ULTRAPAR PARTICPAC-SPON ADR (UGP) Stock Fundamental Analysis
NYSE:UGP - New York Stock Exchange, Inc. - US90400P1012 - ADR - Currency: USD
We assign a fundamental rating of 6 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally UGP also has an excellent dividend rating. This makes UGP very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
UGP had positive earnings in the past year.
In the past year UGP had a positive cash flow from operations.
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
UGP has a Return On Assets of 6.00%. This is in the better half of the industry: UGP outperforms 65.26% of its industry peers.
With a decent Return On Equity value of 14.90%, UGP is doing good in the industry, outperforming 72.77% of the companies in the same industry.
UGP's Return On Invested Capital of 11.14% is amongst the best of the industry. UGP outperforms 80.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UGP is significantly below the industry average of 23.55%.
The last Return On Invested Capital (11.14%) for UGP is above the 3 year average (10.37%), which is a sign of increasing profitability.
| 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
UGP has a Profit Margin of 1.66%. This is in the lower half of the industry: UGP underperforms 62.44% of its industry peers.
UGP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.61%, UGP is doing worse than 69.48% of the companies in the same industry.
In the last couple of years the Operating Margin of UGP has grown nicely.
UGP's Gross Margin of 7.16% is on the low side compared to the rest of the industry. UGP is outperformed by 73.71% 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.
UGP has less shares outstanding than it did 1 year ago.
UGP has less shares outstanding than it did 5 years ago.
UGP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.08 indicates that UGP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.08, UGP belongs to the top of the industry, outperforming 90.14% of the companies in the same industry.
UGP has a debt to FCF ratio of 6.09. This is a slightly negative value and a sign of low solvency as UGP would need 6.09 years to pay back of all of its debts.
UGP has a Debt to FCF ratio (6.09) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.80 indicates that 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 64.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 5.08 |
ROIC/WACC1.3
WACC8.6%
2.3 Liquidity
UGP has a Current Ratio of 1.76. 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 Current ratio of 1.76. This is in the better half of the industry: UGP outperforms 73.24% of its industry peers.
A Quick Ratio of 1.26 indicates that UGP should not have too much problems paying its short term obligations.
UGP has a Quick ratio of 1.26. This is in the better half of the industry: UGP outperforms 64.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for UGP have decreased strongly by -15.60% in the last year.
UGP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.25% yearly.
The Revenue has grown by 8.37% in the past year. This is quite good.
The Revenue has been growing by 8.37% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 5.98% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 8.21, which indicates a very decent valuation of UGP.
Based on the Price/Earnings ratio, UGP is valued cheaper than 80.28% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. UGP is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.51 indicates a rather cheap valuation of UGP.
82.16% of the companies in the same industry are more expensive than UGP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UGP to the average of the S&P500 Index (22.19), we can say UGP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
UGP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UGP is cheaper than 74.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UGP is valued cheaply inside the industry as 81.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.44 | ||
| EV/EBITDA | 4.83 |
4.3 Compensation for Growth
The decent profitability rating of UGP 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
With a Yearly Dividend Yield of 4.09%, UGP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.54, UGP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, UGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
5.2 History
The dividend of UGP is nicely growing with an annual growth rate of 6.93%!
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.
The dividend of UGP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP39.03%
EPS Next 2Y2.81%
EPS Next 3Y7.16%
3.12
-0.06 (-1.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners36.92%
Inst Owner Change2.56%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.35B
Analysts76.19
Price Target3.95 (26.6%)
Short Float %0.76%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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)-1.18%
PT rev (3m)3.24%
EPS NQ rev (1m)-2.48%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0%
EPS NY rev (3m)4.17%
Revenue NQ rev (1m)-6.2%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 7.51 | ||
| P/S | 0.13 | ||
| P/FCF | 7.44 | ||
| P/OCF | 4.26 | ||
| P/B | 1.21 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 4.83 |
EPS(TTM)0.38
EY12.18%
EPS(NY)0.42
Fwd EY13.32%
FCF(TTM)0.42
FCFY13.44%
OCF(TTM)0.73
OCFY23.47%
SpS23.17
BVpS2.58
TBVpS2.23
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 | 5.08 |
F-Score5
WACC8.6%
ROIC/WACC1.3
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%