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 5 out of 10 to UGP. UGP was compared to 210 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year UGP was profitable.
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
UGP has a Return On Assets (6.66%) which is in line with its industry peers.
With a decent Return On Equity value of 17.82%, UGP is doing good in the industry, outperforming 69.46% of the companies in the same industry.
UGP has a Return On Invested Capital of 12.17%. This is in the better half of the industry: UGP outperforms 76.35% of its industry peers.
UGP had an Average Return On Invested Capital over the past 3 years of 8.90%. This is significantly below the industry average of 28.63%.
The last Return On Invested Capital (12.17%) for UGP is above the 3 year average (8.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 17.82% | ||
| ROIC | 12.17% |
ROA(3y)4.5%
ROA(5y)3.43%
ROE(3y)13.96%
ROE(5y)11.04%
ROIC(3y)8.9%
ROIC(5y)7.21%
1.3 Margins
UGP has a worse Profit Margin (1.99%) than 69.46% of its industry peers.
In the last couple of years the Profit Margin of UGP has grown nicely.
Looking at the Operating Margin, with a value of 3.53%, UGP is doing worse than 74.88% 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 7.24%, UGP is doing worse than 76.35% of the companies in the same industry.
In the last couple of years the Gross Margin of UGP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.53% | ||
| PM (TTM) | 1.99% | ||
| GM | 7.24% |
OM growth 3Y25.4%
OM growth 5Y10.72%
PM growth 3Y17.07%
PM growth 5Y8.82%
GM growth 3Y11.01%
GM growth 5Y1.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UGP is destroying value.
UGP has about the same amout of shares outstanding than it did 1 year ago.
UGP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UGP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.64 indicates that UGP is not in any danger for bankruptcy at the moment.
UGP's Altman-Z score of 4.64 is amongst the best of the industry. UGP outperforms 88.67% of its industry peers.
UGP has a debt to FCF ratio of 9.33. This is a negative value and a sign of low solvency as UGP would need 9.33 years to pay back of all of its debts.
UGP has a Debt to FCF ratio (9.33) which is in line with its industry peers.
UGP has a Debt/Equity ratio of 0.79. This is a neutral value indicating UGP is somewhat dependend on debt financing.
UGP has a worse Debt to Equity ratio (0.79) than 69.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 9.33 | ||
| Altman-Z | 4.64 |
ROIC/WACC0.87
WACC13.95%
2.3 Liquidity
A Current Ratio of 1.57 indicates that UGP should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.57, UGP is doing good in the industry, outperforming 63.55% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that UGP should not have too much problems paying its short term obligations.
UGP's Quick ratio of 1.11 is in line compared to the rest of the industry. UGP outperforms 54.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
UGP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.46%, which is quite good.
Measured over the past years, UGP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.90% on average per year.
Looking at the last year, UGP shows a small growth in Revenue. The Revenue has grown by 2.28% in the last year.
UGP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.80% yearly.
EPS 1Y (TTM)19.46%
EPS 3Y39.3%
EPS 5Y15.9%
EPS Q2Q%-26.33%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y19.4%
Revenue growth 5Y6.8%
Sales Q2Q%8.85%
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 7.34% on average per year.
The Revenue is expected to grow by 2.84% on average over the next years.
EPS Next Y-14.99%
EPS Next 2Y-9.13%
EPS Next 3Y-1.02%
EPS Next 5Y7.34%
Revenue Next Year3.19%
Revenue Next 2Y3.22%
Revenue Next 3Y3.05%
Revenue Next 5Y2.84%
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
Based on the Price/Earnings ratio of 6.74, the valuation of UGP can be described as very cheap.
Based on the Price/Earnings ratio, UGP is valued a bit cheaper than the industry average as 79.80% of the companies are valued more expensively.
UGP is valuated cheaply when we compare the Price/Earnings ratio to 29.53, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.65, the valuation of UGP can be described as very reasonable.
UGP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UGP is cheaper than 71.43% of the companies in the same industry.
UGP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.74 | ||
| Fwd PE | 8.65 |
4.2 Price Multiples
UGP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UGP is cheaper than 68.47% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UGP indicates a somewhat cheap valuation: UGP is cheaper than 66.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.63 | ||
| EV/EBITDA | 5.02 |
4.3 Compensation for Growth
The decent profitability rating of UGP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-9.13%
EPS Next 3Y-1.02%
5. Dividend
5.1 Amount
UGP has a Yearly Dividend Yield of 3.96%. Purely for dividend investing, there may be better candidates out there.
UGP's Dividend Yield is comparable with the industry average which is at 6.68.
Compared to an average S&P500 Dividend Yield of 2.27, UGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of UGP decreases each year by -13.18%.
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)-13.18%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
UGP pays out 29.82% of its income as dividend. This is a sustainable payout ratio.
DP29.82%
EPS Next 2Y-9.13%
EPS Next 3Y-1.02%
2.83
-0.02 (-0.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners36.62%
Inst Owner Change-89.81%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.06B
Analysts73.33
Price Target4.17 (47.35%)
Short Float %1.12%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend0.37
Dividend Growth(5Y)-13.18%
DP29.82%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.8%
Min EPS beat(2)-11.99%
Max EPS beat(2)2.39%
EPS beat(4)2
Avg EPS beat(4)11.9%
Min EPS beat(4)-16.14%
Max EPS beat(4)73.34%
EPS beat(8)5
Avg EPS beat(8)67.56%
EPS beat(12)8
Avg EPS beat(12)60.12%
EPS beat(16)10
Avg EPS beat(16)41.7%
Revenue beat(2)0
Avg Revenue beat(2)-3.36%
Min Revenue beat(2)-6.32%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-3.19%
Min Revenue beat(4)-6.32%
Max Revenue beat(4)-0.39%
Revenue beat(8)0
Avg Revenue beat(8)-3.23%
Revenue beat(12)1
Avg Revenue beat(12)-5.49%
Revenue beat(16)2
Avg Revenue beat(16)-6.98%
PT rev (1m)-3.06%
PT rev (3m)-14.12%
EPS NQ rev (1m)-17.1%
EPS NQ rev (3m)-17.06%
EPS NY rev (1m)-3.7%
EPS NY rev (3m)-3.65%
Revenue NQ rev (1m)7.15%
Revenue NQ rev (3m)7.15%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.74 | ||
| Fwd PE | 8.65 | ||
| P/S | 0.13 | ||
| P/FCF | 10.63 | ||
| P/OCF | 5.35 | ||
| P/B | 1.19 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 5.02 |
EPS(TTM)0.42
EY14.84%
EPS(NY)0.33
Fwd EY11.56%
FCF(TTM)0.27
FCFY9.4%
OCF(TTM)0.53
OCFY18.69%
SpS21.3
BVpS2.38
TBVpS2.03
PEG (NY)N/A
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 17.82% | ||
| ROCE | 16% | ||
| ROIC | 12.17% | ||
| ROICexc | 14.25% | ||
| ROICexgc | 15.61% | ||
| OM | 3.53% | ||
| PM (TTM) | 1.99% | ||
| GM | 7.24% | ||
| FCFM | 1.25% |
ROA(3y)4.5%
ROA(5y)3.43%
ROE(3y)13.96%
ROE(5y)11.04%
ROIC(3y)8.9%
ROIC(5y)7.21%
ROICexc(3y)11.58%
ROICexc(5y)9.4%
ROICexgc(3y)13.02%
ROICexgc(5y)10.5%
ROCE(3y)11.7%
ROCE(5y)9.48%
ROICexcg growth 3Y47.74%
ROICexcg growth 5Y13.71%
ROICexc growth 3Y46.07%
ROICexc growth 5Y14.07%
OM growth 3Y25.4%
OM growth 5Y10.72%
PM growth 3Y17.07%
PM growth 5Y8.82%
GM growth 3Y11.01%
GM growth 5Y1.71%
F-Score6
Asset Turnover3.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 9.33 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 163.24% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 3.37 | ||
| Cash Conversion | 57.92% | ||
| Profit Quality | 62.71% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.64 |
F-Score6
WACC13.95%
ROIC/WACC0.87
Cap/Depr(3y)122.75%
Cap/Depr(5y)112.29%
Cap/Sales(3y)1.01%
Cap/Sales(5y)1.18%
Profit Quality(3y)101.52%
Profit Quality(5y)199.25%
High Growth Momentum
Growth
EPS 1Y (TTM)19.46%
EPS 3Y39.3%
EPS 5Y15.9%
EPS Q2Q%-26.33%
EPS Next Y-14.99%
EPS Next 2Y-9.13%
EPS Next 3Y-1.02%
EPS Next 5Y7.34%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y19.4%
Revenue growth 5Y6.8%
Sales Q2Q%8.85%
Revenue Next Year3.19%
Revenue Next 2Y3.22%
Revenue Next 3Y3.05%
Revenue Next 5Y2.84%
EBIT growth 1Y15.49%
EBIT growth 3Y49.73%
EBIT growth 5Y18.26%
EBIT Next Year55%
EBIT Next 3Y20.06%
EBIT Next 5Y18.83%
FCF growth 1Y1421.28%
FCF growth 3Y8.84%
FCF growth 5Y11.71%
OCF growth 1Y174.56%
OCF growth 3Y7.05%
OCF growth 5Y5.91%