Ultrapar Participações S.A.
Ultrapar Participações S.A. Fundamental Analysis
Ultrapar Participações S.A. (UGP) shows moderate financial fundamentals with a PE ratio of 10.18, profit margin of 2.06%, and ROE of 23.31%. The company generates $147.3B in annual revenue with moderate year-over-year growth of 6.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze UGP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentUGP demonstrates superior asset utilization.
Valuation Score
ExcellentUGP trades at attractive valuation levels.
Growth Score
ModerateUGP shows steady but slowing expansion.
Financial Health Score
ModerateUGP shows balanced financial health with some risks.
Profitability Score
ModerateUGP maintains healthy but balanced margins.
Key Financial Metrics
Is UGP Expensive or Cheap?
P/E Ratio
UGP trades at 10.18 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, UGP's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Ultrapar Participações S.A. at 9.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.97 times EBITDA. This is generally considered low.
How Well Does UGP Make Money?
Net Profit Margin
For every $100 in sales, Ultrapar Participações S.A. keeps $2.06 as profit after all expenses.
Operating Margin
Core operations generate 3.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.31 in profit for every $100 of shareholder equity.
ROA
Ultrapar Participações S.A. generates $29.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ultrapar Participações S.A. generates limited operating cash flow of $3.55B, signaling weaker underlying cash strength.
Free Cash Flow
Ultrapar Participações S.A. generates weak or negative free cash flow of $1.93B, restricting financial flexibility.
FCF Per Share
Each share generates $1.79 in free cash annually.
FCF Yield
UGP converts 6.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.29
vs 25 benchmark
ROCE
Return on capital employed
0.75
vs 25 benchmark
How UGP Stacks Against Its Sector Peers
| Metric | UGP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.18 | 21.49 | Better (Cheaper) |
| ROE | 23.31% | 996.00% | Weak |
| Net Margin | 2.06% | -59610.00% (disorted) | Weak |
| Debt/Equity | 1.28 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.67 | 5.15 | Neutral |
| ROA | 29.23% | -2041.00% (disorted) | Strong |
UGP outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ultrapar Participações S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.14%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
179.20%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
15.10%
Industry Style: Cyclical, Value, Commodity
High Growth