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.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

Financial Performance - Ultrapar reported a net revenue of R$133 billion for 2024, a 6% increase compared to 2023[19]. - The company achieved a recurring EBITDA of R$5.4 billion and a net income of R$2.5 billion, with R$769 million allocated for dividends[19]. - Ultrapar's net income for the fiscal year ended December 31, 2024, is R$ 2,362,739,882.29 (approximately $2.36 billion) [60]. - Ultrapar reported net revenues of R$ 133,498.9 million in 2024, a 6% increase from R$ 126,048.7 million in 2023, driven by higher revenues from Ipiranga and Ultragaz[171]. - The cost of products and services sold increased by 6% to R$ 123,811.9 million in 2024, up from R$ 116,730.5 million in 2023, primarily due to higher costs at Ipiranga and Ultragaz[173]. - Gross profit for Ultrapar was R$ 9,687.0 million in 2024, reflecting a 4% increase compared to R$ 9,318.2 million in 2023[175]. - Operating income before share of profit (loss) of subsidiaries was R$ 5,073.1 million in 2024, an 11% increase from R$ 4,565.9 million in 2023[181]. - Net income remained stable at R$ 2,525.9 million in 2024, compared to R$ 2,517.8 million in 2023[183]. Investments and Capital Allocation - In 2024, Ultrapar invested R$2.2 billion, with R$1.3 billion (59%) for business expansion and R$900 million for maintenance[16]. - A significant investment of R$1.8 billion was made to acquire a 42% stake in Hidrovias do Brasil, marking the largest capital allocation in a single asset in the past decade[16]. - The investment plan for 2025 totals R$2.5 billion, with R$1.5 billion allocated for business expansions across Ipiranga, Ultragaz, and Ultracargo[20]. - Ultrapar's total net debt as of December 31, 2024, was R$ 7,755.6 million, with a net debt to equity ratio of 49%[146]. - The company’s gross debt increased from R$ 11,768 million in 2023 to R$ 14,302.1 million in 2024, with short-term debt rising from 17% to 25% of gross debt[155]. Governance and Management - Ultrapar's governance model was enhanced by establishing Boards of Directors in its businesses, improving agility and accountability[17]. - A planned transition for the roles of Chief Executive Officer and Chief Financial and Investor Relations Officer is set to conclude in April 2025[18]. - The Board of Directors is proposed to consist of 9 members, maintaining the current number from the last Annual General Meeting[62]. - The Company aims to balance relevant experience and skills in its Board of Directors to address strategic issues and future needs[65]. - The Board of Directors will determine the compensation for the Chief Executive Officer and other executive officers based on the proposal from the People and Sustainability Committee[94]. Sustainability and ESG Initiatives - The company is advancing its sustainability strategy, updating its 2030 ESG plan to be completed by 2025[18]. - The management emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by 30% by 2025[121]. Shareholder Engagement and Rights - The company reported a significant increase in shareholder engagement, with meetings held within the first 4 months after the fiscal year conclusion[91]. - Shareholders participating in meetings must provide identity verification and proof from the depositary institution, ensuring compliance with regulations[92]. - The company allows remote voting for shareholders, adapting to modern governance practices[92]. - The resolution to increase the capital stock for payment in assets may only be made at a Shareholders' Meeting[90]. - The Company will allocate 5% of net profit to the legal reserve, up to a limit of 20% of the capital stock[129]. Market and Operational Performance - Ipiranga's sales volume grew by 2% to 23,569.7 thousand m³ in 2024, with a 5% increase in the Otto cycle[169]. - Ultragaz's sales volume increased by 1% to 1,746.7 thousand tons in 2024, driven by a 3% rise in the bulk segment[170]. - Ultracargo's billed m³ sold rose by 9% to 17,143.3 thousand m³ in 2024, attributed to new operations and increased fuel movement[170]. - The fuel distribution market recorded a volume growth of 4% compared to 2023, with a 6% increase in the Otto cycle and a 3% increase in diesel[199]. Compliance and Regulatory Matters - The company is required to submit to arbitration at the Market Arbitration Tribunal for any controversies arising between shareholders, directors, and executive officers[128]. - The rules set forth by the New Market Regulation will prevail over the provisions in the bylaws regarding tender offers[128]. - The company must adhere to Brazilian Federal Laws 6,385/76 and 6,404/76, as well as other applicable capital market regulations[128].

As filed with the Securities and Exchange Commission on April 22, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark one) ■REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ■ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ■ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ■ SHELL COMPANY REPORT ...

Investors with an interest in Oil and Gas - Production and Pipelines stocks have likely encountered both Ultrapar Participacoes S.A. (UGP) and Enbridge (ENB) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with str ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a v ...

Core Viewpoint - Investors in the Oil and Gas - Production and Pipelines sector should consider Ultrapar Participacoes S.A. (UGP) as a more attractive option compared to Enbridge (ENB) for value investing opportunities [1]. Valuation Metrics - Ultrapar Participacoes S.A. has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision compared to Enbridge, which has a Zacks Rank of 3 (Hold) [3]. - UGP's forward P/E ratio is 10.36, significantly lower than ENB's forward P/E of 20.86, suggesting UGP is undervalued relative to ENB [5]. - The PEG ratio for UGP is 2.61, while ENB's PEG ratio is 4.17, indicating UGP has a better balance between its price and expected earnings growth [5]. - UGP's P/B ratio is 1.20, compared to ENB's P/B of 2.14, further supporting UGP's valuation as more attractive [6]. - Based on these valuation metrics, UGP holds a Value grade of A, while ENB has a Value grade of D, highlighting UGP's superior valuation profile [6]. Earnings Outlook - UGP is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7].

Core Viewpoint - Ultrapar Participacoes (UGP) is identified as a potentially undervalued stock, supported by strong valuation metrics and a favorable earnings outlook [4][8]. Valuation Metrics - UGP has a Forward P/E ratio of 11.20, significantly lower than the industry average of 19.06, indicating potential undervaluation [4]. - The PEG ratio for UGP stands at 2.82, compared to the industry average of 3.24, suggesting a more attractive valuation relative to expected earnings growth [5]. - UGP's P/B ratio is 1.21, which is appealing against the industry's average P/B of 2.38, indicating a favorable market value compared to book value [6]. - The P/CF ratio for UGP is 4.60, well below the industry average of 11.99, highlighting a strong cash flow outlook [7]. Investment Outlook - The combination of UGP's strong valuation metrics and positive earnings outlook positions it as a compelling value stock for investors [8].

Core Insights - The article emphasizes the importance of in-depth research and insights for informed investment decisions in the Latin American equity market [1] Group 1 - The company has over 5 years of experience in equity analysis specifically focused on Latin America [1] - The research provided aims to assist clients in making informed investment decisions [1]

Financial Data and Key Metrics Changes - Ultrapar's recurring EBITDA for Q4 2024 was RMB 1.284 billion, a 23% decrease from Q4 2023, primarily due to lower EBITDA at Ipiranga and a loss of RMB 104 million from Hidrovias [10] - For the full year 2024, recurring EBITDA totaled RMB 5.375 billion, a 4% decrease compared to 2023, attributed to lower EBITDA at Ipiranga and the loss from Hidrovias, partially offset by positive results from Ultragaz and Ultracargo [10] - Net income for 2024 was RMB 2.526 billion, unchanged from 2023, due to lower recurring EBITDA at Ipiranga and tax adjustments [10] - Operational cash generation was RMB 3.736 million in 2024, a 2% decrease from 2023, driven by higher working capital investments [12] - Net debt as of December 2024 was RMB 8.9 billion, an increase of RMB 2.4 billion from December 2023, primarily due to investments and acquisitions [14] Business Line Data and Key Metrics Changes Ipiranga - Ipiranga's sales volume in Q4 2024 decreased by 1% year-over-year, with a 3% growth in the auto cycle and a 6% decline in diesel [18] - Recurring EBITDA for Ipiranga in Q4 2024 was RMB 844 million, a 27% decrease year-over-year, mainly due to reduced margins from unlawful practices and higher inventory levels [21] - Total EBITDA for Ipiranga in 2024 was RMB 4.445 billion, a 6% reduction year-over-year [22] Ultragaz - Ultragaz's LPG sales volume in Q4 2024 increased by 3% year-over-year, with a 3% rise in the bottled segment and a 4% increase in the bulk segment [23] - Recurring EBITDA for Ultragaz in Q4 2024 was RMB 441 million, a 9% growth year-over-year, driven by higher volume and better sales mix [24] Ultracargo - Ultracargo's cubic meters sold grew by 9% year-over-year in Q4 2024, with net revenue reaching RMB 283 million, a 10% increase [26] - Ultracargo's EBITDA for Q4 2024 was RMB 169 million, a 9% growth year-over-year [27] Market Data and Key Metrics Changes - The market share of unlawful companies that do not comply with regulations decreased by 2.9 percentage points in 2024, indicating a shift towards better compliance [17] - The fuel sector in Brazil has faced significant challenges due to unlawful practices, including tax evasion and non-compliance with biodiesel blending requirements [15][16] Company Strategy and Development Direction - The company plans to continue its fight against unlawful practices in the fuel sector to create a more competitive environment for compliant companies [18] - A significant capital allocation of RMB 1.8 billion was made to acquire a 42% stake in Hidrovias Brazil, marking the largest single asset investment in the last decade [8] - The company is focusing on quality over quantity in its service station network, aiming for stability and strategic growth [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for improved margins in 2025, contingent on regulatory changes and a reduction in unlawful practices [40] - The company anticipates that the regulatory environment will continue to evolve positively, aiding in the fight against unlawful practices [110] Other Important Information - The company announced a dividend payment of RMB 493 million, bringing the total dividend distribution for 2024 to RMB 769 million [11] - The planned transition of CEO and CFO positions is set to be completed by April 2025 [9] Q&A Session Summary Question: Expectations for Ipiranga's margins in 2025 - Management highlighted that unlawful practices have significantly impacted margins and that improvements depend on regulatory changes [37][40] Question: Investment strategy given a favorable balance sheet - Management indicated a focus on quality service stations and opportunistic investments rather than aggressive expansion [42] Question: Growth opportunities for Ultragaz - Management noted that Ultragaz is being utilized as a platform for growth, particularly in new energy solutions [46][51] Question: Working capital management - Management discussed efforts to optimize inventory levels, particularly in Ipiranga, to improve working capital efficiency [53][56] Question: Capital allocation and potential diversification - Management confirmed that capital allocation decisions will depend on execution capacity and the potential for good returns on investments [62][63] Question: Concerns regarding Hidrovias capital increase - Management clarified that the capital increase aims to support growth and reduce leverage, with plans to formally announce it soon [90][91]

Financial Data and Key Metrics Changes - Ultrapar's recurring EBITDA for Q3 2024 was BRL1.506 billion, a 24% decrease compared to Q3 2023, primarily due to lower EBITDA from Ipiranga [7] - Net income for Q3 2024 was BRL698 million, down 22% year-over-year, but year-to-date net income reached BRL1.645 billion, a 17% increase [7] - Investments totaled BRL519 million in Q3 2024, a 37% increase year-over-year, driven by higher investments in Ipiranga [8] - Operating cash flow generation was BRL780 million, 59% lower than Q3 2023, mainly due to lower EBITDA and higher working capital investments [8] - Net debt increased to BRL7.968 billion, with leverage rising from 1.2x to 1.3x due to lower LTM EBITDA [9] Business Line Data and Key Metrics Changes Ipiranga - Ipiranga's sales volume grew by 4% year-over-year, with a 5% increase in the auto cycle and a 2% increase in diesel [10] - Ipiranga's recurring EBITDA was BRL936 million, a 34% decrease year-over-year [11] - Same-store sales growth for AmPm stores was 7% [10] Ultragaz - Ultragaz's LPG sales volume increased by 4% year-over-year, with a 7% increase in bulk LPG sales [13] - Ultragaz's EBITDA was BRL448 million, a 1% decrease year-over-year [14] Ultracargo - Ultracargo's net revenues were BRL266 million, a 1% increase year-over-year, while EBITDA totaled BRL168 million, a 3% decrease [16] Market Data and Key Metrics Changes - Ipiranga's competitive environment improved in Q3 2024 compared to Q2 2024, with a reduction in sector irregularities [11] - The market for diesel remains competitive, particularly on highways and in the spot market, with stable margins observed [22] Company Strategy and Development Direction - Ultrapar aims to maintain strong margins in Ipiranga, with expectations of over BRL130 per cubic meter despite current conservative estimates [42] - The company is focusing on regulatory adjustments and fighting illegal practices in distribution to enhance market competitiveness [45][46] - Ultrapar is investing in new energy sources, expecting 3% to 5% of EBITDA to come from these initiatives [48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the competitive dynamics improving in the second half of the year, with expectations for better margins in upcoming quarters [19][22] - The company is closely monitoring economic conditions and does not anticipate significant impacts from the U.S. elections on its strategy [52] Other Important Information - The company recorded a positive contribution of BRL9 million from Hidrovias, despite a two-month delay in profit recognition [7] - Management highlighted the importance of regulatory compliance and operational security in maintaining a competitive market [38] Q&A Session Summary Question: Expectations of margins at Ipiranga - Management indicated that the improvement in competitive dynamics has not fully reflected in margins yet, but they expect better conditions in future quarters [19][21] Question: Impact of diesel imports on distribution dynamics - Management noted a decrease in independent importers but emphasized that the Brazilian market remains dependent on imports [22][24] Question: Ultragaz's competition with other energy sources - Management discussed the positive impact of social programs on LPG usage and the potential for LPG to compete with natural gas and ethanol [30][31] Question: CapEx performance and future expectations - Management acknowledged that CapEx has been below expectations but anticipates a recovery in the fourth quarter [36][39] Question: Working capital dynamics - Management expects a recovery of working capital in the fourth quarter due to previous investments [51]