Ultrapar ParticipacoesUGP -1.42%77 Operating Margin % is 4.96% as of Mar. 2026, which is 69% above its 10-year median of 2.93. GuruFocus rates UGP with a GF Score™ of 77/100 and a GF Value™ of $4.56 (Fairly Valued). The stock has 1 warning sign investors should review. Among 916 Oil & Gas companies, Ultrapar Participacoes ranks worse than 59.17% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Ultrapar Participacoes Operating Margin % Related Terms
Ultrapar Participacoes Operating Margin % Historical Data
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The historical data trend for Ultrapar Participacoes's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
UGP vs VLO, MPC, PSX: Operating Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Ultrapar Participacoes's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ultrapar Participacoes Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Ultrapar Participacoes's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ultrapar Participacoes's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Ultrapar Participacoes's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ultrapar Participacoes (UGP) has a Operating Margin % of 4.96% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ultrapar Participacoes and its competitors. This is 69% above median its historical median of 2.93. Over the past decade, Ultrapar Participacoes' Operating Margin % has ranged from 1.38 to 3.97. According to the industry distribution chart, Ultrapar Participacoes ranks #542 out of 916 companies in the Oil & Gas industry, placing it in the top 59.2%.
Is Ultrapar Participacoes' Operating Margin % too high?
Ultrapar Participacoes' current Operating Margin % of 4.96% is 69% above median its 10-year median of 2.93. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 3.97. The Oil & Gas industry median Operating Margin % is 6.86. Ultrapar Participacoes' value of 4.96% is 27.7% below this industry median. Based on the distribution chart, Ultrapar Participacoes ranks #542 out of 916 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Ultrapar Participacoes has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ultrapar Participacoes' Operating Margin % compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Ultrapar Participacoes ranks #542 out of 916 companies for Operating Margin %. This places Ultrapar Participacoes in the lower half of its industry. The industry median Operating Margin % is 6.86. Ultrapar Participacoes' value of 4.96% is 27.7% below this benchmark. Historically, Ultrapar Participacoes' own Operating Margin % has ranged from 1.38 to 3.97 over the past decade. While the company's 10-year median is 2.93 vs. the industry median of 6.86, Ultrapar Participacoes has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ultrapar Participacoes's current Operating Margin % of 4.96% is 27.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Ultrapar Participacoes and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ultrapar Participacoes's current Operating Margin % is 4.96%, which is 69% above median its own 10-year median of 2.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ultrapar Participacoes stock overvalued right now?
Based on GuruFocus' analysis, Ultrapar Participacoes (UGP) is currently considered Fairly Valued. The stock's GF Value™ is $4.56, compared to a current price of $4.87 — trading 6.8% above its estimated fair value. The current Operating Margin % is 4.96%, which is 69% above median its 10-year median of 2.93 and 27.7% below the Oil & Gas industry median of 6.86. Ultrapar Participacoes' overall GF Score™ is 77/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Ultrapar Participacoes (UGP), the current Operating Margin % is 4.96% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ultrapar Participacoes (UGP) Overvalued in 2026?
Based on GuruFocus' analysis, Ultrapar Participacoes stock appears to be overvalued.
The current stock price of $4.87 is trading 6.8% above its estimated GF Value™ of $4.56.
GuruFocus considers Ultrapar Participacoes to be Fairly Valued.
Key valuation signals for UGP:
Operating Margin %: 4.96% (69% above median its 10-year median of 2.93)
GF Value™: $4.56 vs. price of $4.87 (6.8% above fair value)
Industry Position: 27.7% below the Oil & Gas median (#542 of 916)
No single metric tells the full story. See the UGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ultrapar Participacoes SA engages in the investment of its own capital in services, commercial, and industrial activities, through the subscription or acquisition of shares of other companies. The company's business segments include: i) Ultragaz distributes LPG in the segments: bulk, comprising condominiums, trade, services, industries, and agribusiness; and bottled, mainly comprising residential consumers. ii) Ipiranga, the majority revenue generating segment, engages in the distribution and sale of oil-related products to service stations that operate under the Ipiranga brand throughout Brazil. iii) Ultracargo operates in specialized liquid bulk storage solutions in the main logistics centers. iv) Hidrovias: operates in logistics solutions and waterway and multimodal infrastructure.
77GF Score
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