ULTRAPAR PARTICPAC-SPON ADR (UGP) Stock Fundamental Analysis
USA - NYSE:UGP - US90400P1012 - ADR
3.88 USD
+0.06 (+1.57%)
3.92 USD
+0.04 (+1.03%)
Taking everything into account, UGP scores 5 out of 10 in our fundamental rating. UGP was compared to 211 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 correct valuation and a medium growth rate.
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.
Each year in the past 5 years UGP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.44%, UGP is doing good in the industry, outperforming 72.04% of the companies in the same industry.
UGP has a better Return On Equity (18.26%) than 80.09% of its industry peers.
UGP has a better Return On Invested Capital (10.04%) than 80.57% of its industry peers.
UGP had an Average Return On Invested Capital over the past 3 years of 10.37%. This is significantly below the industry average of 21.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 18.26% | ||
| ROIC | 10.04% |
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
Looking at the Profit Margin, with a value of 2.12%, UGP is in line with its industry, outperforming 40.28% of the companies in the same industry.
In the last couple of years the Profit Margin of UGP has grown nicely.
With a Operating Margin value of 3.96%, UGP is not doing good in the industry: 67.30% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of UGP has grown nicely.
With a Gross Margin value of 7.10%, UGP is not doing good in the industry: 72.04% of the companies in the same industry are doing better.
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 | 3.96% | ||
| PM (TTM) | 2.12% | ||
| GM | 7.1% |
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
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 less shares outstanding
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
UGP has an Altman-Z score of 4.39. This indicates that UGP is financially healthy and has little risk of bankruptcy at the moment.
UGP has a better Altman-Z score (4.39) than 88.63% of its industry peers.
The Debt to FCF ratio of UGP is 9.53, which is on the high side as it means it would take UGP, 9.53 years of fcf income to pay off all of its debts.
UGP's Debt to FCF ratio of 9.53 is in line compared to the rest of the industry. UGP outperforms 53.55% of its industry peers.
UGP has a Debt/Equity ratio of 0.97. This is a neutral value indicating UGP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.97, UGP is not doing good in the industry: 67.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 4.39 |
ROIC/WACC0.97
WACC10.36%
2.3 Liquidity
A Current Ratio of 1.82 indicates that UGP should not have too much problems paying its short term obligations.
The Current ratio of UGP (1.82) is better than 73.46% of its industry peers.
A Quick Ratio of 1.38 indicates that UGP should not have too much problems paying its short term obligations.
UGP has a better Quick ratio (1.38) than 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.93% over the past year.
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 small growth in Revenue. The Revenue has grown by 7.38% in the last year.
The Revenue has been growing by 8.37% on average over the past years. This is quite good.
EPS 1Y (TTM)0.93%
EPS 3Y39.09%
EPS 5Y43.25%
EPS Q2Q%150.9%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y6.75%
Revenue growth 5Y8.37%
Sales Q2Q%5.29%
3.2 Future
The Earnings Per Share is expected to grow by 5.71% on average over the next years.
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-5.96%
EPS Next 2Y1.28%
EPS Next 3Y5.71%
EPS Next 5YN/A
Revenue Next Year3.69%
Revenue Next 2Y3.05%
Revenue Next 3Y3.75%
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 7.92, which indicates a rather cheap valuation of UGP.
Based on the Price/Earnings ratio, UGP is valued cheaper than 83.89% 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 27.42.
The Price/Forward Earnings ratio is 9.49, which indicates a very decent valuation of UGP.
Based on the Price/Forward Earnings ratio, UGP is valued a bit cheaper than the industry average as 72.99% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, UGP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.92 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
70.14% of the companies in the same industry are more expensive than UGP, based on the Enterprise Value to EBITDA ratio.
70.62% 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 | 11.32 | ||
| EV/EBITDA | 5.38 |
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)0.18
EPS Next 2Y1.28%
EPS Next 3Y5.71%
5. Dividend
5.1 Amount
UGP has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
UGP's Dividend Yield is comparable with the industry average which is at 6.30.
UGP's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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
UGP pays out 29.65% of its income as dividend. This is a sustainable payout ratio.
UGP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.65%
EPS Next 2Y1.28%
EPS Next 3Y5.71%
3.88
+0.06 (+1.57%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners36.66%
Inst Owner Change0.02%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.14B
Analysts76.36
Price Target4.4 (13.4%)
Short Float %0.41%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend0.15
Dividend Growth(5Y)6.93%
DP29.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)84.56%
Min EPS beat(2)-16.03%
Max EPS beat(2)185.16%
EPS beat(4)3
Avg EPS beat(4)66.03%
Min EPS beat(4)-16.03%
Max EPS beat(4)185.16%
EPS beat(8)5
Avg EPS beat(8)49.89%
EPS beat(12)7
Avg EPS beat(12)62.93%
EPS beat(16)11
Avg EPS beat(16)67.29%
Revenue beat(2)1
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-4.43%
Max Revenue beat(2)0.53%
Revenue beat(4)1
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-4.43%
Max Revenue beat(4)0.53%
Revenue beat(8)1
Avg Revenue beat(8)-2.61%
Revenue beat(12)2
Avg Revenue beat(12)-2.35%
Revenue beat(16)3
Avg Revenue beat(16)-4.13%
PT rev (1m)2.22%
PT rev (3m)6.72%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)5.65%
EPS NY rev (1m)13.58%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.92 | ||
| Fwd PE | 9.49 | ||
| P/S | 0.16 | ||
| P/FCF | 11.32 | ||
| P/OCF | 5.69 | ||
| P/B | 1.4 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 5.38 |
EPS(TTM)0.49
EY12.63%
EPS(NY)0.41
Fwd EY10.54%
FCF(TTM)0.34
FCFY8.83%
OCF(TTM)0.68
OCFY17.56%
SpS23.81
BVpS2.77
TBVpS2.14
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 18.26% | ||
| ROCE | 15.06% | ||
| ROIC | 10.04% | ||
| ROICexc | 11.27% | ||
| ROICexgc | 12.71% | ||
| OM | 3.96% | ||
| PM (TTM) | 2.12% | ||
| GM | 7.1% | ||
| FCFM | 1.44% |
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 Turnover3.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 9.53 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 152.85% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 3.42 | ||
| Cash Conversion | 58.51% | ||
| Profit Quality | 67.74% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 4.39 |
F-Score5
WACC10.36%
ROIC/WACC0.97
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)0.93%
EPS 3Y39.09%
EPS 5Y43.25%
EPS Q2Q%150.9%
EPS Next Y-5.96%
EPS Next 2Y1.28%
EPS Next 3Y5.71%
EPS Next 5YN/A
Revenue 1Y (TTM)7.38%
Revenue growth 3Y6.75%
Revenue growth 5Y8.37%
Sales Q2Q%5.29%
Revenue Next Year3.69%
Revenue Next 2Y3.05%
Revenue Next 3Y3.75%
Revenue Next 5Y5.98%
EBIT growth 1Y6.6%
EBIT growth 3Y52.22%
EBIT growth 5Y20.57%
EBIT Next Year66.01%
EBIT Next 3Y23.78%
EBIT Next 5Y15.95%
FCF growth 1Y9.58%
FCF growth 3Y13.86%
FCF growth 5Y2.14%
OCF growth 1Y31.83%
OCF growth 3Y13.04%
OCF growth 5Y5.01%