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

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Ultrapar Participacoes (UGP - Free Report) . UGP is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.56, while its industry has an average P/E of 18.32. Over the past 52 weeks, UGP's Forward P/E has been as high as 12.93 and as low as 6.92, with a median of 10.05.

Investors should also note that UGP holds a PEG ratio of 2.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UGP's industry has an average PEG of 2.53 right now. UGP's PEG has been as high as 3.38 and as low as 1.74, with a median of 2.47, all within the past year.

We should also highlight that UGP has a P/B ratio of 1.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.40. UGP's P/B has been as high as 1.61 and as low as 0.97, with a median of 1.19, over the past year.

Finally, investors will want to recognize that UGP has a P/CF ratio of 5.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UGP's current P/CF looks attractive when compared to its industry's average P/CF of 11.41. Over the past 52 weeks, UGP's P/CF has been as high as 5.45 and as low as 3.46, with a median of 4.37.

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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