Ultrapar Participações S.A. (UGP) AI Stock Analysis

Ultrapar Participações S.A. operates across gas distribution, fuel distribution, and storage markets in Brazil, Latin America, the United States, Canada, Europe, and the Far East. Its Gas Distribution segment supplies liquefied petroleum gas to residential, commercial, and industrial customers. The Fuel Distribution segment distributes gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants, alongside operating convenience stores and automotive service franchises. Its Storage segment manages liquid bulk terminals located primarily in Brazil. As of December 31, 2021, its network included 7,104 Ipiranga service stations, 1,841 AmPm convenience stores, 1,149 Jet Oil franchises, 4 distribution centers, and 7 Ultracargo terminals.

Ultrapar achieved a five-year revenue CAGR of 14.0% between FY2020 and FY2025, with annual revenue expanding from $109.73B in FY2021 to $142.37B in FY2025. Annual net income grew from $850.5M in FY2021 to $2.45B in FY2025, and gross margin increased from 4.5% to 6.6%. During FY2025, revenue grew 6.6% with an operating margin of 3.4% and EPS of $0.30. In the trailing twelve months, revenue totaled $153.26B with an operating margin of 7.6% and a profit margin of 2.3%. For the latest quarter ended June 30, 2026, quarterly revenue grew 21.9% year-over-year, while quarterly earnings increased 44.3%.

As of June 30, 2026, Ultrapar held $9.24B in cash and short-term investments against total debt of $19.53B, resulting in net debt of $10.30B. Shareholders' equity stood at $17.93B, supporting a current ratio of 1.64 and a debt-to-equity ratio of 1.09. In FY2025, the company generated $3.48B in operating cash flow and $1.52B in free cash flow. Capital allocation in FY2025 included $1.97B in capital expenditures, $2.13B in dividends paid, and $261.7M deployed toward share buybacks.

Ultrapar trades at a trailing P/E of 12.6x and a forward P/E of 9.2x, below the median of its US-listed Energy peers of 15.0x and 12.7x. The company has an enterprise value of $10.24B, representing an EV/EBITDA of 5.2x compared to the peer median of 8.0x. Its price-to-sales ratio is 0.1x versus the peer median of 1.8x. Over the past year, UGP stock rose 119.3%, outperforming the 16.8% return of the S&P 500 (SPY). Over five years, UGP gained 245.4% compared to 83.0% for the S&P 500.

Ultrapar has paid dividends for 27 consecutive years. The forward annual dividend is $0.38 per share, representing a 4.82% dividend yield and a payout ratio of 56.3%. Distributions occur on a Semiannual schedule, and the annualized five-year dividend growth rate is 40.3%. The most recent ex-dividend date was August 26, 2026.

Analyst coverage consists of 3 Strong Buy, 3 Buy, and 2 Hold ratings. The mean price target is $7.67, which sits 1.7% below the last close of $7.80. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $163.74B and EPS of $0.82, representing expected EPS growth of 220.8%. Ultrapar exceeded EPS expectations in 3 of the last 4 quarters. The next earnings date is November 11, 2026.

This page is an AI-written research summary of Ultrapar Participações S.A. (UGP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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