ULTRAPAR PARTICPAC-SPON ADR (UGP) Stock Fundamental Analysis
USA - NYSE:UGP - US90400P1012 - ADR
4.17 USD
+0.08 (+1.96%)
4.17 USD
0 (0%)
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 These ratings would make UGP suitable 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.
In the past 5 years UGP has always been profitable.
In the past 5 years UGP always reported a positive cash flow from operatings.
1.2 Ratios
UGP's Return On Assets of 6.44% is fine compared to the rest of the industry. UGP outperforms 77.05% of its industry peers.
The Return On Equity of UGP (18.26%) is better than 77.87% of its industry peers.
UGP's Return On Invested Capital of 10.04% is fine compared to the rest of the industry. UGP outperforms 72.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UGP is in line with the industry average of 11.81%.
| 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
UGP has a Profit Margin of 2.12%. This is in the better half of the industry: UGP outperforms 61.48% of its industry peers.
UGP's Profit Margin has improved in the last couple of years.
UGP has a Operating Margin (3.96%) which is comparable to the rest of the industry.
UGP's Operating Margin has improved in the last couple of years.
UGP's Gross Margin of 7.10% is on the low side compared to the rest of the industry. UGP is outperformed by 93.44% 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 | 3.96% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UGP is destroying value.
The number of shares outstanding for UGP has been reduced compared to 1 year ago.
UGP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UGP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.41 indicates that UGP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.41, UGP belongs to the top of the industry, outperforming 84.43% 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.
UGP has a Debt to FCF ratio (9.53) which is in line with its industry peers.
A Debt/Equity ratio of 0.97 indicates that UGP is somewhat dependend on debt financing.
UGP has a Debt to Equity ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 4.41 |
ROIC/WACC0.95
WACC10.62%
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 80.33% 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.
The Quick ratio of UGP (1.38) is better than 84.43% of its industry peers.
| 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.
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.
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
Based on estimates for the next years, UGP will show a small growth in Earnings Per Share. The EPS will grow by 7.23% on average per year.
Based on estimates for the next years, UGP will show a small growth in Revenue. The Revenue will grow by 5.98% on average per year.
EPS Next Y-5.51%
EPS Next 2Y1.35%
EPS Next 3Y7.23%
EPS Next 5YN/A
Revenue Next Year3.3%
Revenue Next 2Y2.51%
Revenue Next 3Y3.62%
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
With a Price/Earnings ratio of 8.02, the valuation of UGP can be described as very reasonable.
Based on the Price/Earnings ratio, UGP is valued cheaper than 89.34% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, UGP is valued rather cheaply.
The Price/Forward Earnings ratio is 9.94, which indicates a very decent valuation of UGP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UGP indicates a rather cheap valuation: UGP is cheaper than 81.97% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. UGP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UGP is valued a bit cheaper than the industry average as 79.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UGP is valued cheaper than 81.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.88 | ||
| EV/EBITDA | 5.55 |
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 2Y1.35%
EPS Next 3Y7.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, UGP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.49, UGP pays a better dividend. On top of this UGP pays more dividend than 81.97% of the companies listed in the same industry.
UGP's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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.
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 2Y1.35%
EPS Next 3Y7.23%
4.17
+0.08 (+1.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners36.66%
Inst Owner Change4.7%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.45B
Revenue(TTM)133.50B
Net Income(TTM)2.94B
Analysts76.19
Price Target4.75 (13.91%)
Short Float %0.39%
Short Ratio1.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)2.85%
PT rev (3m)9.47%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)0.48%
EPS NY rev (3m)4.93%
Revenue NQ rev (1m)1.63%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 9.94 | ||
| P/S | 0.17 | ||
| P/FCF | 11.88 | ||
| P/OCF | 5.97 | ||
| P/B | 1.47 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 5.55 |
EPS(TTM)0.52
EY12.47%
EPS(NY)0.42
Fwd EY10.06%
FCF(TTM)0.35
FCFY8.42%
OCF(TTM)0.7
OCFY16.74%
SpS24.4
BVpS2.84
TBVpS2.19
PEG (NY)N/A
PEG (5Y)0.19
Graham Number5.76
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%
ROICexgc growth 3Y48.25%
ROICexgc 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 | 4.41 |
F-Score5
WACC10.62%
ROIC/WACC0.95
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)12.33%
EPS 3Y39.09%
EPS 5Y43.25%
EPS Q2Q%10.06%
EPS Next Y-5.51%
EPS Next 2Y1.35%
EPS Next 3Y7.23%
EPS Next 5YN/A
Revenue 1Y (TTM)5.91%
Revenue growth 3Y6.75%
Revenue growth 5Y8.37%
Sales Q2Q%4.74%
Revenue Next Year3.3%
Revenue Next 2Y2.51%
Revenue Next 3Y3.62%
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%
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.
What is the valuation status of ULTRAPAR PARTICPAC-SPON ADR (UGP) stock?
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.
What are the PE and PB ratios of ULTRAPAR PARTICPAC-SPON ADR (UGP) stock?
The Price/Earnings (PE) ratio for ULTRAPAR PARTICPAC-SPON ADR (UGP) is 8.02 and the Price/Book (PB) ratio is 1.47.
How sustainable is the dividend of ULTRAPAR PARTICPAC-SPON ADR (UGP) stock?
The dividend rating of ULTRAPAR PARTICPAC-SPON ADR (UGP) is 6 / 10 and the dividend payout ratio is 29.65%.