms 63.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
UGP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.25%, which is quite impressive.
UGP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.90% yearly.
UGP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.24%.
The Revenue has been growing slightly by 6.80% on average over the past years.
EPS 1Y (TTM)35.25%
EPS 3Y39.3%
EPS 5Y15.9%
EPS growth Q2Q32.93%
Revenue 1Y (TTM)-12.24%
Revenue growth 3Y19.4%
Revenue growth 5Y6.8%
Revenue growth Q2Q-7.05%
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 7.62% on average per year.
UGP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.30% yearly.
EPS Next Y-14.21%
EPS Next 2Y-3.57%
EPS Next 3Y1.92%
EPS Next 5Y7.62%
Revenue Next Year1.94%
Revenue Next 2Y1.54%
Revenue Next 3Y1.83%
Revenue Next 5Y-0.3%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.02, the valuation of UGP can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of UGP is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.15, UGP is valued rather cheaply.
A Price/Forward Earnings ratio of 12.87 indicates a correct valuation of UGP.
UGP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, UGP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 12.87 |
4.2 Price Multiples
UGP's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, UGP is valued a bit cheaper than 61.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.57 | ||
| EV/EBITDA | 6.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-3.57%
EPS Next 3Y1.92%
5. Dividend
5.1 Amount
UGP has a Yearly Dividend Yield of 2.58%. Purely for dividend investing, there may be better candidates out there.
UGP's Dividend Yield is comparable with the industry average which is at 5.80.
Compared to an average S&P500 Dividend Yield of 2.33, UGP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
The dividend of UGP decreases each year by -13.18%.
UGP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-13.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
UGP pays out 16.40% of its income as dividend. This is a sustainable payout ratio.
DP16.4%
EPS Next 2Y-3.57%
EPS Next 3Y1.92%
ULTRAPAR PARTICPAC-SPON ADR
NYSE:UGP (5/17/2024, 7:04:00 PM)
After market: 4.85 0 (0%)4.85
-0.06 (-1.22%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 12.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 18.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.53% | ||
| PM (TTM) | 1.94% | ||
| GM | 7.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)35.25%
EPS 3Y39.3%
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.24%
Revenue growth 3Y19.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y