Ultrapar Participacoes S.A. Positioned for Exceptional Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: NASDAQ.COM
- Earnings Growth Potential: Ultrapar Participacoes S.A. has a historical EPS growth rate of 28.3%, with projected EPS growth of 100% this year, significantly surpassing the industry average of 13.5%, indicating strong future profitability that could drive stock price increases.
- Asset Utilization Efficiency: The company's sales-to-total-assets (S/TA) ratio stands at 3.08, meaning it generates $3.08 in sales for every dollar of assets, which is well above the industry average of 0.31, showcasing high efficiency in asset utilization and boosting investor confidence.
- Sales Growth Outlook: Ultrapar's sales are expected to grow by 47.8%, compared to the industry average of just 8.1%, indicating robust growth potential in market demand and product sales, which could lead to increased market share.
- Upward Earnings Estimate Revisions: The current-year earnings estimates for Ultrapar have been revised upward by 26.1% over the past month, reflecting a positive trend that is strongly correlated with near-term stock price movements, further enhancing investor confidence in its future performance.
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Analyst Views on UGP
Wall Street analysts forecast UGP stock price to rise
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 5.330
Low
5.40
Averages
5.40
High
5.40
Current: 5.330
Low
5.40
Averages
5.40
High
5.40
About UGP
Ultrapar Participacoes SA is a Brazil-based company primarily engaged in the automotive fuel retail. The Company operates in five segments: Gas distribution (Ultragaz), which distributes liquefied petroleum gas (LPG) to residential, commercial and industrial consumers in the South, Southeast and Northeast regions of Brazil; Fuel distribution (Ipiranga), which operates the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles and lubricants, as well as provides related activities across the Brazilian territory; Chemicals (Oxiteno), which produces ethylene oxide, as well as its primary derivatives and fatty alcohols; Storage (Ultracargo), which operates liquid bulk terminals, primarily in the Southeast and Northeast regions of Brazil, and Drugstores (Extrafarma), which trades pharmaceutical, hygiene and beauty products through its drugstore chain in the states of Para and Piaui, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Updated Quant Ratings for Mid-Cap Consumer Discretionary Stocks
- Top-Rated Stocks: Ultrapar Participações (UGP) achieves a quant rating of 4.84, classified as a Strong Buy, indicating robust performance in profitability and growth, which may attract investor interest and drive stock price appreciation.
- Strong Performers: Callaway Golf (CALY) and Victoria’s Secret (VSCO) receive quant ratings of 4.68 and 4.64 respectively, suggesting enhanced competitiveness in the market, likely drawing more attention from investors and analysts alike.
- Low-Rated Stocks: Lucid Group (LCID) is rated at 1.04, classified as a Strong Sell, reflecting significant shortcomings in profitability and market performance, which may lead to declining investor confidence and negatively impact stock prices.
- Market Dynamics: As the earnings season concludes, heightened investor focus on quant ratings not only influences short-term investment decisions but may also have profound implications for companies' long-term strategies.
See More
Ultrapar Participacoes S.A. Positioned for Exceptional Growth
- Earnings Growth Potential: Ultrapar Participacoes S.A. has a historical EPS growth rate of 28.3%, with projected EPS growth of 100% this year, significantly surpassing the industry average of 13.5%, indicating strong future profitability that could drive stock price increases.
- Asset Utilization Efficiency: The company's sales-to-total-assets (S/TA) ratio stands at 3.08, meaning it generates $3.08 in sales for every dollar of assets, which is well above the industry average of 0.31, showcasing high efficiency in asset utilization and boosting investor confidence.
- Sales Growth Outlook: Ultrapar's sales are expected to grow by 47.8%, compared to the industry average of just 8.1%, indicating robust growth potential in market demand and product sales, which could lead to increased market share.
- Upward Earnings Estimate Revisions: The current-year earnings estimates for Ultrapar have been revised upward by 26.1% over the past month, reflecting a positive trend that is strongly correlated with near-term stock price movements, further enhancing investor confidence in its future performance.
See More
Ultrapar Reports Significant Net Income Increase in Quarter
- Net Income Growth: Ultrapar Participacoes SA reported a net income of 914 million reais for the quarter, an increase of 551 million reais compared to the same period last year, indicating a significant enhancement in profitability that boosts investor confidence.
- Improved Financial Stability: The company's leverage ratio decreased from 1.7 to 1.5, reflecting enhanced financial stability that provides a stronger foundation for future expansions and investments.
- Market Recovery Signs: Ipiranga, a subsidiary, saw an 8% increase in total volume sold, indicating a gradual market recovery and improved operational performance, which is expected to further drive the company's overall performance.
- Sustainability Initiatives: Ultrapar published its 2025 Sustainability Report and introduced a new 2030 Sustainability Plan, demonstrating a commitment to long-term value creation and corporate sustainability, thereby enhancing its competitive position in the market.
See More
Ultrapar Explores Sale of Ipiranga Stake with BTG Pactual
- Capital Restructuring Plan: Ultrapar (UGP) has engaged investment bank BTG Pactual to manage a potential sale of its stake in Ipiranga, aiming to reallocate capital towards the logistics sector while retaining operational control despite a reduced ownership stake.
- Collaboration with Chevron: Reports indicate that Chevron (CVX) is in advanced talks with Ultrapar to acquire a 30% stake in Ipiranga, which would further solidify the existing joint venture relationship between the two companies in the lubricants business.
- Positive Market Reaction: As energy sentiment improves, Chevron's stock is trading near $190, reflecting investor confidence in the partnership with Ultrapar, which could drive future business expansion for both companies.
- Strategic Implications: This potential deal not only aids Ultrapar in optimizing its capital allocation but also enhances its competitive position in the logistics sector, further advancing the implementation of the company's long-term growth strategy.
See More
Ultrapar Participacoes SA (UGP) Stock Surpasses Analyst Target Price of $4.08
- Price Breakthrough: Ultrapar Participacoes SA's stock price reached $4.12 in recent trading, surpassing the analyst 12-month target price of $4.08, indicating increased market confidence that may attract more investor attention.
- Analyst Reactions: As the stock price crosses the target, analysts may choose to downgrade valuations or raise target prices, reflecting optimistic expectations regarding the company's fundamental improvements, which could influence investor decisions.
- Target Price Distribution: Among analysts covered by Zacks, Ultrapar's target prices range from $3.10 to $5.00, with a standard deviation of $0.842, indicating varying market perspectives on the stock's future performance, prompting investors to assess carefully.
- Investor Signal: The stock's price surpassing the average target price provides a good signal for investors to reassess the company, prompting them to consider whether to hold or reduce their positions, thereby impacting market liquidity and stock price volatility.
See More
Ultrapar Participacoes S.A. (UGP) Shows Strong Momentum: Is It a Good Time to Invest?
Momentum Investing Overview: Momentum investing involves buying stocks that are trending upwards, with the expectation of selling them at even higher prices. The Zacks Momentum Style Score helps investors identify stocks with strong momentum indicators.
Ultrapar Participacoes S.A. Performance: Ultrapar Participacoes S.A. (UGP) has a Momentum Style Score of B and a Zacks Rank of #2 (Buy), with shares increasing 24.69% over the past quarter, outperforming the S&P 500.
Earnings Estimates and Trading Volume: UGP has seen positive earnings estimate revisions, with the consensus estimate rising from $0.28 to $0.41. The stock's average 20-day trading volume is 2,842,560 shares, indicating strong market interest.
Investment Recommendations: Zacks Investment Research highlights UGP as a promising momentum pick and suggests keeping an eye on it, along with other top stock recommendations that have high potential for significant gains.
See More
Updated Quant Ratings for Mid-Cap Consumer Discretionary Stocks
- Top-Rated Stocks: Ultrapar Participações (UGP) achieves a quant rating of 4.84, classified as a Strong Buy, indicating robust performance in profitability and growth, which may attract investor interest and drive stock price appreciation.
- Strong Performers: Callaway Golf (CALY) and Victoria’s Secret (VSCO) receive quant ratings of 4.68 and 4.64 respectively, suggesting enhanced competitiveness in the market, likely drawing more attention from investors and analysts alike.
- Low-Rated Stocks: Lucid Group (LCID) is rated at 1.04, classified as a Strong Sell, reflecting significant shortcomings in profitability and market performance, which may lead to declining investor confidence and negatively impact stock prices.
- Market Dynamics: As the earnings season concludes, heightened investor focus on quant ratings not only influences short-term investment decisions but may also have profound implications for companies' long-term strategies.
See More
Ultrapar Participacoes S.A. Positioned for Exceptional Growth
- Earnings Growth Potential: Ultrapar Participacoes S.A. has a historical EPS growth rate of 28.3%, with projected EPS growth of 100% this year, significantly surpassing the industry average of 13.5%, indicating strong future profitability that could drive stock price increases.
- Asset Utilization Efficiency: The company's sales-to-total-assets (S/TA) ratio stands at 3.08, meaning it generates $3.08 in sales for every dollar of assets, which is well above the industry average of 0.31, showcasing high efficiency in asset utilization and boosting investor confidence.
- Sales Growth Outlook: Ultrapar's sales are expected to grow by 47.8%, compared to the industry average of just 8.1%, indicating robust growth potential in market demand and product sales, which could lead to increased market share.
- Upward Earnings Estimate Revisions: The current-year earnings estimates for Ultrapar have been revised upward by 26.1% over the past month, reflecting a positive trend that is strongly correlated with near-term stock price movements, further enhancing investor confidence in its future performance.
See More
Ultrapar Reports Significant Net Income Increase in Quarter
- Net Income Growth: Ultrapar Participacoes SA reported a net income of 914 million reais for the quarter, an increase of 551 million reais compared to the same period last year, indicating a significant enhancement in profitability that boosts investor confidence.
- Improved Financial Stability: The company's leverage ratio decreased from 1.7 to 1.5, reflecting enhanced financial stability that provides a stronger foundation for future expansions and investments.
- Market Recovery Signs: Ipiranga, a subsidiary, saw an 8% increase in total volume sold, indicating a gradual market recovery and improved operational performance, which is expected to further drive the company's overall performance.
- Sustainability Initiatives: Ultrapar published its 2025 Sustainability Report and introduced a new 2030 Sustainability Plan, demonstrating a commitment to long-term value creation and corporate sustainability, thereby enhancing its competitive position in the market.
See More
Ultrapar Explores Sale of Ipiranga Stake with BTG Pactual
- Capital Restructuring Plan: Ultrapar (UGP) has engaged investment bank BTG Pactual to manage a potential sale of its stake in Ipiranga, aiming to reallocate capital towards the logistics sector while retaining operational control despite a reduced ownership stake.
- Collaboration with Chevron: Reports indicate that Chevron (CVX) is in advanced talks with Ultrapar to acquire a 30% stake in Ipiranga, which would further solidify the existing joint venture relationship between the two companies in the lubricants business.
- Positive Market Reaction: As energy sentiment improves, Chevron's stock is trading near $190, reflecting investor confidence in the partnership with Ultrapar, which could drive future business expansion for both companies.
- Strategic Implications: This potential deal not only aids Ultrapar in optimizing its capital allocation but also enhances its competitive position in the logistics sector, further advancing the implementation of the company's long-term growth strategy.
See More
Ultrapar Participacoes SA (UGP) Stock Surpasses Analyst Target Price of $4.08
- Price Breakthrough: Ultrapar Participacoes SA's stock price reached $4.12 in recent trading, surpassing the analyst 12-month target price of $4.08, indicating increased market confidence that may attract more investor attention.
- Analyst Reactions: As the stock price crosses the target, analysts may choose to downgrade valuations or raise target prices, reflecting optimistic expectations regarding the company's fundamental improvements, which could influence investor decisions.
- Target Price Distribution: Among analysts covered by Zacks, Ultrapar's target prices range from $3.10 to $5.00, with a standard deviation of $0.842, indicating varying market perspectives on the stock's future performance, prompting investors to assess carefully.
- Investor Signal: The stock's price surpassing the average target price provides a good signal for investors to reassess the company, prompting them to consider whether to hold or reduce their positions, thereby impacting market liquidity and stock price volatility.
See More
Ultrapar Participacoes S.A. (UGP) Shows Strong Momentum: Is It a Good Time to Invest?
Momentum Investing Overview: Momentum investing involves buying stocks that are trending upwards, with the expectation of selling them at even higher prices. The Zacks Momentum Style Score helps investors identify stocks with strong momentum indicators.
Ultrapar Participacoes S.A. Performance: Ultrapar Participacoes S.A. (UGP) has a Momentum Style Score of B and a Zacks Rank of #2 (Buy), with shares increasing 24.69% over the past quarter, outperforming the S&P 500.
Earnings Estimates and Trading Volume: UGP has seen positive earnings estimate revisions, with the consensus estimate rising from $0.28 to $0.41. The stock's average 20-day trading volume is 2,842,560 shares, indicating strong market interest.
Investment Recommendations: Zacks Investment Research highlights UGP as a promising momentum pick and suggests keeping an eye on it, along with other top stock recommendations that have high potential for significant gains.
See More
