Ultrapar Participacoes S.A. (New) American Depositary Shares (Each representing one Common Share) (UGP)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for a fair business at a bargain price. Ultrapar is a Brazilian energy distribution and logistics group operating through Ultragaz, Ipiranga, Ultracargo, and Hidrovias. It moves fuels, biofuels, and other products, so scale and logistics matter. In fiscal Q2 2026, the company reported revenue of $41.5 billion and net income of $1.5 billion, a 3.73% net margin. That is a high-volume, low-margin business, not a wonderful consumer franchise. The provided data show ROE of 19.80% and ROCE of 9.73%, so returns are acceptable but not exceptional. Debt/equity of 0.98 and an Altman Z-Score of 1.40 suggest balance-sheet risk deserves attention. On the positive side, the data show revenue growth of 10.27% and profit growth of 163.06%. Valuation is where it gets interesting. At the 2026-10-13 close of $7.79, FairStock calculates a P/E of 12.17, P/B of 2.57, EV/EBITDA of 2.06, PEG of 0.07, and a Graham Number of $15.54, implying a 49.87% margin of safety. The FCF yield is 136.7%, though such a figure can be lumpy or distorted in a fuel distributor. The 4.96% dividend yield and beta of 0.26 add appeal. Still, a 57/100 FairStock Score and Piotroski 7/9 say good, not flawless. I would want to see whether cash flow is durable, debt is manageable, and margins hold. The price looks cheap, but the business quality is ordinary and the risks are real.

In plain English: Ultrapar is a Brazilian energy company that sells and distributes fuels and runs logistics businesses. It is profitable, but it operates on thin margins and carries a fair amount of debt. Based on the numbers provided, the shares look cheap compared with earnings and cash flow, though the stock has already risen well off its 52-week low.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer