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 211 industry peers in the Oil, Gas & Consumable Fuels industry. UGP has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on UGP. This makes UGP very considerable for value 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.
UGP had positive earnings in each of the past 5 years.
UGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.00%, UGP is in the better half of the industry, outperforming 64.93% of the companies in the same industry.
UGP's Return On Equity of 14.90% is fine compared to the rest of the industry. UGP outperforms 72.51% of its industry peers.
The Return On Invested Capital of UGP (11.14%) is better than 81.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UGP is significantly below the industry average of 23.70%.
The 3 year average ROIC (10.37%) for UGP is below the current ROIC(11.14%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 1.66%, UGP is not doing good in the industry: 62.09% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of UGP has grown nicely.
The Operating Margin of UGP (3.61%) is worse than 69.19% of its industry peers.
In the last couple of years the Operating Margin of UGP has grown nicely.
UGP has a worse Gross Margin (7.16%) than 73.46% 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.
Compared to 1 year ago, UGP has less shares outstanding
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 5.09 indicates that UGP is not in any danger for bankruptcy at the moment.
The Altman-Z score of UGP (5.09) is better than 90.52% of its industry peers.
The Debt to FCF ratio of UGP is 6.09, which is on the high side as it means it would take UGP, 6.09 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.09, UGP is doing good in the industry, outperforming 60.19% of the companies in the same industry.
A Debt/Equity ratio of 0.80 indicates that UGP is somewhat dependend on debt financing.
UGP has a worse Debt to Equity ratio (0.80) than 64.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 5.09 |
ROIC/WACC1.16
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.76 indicates that UGP should not have too much problems paying its short term obligations.
The Current ratio of UGP (1.76) is better than 73.46% of its industry peers.
A Quick Ratio of 1.26 indicates that UGP should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.26, UGP is doing good in the industry, outperforming 64.93% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 43.25% on average over the past years. This is a very strong growth
UGP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.37%.
Measured over the past years, UGP shows a quite strong growth in Revenue. The Revenue has been growing by 8.37% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.71, the valuation of UGP can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of UGP indicates a somewhat cheap valuation: UGP is cheaper than 76.78% of the companies listed in the same industry.
UGP is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.97, the valuation of UGP can be described as very cheap.
76.78% 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 (21.70), we can say UGP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
71.09% of the companies in the same industry are more expensive than UGP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UGP indicates a rather cheap valuation: UGP is cheaper than 81.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 4.92 |
4.3 Compensation for Growth
The decent profitability rating of UGP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y2.81%
EPS Next 3Y7.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.67%, UGP has a reasonable but not impressive dividend return.
UGP's Dividend Yield is comparable with the industry average which is at 6.66.
UGP's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
On average, the dividend of UGP grows each year by 6.93%, which is quite nice.
UGP has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of UGP decreased 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.
UGP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP39.03%
EPS Next 2Y2.81%
EPS Next 3Y7.16%
3.31
+0.03 (+0.91%)
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 Cap3.55B
Analysts76.19
Price Target4.15 (25.38%)
Short Float %0.71%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend0.15
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)3.95%
PT rev (3m)1.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0%
EPS NY rev (3m)3.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 7.97 | ||
| P/S | 0.14 | ||
| P/FCF | 7.9 | ||
| P/OCF | 4.52 | ||
| P/B | 1.28 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 4.92 |
EPS(TTM)0.38
EY11.48%
EPS(NY)0.42
Fwd EY12.55%
FCF(TTM)0.42
FCFY12.66%
OCF(TTM)0.73
OCFY22.11%
SpS23.16
BVpS2.58
TBVpS2.23
PEG (NY)N/A
PEG (5Y)0.2
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 | 5.09 |
F-Score5
WACC9.59%
ROIC/WACC1.16
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%