Ultrapar Participacoes Profitability Analysis

UGP Stock  USD 2.96  0.01  0.34%   
Based on Ultrapar Participacoes' profitability indicators, Ultrapar Participacoes SA is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess Ultrapar Participacoes' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2000-03-31
Previous Quarter
437.9 M
Current Value
651.6 M
Quarterly Volatility
221.2 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Ultrapar Participacoes' Days Sales Outstanding is relatively stable compared to the past year. As of 12/04/2024, Sales General And Administrative To Revenue is likely to grow to 0.02, while Operating Cash Flow Sales Ratio is likely to drop 0.03. At this time, Ultrapar Participacoes' Net Income Per E B T is relatively stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.140.0739
Way Up
Slightly volatile
Net Profit Margin0.03150.0194
Way Up
Slightly volatile
Operating Profit Margin0.060.04
Way Up
Slightly volatile
Pretax Profit Margin0.04180.0284
Way Up
Slightly volatile
Return On Assets0.0640.0627
Fairly Up
Pretty Stable
Return On Equity0.110.1806
Way Down
Pretty Stable
For Ultrapar Participacoes profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ultrapar Participacoes to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ultrapar Participacoes SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ultrapar Participacoes's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ultrapar Participacoes SA over time as well as its relative position and ranking within its peers.
  
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Is Oil & Gas Storage & Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ultrapar Participacoes. If investors know Ultrapar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ultrapar Participacoes listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.02
Earnings Share
0.39
Revenue Per Share
117.108
Quarterly Revenue Growth
0.093
Return On Assets
0.0786
The market value of Ultrapar Participacoes is measured differently than its book value, which is the value of Ultrapar that is recorded on the company's balance sheet. Investors also form their own opinion of Ultrapar Participacoes' value that differs from its market value or its book value, called intrinsic value, which is Ultrapar Participacoes' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ultrapar Participacoes' market value can be influenced by many factors that don't directly affect Ultrapar Participacoes' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ultrapar Participacoes' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ultrapar Participacoes is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ultrapar Participacoes' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Ultrapar Participacoes Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ultrapar Participacoes's current stock value. Our valuation model uses many indicators to compare Ultrapar Participacoes value to that of its competitors to determine the firm's financial worth.
Ultrapar Participacoes SA is rated third in return on equity category among its peers. It is rated first in return on asset category among its peers reporting about  0.37  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Ultrapar Participacoes SA is roughly  2.74 . At this time, Ultrapar Participacoes' Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Ultrapar Participacoes by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Ultrapar Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Ultrapar Participacoes

Return On Equity

 = 

Net Income

Total Equity

 = 
0.22
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Ultrapar Participacoes

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0786
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Ultrapar Return On Asset Comparison

Ultrapar Participacoes is currently under evaluation in return on asset category among its peers.

Ultrapar Participacoes Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ultrapar Participacoes, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ultrapar Participacoes will eventually generate negative long term returns. The profitability progress is the general direction of Ultrapar Participacoes' change in net profit over the period of time. It can combine multiple indicators of Ultrapar Participacoes, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income233.8 M222.1 M
Operating Income4.6 B4.8 B
Income Before Tax3.6 B3.8 B
Total Other Income Expense Net-987.2 M-937.9 M
Net Income2.4 B2.6 B
Income Tax Expense1.1 B1.1 B
Net Income Applicable To Common Shares2.1 B2.2 B
Net Income From Continuing Ops2.2 B1.3 B
Interest Income747.9 M598.7 M
Net Interest Income-835.5 M-877.3 M
Change To Netincome444.7 M326.3 M
Net Income Per Share 2.23  2.34 
Income Quality 1.58  2.76 
Net Income Per E B T 0.68  0.80 

Ultrapar Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ultrapar Participacoes. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ultrapar Participacoes position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ultrapar Participacoes' important profitability drivers and their relationship over time.

Ultrapar Participacoes Profitability Trends

Ultrapar Participacoes profitability trend refers to the progression of profit or loss within a business. An upward trend means that Ultrapar Participacoes' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Ultrapar Participacoes' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Ultrapar Participacoes Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Ultrapar Participacoes different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Ultrapar Participacoes in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Ultrapar Participacoes' future profitability.

Use Ultrapar Participacoes in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ultrapar Participacoes position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ultrapar Participacoes will appreciate offsetting losses from the drop in the long position's value.

Ultrapar Participacoes Pair Trading

Ultrapar Participacoes SA Pair Trading Analysis

The ability to find closely correlated positions to Ultrapar Participacoes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ultrapar Participacoes when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ultrapar Participacoes - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ultrapar Participacoes SA to buy it.
The correlation of Ultrapar Participacoes is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ultrapar Participacoes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ultrapar Participacoes moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ultrapar Participacoes can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ultrapar Participacoes position

In addition to having Ultrapar Participacoes in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Realty Funds
Realty Funds Theme
Funds or Etfs investing in real estate backed instruments or issues backed by different types of commercial properties. The Realty Funds theme has 47 constituents at this time.
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Additional Tools for Ultrapar Stock Analysis

When running Ultrapar Participacoes' price analysis, check to measure Ultrapar Participacoes' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ultrapar Participacoes is operating at the current time. Most of Ultrapar Participacoes' value examination focuses on studying past and present price action to predict the probability of Ultrapar Participacoes' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ultrapar Participacoes' price. Additionally, you may evaluate how the addition of Ultrapar Participacoes to your portfolios can decrease your overall portfolio volatility.