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Is this Large Market Cap Stock target price reasonable for Ultrapar Participacoes S.A. (NYSE:UGP)?

The company in question is, Ultrapar Participacoes S.A. (NYSE:UGP) currently with a stock price of 21.58 (1.12% today). The market cap for Ultrapar Participacoes S.A. is 12107.24, and is in the sector Basic Materials, and Oil & Gas Refining & Marketing industry. The target price for Ultrapar Participacoes S.A. is 22.05. Currently Ultrapar Participacoes S.A. is trading with a P/E of 25.27, and a forward P/E of 22.55. Average volume for Ultrapar Participacoes S.A. is 618.98 and so far today it is 515000.

Performance in the last year for Ultrapar Participacoes S.A. has been 32.90%. For EPS growth, Ultrapar Participacoes S.A. has seen a growth of 21.40%, and is looking to grow in the next year to 12.59%. More long term stats show that EPS growth has been 13.90% over the last five years and could be 12.25% for the next five years. Ultrapar Participacoes S.A. has seen sales growth quarter over quarter at 4.30%, with EPS growth quarter over quarter at 11.70%. The 20-day simple moving average is -3.80%, with the 200-day simple moving average coming to 14.64%.

Since the IPO date for Ultrapar Participacoes S.A. on the 10/7/1999, Ultrapar Participacoes S.A. has seen performance year to date to be 44.84%. With Ultrapar Participacoes S.A. trading at 21.58, the dividend yield is 2.32%, and the EPS is 0.85.

So could Ultrapar Participacoes S.A., be undervalued? Well as said before P/E is 25.27. The PEG is 2.06, P/S is 0.51 and the P/B is at 4.6. The P/cash is 12.14, with P/free cash flow at 40.49.

Ultrapar Participacoes S.A. ability to deal with debt shows that the current ratio is 3.2, and the quick ratio is 2.4. This is with long term debt/equity at 0.92, and total debt/equity at 1.06.

In terms of margins, Ultrapar Participacoes S.A. has a gross margin of 8.90%, an operating margin of 4.00% and a profit margin of 2.00%.Payout ratio for Ultrapar Participacoes S.A. is 28.20%. Return on assets come to 7.50% with return on investment coming to 13.20%.

Insider ownership for Ultrapar Participacoes S.A., is at 26.80% and institutional ownership comes to 3.70%. Outstanding shares are at 561.04. While shares float is 393.81. The float short is currently 0.17%, and short ratio is 1.1.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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