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Is Ultrapar Participacoes (UGP) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Ultrapar Participacoes (UGP - Free Report) . UGP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.67 right now. For comparison, its industry sports an average P/E of 15.84. Over the past 52 weeks, UGP's Forward P/E has been as high as 18.06 and as low as 8.54, with a median of 11.24.

Investors should also recognize that UGP has a P/B ratio of 1.65. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. UGP's current P/B looks attractive when compared to its industry's average P/B of 1.91. Over the past 12 months, UGP's P/B has been as high as 2.16 and as low as 1.27, with a median of 1.77.

Finally, our model also underscores that UGP has a P/CF ratio of 5.82. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.38. Over the past 52 weeks, UGP's P/CF has been as high as 8.67 and as low as 4.50, with a median of 6.40.

These are just a handful of the figures considered in Ultrapar Participacoes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that UGP is an impressive value stock right now.


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