UGI CORP (UGI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UGI - US9026811052 - Common Stock
38.85 USD
+0.34 (+0.88%)
38.85 USD
0 (0%)
Overall UGI gets a fundamental rating of 5 out of 10. We evaluated UGI against 14 industry peers in the Gas Utilities industry. UGI has only an average score on both its financial health and profitability. UGI is not valued too expensively and it also shows a decent growth rate. UGI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year UGI was profitable.
- UGI had a positive operating cash flow in the past year.
- UGI had positive earnings in 4 of the past 5 years.
- UGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 4.38%, UGI is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.19%, UGI is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- The Return On Invested Capital of UGI (7.20%) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 14.19% | ||
| ROIC | 7.2% |
ROA(3y)-1.2%
ROA(5y)2.26%
ROE(3y)-4.62%
ROE(5y)6.08%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 9.30%, UGI is in line with its industry, outperforming 42.86% of the companies in the same industry.
- UGI's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 15.64%, UGI is doing worse than 64.29% of the companies in the same industry.
- UGI's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 49.98%, UGI is doing worse than 78.57% of the companies in the same industry.
- UGI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.64% | ||
| PM (TTM) | 9.3% | ||
| GM | 49.98% |
OM growth 3Y-1.89%
OM growth 5Y0.02%
PM growth 3Y-4.31%
PM growth 5Y2.78%
GM growth 3Y6.91%
GM growth 5Y-0.6%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UGI is still creating some value.
- The number of shares outstanding for UGI remains at a similar level compared to 1 year ago.
- UGI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, UGI has an improved debt to assets ratio.
2.2 Solvency
- UGI has an Altman-Z score of 1.47. This is a bad value and indicates that UGI is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.47, UGI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- The Debt to FCF ratio of UGI is 18.29, which is on the high side as it means it would take UGI, 18.29 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 18.29, UGI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- UGI has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
- UGI has a Debt to Equity ratio of 1.47. This is in the lower half of the industry: UGI underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 18.29 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.04
WACC6.92%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that UGI may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.89, UGI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- A Quick Ratio of 0.70 indicates that UGI may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.70, UGI belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- UGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.79%, which is quite good.
- Measured over the past 5 years, UGI shows a small growth in Earnings Per Share. The EPS has been growing by 4.58% on average per year.
- The Revenue has been growing slightly by 1.07% in the past year.
- The Revenue has been growing slightly by 2.13% on average over the past years.
EPS 1Y (TTM)8.79%
EPS 3Y4.82%
EPS 5Y4.58%
EPS Q2Q%-43.75%
Revenue 1Y (TTM)1.07%
Revenue growth 3Y-10.33%
Revenue growth 5Y2.13%
Sales Q2Q%-3.62%
3.2 Future
- Based on estimates for the next years, UGI will show a small growth in Earnings Per Share. The EPS will grow by 4.03% on average per year.
- UGI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.54% yearly.
EPS Next Y-5.91%
EPS Next 2Y0.04%
EPS Next 3Y2.58%
EPS Next 5Y4.03%
Revenue Next Year16.15%
Revenue Next 2Y9.4%
Revenue Next 3Y7.25%
Revenue Next 5Y1.54%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- UGI is valuated reasonably with a Price/Earnings ratio of 11.63.
- 92.86% of the companies in the same industry are more expensive than UGI, based on the Price/Earnings ratio.
- UGI is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 12.36, UGI is valued correctly.
- Based on the Price/Forward Earnings ratio, UGI is valued a bit cheaper than 78.57% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, UGI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
- UGI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UGI is cheaper than 78.57% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of UGI indicates a rather cheap valuation: UGI is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.37 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.54
EPS Next 2Y0.04%
EPS Next 3Y2.58%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.90%, UGI has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.96, UGI has a dividend in line with its industry peers.
- UGI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
- The dividend of UGI has a limited annual growth rate of 2.76%.
- UGI has paid a dividend for at least 10 years, which is a reliable track record.
- UGI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.76%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 47.49% of the earnings are spent on dividend by UGI. This is a bit on the high side, but may be sustainable.
- The dividend of UGI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.49%
EPS Next 2Y0.04%
EPS Next 3Y2.58%
UGI CORP / UGI FAQ
What is the fundamental rating for UGI stock?
ChartMill assigns a fundamental rating of 5 / 10 to UGI.
What is the valuation status for UGI stock?
ChartMill assigns a valuation rating of 6 / 10 to UGI CORP (UGI). This can be considered as Fairly Valued.
How profitable is UGI CORP (UGI) stock?
UGI CORP (UGI) has a profitability rating of 5 / 10.
What is the expected EPS growth for UGI CORP (UGI) stock?
The Earnings per Share (EPS) of UGI CORP (UGI) is expected to decline by -5.91% in the next year.
Is the dividend of UGI CORP sustainable?
The dividend rating of UGI CORP (UGI) is 8 / 10 and the dividend payout ratio is 47.49%.