Core Viewpoint - The article emphasizes the importance of value investing and highlights Ultrapar Participacoes (UGP) as a strong candidate for value investors due to its attractive financial metrics and strong earnings outlook [2][8]. Company Analysis - Ultrapar Participacoes (UGP) has a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating it is considered a high-quality value stock [4]. - The current P/E ratio of UGP is 10.55, significantly lower than the industry average P/E of 18.76, suggesting it may be undervalued [4]. - UGP's Forward P/E has fluctuated between 6.92 and 19.24 over the past year, with a median of 10.89 [4]. - The PEG ratio for UGP is 2.89, which is lower than the industry average PEG of 3.03, indicating a favorable valuation relative to expected earnings growth [5]. - UGP's P/B ratio is 1.22, compared to the industry average P/B of 2.35, further supporting the notion of undervaluation [6]. - The P/CF ratio for UGP is 4.67, significantly lower than the industry average P/CF of 11.87, highlighting its strong cash flow position [7]. Financial Metrics - UGP's P/E ratio: 10.55 [4] - UGP's Forward P/E range: 6.92 to 19.24, median 10.89 [4] - UGP's PEG ratio: 2.89, industry average: 3.03 [5] - UGP's P/B ratio: 1.22, industry average: 2.35 [6] - UGP's P/CF ratio: 4.67, industry average: 11.87 [7]

Group 1 - Epsilon Energy Ltd. (EPSN) is a notable stock in the Oils-Energy sector, currently outperforming its peers with a year-to-date return of approximately 14.2% compared to the sector average of -6% [4] - The Zacks Rank for Epsilon Energy Ltd. is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 29.7% increase in the consensus estimate for full-year earnings over the past three months [3] - The Oils-Energy group ranks 15 within the Zacks Sector Rank, which evaluates 16 different groups based on the average Zacks Rank of individual stocks [2] Group 2 - Epsilon Energy Ltd. is part of the Oil and Gas - Integrated - United States industry, which ranks 82 in the Zacks Industry Rank, with an average loss of 8.2% year-to-date [6] - Ultrapar Participacoes S.A. (UGP) is another stock in the Oils-Energy sector that has performed well, with a year-to-date return of 20.2% and a Zacks Rank of 2 (Buy) [4][5] - The Oil and Gas - Production and Pipelines industry, to which Ultrapar belongs, is ranked 72 and has seen a positive movement of +6.5% so far this year [7]

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 ...

Core Viewpoint - Ultrapar Participacoes S.A. (UGP) is currently viewed as a more attractive investment option compared to Enbridge (ENB) for value investors, based on various valuation metrics and earnings outlook improvements [3][7]. Valuation Metrics - UGP has a forward P/E ratio of 9.51, significantly lower than ENB's forward P/E of 20.37, indicating that UGP may be undervalued [5]. - The PEG ratio for UGP is 2.40, while ENB's PEG ratio stands at 4.07, suggesting UGP has a better balance between price and expected earnings growth [5]. - UGP's P/B ratio is 1.10, compared to ENB's P/B of 2.08, further supporting the notion that UGP is undervalued relative to its book value [6]. Earnings Outlook - UGP is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, indicating stronger potential for future performance compared to ENB [3][7].

Core Viewpoint - Ultrapar Participacoes (UGP) is currently identified as a strong value stock, supported by its favorable Zacks Rank and various valuation metrics indicating it is undervalued compared to its industry peers [4][8]. Valuation Metrics - UGP has a P/E ratio of 10.22, significantly lower than the industry average of 17.75, indicating potential undervaluation [4]. - The stock's PEG ratio stands at 2.57, compared to the industry average of 3.02, suggesting a favorable growth outlook relative to its price [5]. - UGP's P/B ratio is 1.08, which is also lower than the industry average of 2.21, further supporting the notion of undervaluation [6]. - The P/CF ratio for UGP is 4.13, well below the industry average of 11.16, highlighting its attractive cash flow position [7]. Earnings Outlook - The combination of UGP's strong valuation metrics and positive earnings outlook positions it as an impressive value stock in the current market [8].

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].

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].

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]