Today I will update the phone.
Ultrapar is a gigantic holding company that operates in the gas, fuels, gas stations and pharmacies businesses. She is the controller of the Ipiranga, Ultragas and Ultracargo outlets. Remember those fuel tanks that burned last year in Santos? They were from the ultrapar.
“Ultrapar, a multinational company engaged in retailing and specialized distribution, through Ultracargo, Ipiranga, and Extrafarma, in the specialty chemical industry, with Oxiteno, and in the storage segment for liquid bulk, through Ultracargo, is one of the Major Brazilian business groups. With a staff of 14 thousand direct employees, Ultrapar has operations throughout Brazil and has, through Oxiteno, industrial units in the United States, Uruguay, Mexico and Venezuela and commercial offices in Argentina, Belgium, China And in Colombia. ”
Ultrapar does not produce or exploit petroleum, it purchases from Petrobras, distributes and resells. This is the chart of action over the last 5 years.
As you can see, it has grown a lot, it is a growth company that pays a very low yield (2.8% per year), distributes almost 30% of annual profits and has a high PL of 26. It can be a good option to be a partner in Part of the growth of your portfolio. Luckily it’s an expensive action but it still has not given me any bad surprises. It is a New Market company, tag along 100% ON, with more than 10,400 individual members who have already shone much in the stock market and had significant appreciation in their quotation. Ultrapar’s average net profit growth over the last 10 years was 17% a year, which is an impressive brand, robustness, and solidity of the company, crossing very well for years the difficult Brazilian market and the monopoly of Petrobrás. I would very much like to have entered BEFORE this action but unfortunately, I had neither money nor knowledge, now it is different because I am a partner and I intend to always increase my position in it while I continue well.
In 2001 the company’s equity was 800 million, today it is 8 billion.
In 2001 net income was 132 million, in 2015 it was R $ 1.5 billion.
So in 15 years equity increased by 10x and profit increased by more than 10x.
Debt that is something I look at has always given an increase of 700 million from 2014 to 2015 and is starting to bother me mainly because the company has a low margin (2%) characteristic of the sector but the debt is due to investments Then it will take that they get it right and that is paid quietly. With this track record, I feel comfortable to believe in the company’s governance.
These 5 paragraphs highlighted in the release are eye-popping:
And keeps going:
As you can see the charts and tables have very good data and the company is good.
Then I will edit and improve the post on the PC because I made the phone.