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Ultrapar Participacoes (UGP)
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Ultrapar Participacoes SA (UGP) AI Stock Analysis

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UGP

Ultrapar Participacoes SA

(NYSE:UGP)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
$4.00
▲(2.56% Upside)
Ultrapar Participacoes SA's overall stock score reflects a solid financial performance with consistent revenue growth and improved profitability margins. The company's valuation is attractive, with a low P/E ratio and a good dividend yield. The earnings call highlighted strong operational results and strategic initiatives, although some challenges remain in specific segments. Technical indicators suggest mixed signals, with some short-term weakness. Overall, the company is on a stable growth trajectory but must address leverage and cash flow issues to enhance financial stability.
Positive Factors
Operational Efficiency
Improved EBIT and EBITDA margins suggest better cost management and operational efficiency, enhancing long-term profitability.
Strategic Initiatives
Hosting strategic events like Ultra Day helps align stakeholders with the company's future plans, fostering investor confidence and strategic clarity.
Governance Enhancements
Improved governance and risk management policies enhance operational transparency and stakeholder trust, supporting long-term stability.
Negative Factors
Leverage Concerns
High leverage can constrain financial flexibility and increase risk, potentially impacting long-term financial health if not managed.
Cash Flow Challenges
Declining free cash flow growth indicates potential issues in cash generation, which could affect the company's ability to fund operations and growth.
Regulatory Challenges
Regulatory uncertainties in the LPG market pose risks to operations and investments, potentially impacting long-term strategic plans.

Ultrapar Participacoes SA (UGP) vs. SPDR S&P 500 ETF (SPY)

Ultrapar Participacoes SA Business Overview & Revenue Model

Company DescriptionUltrapar Participacoes SA (UGP) is a Brazilian multinational company operating primarily in the fuel distribution, chemical, and logistics sectors. Founded in 1937 and headquartered in São Paulo, Ultrapar is known for its extensive network of fuel stations under the Ipiranga brand and its presence in the chemical industry through its subsidiary Ultracargo. The company also engages in the production and distribution of specialty chemicals and related products, catering to diverse markets including automotive, agricultural, and industrial applications.
How the Company Makes MoneyUltrapar generates revenue through several key streams. The primary source of income comes from its retail fuel distribution, primarily through Ipiranga-branded gas stations, which sell gasoline, diesel, and other fuel products to consumers. The company also profits from its chemical operations, producing petrochemical products and specialty chemicals that are sold to various industries. Additionally, Ultrapar has a significant logistics segment, managing storage and transportation services for fuels and chemicals, which contributes to its earnings. Strategic partnerships, such as those with suppliers and retailers, enhance its supply chain efficiency and market reach, further bolstering its revenue. Factors like market demand for fuel and chemicals, regulatory changes, and economic conditions in Brazil and surrounding regions also play critical roles in influencing Ultrapar's financial performance.

Ultrapar Participacoes SA Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Ultrapar. While the company achieved strong cash flow, record results at Hidrovias, and a significant increase in net income, it faced challenges in the Ipiranga and Ultragaz segments and regulatory uncertainties in the LPG market.
Q2-2025 Updates
Positive Updates
Strong Operational Cash Flow Generation
Despite a BRL 900 million reduction in draft discount due to the IOF tax burden, Ultrapar achieved robust cash flow generation through disciplined working capital management.
Record Results at Hidrovias
Hidrovias has been consolidated into Ultrapar's financials since May, showing record results and demonstrating growth potential.
Significant Increase in Net Income
Net income for the quarter was BRL 1.151 billion, a 134% increase compared to the same period last year, reflecting higher operating results and extraordinary tax credits.
Reduction in Net Debt and Cost of Debt
Ultrapar reported a reduction in net debt and cost of debt, supported by liability management actions after the capital increase.
Successful Share Buyback Program
Completed buyback of 25 million Ultrapar shares at an average cost of BRL 16.64.
Advances in Tax Regulation
Implementation of single-phase taxation of hydrated ethanol and progress in tax evasion measures in São Paulo were highlighted.
Negative Updates
Challenges in Ipiranga Segment
Ipiranga faced a 2% reduction in volume sold and a 13% decrease in recurring EBITDA due to irregularities in biodiesel blend and import parity issues.
Ultragaz Volume Decline
Ultragaz reported a 1% decrease in LPG volume sold, with a 2% decrease in the bottle segment due to market dynamics and cost increases.
Ultracargo Revenue Decline
Ultracargo's revenue decreased by 6%, with a 15% decrease in EBITDA, due to lower demand for storage and initial costs of expansion projects.
Regulatory Challenges in LPG Market
Potential regulatory changes by ANP could endanger population safety and investments in the LPG bottle segment.
Company Guidance
In the earnings release call for the second quarter of 2025, Ultrapar provided an optimistic outlook with several key financial metrics highlighted. The company reported a total EBITDA of BRL 2.07 billion, marking significant growth driven by extraordinary tax credits. The recurring EBITDA was BRL 1.468 billion, a 15% increase from the previous year, bolstered by the consolidation of Hidrovias and improved results from Ultragaz. Net income surged by 134% year-over-year to BRL 1.151 billion, primarily due to higher operating results and extraordinary tax credits amounting to BRL 677 million. CapEx reached BRL 544 million, a 14% increase mainly due to the Hidrovias consolidation, which also contributed BRL 138 million to cash generation. Ultrapar concluded the quarter with a net debt of BRL 12.635 billion, equating to a leverage ratio of 1.9x net debt to EBITDA. The company also completed a buyback program of 25 million shares at an average cost of BRL 16.64 and announced interim dividends of BRL 326 million, or BRL 0.30 per share, to be paid in August. Despite challenges such as irregularities in the fuel sector, Ultrapar remains committed to its robust capital structure and value creation strategy.

Ultrapar Participacoes SA Financial Statement Overview

Summary
Ultrapar Participacoes SA demonstrates solid financial performance with consistent revenue growth and improved profitability margins. However, challenges in cash flow management and high leverage levels pose risks to financial stability.
Income Statement
75
Positive
Ultrapar Participacoes SA has shown a consistent revenue growth trajectory, with a notable TTM revenue growth rate of 1.25%. The company maintains a stable gross profit margin of around 7%, and its net profit margin has improved to 2.11% TTM. EBIT and EBITDA margins have also shown improvement, indicating enhanced operational efficiency. However, the company faces challenges in maintaining high profitability levels, as evidenced by fluctuating margins over the years.
Balance Sheet
68
Positive
The company's debt-to-equity ratio stands at 1.18 TTM, indicating a moderate level of leverage. Return on equity has improved to 19.07% TTM, showcasing effective utilization of equity to generate profits. The equity ratio is stable, reflecting a balanced capital structure. However, the relatively high debt levels could pose risks if not managed carefully.
Cash Flow
60
Neutral
Ultrapar's cash flow performance shows mixed results. The free cash flow growth rate has declined by 13.17% TTM, indicating potential challenges in generating free cash flow. The operating cash flow to net income ratio is 0.38, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.45, which is reasonable but indicates room for improvement in cash flow management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue138.14B133.50B126.05B143.63B109.73B74.06B
Gross Profit8.74B8.62B9.32B6.39B4.90B4.00B
EBITDA6.81B5.06B6.36B3.25B2.76B2.56B
Net Income2.91B2.36B2.44B1.80B850.46M893.38M
Balance Sheet
Total Assets45.61B39.56B38.25B36.44B39.01B36.25B
Cash, Cash Equivalents and Short-Term Investments3.99B4.62B6.22B6.14B4.08B7.69B
Total Debt18.94B15.79B13.30B13.28B17.73B19.21B
Total Liabilities27.21B23.73B24.22B24.27B28.54B26.34B
Stockholders Equity16.07B15.16B13.51B11.71B10.07B9.53B
Cash Flow
Free Cash Flow1.97B1.95B2.54B785.74M1.31B2.23B
Operating Cash Flow3.93B3.74B3.85B2.00B2.59B3.14B
Investing Cash Flow-2.27B-6.39B-1.02B7.90B724.14M-2.14B
Financing Cash Flow-2.58B-1.23B-2.49B-6.91B-3.36B-592.33M

Ultrapar Participacoes SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.90
Price Trends
50DMA
3.75
Positive
100DMA
3.40
Positive
200DMA
3.13
Positive
Market Momentum
MACD
<0.01
Positive
RSI
49.05
Neutral
STOCH
24.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UGP, the sentiment is Positive. The current price of 3.9 is below the 20-day moving average (MA) of 3.91, above the 50-day MA of 3.75, and above the 200-day MA of 3.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 24.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UGP.

Ultrapar Participacoes SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$4.13B8.1818.65%3.48%-6.18%-9.87%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
58
Neutral
$2.08B-83.87%-5.62%-486.38%
56
Neutral
$3.65B-11.82-50.65%7.61%-15.98%-160.88%
52
Neutral
$1.87B-148.80-1.59%-13.09%-103.24%
50
Neutral
$2.03B-200.75%2.72%-29.94%-723.41%
50
Neutral
$3.41B-3.96-17.30%3.23%-18.73%-236.79%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UGP
Ultrapar Participacoes SA
3.83
0.35
10.06%
CVI
CVR Energy
39.15
15.21
63.53%
DK
Delek US Holdings
37.56
21.79
138.17%
PBF
PBF Energy
34.10
3.68
12.10%
PARR
Par Pacific Holdings
40.28
23.45
139.33%
CSAN
Cosan
4.55
-3.73
-45.05%

Ultrapar Participacoes SA Corporate Events

Ultrapar Hosts Ultra Day 2025 to Discuss Strategic Directions
Sep 19, 2025

On September 18, 2025, Ultrapar Participações S.A. announced that it will host its annual event, Ultra Day 2025, on September 19, 2025. This event aims to engage investors and analysts by discussing the company’s strategic direction and the performance of its portfolio companies. The event is expected to provide insights into Ultrapar’s future plans and strengthen its relationship with stakeholders.

Ultrapar Approves Key Governance and Risk Management Updates
Sep 18, 2025

On September 17, 2025, Ultrapar Participações S.A. held a Board of Directors meeting where they approved updates to the Internal Bylaws and amendments to the Corporate Risk Management Policy. These changes include the appointment of a lead independent director if the Chairman is non-independent, reflecting Ultrapar’s commitment to good corporate governance and risk management. The decisions are expected to enhance the company’s operational transparency and stakeholder trust.

Ultrapar Announces Market Maker Agreement to Boost Share Liquidity
Sep 2, 2025

On September 1, 2025, Ultrapar Participações S.A. announced a new market maker service agreement with Itaú Corretora de Valores S.A., effective from September 2, 2025. This agreement aims to enhance the liquidity of Ultrapar’s common shares traded on B3, complying with Brazilian Securities and Exchange Commission regulations. The agreement is indefinite and does not include any arrangements regarding voting rights or the purchase and sale of securities, impacting the company’s market presence and potentially benefiting shareholders by improving share liquidity.

Ultrapar Board Meeting Acknowledges Director Resignation and Confirms Executive Officers
Aug 15, 2025

On August 14, 2025, Ultrapar Participações S.A. held a Board of Directors meeting where the resignation of Director Bernardo Sacic was acknowledged. The board expressed gratitude for his contributions and confirmed the executive officers’ positions, including Rodrigo de Almeida Pizzinatto as CEO, with mandates extending to the 2027 Annual General Shareholders’ Meeting.

Ultrapar Participações S.A. Releases Q2 2025 Financial Results
Aug 14, 2025

Ultrapar Participações S.A. released its interim financial information for the quarter ended June 30, 2025, which was reviewed by Deloitte Touche Tohmatsu Auditores Independentes. The review concluded that the financial information is prepared in accordance with applicable standards, ensuring transparency and compliance. This announcement is crucial for stakeholders as it reflects the company’s financial health and adherence to regulatory requirements, impacting investor confidence and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025