ULTRAPAR PARTICPAC-SPON ADR (UGP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UGP - US90400P1012 - ADR
4.62 USD
-0.01 (-0.22%)
4.59 USD
-0.03 (-0.65%)
We assign a fundamental rating of 6 out of 10 to UGP. UGP was compared to 122 industry peers in the Specialty Retail industry. Both the profitability and the financial health of UGP get a neutral evaluation. Nothing too spectacular is happening here. UGP may be a bit undervalued, certainly considering the very reasonable score on growth Finally UGP also has an excellent dividend rating. With these ratings, UGP could be worth investigating further for value and dividend 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.
- 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 6.44%. This is in the better half of the industry: UGP outperforms 77.05% of its industry peers.
- Looking at the Return On Equity, with a value of 18.26%, UGP is in the better half of the industry, outperforming 77.87% of the companies in the same industry.
- The Return On Invested Capital of UGP (10.04%) is better than 73.77% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for UGP is in line with the industry average of 12.24%.
| 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 the better half of the industry, outperforming 60.66% of the companies in the same industry.
- In the last couple of years the Profit Margin of UGP has grown nicely.
- UGP has a Operating Margin of 3.96%. This is comparable to the rest of the industry: UGP outperforms 59.84% of its industry peers.
- UGP's Operating Margin has improved in the last couple of years.
- UGP has a worse Gross Margin (7.10%) than 92.62% of its industry peers.
- UGP's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UGP is destroying value.
- The number of shares outstanding for UGP has been reduced compared to 1 year ago.
- Compared to 5 years ago, UGP has less shares outstanding
- Compared to 1 year ago, UGP has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.47 indicates that UGP is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.47, UGP belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
- 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.
- With a Debt to FCF ratio value of 9.53, UGP perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
- UGP has a Debt/Equity ratio of 0.97. This is a neutral value indicating UGP is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.97, UGP is in line with its industry, outperforming 43.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 4.47 |
ROIC/WACC0.94
WACC10.68%
2.3 Liquidity
- UGP has a Current Ratio of 1.82. 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 (1.82) than 77.05% of its industry peers.
- UGP has a Quick Ratio of 1.38. This is a normal value and indicates that UGP is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.38, UGP belongs to the top of the industry, outperforming 83.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
- UGP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.33%, which is quite good.
- 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 been growing slightly by 5.91% in the past 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)12.33%
EPS 3Y39.09%
EPS 5Y43.25%
EPS Q2Q%10.06%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y6.75%
Revenue growth 5Y8.37%
Sales Q2Q%4.74%
3.2 Future
- The Earnings Per Share is expected to grow by 7.52% on average over the next years.
- The Revenue is expected to grow by 5.98% on average over the next years.
EPS Next Y0.07%
EPS Next 2Y0.02%
EPS Next 3Y7.52%
EPS Next 5YN/A
Revenue Next Year3.95%
Revenue Next 2Y1.95%
Revenue Next 3Y3.63%
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.
- 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 8.88, which indicates a very decent valuation of UGP.
- Based on the Price/Earnings ratio, UGP is valued cheaper than 92.62% of the companies in the same industry.
- When comparing the Price/Earnings ratio of UGP to the average of the S&P500 Index (27.25), we can say UGP is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 11.27, the valuation of UGP can be described as reasonable.
- Based on the Price/Forward Earnings ratio, UGP is valued cheaply inside the industry as 83.61% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. UGP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UGP is valued cheaper than 84.43% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, UGP is valued a bit cheaper than the industry average as 79.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.11 | ||
| EV/EBITDA | 5.92 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UGP does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of UGP may justify a higher PE ratio.
PEG (NY)130.22
PEG (5Y)0.21
EPS Next 2Y0.02%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
- UGP has a Yearly Dividend Yield of 5.39%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.15, UGP pays a better dividend. On top of this UGP pays more dividend than 93.44% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, UGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
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
- 29.65% 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.
DP29.65%
EPS Next 2Y0.02%
EPS Next 3Y7.52%
ULTRAPAR PARTICPAC-SPON ADR / UGP FAQ
Can you provide the ChartMill fundamental rating for ULTRAPAR PARTICPAC-SPON ADR?
ChartMill assigns a fundamental rating of 6 / 10 to UGP.
Can you provide the valuation status for ULTRAPAR PARTICPAC-SPON ADR?
ChartMill assigns a valuation rating of 7 / 10 to ULTRAPAR PARTICPAC-SPON ADR (UGP). This can be considered as Undervalued.
What is the profitability of UGP stock?
ULTRAPAR PARTICPAC-SPON ADR (UGP) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for UGP stock?
The Earnings per Share (EPS) of ULTRAPAR PARTICPAC-SPON ADR (UGP) is expected to grow by 0.07% in the next year.
Is the dividend of ULTRAPAR PARTICPAC-SPON ADR sustainable?
The dividend rating of ULTRAPAR PARTICPAC-SPON ADR (UGP) is 8 / 10 and the dividend payout ratio is 29.65%.