ULTRAPAR PARTICPAC-SPON ADR (UGP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UGP - US90400P1012 - ADR
4.83 USD
+0.07 (+1.47%)
4.83 USD
0 (0%)
Overall UGP gets a fundamental rating of 6 out of 10. We evaluated UGP against 122 industry peers in the Specialty Retail industry. UGP has an average financial health and profitability rating. 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. These ratings could make UGP a good candidate 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.
- UGP had positive earnings in each of the past 5 years.
- Each year in the past 5 years UGP had a positive operating cash flow.
1.2 Ratios
- UGP has a better Return On Assets (6.44%) than 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.
- UGP's Return On Invested Capital of 10.04% is fine compared to the rest of the industry. UGP outperforms 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
- UGP has a Profit Margin of 2.12%. This is in the better half of the industry: UGP outperforms 60.66% of its industry peers.
- In the last couple of years the Profit Margin of UGP has grown nicely.
- With a Operating Margin value of 3.96%, UGP perfoms like the industry average, outperforming 59.84% of the companies in the same industry.
- In the last couple of years the Operating Margin of UGP has grown nicely.
- Looking at the Gross Margin, with a value of 7.10%, UGP is doing worse than 92.62% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UGP is destroying value.
- UGP has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for UGP has been reduced compared to 5 years ago.
- Compared to 1 year ago, UGP has a worse debt to assets ratio.
2.2 Solvency
- UGP has an Altman-Z score of 4.48. This indicates that UGP is financially healthy and has little risk of bankruptcy at the moment.
- UGP's Altman-Z score of 4.48 is amongst the best of the industry. UGP outperforms 85.25% of its industry peers.
- UGP has a debt to FCF ratio of 9.53. This is a negative value and a sign of low solvency as UGP would need 9.53 years to pay back of all of its debts.
- UGP has a Debt to FCF ratio of 9.53. This is comparable to the rest of the industry: UGP outperforms 57.38% 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.
- UGP has a Debt to Equity ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 4.48 |
ROIC/WACC0.93
WACC10.84%
2.3 Liquidity
- A Current Ratio of 1.82 indicates that UGP should not have too much problems paying 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.
- The Quick ratio of UGP (1.38) is better than 83.61% 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.
- UGP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.25% yearly.
- UGP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.91%.
- The Revenue has been growing by 8.37% on average over the past years. This is quite good.
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
- UGP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.52% yearly.
- UGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
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.
- 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
- UGP is valuated reasonably with a Price/Earnings ratio of 9.11.
- Compared to the rest of the industry, the Price/Earnings ratio of UGP indicates a rather cheap valuation: UGP is cheaper than 91.80% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, UGP is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 11.54, the valuation of UGP can be described as reasonable.
- Based on the Price/Forward Earnings ratio, UGP is valued cheaply inside the industry as 81.97% of the companies are valued more expensively.
- UGP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 11.54 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UGP is valued cheaper than 82.79% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, UGP is valued a bit cheaper than 79.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.43 | ||
| EV/EBITDA | 6.01 |
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)133.57
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 92.62% 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
- 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.
- The dividend of UGP decreased 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 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%.